Breaking Down Farmmi, Inc. (FAMI) Financial Health: Key Insights for Investors

You need to look past the top-line revenue number for Farmmi, Inc. (FAMI) because the financials are flashing a clear warning sign, so the direct takeaway is that this is a high-risk, speculative play that demands extreme caution, not a core portfolio holding. Honestly, when you see a Trailing Twelve Months (TTM) revenue of just over $64.13 Million USD paired with a TTM net loss of $5.3 Million-which translates to a -12.2% profit margin-you have to ask serious questions about the business model's sustainability. The market is defintely reflecting this reality, valuing the entire company with a minuscule market capitalization of just $2.05 Million as of November 2025. This stock is a high-wire act. Your immediate action should be to understand the leverage (debt-to-equity) and cash burn rate before you even consider a small position, especially with the consensus from Wall Street analysts leaning toward a clear Sell rating and shares trading near their 52-week low.

Revenue Analysis

If you're looking at Farmmi, Inc. (FAMI), the direct takeaway is that while the company has diverse product lines, its revenue has been in a sharp, concerning decline through the 2025 fiscal year. You need to understand the scale of the contraction and where it's hitting hardest before making any investment decisions.

The latest trailing twelve months (TTM) revenue ending March 31, 2025, stood at approximately $43.83 million. This figure represents a massive year-over-year revenue decline of around -49.19%. To be fair, a drop of this magnitude in a single year-nearly half the top line-is a major red flag that demands immediate scrutiny of operational and market factors.

Here's the quick math on the near-term trend: for the half-year ended March 31, 2025, sales were only $16.14 million, down from $36.44 million in the same period a year prior. That's a staggering contraction, suggesting a significant, ongoing challenge in their core markets.

Primary Revenue Sources and Product Mix

Farmmi's revenue streams are primarily rooted in the agricultural sector, specifically in the processing and sale of edible fungi and other agricultural products. They aren't a one-product company, but their focus remains narrow.

The core business involves the processing and sale of edible fungi, such as shiitake, coprinus comatus, and hericium erinaceus (Lion's Mane mushroom). They also act as a trader for other agricultural commodities, including cotton and corn. This product mix means the company is exposed to both agricultural commodity price volatility and the consumer packaged goods market for fungi-based foods.

• Sell edible fungi (dried and processed).
• Trade major commodities (cotton, corn).
• Primary sales channel is to manufacturers and supermarkets.

Geographic Concentration and Risk

A critical risk factor for Farmmi, Inc. is its heavy geographic concentration. The vast majority of the company's revenue is generated in the People's Republic of China. This exposes the company to specific regulatory, economic, and supply chain risks within that single country.

For context, in the fiscal year ending September 30, 2024, China contributed $63.30 million to the total revenue, a significant drop from the $109.70 million it contributed the year before. This decline in the primary market is the single biggest driver of the overall revenue contraction we're seeing in 2025. You can learn more about the institutional interest in this company by Exploring Farmmi, Inc. (FAMI) Investor Profile: Who's Buying and Why?

What this estimate hides is the potential for a bottoming-out, but still, the trend is defintely negative. The massive decrease shows a structural problem, not just a cyclical dip. As an investor, your action should be to demand a clear strategy from management on how they plan to stabilize and diversify their revenue base beyond their core Chinese market and fungi products.

Profitability Metrics

You need to know if Farmmi, Inc. (FAMI) is making money, and the short answer, based on the most recent Trailing Twelve Months (TTM) data ending March 31, 2025, is no. The company is currently operating at a significant loss, which is a major red flag for any investor looking for near-term returns.

Here's the quick math: Farmmi, Inc. reported TTM revenue of approximately $43.83 million, but its net profit margin remains deep in the red. This isn't just a minor dip; it points to fundamental challenges in cost control and pricing power within their agricultural products business.

