Coffee Holding (JVA) Q3 2026: Profit Rebounded on a Mixed Revenue Base

Coffee Holding returned to quarterly profit even as sales declined. The filing supports a meaningful margin recovery, but it also identifies several contributors—favorable inventory, tariff refunds, and commodity-trading gains—that investors should separate from normal operating improvement.

Quarterly result

Net sales for the three months ended July 31, 2026 fell 9.3% to $21.7 million from $23.9 million. Management attributed the decline mainly to falling green-coffee prices, related price reductions, and continued promotions for wholesale roasted-coffee customers.

Gross profit increased to $5.4 million, or 25.0% of sales, from $2.3 million and 9.4% a year earlier. The filing says the improvement reflected a favorable inventory position, tariff refunds, and a net commodity-trading gain versus a trading loss in the prior-year quarter.

Pretax income was $2.29 million versus a $1.19 million pretax loss. After $293,000 of income-tax expense, quarterly net income was $1.99 million, about $0.35 per share based on the filing’s share count.

Nine-month context

Nine-month sales were $69.4 million, only 1.2% above the prior-year period. Net income increased to $3.90 million from $592,000, while operating cash flow swung to positive $7.80 million from a $5.40 million use of cash. The cash-flow improvement also reflected reductions in receivables and inventory.

What matters next

• Gross margin after tariff refunds and trading gains normalize.
• Volume and pricing as green-coffee prices change.
• Whether working-capital improvements continue to support cash generation.
• Repayment capacity under the company’s credit facility.

The original valuation multiples, volume signal, macro commentary, analyst data and mechanical trade levels were removed because the SEC filing did not substantiate them. This is not investment advice.

Primary sources

• Coffee Holding fiscal Q3 2026 Form 10-Q
• Coffee Holding results Form 8-K