Good afternoon, and welcome to the Farmer Brothers Fiscal Fourth Quarter and Year-End 2025 Earnings Conference Call. As a reminder, this call is being recorded. Today, the company filed its Form 10-K and issued its fourth quarter and year-end results press release, which are available in the Investor Relations section of the Farmer Brothers website at farmerbros.com. The release is also included as an exhibit on the company's Form 10-K and is available on its website and the Securities and Exchange Commission's website at sec.gov. A replay of this audio-only webcast will also be available on the company's website approximately 2 hours after the conclusion of this call. Before we begin the call, please note that all financial information presented is unaudited and various remarks made by management during this call about the company's future expectations, plans and prospects may constitute forward-looking statements for the purposes of safe harbor provisions under the federal securities laws and regulations. These forward-looking statements represent the company's views as of today and should not be relied upon as representing the company's views as of any subsequent date. Results could differ materially from those forward-looking statements. Additional information on factors which could cause actual results and other events to differ materially from those forward-looking statements is available in the company's release and public filings. On today's call, management will also reference certain non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA margin in assessing the company's operating performance. Reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures is also included in the company's release and SEC filings. I will now turn the call over to Farmer Brothers' President, Chief Executive Officer, John Moore. Mr. Moore, please go ahead.

Good afternoon, everyone, and thank you for joining us. Fiscal 2025 was a strong year for Farmer Brothers. We realized significant operational and financial improvements despite market headwinds. We ended the year with gross margins above 43%, a more than $14 million year-over-year improvement in adjusted EBITDA, continued decreases in SG&A expenses and significantly paid down debt. We also captured a number of internal efficiency gains from both an organizational and cost structure perspective, as a result of our manufacturing, sales and network optimization initiatives. With the successful launch of our Sum>One specialty brand this past March, we fully realized the completion of our SKU rationalization and brand pyramid good, better, best positioning initiatives. Early response to Sum>One has been encouraging with several promising opportunities in the pipeline. In fact, we are currently working with a few of our larger customers to launch Sum>One branded café experiences across their locations and look forward to sharing more with you in the coming months. In distilling a multitude of brands and coffee types into our core Farmer Brothers, Boyd’s and Sum>One brands, we leveraged a significant and differentiating capability in Farmer Brothers, our coffee sourcing, quality control, roasting and manufacturing teams. In addition to flexing this core competence for SKU rationalization, the team was also able to reconstitute our sourcing methodologies to enhance elasticity and provide more resilience. This is of particular importance given the current state of the green coffee markets. We've also continued to differentiate ourselves from competitors with our ability to provide a fully comprehensive set of coffee solutions. Our sourcing and product development team enable Farmer Brothers to engineer solutions from soil to sip. Our small batch and nimble manufacturing capability allows us to provide coffee finished goods ranging from more value-engineered commercial applications to the highest of quality specialty coffee types. These services can be provided in both LTO and large-scale volumes in our SQF and LEED Silver certified Portland, Oregon roasting and manufacturing facility. With the appointments of Brian Miller in sales and Travis Young in field operations to our leadership team, we formally separated those responsibilities. This heightened focus in each respective area is allowing leadership to better align team KPIs and incentive structures with customer and team member needs. In each area, we are seeing heightened focus, attention to detail and improved execution. We also further strengthened our customer service efforts with the full reintegration of our revived services team back into our field operations organization. Revive is home to one of the largest coffee service networks in the country and provides installation, maintenance, repair and restoration services for coffee, tea and other beverage equipment. Emphasizing and investing in our refurbishment capability while improving controls and ROI expectations allowed us to make significant reductions in CapEx related to brewing equipment expenditures. Thanks to our partnerships with leading equipment manufacturers. Revive continues to be a true market differentiator for Farmer Brothers and a key component in our customer retention efforts. Across the board, we spent much of 2025 focused on improving our technology platforms and systems. We completed an upgrade of all our hardware for Route Sales Representatives and Revive team members as well as several improvements designed to enhance our supply chain optimization and flexibility efforts. We also launched a new CRM tool in early fiscal 2025, which is providing the organization with better customer analytics. This data will allow us to better target products and pricing and provide further insight into supply and demand forecasting going forward. The macro and microeconomic environments, however, continue to present significant challenges for the coffee industry as a whole. As such, we saw total coffee volumes decreased by 10% on a year-over-year basis, just shy of GBP 20 million in 2025. According to recent commerce department data, U.S. restaurants and bars saw one of the weakest 6-month periods of sales growth in the past decade during the first half of 2025. Leaders in the QSR restaurant and C-store channels have all reported further evidence of softness in consumer purchasing patterns, particularly in the breakfast daypart. Overall, this year has shown weaker growth in the Food services sector than that during the COVID-19 pandemic when restaurants and bars were closed due to lockdown orders. This downturn in overall foot traffic across our customer base, coupled with a 65% plus rise in green coffee prices over the past year makes for a particularly challenging market environment. The impact of potential tariffs, especially the 50% tariff on goods imported from Brazil, which went into effect in early August has also yet to be fully realized. While Farmer Brothers' exceptional access to global coffee markets creates flexibility for our planning and procurement teams, we do anticipate we will see a significant increase in our overall cost of goods in fiscal 2026. Our proactive pricing strategy helped us stay ahead of these challenges in fiscal 2025. We believe we have maximized this strategy and do not plan to make additional price adjustments at this time. As such, we expect pressure on our top line and gross margin in fiscal 2026. Despite these challenges, we remain committed to driving company growth and creating value for our shareholders, as highlighted in our July announcement of the formation of our Strategy Committee. The committee is continuing to explore opportunities and we will provide more information if and when it is appropriate. Looking to fiscal 2026, we are committed to addressing customer and coffee pound degradation and driving top line revenue. We are focused on unlocking the full power and potential of our DSD network. With Travis Young driving DSD field operations, we are creating a culture of accountability that is focused on driving product penetration within existing accounts while also adding new ones. Farmer Brothers' white-glove service value proposition will continue to be a key driver in customer retention and loyalty, focused on growth across our restaurant, coffee shop, café, bagel and doughnut shop channels as well as continuing to expand with GPOs nationally. We believe we can meet the needs of our customers regardless of their size with our good, better, best brand pyramid value proposition. With Brian Miller at the helm, we are cultivating a unified sales team through a comprehensive organization-wide training and KPIs. We will also look to leverage our core coffee capability as we grow our white-label customer portfolio and better utilize our Portland, Oregon roasting and manufacturing facility. Our unique seed-to-sip value chain engineering capabilities allow us to offer diverse quality and packaging possibilities, making us particularly attractive to potential white-label customers. While we do expect market challenges to continue throughout fiscal 2026, we believe the changes we have made over the recent years have created a strong foundation from which we can grow. With that, I'll turn it over to Vance to discuss our financial results in more detail.