The core profitability metrics for Farmmi, Inc. (FAMI) for the TTM period ending March 31, 2025, paint a clear picture of struggle:

• Gross Profit Margin: 5.79%
• Operating Profit Margin (EBIT Margin): -1.79%
• Net Profit Margin: -12.16%

To be fair, the Gross Profit Margin of 5.79% is incredibly thin, meaning the cost of goods sold is eating up almost all the revenue. Then, once you factor in operating expenses, the company quickly slides into an operating loss of -$0.79 million, which translates to the -1.79% operating margin. Honestly, a gross margin below 10% in this sector makes it incredibly hard to ever achieve sustainable net profitability.

Operational Efficiency and Cost Management

The gap between the Gross Profit Margin and the Net Profit Margin is a key indicator of where the money is going. The 5.79% gross margin is already low, but the net margin of -12.16% shows that non-operating factors-like interest expense, taxes, and other expenses-are compounding the loss. This suggests that while cost of revenue (Cost of Goods Sold) is an issue, the overall expense structure is not being managed effectively enough to compensate.

Looking at the trend, the gross margin has been inconsistent. It was 6.04% in FY 2024, 3.88% in FY 2023, and 13.00% in FY 2021. The recent TTM figure of 5.79% is a slight improvement from 2023, but it's still less than half of the 2021 level. This volatility is defintely a risk, showing a lack of pricing stability or control over input costs.

Industry Comparison: A Stark Contrast

When you compare Farmmi, Inc.'s profitability to the industry averages for agricultural products, the picture gets even more concerning. The company is dramatically underperforming its peers, which is a clear signal that its business model or execution is flawed.

The industry average Gross Margin is a whopping 42.56%, which is nearly 7.5 times Farmmi, Inc.'s TTM margin. This massive difference highlights that Farmmi, Inc. is either selling its products at a significant discount to the market, or its cost of production is fundamentally uncompetitive. An industry average Net Profit Margin of 10.38% versus Farmmi, Inc.'s -12.16% loss tells you that the company is struggling to execute where its peers are succeeding. You can dive deeper into all the financial data and strategic implications in this comprehensive analysis: Breaking Down Farmmi, Inc. (FAMI) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You're looking at Farmmi, Inc. (FAMI) and, honestly, the first thing that jumps out is how conservatively they finance their operations. This is a company that relies heavily on shareholder equity over external borrowing, which is a significant point of financial strength, but it also hints at their current growth strategy.

As of the most recent quarter, Farmmi, Inc. reported total debt of approximately $12.98 million. When you break that down, you see a mix of obligations. We can estimate that the long-term debt, which is due after one year, sits around $5.63 million (or $5,627.1K) as of March 2025. Here's the quick math: that leaves roughly $7.35 million in short-term debt and other current liabilities, which must be paid within the year. It's a very manageable debt load.

The real story lies in the Debt-to-Equity (D/E) ratio, which tells you how much debt a company uses to finance its assets relative to the value of its shareholders' equity. Farmmi, Inc.'s D/E ratio is exceptionally low, recently reported around 7.81% (or 0.0781). That's a tiny fraction of the total shareholder equity, which stands at a substantial $166.23 million.

This ratio is defintely a key differentiator when you compare it to the industry. The average D/E for the Agricultural Products & Services sector is much higher, sitting around 0.53. Even the broader U.S. farm sector is expected to have a D/E ratio forecast of about 14.65% for 2025. Farmmi, Inc. is operating with a fraction of the leverage of its peers. This low leverage means the company has a massive cushion against economic downturns and interest rate hikes.

The company has been actively deleveraging, too. To be fair, the D/E ratio has dramatically reduced from 22% just five years ago to the current low single-digit percentage. This trend shows a clear preference for equity funding and retained earnings over taking on new debt to fuel expansion.

You haven't seen any major debt issuances, credit rating changes, or refinancing activity reported as of November 2025. Instead, the big capital structure move this year was an equity action: a 1-for-12 reverse stock split in March 2025. That was done to regain compliance with the NASDAQ minimum bid price requirement, which is a different kind of financial risk management entirely.

