This is a decisive profitability turnaround that should re-rate the stock higher. The tariff refund tailwind ($0.06/share) will persist for at least two more quarters, and management expects further revenue growth and margin expansion into calendar 2027. Watch for the next two 10-Q filings to confirm whether gross margins sustain above 20% as coffee price volatility continues.
Price Chart
Executive Summary
Coffee Holding Co. reported a strong turnaround quarter for fiscal Q3 2026, swinging from a net loss of $1.2M (-$0.21/share) in the year-ago period to net income of $2.0M ($0.35/share). Revenue declined 9.3% YoY to $21.7M due to falling green coffee prices, but gross margins expanded dramatically from 9.4% to 25.0%, driven by favorable inventory positions, tariff refunds ($0.06/share), and net gains on trading activity. The dramatic profit recovery confirms that the prior quarter's weakness was commodity-cycle-driven and that the company's inventory/hedging strategies are working, though top-line headwinds persist.
Key Financial Metrics
Key Facts
- Net income of $1,993,438 ($0.35/share) vs net loss of $1,205,413 (-$0.21/share) in Q3 2025
- Gross margin expanded to 25.0% from 9.4% YoY — a 1,560 basis point improvement
- Revenue declined 9.3% to $21,686,262 from $23,910,514 YoY
- Operating expenses decreased $250,378 to $3,099,801
- Tariff refunds contributed approximately $0.06/share to earnings with more expected over the next two quarters
- Cash from operations of $7.8M year-to-date vs -$5.4M in prior year period
- Line of credit reduced to $2.15M from $6.05M at October 31, 2025
- Cash and equivalents grew to $2.92M from $702K at fiscal year end
Financial Impact
Net income swing of +$3.2M YoY; gross profit up $3.2M to $5.4M
Risk Factors
- Revenue continued declining 9.3% YoY due to lower coffee prices — top-line pressure remains
- The $0.06/share tariff refund is a non-recurring item that may attenuate
- Coffee market volatility remains extremely high ($1.00/lb. trading range) and could reverse gains if inventory assumptions prove wrong
- At $20M market cap, the stock is thinly traded and prone to sharp moves in either direction
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-042312 |
| Document: form8-k.htm | 0001493152-26-042312 |
| Document: 0001493152-26-042312-index-headers.html | 0001493152-26-042312 |
| Document: 0001493152-26-042312-index.html | 0001493152-26-042312 |
| Document: 0001493152-26-042312.txt | 0001493152-26-042312 |
| 8-K Data (Synthetic) | 0001493152-26-042312 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 7, 2026 19d ago | 8-K | $4.65 | awaiting T+20 | — | $4.62 (−0.65%) |
Sep 15, 2026 5w ago | DEFA14A | $4.14 $4.46 | ▲ +7.73% | ▲ +5.67% | $4.62 (+11.59%) |
Sep 11, 2026 6w ago | 8-K | $3.86 $4.63 | ▲ +20.10% | ▲ +18.24% | $4.62 (+19.84%) |
Jun 12, 2026 19w ago | 8-K | $3.32 $3.53 | ▼ −6.33% | ▼ −7.08% | $4.62 (−39.16%) |
Mar 16, 2026 32w ago | Press Release | $4.12 $4.67 | ▲ +13.35% | ▲ +9.05% | $4.62 (+12.14%) |
US Market Status
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