Farmmi, Inc. (FAMI): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed assessment of Farmmi, Inc.'s business portfolio as of late 2025, and the BCG Matrix is defintely the right tool to simplify this complex picture. Honestly, with revenue falling -49.19% year-over-year to just $43.83 million TTM, the overall picture looks tough, suggesting the core business is struggling to hold its ground. Still, we have to look closer: are the established Chinese fungi sales a reliable Cash Cow, or is the big bet on U.S. logistics a Question Mark that demands heavy capital? Let's break down exactly where Farmmi, Inc. needs to invest, hold, or divest right now.

Background of Farmmi, Inc. (FAMI)

Farmmi, Inc. (FAMI) is a holding company based in Lishui, China, that focuses on the processing and sale of packaged foods and agricultural products. The core of Farmmi, Inc.'s business involves edible fungi, specifically mentioning Shiitake mushrooms and Mu Er mushrooms, alongside other varieties like bamboo fungi and hericium erinaceus. The company also trades other agricultural commodities such as cotton and corn. You'll find their products sold under brands like Forasen and Farmmi Liangpin through various channels, including local distributors, supermarkets, restaurants, and online platforms.

The operational strategy for Farmmi, Inc. involves a global distribution network, with established market presences across North America, Japan, Europe, and the Middle East. To support its U.S. distribution, Farmmi USA Inc. executed a lease in August 2025 for a new 183,000 square foot warehouse in Robbinsville, New Jersey. This move increased the company's total U.S. warehousing footprint to 640,000 square feet, aiming to bolster logistics.

Financially speaking, the recent picture has been challenging for Farmmi, Inc. As of late 2025, the trailing twelve months (TTM) revenue stood at $43.83M, reflecting a significant year-over-year decrease of -49.19%. For the half-year ending March 31, 2025, revenue was $16.14M, which represented a sharp drop of -73.34% compared to the prior period. The profitability metrics show a Gross Profit Margin of 5.79%, but the company recorded a negative EBIT Margin of -1.79% and a Net Income Margin of -12.16%.

On the capital markets side, Farmmi, Inc. took steps to maintain its listing on NASDAQ. The company completed a 1-for-12 share consolidation in March 2025 to regain compliance with the minimum bid price rule, and NASDAQ confirmed compliance in April 2025. Despite these corporate actions, investor sentiment has been weak, with shares closing near $1.39 in late November 2025, and the stock trading at a Price-to-Sales ratio of 0.2x, well below the Food industry's median of above 0.8x.

Farmmi, Inc. (FAMI) - BCG Matrix: Stars

You're looking at the Star quadrant, which is where high market share meets high market growth. Honestly, based on the latest figures, Farmmi, Inc. (FAMI) currently lacks a true Star segment given the overall revenue decline of -49.19% year-over-year for the trailing twelve months ending March 31, 2025. The top-line revenue for that trailing period stood at $43.83M, while earnings were negative at -$5.3M.

Still, the potential for a Star exists within the specific product lines that align with high-growth market segments. These are primarily the high-quality, premium-branded edible fungi products sold through their established global export channels. The company has historically focused on Shiitake and Mu Er mushrooms, positioning these as premium offerings.

The international sales channels-specifically Japan, Canada, and Europe-are the areas that historically leveraged the Chinese supply chain for what should be high-margin, niche products. For instance, there were reports of securing sales agreements for dried black fungus exported to Vancouver, Canada, and dried Shiitake mushrooms exported to Japan. This focus on export markets is where the high-growth potential, mirroring the broader market, is supposed to be realized.

To put the market context against the company's performance, here's a quick look at the growth rates:

The potential for 'agtech solutions' represents the future investment area, which, if successful, could shift a segment into the Star quadrant. The overall global Agtech market is projected to grow at a Compound Annual Growth Rate (CAGR) of 11.2% from 2025 to 2032, with the market size valued at USD 21.68 Billion in 2024. Any specific technology integration by Farmmi, Inc. showing early, high-growth adoption would need to significantly outperform this sector average to qualify as a Star, given the current financial headwinds.

The characteristics that would define a Star segment, if one existed today, would involve:

• Maintaining leadership in the niche edible fungi export segment.
• Generating cash flow that at least covers the high investment needed for promotion and placement.
• Securing market share in the growing international demand for premium, healthy food ingredients.
• Demonstrating revenue growth significantly above the company's overall -49.19% decline.

If the high-growth international market share is kept, these segments are theoretically positioned to become Cash Cows when the high-growth market slows down. The strategy here, as per BCG principles, would be to invest in these areas to maintain that market share.

Farmmi, Inc. (FAMI) - BCG Matrix: Cash Cows

The core dried edible fungi business, specifically Shiitake and Mu Er in the mainland China market, functions as the primary Cash Cow for Farmmi, Inc. This segment is the source of the Trailing Twelve Months (TTM) Gross Profit of approximately $2.5 million.

This business unit operates in a mature market environment. While Farmmi, Inc.'s TTM Revenue stands at $43.83 million, the TTM Gross Profit Margin is relatively thin at 5.79%. The low growth expectation for the broader US Food industry, predicted at 3.9% growth in the next 12 months, aligns with the mature nature of this established segment, suggesting minimal organic growth potential requiring high promotional spending.