Thanks, John, and good afternoon, everyone. As John mentioned, Farmer Brothers delivered very strong results in fiscal '25, despite a challenging market environment. We achieved significant year-over-year improvements in adjusted EBITDA gross margins and SG&A and significantly improved our cash flow generation, which allowed us to strengthen our balance sheet. Overall, our adjusted EBITDA for the fourth quarter was $5.8 million and $14.8 million for the full fiscal year, a year-over-year improvement of more than $7 million for the quarter and more than $14 million for the full fiscal year. Our adjusted EBITDA results were supported by healthy gross margins. Gross margin in the fourth quarter was 44.9%, a year-over-year increase of 610 basis points. For the full fiscal year, gross margins were 43.5%, a 420 basis point increase compared to the prior year. Our proactive approach to pricing continued to positively impact gross margins throughout the year as we strategically stayed ahead of the rising green coffee market. However, as John mentioned earlier, we believe we have maximized the benefits of this strategy. And at this time, we do not have plans to take additional price in the near term. As a result, we expect pressure on gross margins throughout fiscal '26 as we realize the impact of the rising green coffee COGS in our results and expect gross margins to drop into the high 30s range over the coming quarters. From a top-line perspective, net sales during the fourth quarter were $85.1 million compared to $84.4 million during the prior year period. For the full fiscal year, net sales were up slightly to $342.3 million compared to $341.1 million in the prior year. Operating expenses increased $14.3 million to $150.4 million for the year. This increase was almost exclusively a result of a $20.2 million year-over-year decrease in net gains related to the sale of branch properties and other assets as we had far fewer branch sales in fiscal '25 compared to fiscal '24. Excluding asset sales, operating expenses decreased by $6 million or 190 basis points as a percentage of net sales. This reflects the progress we've made in driving efficiencies in our SG&A cost structure and better positions us to manage a challenging operating environment. For the fourth quarter, Farmer Brothers recorded a net loss of $4.7 million compared to a $4.6 million net loss in the fourth quarter of fiscal '24. For the full fiscal year, we recorded a net loss of $14.5 million compared to a loss of $3.9 million in the prior year. The current fiscal year included noncash losses of $7.7 million related to pension settlements and a $20.2 million decrease in net gains on asset sales due primarily to fewer branch sales in the current year compared to the prior year, as I mentioned earlier. We made meaningful progress strengthening the balance sheet during the year. As of June 30, 2025, we had $6.8 million of unrestricted cash and cash equivalents and $14.3 million in outstanding borrowings under our credit facility. This represents a roughly $10 million decrease in our net debt position over the course of the year, and we ended the year with $32.6 million of additional borrowing capacity under our credit facility. Free cash flow generation was much improved in fiscal '25. For the fourth quarter, free cash flow was $7.5 million and $6.5 million for the full fiscal year, representing a year-over-year increase of $12.1 million for the quarter and $34.5 million for the full fiscal year. This significant improvement in free cash flow is a testament to our progress in driving better operating performance, improved working capital management and CapEx efficiency and puts us in a much stronger overall financial position. Looking ahead, we expect market conditions to continue to be challenging throughout fiscal '26 as the green coffee market has continued to stay elevated and uncertainty remains regarding tariff impacts. These elements will put pressure on our gross margins and overall financial results throughout fiscal '26. With that said, we are pleased with our fiscal '25 performance as it reflects the significant progress Farmer Brothers has made to improve our operating results and financial position and believe it demonstrates our potential to generate significant long-term value for our shareholders under more favorable market conditions. With that, I'll turn it back over to John.