What this capital structure tells you is simple: Farmmi, Inc. has a strong solvency profile. They have plenty of room to borrow if a major, high-return opportunity pops up, but they just aren't using that capacity right now. The risk of a debt-driven default is near zero. The trade-off is that they might be missing out on 'cheap' growth that strategic debt could provide.

• Total Debt is low at $12.98 million.
• D/E ratio is 7.81%, far below the 0.53 industry average.
• No major debt activity; focus was on a March 2025 equity split.

If you want to dive deeper into all the metrics, you can read the full analysis at Breaking Down Farmmi, Inc. (FAMI) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You need a clear picture of whether Farmmi, Inc. (FAMI) can cover its short-term bills, and honestly, the liquidity profile is a mixed bag. The company is defintely solvent in the near-term, but a closer look at the quality of current assets is crucial. Your quick takeaway: the current ratio looks okay, but the quick ratio is a major red flag.

The company's overall liquidity position, measured by the Current Ratio, appears healthy at 1.88 based on the most recent data. This means Farmmi, Inc. has $1.88 in current assets-things like cash, accounts receivable, and inventory-for every dollar of current liabilities. Specifically, the company reported current assets of around $109.9 Million against current liabilities of approximately $58.6 Million. Here's the quick math: that leaves a positive working capital (current assets minus current liabilities) of about $51.3 Million, which is a solid buffer against immediate obligations.

• Current Ratio: 1.88 (Healthy buffer).
• Working Capital: $51.3 Million (Positive cushion).

But you can't stop there. The Quick Ratio (or Acid-Test Ratio) is the real test of immediate cash strength because it strips out inventory-which, for a food company like Farmmi, Inc., can be slow to convert to cash or might spoil. The Quick Ratio sits at a low 0.10. This means that if you exclude inventory and other less-liquid current assets, the company only has $0.10 for every dollar of short-term debt. That's a significant liquidity concern, suggesting a heavy reliance on selling inventory quickly or securing new financing to meet short-term obligations.

The working capital trend, while currently positive in absolute terms, is heavily dependent on the composition of current assets. The gap between the Current Ratio (1.88) and the Quick Ratio (0.10) flags that inventory is an enormous part of the current asset base. If inventory turnover slows, or if the inventory value is impaired, the company's ability to pay its short-term debts could evaporate fast. You should be Exploring Farmmi, Inc. (FAMI) Investor Profile: Who's Buying and Why? to see if new capital is offsetting these operational risks.

A look at the Cash Flow Statement (Trailing Twelve Months, or TTM) for the 2025 fiscal year shows a mixed cash generation profile. Cash flow from operations (CFO) was positive at $12.70 Million, which is a great sign that the core business is generating cash. However, the company spent more than that on growth, with Cash Flow from Investing (CFI) coming in at -$15.91 Million. This negative CFI is typical for a company actively investing in property, plant, and equipment, or making acquisitions, but it means the company is not self-funding its growth.

To bridge this gap, the company relied on financing activities. The Cash Flow from Financing (CFF) shows a recent inflow of $1.83 Million, which likely includes proceeds from equity or debt issuance to fund the investment gap and maintain cash reserves. This reliance on external funding to cover the investment deficit is a trend you must monitor. The overall liquidity strength is there, but it's brittle.

Valuation Analysis

You're looking at Farmmi, Inc. (FAMI) and wondering if the current price reflects a deep value play or a classic value trap. Honestly, the valuation metrics as of late 2025 paint a picture of extreme risk and significant market skepticism, suggesting the stock is likely overvalued relative to its financial performance, despite its low share price.

Here's the quick math on the core valuation ratios, using the latest available trailing twelve months (TTM) data for the 2025 fiscal year. The numbers are stark, and they tell you that this is not a traditional investment.

