ALICO, INC. Form 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026, and the nine months ended June 30, 2026. ALICO, Inc. is a Florida-based agribusiness and land management company owning approximately 47,300 acres of land and 42,700 acres of mineral rights. The Company is executing a Strategic Transformation announced in January 2025 to wind down its Alico Citrus division due to financial challenges and citrus greening disease. Consequently, beginning in the third quarter of fiscal 2026, the Company operates as a single reportable segment focused on diversified land usage and real estate development.
Key Financial Metrics
| Metric | Three Months Ended June 30, 2026 |
Nine Months Ended June 30, 2026 |
Nine Months Ended June 30, 2025 |
|---|---|---|---|
| Total Operating Revenues | $9.04 million | $16.27 million | $43.26 million |
| Net Income (Loss) Attributable to Alico | $2.13 million | $10.03 million | $(138.84 million) |
| Diluted EPS | $0.29 | $1.32 | $(18.18) |
| Operating Cash Flow | N/A | $2.33 million | $22.84 million |
| EBITDA | $4.60 million | $23.73 million | $(2.21 million) |
| Adjusted EBITDA | $4.60 million | $24.20 million | $25.33 million |
| Cash and Cash Equivalents | $55.58 million | $55.58 million | $38.13 million (Sep 30, 2025) |
| Total Debt | $85.42 million | $85.42 million | $85.55 million (Sep 30, 2025) |
| Net Debt | $29.83 million | $29.83 million | $47.42 million (Sep 30, 2025) |
Material Changes vs. Prior Period
- Revenue Shift: Total revenue for the nine months ended June 30, 2026, decreased 62.4% year-over-year, driven by the wind-down of the Citrus division (revenue down 86.0%). This was partially offset by a 456.9% increase in "Land Management and Other Operations" revenue, largely due to contingent lease payments and land leasing.
- Profitability Turnaround: The Company reported a net income of $10.03 million for the nine months ended June 30, 2026, compared to a net loss of $138.84 million in the prior year. The prior year loss was heavily impacted by $170.8 million in depreciation, depletion, and amortization (DD&A) and $25.0 million in asset impairments related to the citrus wind-down.
- Expense Reduction: Operating expenses decreased 90.2% year-over-year for the nine-month period, primarily due to a $157.4 million reduction in DD&A as the Company accelerated depreciation on citrus assets in the prior year.
- Asset Sales: The Company sold approximately 3,546 acres of land during the nine months ended June 30, 2026, generating gross proceeds of $34.6 million and a gain on sale of $24.8 million.
Guidance, Outlook, and Risks
Outlook and Strategy: Management expects seasonal revenue patterns to diminish as citrus operations wind down. The focus remains on long-term diversified land usage and real estate development. The Company recently entered into an agricultural lease for 3,280 acres with a purchase option and acquired the remaining 49% interest in its Citree subsidiary for $2.0 million.
Liquidity and Capital: The Company maintains a $95.0 million revolving line of credit (RLOC) with $92.5 million available as of June 30, 2026. It is in compliance with all financial covenants, including a Minimum Liquidity Requirement of $5.8 million and a 50% Loan-to-Value cap. Management believes current cash, operating cash flows, and asset sales are sufficient to service debt and meet working capital needs for at least the next 12 months.
Risks and Contingencies:
- Customer Concentration: Kobie Cattle Company accounted for 48.3% of total revenue for the nine months ended June 30, 2026. The loss of this customer could significantly impact revenue.
- Valuation Allowance: Due to a cumulative three-year loss position, management determined it is not "more likely than not" that a portion of deferred tax assets will be realized, resulting in a valuation allowance.
- Strategic Execution: Risks include the ability to successfully execute the Strategic Transformation, adverse weather conditions (hurricanes), and market volatility in land sales and leasing.
Investor Verification Checklist
- Citrus Wind-Down Status: Verify the timeline and costs associated with the complete cessation of citrus production operations.
- Land Sale Pipeline: Assess the remaining acreage available for sale and the sustainability of the current land leasing revenue model without the citrus harvest cycle.
- Customer Concentration: Monitor the stability of the relationship with Kobie Cattle Company, which represents nearly half of current revenue.
- Debt Covenants: Confirm ongoing compliance with the Minimum Liquidity Requirement and Loan-to-Value cap, especially as asset values fluctuate.
- Share Repurchases: Track the utilization of the $50.0 million share repurchase program ($10.0 million utilized as of June 30, 2026) and its impact on liquidity.