Free cash flow remains consistently negative, highlighted by a -2.9% FCF margin in 2026Q2 and an OCF/NI ratio of 0.16, indicating a fundamental inability to convert operations into cash.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Cash from Operations | 5.25M | 16.1M | -14.15M | -6.88M | -11.45M | -1.49M | 1.46M | 35.45M | 8.86M | 42.11M | 27.63M | 26.93M | 52.9M | 21.93M | 18.13M | 33.94M | -1.05M | 87.24M | 27.5M | 48.79M | 13.61M | 2.11M | 17.13M | 52.08M | -12.73M | 15.1M | 43.97M | 40.7M | 35.2M | 28.8M | 18.9M |
| Operating CF Margin % | - | 4.7% | -4.15% | -2.02% | -3.64% | -0.57% | 0.29% | 5.95% | 1.46% | 7.78% | 5.08% | 4.93% | 10.01% | 4.3% | 3.66% | 7.31% | -0.23% | 25.53% | 10.32% | 22.56% | 6.56% | 1.06% | 8.85% | 25.84% | -6.19% | 7.01% | 20.1% | 18.37% | 14.66% | 12.81% | 8.43% |
| Operating CF Growth % | 804.37% | 213.78% | -105.62% | 39.93% | -670.79% | -202.13% | -95.9% | 300.34% | -78.97% | 52.43% | 2.59% | -49.09% | 141.23% | 20.92% | -46.57% | 3341.36% | -101.2% | 217.3% | -43.65% | 258.39% | 545.21% | -87.68% | -67.11% | 508.97% | -184.35% | -65.66% | 8.02% | 15.63% | 22.22% | 52.38% | -38.03% |
| Net Income | -18.61M | -14.52M | -3.88M | -79.18M | -15.66M | -41.65M | -37.09M | -73.59M | -18.28M | 24.4M | 89.92M | 652K | 12.13M | -8.46M | -29.33M | -54.32M | -23.95M | -33.27M | -7.92M | 6.82M | 4.76M | -5.43M | 12.69M | 23.63M | 30.57M | 36.18M | 37.58M | 28.9M | 33.4M | 16.7M | 23.4M |
| Depreciation & Amortization | 10.84M | 11.45M | 11.59M | 22.17M | 23.81M | 27.63M | 29.9M | 31.07M | 30.46M | 22.97M | 20.77M | 24.18M | 27.33M | 32.54M | 32.11M | 31.76M | 26.78M | 18.29M | 9.76M | 9.32M | 8.96M | 8.4M | 7.1M | 5.78M | 5.49M | 5.53M | 5.63M | 5.2M | 5M | 5.4M | 5.7M |
| Stock-Based Compensation | 1.96M | 2M | 3.81M | 8.31M | 6.5M | 4.58M | 4.31M | 3.67M | 3.82M | 3.96M | 4.34M | 5.69M | 4.69M | 3.56M | 3.29M | 3.83M | 4.78M | 5.45M | 5.5M | 5.17M | 4.54M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | -735K | -425K | 13.4M | -300K | 41.65M | 17.15M | 15.48M | -80.31M | 123K | 137K | 74K | -78K | 336K | 758K | 15.56M | 719K | -8.14M | -5M | -3.51M | -1.54M | 3.99M | 495K | 1.74M | 0 | -1M | -1.9M | 200K | 100K |
| Other Non-Cash Items | 9.79M | 14.13M | -17.23M | 28.61M | -24.88M | -24.55M | 22.23M | 23.14M | 3.26M | -37.74M | 1.88M | 6.04M | -8.01M | 6M | 11.49M | 8.8M | -5.76M | 8.94M | 12.67M | -1.06M | 1.91M | 17.64M | 4.72M | -1.85M | 2.24M | 2.3M | -5.23M | -200K | -200K | -800K | -1.2M |
| Working Capital Changes | 1.27M | 3.04M | -8.44M | 13.95M | -801K | 19.11M | -17.59M | 9.51M | -27.56M | 13.04M | -8.97M | -9.76M | 16.61M | -11.79M | 648K | 43.53M | -3.65M | 72.27M | 6.78M | 36.69M | -1.55M | -14.99M | -5.84M | 20.54M | -51.53M | -30.64M | 5.99M | 7.8M | -200K | 7.3M | -9.1M |
| Change in Receivables | 10.38M | 10.83M | 10.45M | -939K | -6.26M | 1.44M | 12.89M | 2.76M | -4.63M | -14K | -3.48M | 2.08M | 2.25M | -2.43M | 2.77M | -2.93M | 6.66M | 45.13M | 29.79M | 29.09M | 3.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 3.38M | 7.39M | -7.95M | 19.79M | -22.83M | -9.38M | 19.53M | 16.19M | -15.51M | -8.5M | 3.61M | 20.47M | -14.44M | 5.12M | 13.31M | 3.95M | -14.75M | 1.73M | -9.26M | 4.2M | -3.92M | -5.51M | -877K | 2.66M | -1.58M | 990K | 0 | 4.4M | -2.9M | 5.6M | -4.1M |
| Change in Payables | -5.9M | -10.72M | -11.78M | 7.09M | 7.11M | 7.79M | -35.78M | 16.55M | 3.86M | 8.88M | -3.34M | -16.84M | 17.53M | 1.77M | -13.08M | 13M | -738K | 22.46M | 3.47M | -614K | -3.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -4.42M | -5.9M | 14.72M | 88.44M | -6.04M | -10.7M | 21.92M | -32.36M | -74.64M | -106.72M | -39.53M | -20.14M | -20.73M | -10.23M | -14.46M | -17.39M | -28.05M | -86.58M | -23.44M | -35.4M | -12.28M | -8.67M | -7.51M | -8.4M | -2.13M | -4.95M | -22.33M | -28.6M | -57.7M | -18.2M | 5M |
