On September 11, 2026, Coffee Holding Co., Inc. (Nasdaq: JVA) filed a Form 8-K to disclose its financial results for the fiscal quarter ended July 31, 2026. The company reported a decrease in net sales for the three-month period compared to the same period in the prior year.
Net sales for the quarter ended July 31, 2026, totaled $21,686,262. This figure represents a decrease of $2,224,252, or 9.3%, from the $23,910,514 reported for the three months ended July 31, 2025. The company attributed this decline to a sustained drop in green coffee prices that began in late January and continued throughout the quarter. In response, Coffee Holding reduced prices and initiated promotional activity for wholesale roasted coffee customers and charged lower prices to wholesale green coffee customers.
Despite the sales decrease, the company reported a significant improvement in profitability. Gross profit for the quarter ended July 31, 2026, was $5,424,131, an increase of $3,169,103 from the prior year. Gross profit as a percentage of net sales rose to 25.0% for the current period, compared to 9.4% in the prior year. The company cited a favorable inventory position acquired during the first half of the fiscal year, tariff refunds, and a net gain on trading activity as primary drivers for the margin expansion.
Cost of sales for the three months ended July 31, 2026, was $16,262,131, or 75.0% of net sales. This was a decrease from $21,655,486, or 90.6% of net sales, in the prior year. Total operating expenses decreased by $250,378 to $3,099,801 for the current quarter, compared to $3,350,179 in the prior year.
As a result of these operational changes, Coffee Holding reported net income of $1,993,438 for the quarter ended July 31, 2026. This translates to earnings of $0.35 per share on a basic and diluted basis. In comparison, the company reported a net loss of $1,205,413, or $0.21 per share, for the three months ended July 31, 2025.
In a statement regarding the results, President and Chief Executive Officer Andrew Gordon noted that the quarter was marked by the most volatile three months in the history of the coffee market, with green coffee prices fluctuating by up to $0.50 per pound. Gordon stated that the company retained its entire roasted customer base and capitalized on lower green coffee prices to achieve record gross margins. He also noted that tariff refunds received during the quarter contributed approximately $0.06 per share to earnings.