• Price-to-Earnings (P/E) Ratio: This is currently Not Applicable (N/A). When a company like Farmmi, Inc. is reporting negative earnings-meaning it's losing money-the P/E ratio is meaningless. You can't divide by a negative number to get a useful comparison.
• Price-to-Book (P/B) Ratio: At just 0.01, this is incredibly low. This ratio compares the stock price to the company's book value (assets minus liabilities). A P/B of 0.01 suggests the market values the company at only 1% of its net asset value, which is often a red flag for concerns about asset quality or future viability, not just a sign of being undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The last 12-month Next Twelve Months (NTM) figure sits around 6.6x, which is actually below the Packaged Foods industry median of 9.6x. This metric offers a slightly more normalized view, but without positive net income, it's difficult to call 6.6x a bargain.

The stock is cheap for a reason.

Stock Price Trends and Analyst Sentiment

The price action over the last year has been brutal, confirming the market's bearish sentiment. Over the last 52 weeks leading up to November 2025, Farmmi, Inc.'s stock price has plummeted by over -54.73%. The 52-week trading range is vast, from a low of $1.39 to a high of $7.08, showing extreme volatility. The stock's beta is 1.74, meaning its price volatility has been significantly higher than the overall market average, so expect wild swings.

When we look at shareholder return, there's no cushion. Farmmi, Inc. does not pay a dividend, meaning both the dividend yield and the payout ratio are 0%. Your only potential return here is capital appreciation, which has been negative.

The analyst community is clear on their stance. The consensus rating from Wall Street analysts is a definitive Sell. This is a strong signal, and it's backed by a predicted downside of -100.00% based on some 12-month forecasts, which implies a complete wipeout of value. While one outlier forecast suggests a massive price surge, the grounded, institutional view is overwhelmingly negative.

To be fair, a P/B of 0.01 might seem like a screaming buy, but in a micro-cap like this, it often signals that the market simply doesn't believe the book value is real or that the company can ever generate a profit from those assets. For a deeper dive into the company's fundamentals, read the full post: Breaking Down Farmmi, Inc. (FAMI) Financial Health: Key Insights for Investors.

Action: If you own shares, draft a clear exit strategy. If you don't, treat any investment here as pure speculation, not investing.

Risk Factors

You're looking at Farmmi, Inc. (FAMI) and seeing a low price, but you need to understand the structural risks before you consider an investment. The direct takeaway is that Farmmi faces critical near-term financial and compliance risks, evidenced by its negative profitability and a major sales decline in the first half of 2025.

The company operates in the Chinese agricultural products market, specifically edible fungi like shiitake and Mu Er, which means it's exposed to both local supply chain volatility and the broader geopolitical tensions that affect US-China trade. Honestly, the internal financial health is the more immediate concern for investors right now.

Here's the quick math on the financial distress: Farmmi's trailing twelve months (TTM) net loss ending March 31, 2025, was a significant -$5.33 million. This sustained lack of profitability is a huge red flag. Plus, the Return on Capital Employed (ROCE), which measures how efficiently a company uses its capital to generate profit, was a dismal 0.5% (TTM to September 2024). That's far below the Food industry average of 10%, showing the core business is struggling to generate value from its assets.

The recent earnings reports highlight a sharp operational risk. Sales for the half-year ended March 31, 2025, plummeted to $16.14 million, a steep drop from $36.44 million in the prior year period. A decline that sharp suggests serious issues with market demand, distribution, or pricing power. The TTM revenue, as of November 2025, sits at approximately $64.13 million USD, but the trend is clearly negative.

The most immediate and clear action item for the company is addressing its NASDAQ listing status. This is a crucial financial risk, as delisting drastically reduces liquidity and investor interest.

• Delisting Risk: Farmmi received an extension until April 21, 2025, to meet the NASDAQ minimum bid price requirement of $1.00 per share.
• Liquidity Warning: The company's Altman Z-Score, a predictor of bankruptcy risk, is extremely low at 0.56, where a score under 1.81 suggests an increased risk.
• Capital Inefficiency: Return on Equity (ROE) is negative at -3.33%, meaning shareholder capital is being destroyed, not grown.

