Limoneira CO (LMNR): Results of Operations and Financial Condition
Limoneira CO (LMNR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Limoneira Company Announces Third Quarter Fiscal Year 2026 Financial Results Third Quarter Total Net Revenues of $43.8 Million Entered Agreement to Sell Windfall Farms Vineyard Property for $15.0 Million All-Cash Via Competitive Public Auction Water Monetization Stra
How this was made
The 30-second read
Why it matters
The earnings miss may trigger short‑term sell pressure, but the raised avocado guidance and asset monetization could support a longer‑term rebound.
Market read
Micro‑cap agribusiness earnings update with modest material impact; relevant for niche investors in specialty food and land‑asset monetization.
What to watch
Potential cost synergies from the Sunkist partnership and upcoming water‑rights monetization are not fully priced yet.
Third Quarter Total Net Revenues of $43.8 Million; Entered Agreement to Sell Windfall Farms Vineyard Property for $15.0 Million All-Cash Via Competitive Public Auction; Water Monetization Strategy Remains on Track for Fiscal Year 2026; Raises Avocado Volume and Narrows Lemon Volume Guidance for Full Year Fiscal 2026
Third-quarter total net revenues, operating income and GAAP net loss worsened from the prior-year quarter, primarily reflecting lighter lemon sales volume and the Sunkist brokerage transition. Adjusted EBITDA increased, selling, general and administrative expenses declined, and management increased fiscal 2026 avocado-volume guidance, while long-term debt rose and nine-month results included substantial impairment and disposal charges.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total net revenues, three months ended July 31GAAP | $43.8 million | – | – |
| Agribusiness revenues, three months ended July 31GAAP | $42.2 million | – | – |
| Other operations revenue, three months ended July 31GAAP | $1.6 million | – | – |
| Total costs and expenses, three months ended July 31GAAP | $46.8 million | – | – |
| Impairment of assets, three months ended July 31GAAP | $4.1 million | – | – |
| Loss and expected loss on disposal of assets, net, three months ended July 31GAAP | $0.3 million | – | – |
| Selling, general and administrative expenses, three months ended July 31GAAP | $4.0 million | – | – |
| Operating loss, three months ended July 31GAAP | $3.0 million | – | – |
| Net loss applicable to common stock, after preferred dividends, three months ended July 31GAAP | $3.0 million | – | – |
| Diluted net loss per common share, three months ended July 31GAAP | $0.17 | – | – |
| Adjusted net income (loss) for diluted EPS, three months ended July 31non-GAAP | $0.4 million | – | – |
| Adjusted diluted net income (loss) per common share, three months ended July 31non-GAAP | $0.02 per diluted share | – | – |
| Adjusted EBITDA, three months ended July 31non-GAAP | $3.9 million | – | – |
| Total net revenues, nine months ended July 31GAAP | $85.9 million | – | – |
| Agribusiness revenues, nine months ended July 31GAAP | $81.5 million | – | – |
| Other operations revenue, nine months ended July 31GAAP | $4.5 million | – | – |
| Total costs and expenses, nine months ended July 31GAAP | $121.1 million | – | – |
| Impairment of assets, nine months ended July 31GAAP | $13.5 million | – | – |
| Gain on sales of water rights, nine months ended July 31GAAP | — | – | – |
| Loss and expected loss on disposal of assets, net, nine months ended July 31GAAP | $8.2 million | – | – |
| Selling, general and administrative expenses, nine months ended July 31GAAP | $14.0 million | – | – |
| Operating loss, nine months ended July 31GAAP | $35.2 million | – | – |
| Net loss applicable to common stock, after preferred dividends, nine months ended July 31GAAP | $34.0 million | – | – |
| Diluted net loss per common share, nine months ended July 31GAAP | $1.91 | – | – |
| Adjusted net loss for diluted EPS, nine months ended July 31non-GAAP | $13.3 million | – | – |
| Adjusted net loss per diluted share, nine months ended July 31non-GAAP | $0.74 | – | – |
| Adjusted EBITDA, nine months ended July 31non-GAAP | $(5.6) million | – | – |
| Fresh lemon cartons packed and sold, Q3other | 1,373 thousand cartons | – | – |
| Average lemon price per carton, Q3other | $19.88 | – | – |
| Avocado pounds sold, Q3other | 7,013 thousand pounds | – | – |
| Average avocado price per pound, Q3other | $1.15 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Fresh LemonsRevenue from external customers was $17.9 million, compared with $19.6 million. Fresh lemon carton sales were $27.3 million, compared with $23.8 million, driven by higher prices. | $17.9 million | – | – |
| Lemon PackingRevenue from external customers was $15.9 million, compared with $14.6 million. Average price per carton was $19.88, compared with $17.02. | $15.9 million | – | – |
| AvocadosApproximately 7,013,000 pounds were sold at a $1.15 average price per pound, compared with approximately 5,654,000 pounds at a $1.50 average price per pound. | $8.0 million | – | – |