| Capital Expenditures | -7.99M | -9.59M | -13.84M | -15.02M | -15.16M | -15.12M | -17.56M | -34.76M | -37.02M | -84.95M | -50.48M | -19.22M | -25.27M | -15.89M | -17.5M | -19.42M | -28.48M | -38.9M | -24.85M | -12.48M | -12.84M | -8.83M | -7.68M | -9.09M | -5.04M | -5.91M | -14.13M | -6.2M | -3M | -4.4M | -5.3M |
| CapEx % of Revenue | 2.37% | 2.8% | 4.06% | 4.42% | 4.82% | 5.77% | 3.5% | 5.83% | 6.1% | 15.69% | 9.27% | 3.52% | 4.78% | 3.12% | 3.53% | 4.18% | 6.33% | 11.38% | 9.33% | 5.77% | 6.19% | 4.45% | 3.97% | 4.51% | 2.45% | 2.74% | 6.46% | 2.8% | 1.25% | 1.96% | 2.37% |
| Acquisitions | -732K | 3.69M | -1.21M | 92.23M | 0 | 4.42M | 0 | 2.4M | -39.61M | -25.85M | 1.35M | -1.2M | 1.63M | 0 | 0 | 0 | 0 | -48.29M | 0 | -23.17M | 0 | 0 | 0 | 0 | 0 | 0 | 700K | 0 | 200K | 200K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 4.31M | 0 | 29.78M | 11.23M | 9.12M | 0 | 39.48M | 2.4M | 1.99M | -21.43M | 10.95M | 1.58M | 4.54M | 5.67M | 3.04M | 2.02M | 437K | 605K | 1.41M | 256K | 559K | 165K | 174K | 685K | 2.91M | 960K | 843K | 300K | -1.6M | -1.2M | 300K |
| Cash from Financing | -2.2M | -9.23M | 10K | -86.14M | 17.05M | -37.39M | 29.66M | 1.46M | 61.98M | 49.76M | 17.84M | -3.62M | -22.85M | -12.93M | -5.85M | -14.61M | 13.21M | 9.4M | -6.67M | -6.14M | -5.81M | -5.44M | -6.8M | -30.76M | -7.09M | -6.29M | -10.53M | -14.5M | -4.9M | -4.6M | -4.1M |
| Debt Issued (Net) | -2.19M | -9.19M | 86K | -85.77M | 17.41M | -37.39M | 29.95M | 2M | 61.22M | 49.11M | 16.31M | -4.48M | -24.33M | -14.13M | -5.85M | -9.95M | 20.14M | 16.04M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -79.93M | 0 | 0 | 0 | 9.18M | -9.2M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.66M | -6.94M | -6.63M | -6.67M | -6.14M | -5.81M | -5.44M | -5.62M | -6.52M | -6.28M | -5.9M | -5.58M | -5.3M | -4.9M | -4.6M | -4.1M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -38K | -159K | -116K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -111.16M | 0 | 0 | 0 | -4.1M | -11.8M | 0 | 0 | 0 |
| Other Financing | -16K | -33K | -76K | -368K | -352K | 0 | -289K | -542K | 763K | 650K | 1.53M | 861K | 1.48M | 1.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 78.75M | -24.24M | -815K | -390K | -14.14M | 0 | 0 | 0 | 0 |
| Net Change in Cash | -1.37M | 969K | 586K | -4.58M | -444K | -49.58M | 53.03M | 4.54M | -3.8M | -14.85M | 5.93M | 3.17M | 9.31M | -1.23M | -2.17M | 1.93M | -15.89M | 10.06M | -2.61M | 7.25M | -4.48M | -11.99M | 2.82M | 12.91M | -21.95M | 3.86M | 11.1M | -2.4M | -27.4M | 6M | 19.8M |
| Free Cash Flow | -2.73M | 6.51M | -27.99M | -21.9M | -26.62M | -16.6M | -16.11M | 690K | -28.16M | -42.84M | -22.85M | 7.71M | 27.63M | 6.03M | 635K | 14.52M | -29.53M | 48.34M | 2.64M | 36.31M | 774K | -6.72M | 9.45M | 42.99M | -17.77M | 9.19M | 29.84M | 34.5M | 32.2M | 24.4M | 13.6M |
| FCF Margin % | -0.81% | 1.9% | -8.21% | -6.44% | -8.46% | -6.34% | -3.21% | 0.12% | -4.64% | -7.91% | -4.2% | 1.41% | 5.23% | 1.18% | 0.13% | 3.13% | -6.56% | 14.15% | 0.99% | 16.79% | 0.37% | -3.39% | 4.88% | 21.33% | -8.63% | 4.26% | 13.64% | 15.57% | 13.41% | 10.85% | 6.07% |
| FCF Growth % | 74.21% | 123.24% | -27.83% | 17.74% | -60.31% | -3.09% | -2434.06% | 102.45% | 34.25% | -87.49% | -396.19% | -72.08% | 357.95% | 850.08% | -95.63% | 149.17% | -161.09% | 1728.4% | -92.72% | 4590.7% | 111.51% | -171.17% | -78.03% | 341.88% | -293.5% | -69.22% | -13.52% | 7.14% | 31.97% | 79.41% | -36.45% |