To be fair, the company has taken some steps to mitigate the delisting risk. They completed a 1-for-12 share consolidation (a reverse stock split) in March 2025 to artificially raise the share price and regain NASDAQ compliance. Strategically, they've also announced an expansion into the U.S. East Coast market with a new warehouse in New Jersey, aiming to diversify their geographical revenue away from a heavy reliance on China. Still, these actions don't solve the underlying problem of shrinking sales and negative net income.

The table below summarizes the core financial risks you need to keep in mind, based on the latest 2025 data.

For a deeper dive into the company's valuation and strategic frameworks, you can read the full analysis at Breaking Down Farmmi, Inc. (FAMI) Financial Health: Key Insights for Investors. Your next step should be to monitor the NASDAQ compliance status and the next quarterly revenue report very closely.

Growth Opportunities

You're looking for a clear path forward for Farmmi, Inc. (FAMI), and honestly, the biggest near-term growth story isn't just in mushrooms-it's in logistics, which is a smart diversification play. The company is actively mapping out a new revenue stream by leveraging its supply chain expertise, turning a cost center into a profit center.

The core business of edible fungi, like Shiitake and Mu Er mushrooms, remains the foundation, but the real action is in the strategic pivot to warehousing and logistics services, especially in the US. This move is a direct response to the need for better control over their international distribution, and it's creating a new competitive advantage.

• Diversify revenue: Move beyond agricultural products into profitable logistics services.
• Control the chain: Reduce shipping costs and delivery times for customers.
• Go big in the US: Establish a major East and West Coast warehousing footprint.

Strategic Initiatives and Near-Term Revenue Drivers

Farmmi, Inc. has made concrete, measurable investments in 2025 that point to a clear growth strategy focused on the US market. The company's subsidiary, Farmmi USA, is spearheading this expansion. This isn't just talk; it's a significant capital commitment to physical infrastructure.

In March 2025, Farmmi, Inc. announced the grand opening of a new 49,800 square feet warehouse in Somerset, New Jersey, marking their expansion into the US East Coast market. This was quickly followed up in August 2025 with a lease for an even larger, new 183,000 square foot warehouse in Robbinsville, New Jersey. Here's the quick math: these moves increase the company's total US warehousing footprint to a substantial 640,000 square feet, which defintely enhances their ability to handle both their own products and third-party logistics.

A key partnership that maps to a clear revenue opportunity is the strategic cooperation agreement with Mazon Technology, signed in late 2024. This deal is specifically for warehousing and logistics services, and it has the potential to generate an estimated $10 million in annual orders for Farmmi USA. That's a significant boost to the logistics segment's top line, especially when compared to the latest reported half-year revenue of $16.14 million for the period ending March 2025. You can see the full picture of the company's long-term vision in their Mission Statement, Vision, & Core Values of Farmmi, Inc. (FAMI).

Financial Snapshot and Competitive Positioning

While the company reported a net loss of approximately $5.33 million for the trailing 12 months ending March 31, 2025, and an EPS of -$0.04 for the Q1 2025 period, the growth story hinges on the success of the logistics diversification. The vertical integration of their traditional agricultural business-controlling everything from sourcing to processing and now, increasingly, distribution-is their core competitive advantage.

The new logistics hubs streamline operations, reduce shipping costs, and shorten delivery times for customers across North America, Japan, Canada, Europe, and the Middle East. This operational efficiency is the kind of unsexy, but critical, advantage that drives margin improvement over time. The table below shows the key financial data points you need to keep an eye on, particularly as the logistics revenue starts to flow in the second half of the 2025 fiscal year.

The market currently lacks a consensus analyst forecast for the full 2025 revenue, but the immediate action item is to track the logistics segment's contribution in the next earnings report. If the $10 million partnership revenue materializes, it's a significant step toward reversing the TTM net loss.