Thanks, Vance. Farmer Brothers has come a long way in a fairly short amount of time. Fiscal 2025 was a year of tremendous improvement both financially and operationally despite significant market headwinds. While we take great pride in that, as you've heard me say time and again, there is still much work to be done. As such, we remain committed to driving top line revenue growth, increasing overall coffee volumes, strengthening our customer retention and expansion efforts and delivering an exceptional customer experience in fiscal 2026. Before we open it up for questions, I want to take a quick moment to thank our team. Their leadership, perseverance and determination continue to be what drives our successes, both big and small, and how we continue to build connections over coffee. They are what makes Farmer Brothers great. Thank you all again for joining us on the call today. Operator, we will now open it up for questions.

And your first question today will come from Eric Des Lauriers with Craig-Hallum Capital Group.

Congratulations on the impressive execution over the past year despite a challenging macro environment. You’ve achieved remarkable results. John, you mentioned a few areas where you are concentrating on operational efficiency and margin enhancements. You’ve already made significant strides in operational efficiency. The brand pyramid is now complete. Could you rank those areas of focus or clarify where the largest opportunities for further efficiency improvements still exist? I'm curious about how much potential there is left given all the progress you've made.

No, thanks for the question, Eric. I would categorize it as somewhat of a pivot at this moment, a pivot from pricing action and optimization to performance and execution. I think that we did a great deal of work over the last year or 2 years of refining many of our systems, many of our processes we've talked in the past about route optimization efforts, etc. And I think at this point now, we put new leadership in place, Travis Young on the field operations side, Brian Miller on the business development side. Both gentlemen are adding tremendous value and really getting their feet under them. And at this time, we're able to pivot more again into sort of addressing that degradation in pounds, addressing that degradation in customer counts and trying to focus much more on our customer-focused white-glove service and fulfillment. I think we've got a 100-year history of industry leadership in that space. We've got one of the largest coffee-centric DSD networks, if not the largest in the country. We've got one of the largest, if not the largest equipment servicing, coffee-specific networks in the country. We've got arguably one of the most talented and accomplished green coffee sourcing, roasting manufacturing and fulfillment coffee operations in the country. And I think what we're really looking to do is lean on all of those core competency areas to drive value both for our customers and our shareholders. And that's what you're going to hear us focusing on over the next fiscal year.

That's helpful. I think it's relevant to ask about customer churn levels. A year ago, order fulfillment was a key area for improvement, and it sounds like you've made significant progress in that area over the past year. Could you provide any updates on order fulfillment progress that may still need attention? Also, considering the visibility you have, have you noticed that more of the churn is now linked to macroeconomic challenges? You mentioned that the food service industry is facing significant pressure, the most in a decade. If there is still some churn occurring, could you discuss the overall levels and how your order fulfillment rates are developing? Additionally, can you clarify how much of the churn is due to internal factors versus the broader macroeconomic environment? If you could explain the dynamics surrounding this, it would be appreciated.

I appreciate the question, and it allows me to recognize the excellent work done by Craig Newham and his team in coffee, as well as in planning and procurement across the company. They faced a significant challenge with a tough out-of-stock situation. This also relates to our brand pyramid strategy execution, which affects multiple aspects of our operations. It has made our processes more efficient, from sourcing and manufacturing to roasting and distribution. We have streamlined quite a bit of complexity in successfully executing this initiative. I want to acknowledge the hard work of the planning and procurement team; they identified the challenge clearly and collaborated effectively. The field operations team and communication between these groups have been vital. I'm pleased to say that we have nearly resolved this issue. When we deliver products to customers on time, we believe we succeed. Our commitment to exceptional service is reinforced by our strong direct-store delivery network, where our Route Sales Representatives provide comprehensive support, including stock rotation and equipment calibration. They ensure that all customer coffee and beverage needs are met, allowing customers to focus on their core business. Overall, we've made significant progress in this area.

