Farmer Bros Co delivered a solid start to fiscal 2025 (QQ1 2025) with a meaningful margin expansion and a positive adjusted EBITDA trajectory, despite only modest top-line growth. Net sales rose to $85.1 million, up ~3.9% year-over-year and ~0.8% quarter-over-quarter, while gross margin expanded to 43.9% from 37.6% a year earlier and 38.8% in the prior quarter. The company reported a GAAP net loss of $5.0 million for the quarter, largely reflecting asset-disposal dynamics versus a year-ago period that benefited from asset-sale gains; on an adjusted basis, EBITDA was positive at $1.4 million, marking a $1.9 million year-over-year improvement and a roughly $3 million sequential improvement from the fiscal 4Q24 loss. Management attributes the margin improvement to ongoing price optimization, better inventory management in response to coffee-commodity volatility, and ongoing cost-structure optimization linked to brand simplification and SKU rationalization. Leadership also highlighted progress on route density, in-stock optimization, and “right product, right time, right place” execution. Importantly, the quarter included strategic brand momentum: the Boyd’s premium brand refresh positions Farmer Bros as a nationwide premium option, with a forthcoming specialty tier to re-enter the specialty coffee space. Management cautioned that results are not expected to be linear quarterly given macro volatility, but signaled confidence in a durable, value-driven growth path focused on customer growth, route density, and cross-selling within existing customer bases. The balance sheet shows modest liquidity and a still-elevated debt burden relative to cash flow in the near term, underscoring the need to monitor working capital dynamics and commodity risk as the year unfolds.