| Other AgribusinessRevenue from external customers was $0.4 million, compared with $3.3 million. Brokered lemons and other lemon sales were immaterial, compared with $3.8 million, primarily due to the transition of citrus brokerage operations to Sunkist. | $0.4 million | – | – |
| Other operationsOther operations revenue was $1.6 million in the third quarter of fiscal year 2026, compared to $1.5 million in the third quarter of last fiscal year. | $1.6 million | – | – |
Fiscal year 2026 outlook
- NoteFresh lemon volumes: lower end of its previously announced range of 4.0 million to 4.5 million cartons
- NoteAvocado volumes: 7.0 million to 7.25 million pounds
- NoteTotal proceeds from Harvest, LLCB II, LLC and East Area II: approximately $180 million spread out over seven fiscal years
- NoteHarvest at Limoneira projected distributions for fiscal year 2026: $5 million
- NoteHarvest at Limoneira projected distributions for fiscal year 2027: $35 million
- NoteHarvest at Limoneira projected distributions for fiscal year 2028: $41 million
- NoteHarvest at Limoneira projected distributions for fiscal year 2029: $32 million
- NoteHarvest at Limoneira projected distributions for fiscal year 2030: $42 million
- NoteExpected Colorado River water-rights monetization event: fiscal year 2026
- NoteWindfall Farms sale expected to close: September 14, 2026, subject to customary closing conditions
What drove it
- Lower brokered lemons, oranges and specialty citrus sales resulting from the transition of citrus brokerage operations to Sunkist reduced total net revenues.
- Increased fresh carton lemon sales driven by higher prices partially offset lower brokered lemons, oranges and specialty citrus sales.
- Selling, general and administrative expenses declined primarily due to lower salaries, benefits and other selling expenses related to the Sunkist transition.
- The third quarter included a $4.1 million impairment charge related to Windfall Farms.
- Nine-month operating loss reflected aggregate impairment of approximately $13.5 million of Windfall Farms property assets and an $8.2 million loss and expected loss on disposal of assets, primarily related to removing remaining lemon orchards in Yuma, Arizona.
- The Company expects avocado-volume growth in fiscal year 2027 to be driven primarily by 400 acres planted in 2023 and 2024.
Concerns
- Management stated that third-quarter results came in below its expectations due to lighter than anticipated lemon sales volume.
- The Company now expects fresh lemon volumes at the lower end of the previously announced range of 4.0 million to 4.5 million cartons because of higher imports.
- Avocado revenue was $8.0 million despite aggregate pounds sold of approximately 7,013,000, as average price per pound was $1.15 compared with $1.50.
- Long-term debt, less current portion, was $100.7 million as of July 31, 2026, compared with $72.5 million at the end of fiscal year 2025.
- The Windfall Farms transaction is expected to close subject to customary closing conditions.
What to watch
- Closing of the $15.0 million all-cash Windfall Farms sale expected on September 14, 2026, subject to customary closing conditions.
- A potential monetization event tied to Colorado River water rights in fiscal year 2026.
- Fourth-quarter receipt and income recognition of the additional $2.0 million of insurance proceeds.
- Fresh lemon volumes relative to the lower end of the 4.0 million to 4.5 million-carton range.
- Avocado volumes relative to the increased range of 7.0 million to 7.25 million pounds.
- Progress toward targeted $10 million in annual selling, general and administrative expense savings, excluding an allowance on foreign receivables.
- The composting center, expected to become operational in the second half of fiscal year 2027.
Balance sheet and cash flow
- Cash as of July 31, 2026: $2,210 thousand; October 31, 2025: $1,509 thousand.
- Total assets as of July 31, 2026: $299,354 thousand; October 31, 2025: $311,137 thousand.
- Long-term debt, less current portion, as of July 31, 2026: $100,677 thousand; October 31, 2025: $72,450 thousand.
- Current portion of long-term debt as of July 31, 2026: $837 thousand; October 31, 2025: $31 thousand.
- Total liabilities as of July 31, 2026: $138,184 thousand; October 31, 2025: $120,300 thousand.
- Total stockholders' equity as of July 31, 2026: $150,508 thousand; October 31, 2025: $180,027 thousand.
- Net cash used in operating activities for the first nine months of fiscal year 2026: $15.9 million; prior-year period: $7.0 million.
- Net cash used in investing activities for the first nine months of fiscal year 2026: $9.5 million; prior-year period: $9.9 million.
- Net cash provided by financing activities for the first nine months of fiscal year 2026: $26.2 million; prior-year period: $15.9 million.
- Aggregate insurance proceeds received during the first nine months of fiscal year 2026: $5.4 million.
