The distributor bankruptcy credit loss is a material near-term headwind; monitor the Q3 2026 10-Q for updates on cash flow recovery and new distributor ramp. The loss per share trajectory suggests continued pressure on the common equity, with preferred dividends consuming cash.
Price Chart
Executive Summary
Willamette Valley Vineyards reported Q2 2026 results with a net loss of $1.39M vs a $93K profit in Q2 2025, driven by a 1.6% revenue decline and a 22.5% surge in SG&A expenses tied to a distributor's bankruptcy. The loss per common share widened to $0.40 from $0.09, reflecting deteriorating operating performance and a credit loss event that materially impacted cash flow.
Key Financial Metrics
Key Facts
- Revenue fell 1.6% YoY to $10.04M from $10.20M.
- Net income swung to a loss of $1.39M from a profit of $92,795 in Q2 2025.
- Loss per common share after preferred dividends was $0.40, compared to $0.09 in the prior year.
- SG&A expenses increased 22.5% to $7.13M, primarily due to a credit loss allowance from the Republic National Distributing Company bankruptcy.
- Gross profit declined 7.1% to $5.77M from $6.22M.
- Sales through distributors increased $103K, but direct sales fell $262K.
Financial Impact
Net loss of $1.39M vs prior-year profit of $93K; revenue decline of $159K; SG&A increase of $1.31M from distributor bankruptcy credit loss.
Risk Factors
- Further credit losses or delayed collections from the bankrupt distributor.
- Continued decline in direct sales and customer visitations.
- Rising SG&A without corresponding revenue growth compressing margins further.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302850296 |
US Market Status
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