[Management View]
Limoneira's management emphasized their strategic partnership with Sunkist, aiming to enhance structural efficiency and market access, with expected EBITDA improvements starting in FY2026. The expansion of avocado acreage is projected to drive significant organic growth beginning in FY2027. The company is accelerating its real estate monetization strategy, with the Harvest at Limoneira project progressing ahead of schedule and the Lemco Del Mar infill property under entitlement review.

[Outlook]
Management expects lemons to return to profitability with normalized pricing and fresh utilization levels in fiscal year 2026. The company plans additional avocado plantings over the next two fiscal years to expand production capacity. The Sunkist partnership is anticipated to deliver $5 million in annual cost savings and EBITDA improvements starting in FY2026.

[Financial Performance]
Limoneira reported a decline in agribusiness revenue from $61.8 million in Q3 FY2024 to $45.9 million in Q3 FY2025, primarily due to lemon pricing pressure. Operating performance shifted from $9 million in operating income to a $600,000 operating loss. Net income fell from $6.5 million in Q3 FY2024 to a $1 million net loss for Q3 FY2025. Adjusted EBITDA decreased from $13.8 million to $3 million over the same period.

[Q&A Highlights]
Question 1: Ben Klieve asked about costs associated with the Lemco Del Mar development and Limoneira's long-term vision for the project. (Line breaks here)
Answer: Mark Palamountain explained that costs would be similar to the Harvest development, estimated at $3 to $5 million over three to five years, mostly capitalized. Limoneira is currently leading the project with a team of experts, and future development partnerships will be assessed based on community and company needs.

Question 2: Ben Klieve inquired about the normalization of lemon pricing and supply constraints for the next year. (Line breaks here)
Answer: Mark Palamountain noted a pleasant surprise in August with lemon prices rebounding due to supply constraints from Turkey and Spain. He expects prices to stabilize with a potential increase, supported by the Sunkist partnership and new customer channels.

Question 3: Ben Klieve asked about avocado volume expectations for 2026. (Line breaks here)
Answer: Harold Edwards mentioned it is premature to predict, but current observations suggest similar or slightly lower volumes than 2025. The first significant volume improvement is expected in 2027.

[Sentiment Analysis]
Analysts expressed cautious optimism, focusing on strategic partnerships and real estate developments. Management maintained a confident tone, emphasizing long-term growth strategies and operational improvements.

[Quarterly Comparison]
| Metric | Q3 FY2025 | Q3 FY2024 |
|--------|-----------|-----------|
| Agribusiness Revenue | $45.9M | $61.8M |
| Operating Income | -$0.6M | $9M |
| Net Income | -$1M | $6.5M |
| Adjusted EBITDA | $3M | $13.8M |

[Risks and Concerns]
Risks include ongoing lemon pricing pressure and reduced fresh utilization. The company faces challenges in the avocado production cycle and potential regulatory hurdles in real estate development.

[Final Takeaway]
Limoneira is strategically positioning itself for long-term growth through partnerships and real estate development. Despite current financial challenges, management is optimistic about future profitability and expansion. The Sunkist partnership and avocado acreage expansion are key drivers for future growth, while real estate projects offer substantial value creation opportunities. Investors should monitor the company's progress in overcoming lemon market pressures and executing its comprehensive strategy.