- Additional insurance proceeds confirmed on September 2, 2026: $2.0 million, anticipated in the fourth quarter of fiscal year 2026.
- Harvest at Limoneira joint venture available cash and cash equivalents as of July 31, 2026: $12.5 million.
Analysis
Limoneira reported third-quarter fiscal 2026 total net revenues of $43.8 million, compared with $47.5 million in the prior-year quarter. Agribusiness revenues were $42.2 million, compared with $45.9 million. The company attributed the revenue decrease primarily to lower brokered lemons, oranges and specialty citrus sales following the transition of its citrus brokerage operations to Sunkist. Higher-priced fresh carton lemon sales partially offset those declines.
Lemon pricing improved while volume was lower. The company sold approximately 1,373,000 fresh lemon cartons at an average price per carton of $19.88, compared with approximately 1,397,000 cartons at $17.02. Avocado aggregate sales volume rose to approximately 7,013,000 pounds from approximately 5,654,000 pounds, but avocado revenue was $8.0 million compared with $8.5 million because average price per pound was $1.15 compared with $1.50. Brokered lemon and other lemon sales were immaterial, compared with $3.8 million in the prior-year quarter.
GAAP profitability weakened. Operating loss was $3.0 million compared with $0.6 million, and net loss applicable to common stock was $3.0 million compared with $1.0 million. Diluted net loss per common share was $0.17 compared with $0.06. The quarter included a $4.1 million Windfall Farms impairment charge. On a non-GAAP basis, adjusted EBITDA was $3.9 million compared with $3.0 million, while adjusted diluted net income was $0.02 per share compared with an adjusted diluted net loss of $0.02 per share. Selling, general and administrative expenses declined to $4.0 million from $5.0 million, primarily due to lower costs related to the Sunkist transition.
The nine-month results reflect more substantial asset-related charges. Operating loss was $35.2 million, compared with $9.3 million, and net loss applicable to common stock was $34.0 million, compared with $7.7 million. The company cited aggregate impairment of approximately $13.5 million for Windfall Farms and an $8.2 million loss and expected loss on disposal of assets, primarily associated with removal of remaining Yuma lemon orchards. Net cash used in operating activities was $15.9 million, while long-term debt, less current portion, was $100.7 million as of July 31, 2026, compared with $72.5 million at fiscal 2025 year-end.
Management narrowed lemon expectations to the lower end of its 4.0 million to 4.5 million-carton fiscal 2026 range and increased avocado guidance to 7.0 million to 7.25 million pounds from 5.5 million to 6.5 million pounds. The $15.0 million all-cash Windfall Farms sale is expected to close on September 14, 2026, subject to customary closing conditions. Management also expects a Colorado River water-rights monetization event in fiscal 2026 and said it expects another quarter of positive adjusted EBITDA in the fiscal fourth quarter.
Management, verbatim
Third quarter results came in below our expectations due to lighter than anticipated lemon sales volume.
Harold Edwards, President and Chief Executive Officer
However, adjusted EBITDA exceeded prior-year third quarter results, and our overall performance reflects our continued efforts to execute our strategic transformation to position Limoneira for long-term value creation.
Harold Edwards, President and Chief Executive Officer
We now expect to achieve the lower end of our lemon volume guidance as a result of higher imports, and we are again raising our avocado volume guidance for fiscal year 2026.
Harold Edwards, President and Chief Executive Officer
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Free cash flow was not reported.
- Capital returns, including common dividends and share repurchases, were not reported.
- Quarterly operating cash flow, investing cash flow and financing cash flow were not reported.
- Previous-release outlook was not provided, so no actual-versus-prior-guidance comparison is available.
- Revenue, gross-margin, operating-expense and tax-rate guidance were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Limoneira Co. (NASDAQ: LMNR) is a diversified lemon and avocado grower that also monetizes land and water assets. The 8‑K reports Q3 2026 results and a $15 M property sale.
Ticker impact
Q3 2026 earnings released via 8‑K showing lower revenue, net loss and a $15 M land sale, with updated avocado guidance.
Potential near‑term decline of 3‑5% pending market reaction; longer‑term upside if avocado growth materializes.
Revenue fell YoY and net loss widened, while the $15 M asset sale signals balance‑sheet improvement but does not offset earnings weakness.
Market effects
Highlights ongoing monetization trends in agribusiness and real‑estate assets, may influence peer avocado growers.
Limited to U.S. agribusiness investors; no broader regional effect.
Low global relevance; primarily a micro‑cap earnings update.
Counterpoint
The land sale and improved avocado outlook could outweigh the revenue miss, supporting a buy‑on‑dip thesis.
Key entities
- ExecutiveHarold Edwards
President and CEO of Limoneira, provided commentary on results and strategy.
- AssetWindfall Farms
Vineyard property sold for $15 M to fund balance‑sheet improvement.