That's great to hear. Congrats again on all the execution over the past year plus.

And your next question today will come from Gerard Sweeney with ROTH Capital.

On the growth side, I understand there are challenges and you've provided some macro context for the industry. However, at some point, you cannot cut your way to profitability; growth is necessary, and this environment makes that difficult. What opportunities do you see for improving market penetration, reducing churn, and stabilizing volumes? Can we achieve that in this challenging situation where we have to push through?

Thanks, Gerard. It’s definitely a challenging macro environment right now. We face several broad headwinds, along with some that are specific to coffee. We've discussed these in detail. Over the past couple of years, we’ve managed to sustain some consistency in our revenue and improve gross margins significantly through various pricing strategies. However, price increases can create pressure, especially regarding customer retention. We’re now shifting focus away from purely relying on pricing and placing more emphasis on executing at the street level. This should positively affect customer retention. Regarding the decline in volume, we’ve talked about how some customers may be ordering less than before for various macro reasons, even though we can often keep an apples-to-apples customer comparison. We’re aggressively working to engage and activate our Direct Store Delivery network, not just for product penetration but for customer acquisition as well. We believe we have a talented team with over 200 routes operating daily, and with the right tools, training, and incentives, they can increase their business acquisition efforts. I’m eager to see the advancements Travis Young and his team will make in this area. Additionally, Brian Miller and his team are more focused than ever on targeting differentiated account types, particularly larger enterprise clients across the country. As we’ve discussed before, Farmer Brothers stands out in terms of scale. We can provide comprehensive service to restaurant groups with hundreds of locations spread nationwide, something no other coffee company can match. Engaging with these larger organizations while continuing to support smaller operations will be key to our success.

How much traction have you received with the larger restaurant group? Are we still in the early stages of that process?

No, Gerry, I'd say we do a fair amount of work in that space already. So it's not as though this is unknown territory for us. And again, it goes back to having a pretty diverse set of client types and multiple channel types. We work with customers large and small across the various parts of the food and beverage industry, whether that's the restaurant side, coffee shops, bagel shops, doughnut shops but also in health care, gaming, institutional catering, Farmer Brothers has a strong presence, and it's a national presence that can be sorted in all contiguous states. So we are in these spaces, but we have opportunity to grow.

Is this related to the division of operations between Brian and someone else? If Travis is listening, I apologize for forgetting his name. But for Brian, does this allow him to concentrate more on the restaurant groups? Clearly, you've had a lot to manage, but does this provide the chance to focus more on these larger restaurant groups from a sales angle?

I believe it does. There are two aspects to consider. Brian has done an excellent job of realigning and prioritizing our business development efforts across the organization. We have significant opportunities to grow through referrals, as we are engaged with many leading food and beverage organizations in the country. When we perform exceptionally well, they tend to recommend us to their peers, which can generate a substantial amount of business. Additionally, we are implementing new key performance indicators and incentive structures for pure business development activities, where team members are primarily focused on seeking out new opportunities rather than gathering existing ones. I anticipate that we will begin to see the impact of these changes in the next fiscal year.

Got it. One more question. I know I've asked a couple, but you talked about actively engaging and business acquisition. I'm assuming that's acquisition of new customers, not necessarily acquisitions. Okay, which leads me to the next question. Is coffee enough? You have a lot of allied products, and I didn't see what's going on there. But with such a broad distribution channel, can you add anything to that or discuss other opportunities to leverage that white-glove service and footprint?

Yes, there are, without question. And keep in mind, we do quite a bit of what we had referred to as allied goods. It's a significant part of our book of business. And there's no question when we stop a truck, we want to sell as many products off of that truck into a 4-walls environment as possible. And we are always running various initiatives to drive interest in specific segments, different product types. And we will continue to do that to try to really get aggressive and meet our customers where they are. Again, we have an opportunity with the good, better, best portfolio now really cleanly and clearly defined. I think our inventory levels are an appropriate place. Our working capital is being as efficient as it's been. But at the same time, we're able to get the products and the appropriate mix to the customers in a way that's arguably better than it's been in years. So excited to see what kind of work can be done there with the activation of the DSD network.

This will conclude our question-and-answer session as well as conference call. Thank you all for attending today's conference presentation. You may now disconnect.