Third Quarter 2026
Filed Nov 5, 2026Westrock Coffee Company Reports Third Quarter 2026 Results Reaffirms 2026 Outlook and Provides Preliminary 2027 Outlook
Third-quarter Consolidated Adjusted EBITDA increased 14.0% and net loss narrowed, but net sales declined 15.4%, Sustainable Sourcing & Traceability Segment Adjusted EBITDA declined, and the company remained loss-making under GAAP.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026GAAP | $300.2M | – | a decrease of 15.4% |
| Net sales, nine months ended September 30, 2026GAAP | $914.7M | – | – |
| Costs of sales, three months ended September 30, 2026GAAP | $258.7M | – | – |
| Costs of sales, nine months ended September 30, 2026GAAP | $789.7M | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $41.48M | – | an increase of 0.2% |
| Gross profit, nine months ended September 30, 2026GAAP | $125.0M | – | – |
| Selling, general and administrative expense, three months ended September 30, 2026GAAP | $33.96M | – | – |
| Selling, general and administrative expense, nine months ended September 30, 2026GAAP | $107.8M | – | – |
| Transaction, restructuring and integration expense, three months ended September 30, 2026GAAP | $3.79M | – | – |
| Transaction, restructuring and integration expense, nine months ended September 30, 2026GAAP | $10.63M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $38.24M | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | $120.0M | – | – |
| Income (loss) from operations, three months ended September 30, 2026GAAP | $3.24M | – | – |
| Income (loss) from operations, nine months ended September 30, 2026GAAP | $5.04M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | $12.53M | – | – |
| Interest expense, nine months ended September 30, 2026GAAP | $39.05M | – | – |
| Net loss, three months ended September 30, 2026GAAP | −$9.98M | – | – |
| Net loss, nine months ended September 30, 2026GAAP | −$32.17M | – | – |
| Net loss attributable to common shareholders, three months ended September 30, 2026GAAP | −$9.89M | – | – |
| Net loss attributable to common shareholders, nine months ended September 30, 2026GAAP | −$31.91M | – | – |
| Diluted loss per common share, three months ended September 30, 2026GAAP | $ (0.10) | – | – |
| Diluted loss per common share, nine months ended September 30, 2026GAAP | $ (0.33) | – | – |
| Consolidated Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $26.41M | – | up 14.0% |
| Consolidated Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $73.68M | – | – |
| Net cash provided by (used in) operating activities, nine months ended September 30, 2026GAAP | $24.81M | – | – |
| Additions to property, plant and equipment, nine months ended September 30, 2026GAAP | −$22.41M | – | – |
| Capital expenditures, third quarter of 2026other | $8.8M | – | down from $18.1 million in the third quarter of 2025 |
| Cash and cash equivalents, September 30, 2026GAAP | $41.10M | – | – |
| Total debt, September 30, 2026GAAP | $ 44,077 (Thousands) current maturities of long-term debt; $ 77,860 (Thousands) short-term debt; $ 319,479 (Thousands) long-term debt, net; $ 64,883 (Thousands) convertible notes payable - related party, net | – | – |
| Beverage Solutions Credit Agreement secured net leverage ratio, trailing twelve-months ended September 30, 2026other | 3.07x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Beverage Solutions, three months ended September 30, 2026Driven primarily by $26.1 million of tariff refunds expected to be passed through to customers that are reported as a reduction in net sales, and the pass-through of lower average green coffee prices during the third quarter compared to the prior year period. | $220.1M | – | a decrease of 16.3% |
| Sustainable Sourcing & Traceability, three months ended September 30, 2026No segment-specific revenue driver was provided. | $80.08M | – | a decrease of 12.8% |
| Beverage Solutions, nine months ended September 30, 2026Segment Adjusted EBITDA was $ 68,698 (Thousands), compared with $ 49,675 (Thousands) in the prior-year period. | $703.3M | – | – |
| Sustainable Sourcing & Traceability, nine months ended September 30, 2026Segment Adjusted EBITDA was $ 11,573 (Thousands), compared with $ 10,998 (Thousands) in the prior-year period. | $211.4M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 and preliminary 2027 outlook
- Note2026 Consolidated Adjusted EBITDA of $90.0 million to $100.0 million
- Note2027 Consolidated Adjusted EBITDA of approximately $130.0 million
Capital returns
- Repurchase of $40.0 million of its 2029 Notes for approximately $20.7 million in cash.
- Issuance of approximately 2.4 million shares of the Company’s common stock in connection with the refinancing transactions.
- The remaining $32.0 million of 2029 Notes were amended, including an extension of maturity to January 2032.
What drove it
- Net-sales decline was driven primarily by $26.1 million of tariff refunds expected to be passed through to customers that are reported as a reduction in net sales, and the pass-through of lower average green coffee prices during the third quarter compared to the prior-year period.
- Gross profit increased 0.2% to $41.5 million despite the net-sales decrease.
- Consolidated Adjusted EBITDA increased 14.0% to $26.4 million, marking the sixth consecutive quarter of year-over-year Consolidated Adjusted EBITDA growth, according to the CEO.
- Selling, general and administrative expense was $ 33,962 (Thousands) in the third quarter, compared with $ 46,996 (Thousands) in the prior-year quarter.
- Capital expenditures were $8.8 million, down from $18.1 million in the third quarter of 2025, which the company described as a structural shift in capital intensity.
Concerns
- Net sales declined 15.4% to $300.2 million in the third quarter.
- Sustainable Sourcing & Traceability Segment Adjusted EBITDA was $3.2 million, compared with $5.8 million for the prior-year period.
- The company reported a GAAP net loss of $10.0 million and diluted loss per common share of $ (0.10) in the third quarter.
- Interest expense was $ 12,530 (Thousands) in the third quarter.
