Limoneira (Nasdaq: LMNR) reported fiscal Q3 2026 net revenue of $43.8 million, down 7.7% from $47.5 million a year earlier, while diluted loss per share widened to $0.17 from $0.06. For the quarter ended July 31, 2026, non-GAAP adjusted EBITDA rose 30% to $3.9 million as higher agribusiness operating income and lower SG&A expenses partly offset weaker revenue and a Windfall Farms impairment.
Core Earnings Data
Revenue declined primarily because Limoneira transitioned its citrus brokerage operations to Sunkist, reducing brokered lemon, orange, and specialty citrus sales. Higher fresh lemon pricing provided a partial offset, while total costs fell more slowly than revenue because the quarter included a $4.1 million asset impairment.
The company also reported adjusted diluted EPS of $0.02. The following comparison separates the improved non-GAAP EBITDA result from the wider GAAP loss.
| Metric | Fiscal Q3 2026 | Fiscal Q3 2025 | YoY Change |
|---|---|---|---|
| Total net revenue | $43.8 million | $47.5 million | Down about 7.7% |
| Total costs and expenses | $46.8 million | $48.1 million | Down about 2.8% |
| SG&A expenses | $4.0 million | $5.0 million | Down about 19.0% |
| Operating loss | $3.0 million | $0.6 million | Loss widened by about $2.3 million |
| Net loss applicable to common stock | $3.0 million | $1.0 million | Loss widened by about $2.0 million |
| Diluted loss per share | $0.17 | $0.06 | Loss widened by $0.11 |
| Adjusted EBITDA | $3.9 million | $3.0 million | Up about 30.0% |
Adjusted EBITDA and adjusted EPS are non-GAAP measures and exclude certain items affecting reported results.
Business and Segment Performance
Agribusiness remained the main source of revenue, but its decline outweighed growth in other operations. Within agribusiness, higher fresh lemon pricing contrasted with the loss of brokerage-related revenue and weaker avocado pricing.
| Business Metric | Fiscal Q3 2026 | Fiscal Q3 2025 | YoY Change |
|---|---|---|---|
| Agribusiness revenue | $42.2 million | $45.9 million | Down about 8.2% |
| Other operations revenue | $1.6 million | $1.5 million | Up about 7.0% |
| Fresh lemon carton sales | $27.3 million | $23.8 million | Up about 14.7% |
| Avocado revenue | $8.0 million | $8.5 million | Down about 5.9% |
| Brokered and other lemon sales | Immaterial | $3.8 million | Decreased following Sunkist transition |
Fresh lemon cartons sold declined about 1.7% to 1.373 million, but the average price increased about 16.8% to $19.88 per carton. These prices and sales were reported net of the Sunkist marketing fee.
Avocado volume moved in the opposite direction from revenue. Pounds sold increased about 24% to 7.013 million, while the average price fell about 23% to $1.15 per pound, resulting in lower avocado revenue. Limoneira recorded no orange, specialty citrus, or wine grape revenue, compared with a combined $2.3 million a year earlier, largely because of the brokerage transition.
Profitability, Cash Flow, and Balance Sheet
SG&A expenses fell by roughly $1.0 million, mainly due to lower salaries, benefits, and selling expenses associated with the Sunkist transition. However, the $4.1 million third-quarter impairment related to Windfall Farms contributed to the wider operating loss. Total Windfall Farms impairment charges reached approximately $13.5 million for the first nine months of fiscal 2026.
Cash flow figures were reported for the nine months ended July 31 rather than for the quarter alone. Net cash used in operating activities increased to $15.9 million from $7.0 million, while investing cash outflow was $9.5 million. Financing activities provided $26.2 million, helping fund those operating and investing outflows.
Long-term debt excluding the current portion rose to $100.7 million from $72.5 million at the end of fiscal 2025. Cash increased to $2.2 million from $1.5 million over the same period.
After the quarter ended, Limoneira agreed to sell Windfall Farms for $15.0 million in cash. The transaction was expected to close on September 14, 2026, subject to customary conditions, with management planning to use the monetization strategy to strengthen the balance sheet, reduce debt, and redeploy capital.
Cost Savings Raised Adjusted EBITDA While an Impairment Widened the GAAP Loss
The quarter produced opposing profitability signals. Adjusted EBITDA increased by $0.9 million even as the GAAP operating loss expanded by approximately $2.3 million. Management attributed the adjusted improvement to higher total agribusiness operating income and progress toward its targeted $10 million in annual SG&A savings, excluding an allowance on foreign receivables.
The GAAP result absorbed the Windfall Farms impairment and the effect of lower revenue. This distinction is important because the operating transition is reducing recurring expenses, but asset monetization has also generated substantial accounting charges. Future proceeds may support debt reduction, though they do not reverse the impairments already recognized.
Fiscal 2026 Guidance
Limoneira raised its avocado volume outlook after selling more than seven million pounds during the third quarter. Lemon volume remains within the prior range, but management now expects results at its lower end because of higher imports and lighter-than-anticipated sales.
| Metric | Latest Guidance | Previous Guidance | Change |
|---|---|---|---|
| Fresh lemon volume | Lower end of 4.0 million–4.5 million cartons | 4.0 million–4.5 million cartons | Shifted toward the low end |
| Avocado volume | 7.0 million–7.25 million pounds | 5.5 million–6.5 million pounds | Raised |
For fiscal 2027, the company expects avocado production to exceed 10 million pounds, approximately 30% above its expected fiscal 2026 level. Management said the anticipated increase is primarily tied to 400 acres planted in 2023 and 2024 that are expected to contribute to fiscal 2027 production.
Limoneira also expects positive adjusted EBITDA in fiscal Q4 and a fiscal 2026 water-rights monetization event, though it did not provide expected amounts. Its Harvest at Limoneira projections include a $5 million distribution in fiscal 2026 and $35 million in fiscal 2027 as part of approximately $180 million expected over seven fiscal years.
Risks Investors Need to Watch
- Lemon volume and import pressure: Higher imports led management to expect fresh lemon volume at the bottom of its fiscal-year range. Continued volume pressure could limit the benefit of higher carton prices.
- Avocado pricing: Third-quarter avocado volume increased substantially, but a lower average selling price caused revenue to decline. Fiscal 2026 revenue will therefore depend on both the raised volume outlook and realized pricing.
- Cash use and higher debt: Nine-month operating cash outflow more than doubled year over year, while long-term debt increased to $100.7 million. This raises the importance of completing planned asset monetizations and improving recurring cash generation.
- Monetization execution: The Windfall Farms sale remained subject to closing conditions at the time of the release, while the planned water-rights transaction had no disclosed value. The timing and proceeds of these transactions could affect the pace of debt reduction.
- Sunkist transition: The shift reduced brokerage revenue and eliminated certain citrus sales from Limoneira’s reported results. Although related cost savings are emerging, the company still needs to demonstrate that the streamlined model can produce sustained profitability.
Summary
Limoneira’s fiscal Q3 2026 results reflected a business in transition: reported revenue and the GAAP loss worsened, but adjusted EBITDA improved as agribusiness income and SG&A savings gained traction. Higher fresh lemon pricing and increased avocado volume were offset by the Sunkist brokerage transition, lighter lemon sales, and lower avocado prices. The main items to monitor are execution against the higher avocado outlook, lemon import pressure, operating cash use, and whether planned land and water monetizations translate into meaningful debt reduction.
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