| FCF per Share | -0.13 | 0.30 | -1.34 | -1.12 | -1.46 | -0.94 | -0.94 | 0.04 | -1.67 | -2.55 | -1.37 | 0.47 | 1.73 | 0.39 | 0.04 | 0.96 | -1.99 | 3.33 | 0.18 | 2.57 | 0.06 | -0.49 | 0.61 | 2.37 | -0.96 | 0.50 | 1.59 | 1.80 | 1.67 | 1.27 | 0.70 |
| FCF Conversion (FCF/Net Income) | 0.15x | -1.11x | 3.65x | 0.09x | 0.73x | 0.04x | -0.04x | -0.48x | -0.48x | 1.73x | 0.31x | 41.30x | 4.36x | -2.59x | -0.62x | -0.62x | 0.04x | -2.62x | -3.47x | 7.16x | 2.86x | -0.39x | 1.35x | 2.20x | -0.42x | 0.42x | 1.17x | 1.41x | 1.05x | 1.72x | 0.81x |
| Interest Paid | 0 | 2.36M | 2.8M | 11.76M | 7.5M | 5.7M | 4.43M | 5.51M | 3.18M | 1.5M | 425K | 769K | 1.26M | 1.78M | 2.12M | 1.95M | 0 | 812K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 152K | 164K | 177K | 142K | 355K | 21K | 107K | 144K | 567K | 324K | -858K | -361K | 370K | 317K | 324K | 0 | 136K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Operational Scale Sustainability
As reported in recent financial statements, FARM's operating cash flow frequently diverges from net income, with the 2026Q2 OCF/NI ratio of 0.16 highlighting a persistent inability to convert accounting losses into meaningful cash generation, suggesting that accruals and non-cash charges continue to mask underlying operational cash deficits.
The consistent gap between net income and operating cash flow suggests that the company's reported losses are not merely accounting artifacts but reflect genuine cash outflows. Investors should monitor whether the reliance on non-cash adjustments, such as depreciation, is sufficient to offset the ongoing cash burn inherent in the DSD model.
Based on the provided cash flow data, FARM's free cash flow trajectory is consistently negative, with a -2.9% FCF margin in 2026Q2, indicating that the company's capital-intensive logistics model continues to consume more cash than it generates from its core foodservice operations.
The inability to achieve positive free cash flow suggests that the recent strategic pivot has yet to yield the necessary operational efficiencies. This trend warrants further investigation into whether the current scale is sufficient to cover the fixed costs of the national DSD infrastructure.
According to quarterly filings, FARM maintains a CapEx/Revenue ratio averaging roughly 3% over the last ten quarters, which, as noted in financial disclosures, represents a significant burden for a company struggling to maintain positive operating margins while rationalizing its distribution footprint.
The persistent capital expenditure, despite declining revenue, suggests that the company is forced to reinvest in its fleet and equipment just to maintain its current service levels. This capital intensity appears to be a primary driver of the company's cash depletion, limiting its ability to fund growth initiatives.
As indicated by the erratic working capital changes, including a $5.2M outflow in 2026Q1, FARM's cash management appears highly sensitive to inventory and receivable cycles, which may suggest difficulties in optimizing the DSD supply chain following the recent divestiture of the Direct Ship business.
The volatility in working capital suggests that the company may be struggling to align its inventory levels with the reduced demand profile of its remaining customer base. This lack of efficiency in managing current assets and liabilities may further exacerbate the company's existing cash flow pressures.
Quick answers to the most common questions about buying FARM stock.
Farmer Bros. Co. (FARM) generated $16.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Farmer Bros. Co. (FARM) generated $6.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Farmer Bros. Co. (FARM) spent $9.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.