Farmmi, Inc. has established, long-term relationships with local distributors, supermarkets, and restaurants across China for this core offering. The business is mature, requiring minimal new capital investment to maintain its current market position, which is characteristic of a Cash Cow designed to generate surplus cash flow. The company's recent focus on infrastructure, such as the August 2025 lease agreement for a new warehouse facility in New Jersey for U.S. operations, suggests investments are targeted at efficiency rather than market expansion for this mature line.

The financial profile of this segment supports its Cash Cow status by providing the necessary operational base, even with recent top-line contraction, as evidenced by the TTM Revenue decline of -49.19%. The company's TTM Cash from Operations is reported at $96.96 million, which, if sustainable from this core business, provides the necessary capital for corporate needs.

Here is a snapshot of the relevant financial metrics for Farmmi, Inc. as of the latest available TTM data:

The low investment requirement for maintenance contrasts with the need to support the existing operational base. Key characteristics supporting the Cash Cow designation include:

• Primary source of TTM Gross Profit: $2.5 million.
• Market position: Established in mainland China for Shiitake and Mu Er.
• Investment profile: Minimal new capital required for maintenance.
• Infrastructure support: Recent investment in U.S. distribution infrastructure in August 2025.
• Low valuation metric: P/S Ratio of 0.2x.

Farmmi, Inc. (FAMI) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

Dogs are in low growth markets and have low market share. Dogs should be avoided and minimized. Expensive turn-around plans usually do not help.

The current financial trajectory for Farmmi, Inc. (FAMI) strongly suggests the core operation is exhibiting Dog characteristics. The Trailing Twelve Months (TTM) revenue, as of March 31, 2025, stands at $43.83 million. This represents a significant contraction, with TTM revenue growth down -49.19% year-over-year.

The following areas align with the Dog profile for Farmmi, Inc.:

• Trading of non-core, low-margin agricultural commodities like cotton and corn.
• Legacy domestic distribution model that is likely inefficient and contributing to the TTM Net Loss of -$5.3 million.
• Any product lines with a low market share that are not part of the strategic U.S. expansion or premium fungi.
• The entire operation's current financial trajectory, with revenue falling to $43.83 million TTM, suggests the core business is behaving like a Dog.

Here's a look at the key financial metrics that paint this picture as of the TTM ending March 31, 2025:

The year-over-year revenue decline of -49.19% is substantially worse than the US Packaged Foods industry revenue growth rate of 0.98% over the last year. This indicates a severe loss of market share or demand in the existing operational base. Furthermore, the negative earnings of -$5.3 million TTM show that these low-growth, low-share activities are actively consuming cash, despite the description that Dogs frequently break even.

Consider the historical context of the revenue decline:

• Revenue for the fiscal year ending September 30, 2024, was $64.13 million, a decrease of -41.89% from the prior year.
• Revenue from three years prior (FY2021) was $39.29 million, meaning the overall revenue has fallen 32% from that point.
• The current P/S ratio sits at 0.2x compared to the industry median above 0.8x.

The entire operation's current financial trajectory, with revenue falling to $43.83 million TTM, suggests the core business is behaving like a Dog. This situation demands a hard look at resource allocation away from these underperforming segments.

Farmmi, Inc. (FAMI) - BCG Matrix: Question Marks

You're looking at the new ventures that consume cash but hold the key to future growth-that's where Farmmi, Inc.'s logistics segment sits right now. These Question Marks are in markets growing fast, but Farmmi, Inc. hasn't captured much of that market yet. They are cash-hungry because they require heavy investment to scale up, but the returns are currently low due to that minimal market share.

The newly launched U.S. Warehousing and Logistics Services (Farmmi USA) is the clearest Question Mark for Farmmi, Inc. This segment is trying to establish itself in the high-growth U.S. logistics market, but its current market share is, by definition for this quadrant, minimal. The core challenge here is execution and investment speed; these units must grab market share quickly or they risk sliding into the Dog quadrant.

The potential upside is clear, though. The new strategic cooperation with Mazon Technology LLC represents a huge growth opportunity, potentially generating $10 million in annual orders for Farmmi USA. To put that in perspective, Farmmi, Inc.'s revenue for the half-year ending March 31, 2025, was $16.14 million. Capturing that full $10 million potential would represent a significant portion of that recent half-year top line, showing the segment's leverage if it succeeds.

Significant capital has been committed to building out this infrastructure to support this growth. This investment includes the initial logistics base in California, which began trial operations in August 2024, and a major expansion on the East Coast. Farmmi USA Inc. signed a lease for a new 183,000 square foot warehouse in Robbinsville, New Jersey, announced in August 2025. This addition brings Farmmi USA Inc.'s total U.S. warehousing footprint to 640,000 square feet.

Here's a quick look at the scale of the investment and the potential payoff:

The strategy for Farmmi, Inc. must be aggressive investment. The company needs to pour resources into marketing, operational refinement, and integration to ensure these new facilities and partnerships translate into secured, recurring market share, effectively converting this low-share, high-growth venture into a Star. If they fail to gain traction quickly, the high cash burn rate associated with these large physical assets will make them Dogs.

Key actions required for this segment include:

• Secure definitive, long-term contracts beyond the initial agreement.
• Achieve operational efficiency targets for the New Jersey facility by Q1 2026.
• Increase utilization rate of the 640,000 square feet footprint.
• Demonstrate positive net cash flow contribution from the logistics segment.

Finance: draft the 13-week cash view incorporating the expected capital expenditure for the New Jersey facility by Friday.