- Total shareholders' equity (deficit) was $ (34,949) (Thousands) at September 30, 2026.
- The company identified risks related to green coffee and tea supply, supply-chain disruption, tariffs or trade restrictions, Conway facility commercialization, customer losses or delays, indebtedness, and compliance with credit-agreement financial covenants.
What to watch
- Delivery against reaffirmed 2026 Consolidated Adjusted EBITDA guidance of $90.0 million to $100.0 million.
- Progress toward preliminary 2027 Consolidated Adjusted EBITDA guidance of approximately $130.0 million.
- The effect of tariff refunds expected to be passed through to customers and lower average green coffee prices on reported net sales.
- Beverage Solutions commercial performance and the secured net leverage ratio under the new Credit Agreement.
- Sustainable Sourcing & Traceability profitability following third-quarter Segment Adjusted EBITDA of $3.2 million.
- Commercialization of customers at the Conway, Arkansas facility and the timing of positive operating cash flows.
Balance sheet and cash flow
- Cash and cash equivalents were $ 41,104 (Thousands) at September 30, 2026, compared with $ 49,875 (Thousands) at December 31, 2025.
- Restricted cash was $ 13,707 (Thousands) at September 30, 2026, compared with $ 21,164 (Thousands) at December 31, 2025.
- Net cash provided by operating activities was $ 24,813 (Thousands) for the nine months ended September 30, 2026, compared with net cash used in operating activities of $ (55,703) (Thousands) in the prior-year period.
- Net cash used in investing activities was $ (10,241) (Thousands) for the nine months ended September 30, 2026, compared with $ (78,169) (Thousands) in the prior-year period.
- Net cash used in financing activities was $ (30,796) (Thousands) for the nine months ended September 30, 2026, compared with net cash provided by financing activities of $ 146,741 (Thousands) in the prior-year period.
- The October 21, 2026 Credit Agreement provides a $300.0 million senior secured first lien term loan facility and a $300.0 million senior secured first lien revolving credit facility, for total commitment of $600.0 million. The facilities mature in October 2031.
- Beverage Solutions unrestricted cash and cash equivalents were $ 39,011 (Thousands), secured net debt was $ 286,094 (Thousands), and Trailing Twelve-Months Credit Agreement Adjusted EBITDA was $ 93,042 (Thousands) as of September 30, 2026. The secured net leverage ratio was 3.07x.
Analysis
Westrock Coffee reported third-quarter net sales of $300.2 million, down 15.4%, while gross profit increased 0.2% to $41.5 million. The company attributed the sales decline primarily to $26.1 million of tariff refunds expected to be passed through to customers and reported as a reduction in net sales, as well as the pass-through of lower average green coffee prices. Beverage Solutions net sales declined 16.3% to $220.1 million and Sustainable Sourcing & Traceability net sales declined 12.8% to $80.1 million.
Profitability improved materially below gross profit. Selling, general and administrative expense was $ 33,962 (Thousands), versus $ 46,996 (Thousands) a year earlier, and operating results moved to income of $ 3,237 (Thousands) from an operating loss of $ (8,631) (Thousands). Consolidated Adjusted EBITDA increased 14.0% to $26.4 million, while the GAAP net loss narrowed to $10.0 million from $19.1 million. Interest expense remained $ 12,530 (Thousands), leaving the company with a third-quarter diluted loss per common share of $ (0.10).
Segment performance was uneven. Beverage Solutions Segment Adjusted EBITDA rose to $23.3 million from $20.4 million despite the revenue decline. Sustainable Sourcing & Traceability Segment Adjusted EBITDA declined to $3.2 million from $5.8 million. For the nine months ended September 30, 2026, consolidated net sales were $ 914,683 (Thousands), gross profit was $ 124,997 (Thousands), and Consolidated Adjusted EBITDA was $ 73,676 (Thousands), compared with $ 46,720 (Thousands) in the prior-year period.
Cash flow and capital intensity improved in the reported nine-month period. Net cash provided by operating activities was $ 24,813 (Thousands), compared with net cash used in operating activities of $ (55,703) (Thousands) a year earlier. Additions to property, plant and equipment were $ (22,407) (Thousands), versus $ (79,885) (Thousands), while third-quarter capital expenditures were $8.8 million compared with $18.1 million. Cash and cash equivalents were $ 41,104 (Thousands) at September 30, 2026, and total shareholders' equity (deficit) was $ (34,949) (Thousands).
After quarter-end, the company closed a new five-year Credit Agreement with total commitment of $600.0 million, replacing $425.0 million under the prior credit agreement. It also repurchased $40.0 million of 2029 Notes for approximately $20.7 million in cash and amended the remaining $32.0 million of notes to extend maturity to January 2032. Management reaffirmed 2026 Consolidated Adjusted EBITDA guidance of $90.0 million to $100.0 million and introduced preliminary 2027 Consolidated Adjusted EBITDA guidance of approximately $130.0 million.
Management, verbatim
The third quarter was another record quarter for Westrock Coffee, as it was the sixth consecutive quarter of year-over-year Consolidated Adjusted EBITDA growth. We are growing, we are generating cash, and with the recently closed Beverage Solutions credit agreement, we have put the balance sheet on solid footing for the long-term.
Scott T. Ford, CEO and Co-founder
Not in the filing
stated, not guessed- Gross margin was not reported.
- Non-GAAP earnings per share was not reported.
- Free cash flow was not reported.
- Quarterly operating cash flow was not reported.
- Quarterly free cash flow was not reported.
- Dividends were not reported.
- Share repurchases were not reported.
- Prior-quarter figures for reported operating metrics were not reported.
- Prior guidance comparison is unavailable because no previous outlook section was provided.
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.