Limoneira (LMNR) just posted its FY 2025 fourth quarter results with revenue of about $42.8 million and a basic EPS loss of roughly $0.49, capping off a year in which trailing twelve month revenue came in at around $159.7 million and EPS landed at about negative $0.92. Over the past six quarters, the company has seen quarterly revenue move between roughly $34.3 million and $63.3 million while EPS has swung from a profit of about $0.36 per share to losses such as the latest print. This sets up a story that is much more about profitability than top line scale. With forecasts pointing to a path toward earnings growth, investors will be watching how quickly margins can repair from here.

See our full analysis for Limoneira.

With the latest numbers on the table, the next step is to see how this earnings profile lines up with the dominant narratives around Limoneira, and where the data might be quietly telling a different story.

Losses Deepen After Brief Profit Stretch

• After posting $6.4 million in net income in FY 2024 Q3, Limoneira has now recorded four straight loss making quarters, culminating in a FY 2025 Q4 net loss of $8.8 million and trailing twelve month net loss of $16.5 million.
• Consensus narrative points to expanded avocado production and better lemon pricing as future margin drivers, yet the move from positive trailing twelve month net income of $7.1 million in FY 2024 Q4 to a $16.5 million loss by FY 2025 Q4 shows that the path to those benefits is not straightforward.
  • Supporters of the bullish view highlight 700 acres of nonbearing avocado trees that could nearly double producing acreage in 2 to 4 years, but that upside is not yet visible in the last four quarters of losses.
  • They also expect real estate monetization to add roughly $155 million over five years, while the recent earnings trend shows the core agribusiness still struggling to sustain profitability on its own.

Over the last four quarters, bulls have watched the turnaround thesis collide with a return to consistent losses, making timing and execution far more important than headline growth stories. 🐂 Limoneira Bull Case

Revenue Drifts Lower While Profit Forecasts Climb

• Trailing twelve month revenue has slipped from about $191.5 million at FY 2024 Q4 to roughly $159.7 million at FY 2025 Q4, and analysts now expect revenue to fall around 5.3 percent per year over the next three years even as earnings are forecast to grow about 147 percent per year.
• Analysts' consensus narrative leans on margin expansion rather than sales growth, and the numbers back that tension, because models assume profit margins improve from about negative 1.3 percent today to 6.0 percent in three years while revenue is projected to drop to roughly $122.7 million by 2028.
  • On that view, earnings would move from a current loss of about $2.3 million to a profit of $7.3 million, so the story rests heavily on cost savings and mix, not volume growth.
  • To justify a price target of $24.50 on those 2028 earnings, the implied price to earnings multiple would be 80.6 times, which is far above the current US Food industry level of 19.5 times.

Valuation, Dividend And Debt Pull The Other Way

• With the share price around $12.90 versus a DCF fair value of about $6.03, Limoneira trades at roughly 1.5 times sales compared with peers at 2.3 times and the broader US Food industry at about 0.7 times, while offering a 2.33 percent dividend yield that is not covered by current earnings or free cash flow.
• Bears focus on this mismatch between payout, leverage and valuation, arguing that a company with a $16.5 million trailing twelve month loss and rising net debt, recently noted at $61.3 million versus $40.0 million a year earlier, leaves little room for error if real estate monetization or margin recovery fall short.
  • Critics also highlight that the dividend must be funded despite four consecutive quarterly net losses in FY 2025, which could pressure cash allocation if profitability timelines slip.
  • Set against a DCF fair value that sits well below the current price, the combination of uncovered dividends and higher debt makes the bearish concern about downside risk grounded squarely in the latest financials.

Skeptics question whether a stock trading meaningfully above its DCF fair value can sustain an uncovered dividend and higher debt load if the promised earnings rebound arrives more slowly than models suggest. 🐻 Limoneira Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Limoneira on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your Limoneira research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

See What Else Is Out There

Limoneira is juggling recurring losses, uncovered dividends and rising net debt, leaving its balance sheet and financial resilience looking increasingly stretched against optimistic forecasts.

If that financial strain makes you uneasy, use our solid balance sheet and fundamentals stocks screener (1942 results) to quickly find companies built on stronger balance sheets, healthier cash coverage and more dependable downside protection.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.