Limoneira Company

Total net revenue in Q2 fiscal 2026 was $23.9 million, down from $35.1 million a year ago. Agribusiness revenue was $22.5 million vs. $33.6 million, and other operations revenue was $1.4 million vs. $1.5 million. Fresh lemon carton sales were $17.1 million on approximately 1,028,000 cartons at an average price of $16.63 per carton, versus 1,357,000 cartons at $14.52 per carton last year. Avocado revenue was nominal vs. $2.8 million last year; orange revenue was nominal vs. $1.6 million; specialty citrus and wine grapes were nominal vs. $700,000; and farm management revenue was nil vs. $300,000. Total costs and expenses were $45.6 million vs. $38.5 million, including $17.1 million of combined noncash charges. Operating loss was $21.7 million vs. $3.3 million; net loss applicable to common stock was $21.4 million, or $1.20 per diluted share, vs. $3.5 million, or $0.20 per diluted share. Adjusted net loss was $5.2 million, or $0.29 per diluted share, vs. $3.1 million, or $0.17 per diluted share. Adjusted EBITDA was a loss of $1.7 million vs. a loss of $200,000. Long-term debt was $93.7 million at April 30, 2026, up from $72.5 million at fiscal 2025 year-end. For full-year fiscal 2026, management reiterated fresh lemon volume guidance of 4.0 million to 4.5 million cartons and raised avocado volume guidance to 5.5 million to 6.5 million pounds. Management expects positive adjusted EBITDA in the third and fourth quarters, supported by higher lemon volumes and pricing, larger avocado volumes, and cost savings.

Harold Edwards framed the quarter as evidence that Limoneira’s strategic transformation is working, despite the large noncash charges and lower reported revenue. He emphasized improved Sunkist-driven customer access, stronger lemon pricing, expanding avocado capacity, water-rights monetization, and real estate value creation as multiple paths to long-term profitability. His tone was notably confident, repeatedly saying the company is well positioned to achieve positive adjusted EBITDA and unlock asset value.

Greg Hamm focused on the mechanics of the quarter and the new seasonality under the Sunkist partnership, noting Q1 and Q2 are now softer periods while Q3 and Q4 should be stronger. He detailed the $17.1 million of noncash charges, the $2.3 million of insurance proceeds, and the SG&A decline tied to the targeted $10 million annual savings from Sunkist, while also explaining that debt rose to $93.7 million due to seasonal cash flow timing. He said liquidity should improve in the second half and that higher lemon volumes and delayed avocado harvests should support results.

Analysts focused on avocado timing and pricing, lemon pricing strength, Windfall closing risk, and the timing/structure of Colorado River water monetization. Management said about 500,000 pounds of avocado volume were pushed from Q2 into Q3 and said current avocado pricing is around $1.30 to $1.40 per pound, with blended pricing expected around $1.30. On lemons, management said pricing is above $20 per carton and fresh utilization is above 80%, while on water rights Greg Hamm said an outright sale is less likely than crop substitution or a long-term lease/sale structure, with attention on contracts expiring December 31, 2026.