Limoneira Co. (LMNR) reported a net loss of $3.0 million, or $0.17 per diluted share, for the fiscal third quarter ended July 31, 2026, compared to a loss of $1.0 million, or $0.06 per share, in the prior-year period.
Total net revenue fell 7.8% to $43.8 million from $47.5 million, driven by lower agribusiness sales of $42.2 million against $45.9 million a year earlier. The company said other operations revenue rose to $1.6 million from $1.5 million.
Operating losses widened to $3.0 million from $600,000, though selling, general and administrative expenses decreased to $4.0 million from $5.0 million, and total costs and expenses fell to $46.8 million from $48.1 million.
Adjusted net income improved to $400,000, or $0.02 per diluted share, from an adjusted loss of $400,000 a year earlier. Adjusted EBITDA climbed 30% to $3.9 million from $3.0 million.
Fresh lemon carton sales totaled $27.3 million, up 14.7% from $23.8 million, supported by an average price of $19.88 per carton versus $17.02 in the year-ago quarter. However, volume slipped to 1,373,000 cartons from 1,397,000, and brokered lemon and other lemon sales became immaterial compared to $3.8 million previously.
Orange revenue fell to zero from $1.7 million, and specialty citrus plus wine grape revenue dropped to nil from $600,000.
Avocado sales came in at 7.0 million pounds at an average of $1.15 per pound, down sharply from 5.7 million pounds at $1.50 in the prior-year quarter — a 23.3% decline in average price. For the first nine months of fiscal 2026, the company sold approximately 7.3 million pounds of avocados.
Limoneira trimmed its full-year lemon volume guidance to 4.0 million–4.25 million cartons, down from a previous range of 4.25 million–4.5 million cartons. Avocado volume guidance was raised to 7.0 million–7.25 million pounds from 5.5 million–6.5 million pounds. For fiscal year 2027, the company expects avocado production to exceed 10 million pounds, roughly a 30% increase over fiscal 2026, supported by 400 acres planted in 2023–2024 and an additional 400 non-bearing acres.
On balance sheet, long-term debt rose to $100.7 million from $72.5 million at fiscal year-end 2025, while cash and equivalents stood at $2.2 million versus $1.5 million previously.
The company announced the sale of Windfall Farms for $15 million in all-cash, expected to close Sept. 14, 2026. Under the farming agreement, Limoneira will continue managing the vineyard for $200,000 annually plus full expense reimbursements, excluding the 2026 crop. Additional insurance proceeds of $2 million are anticipated in the fourth fiscal quarter following confirmation on Sept. 2, 2026. Vineyard crop economic collection is expected to be substantially complete by Oct. 31.
Future proceeds from Harvest, Limoneira Lewis Community Builders II and East Area 2 are projected at a combined $155 million over the next five fiscal years. Real estate development, non-strategic land assets and water rights were identified for monetization totaling over $200 million. CEO Harold Edwards said he was "very confident" the company would reach a long-term water agreement in the fourth quarter, noting Limoneira is "very well positioned to achieve positive adjusted EBITDA and monetize one of our water assets" as it enters the final fiscal quarter.
Shares closed at $14.94, down 0.6%, and dropped 6.71% in after-hours trading to $13.94. The stock's 52-week range is $11.67 to $15.55, with a market cap of $270 million. Limoneira has maintained dividend payments for 18 consecutive years, yielding 2.0%.
