Third Quarter 2025 Highlights
Q3'25 processed volumes increased 7% over Q3'24;
Revenue of $62.7 million, an increase of 50% over Q3'24;
Net income of $0.2 million, an increase of $1.0 million over Q3'24;
Adjusted EBITDA of $3.3 million, an increase of $1.1 million or 52% over Q3'24;
The NY'C' coffee futures price for Arabica coffee remained volatile during Q3'25, peaking at US$4.32/lb in September. During Q3'25, the NY'C' averaged US$3.37/lb, compared to an average of US$2.46/lb in Q3'24, an increase of 37%.
Year to Date 2025 Highlights
Year to date processed volumes increased 4% over 2024;
Revenue of $192.7 million, an increase of 56% over 2024;
Net income of $0.4 million, an increase of $1.1 million over 2024;
Adjusted EBITDA of $7.1 million, a decrease of $2.3 million or 24% over 2024;
Operating credit facility renewed and expanded to $80M;
Agreement with Mill Road Capital to repurchase and cancel outstanding warrants;
Year to date repayment of $4.0 million of construction debt.
"We delivered good volume growth and improved profitability in the third quarter, demonstrating the continued execution of our strategy in a volatile market. Customer demand remained strong, demonstrating the strength of our brand and geographic coverage during a period when supply imbalances have challenged the industry, and importantly, as U.S. grocery channels experience declines in tonnage volume due to rapid retail price increases. Coffee futures remained volatile throughout the quarter, ending in an elevated position, and while the inverted market and tariffs are causing rapid changes in coffee origin preferences and purchase timing, we benefited from the timing of coffee purchases and favourable foreign exchange movements. These gains, combined with our ongoing hedging activities, contributed to positive Adjusted EBITDA and net income, and generated cash that we directed toward debt repayment," said Frank Dennis, CEO of Swiss Water. "The progress we've made in strengthening our balance sheet has continued this quarter through repayments of our construction loan and credit facilities. Our operational discipline and risk management approach continue to position us well to serve customers reliably and deliver value to shareholders as we navigate the ongoing complexity in the coffee market."
Summary of Operational Performance
Total processing volumes in pounds for the three and nine months ended September 30, 2025, increased by 7% and 4%, when compared to the same periods in 2024, supported by continued customer demand and order flow.
The NY'C' coffee futures price for Arabica coffee remained volatile during Q3, peaking at US$4.32/lb in September 2025. Spot availability of green coffees remains very low, and pressure on the futures market intensified during the quarter. Moving forward, the higher prices and inverted coffee market may result in a softening of consumer demand and volumes shipped to roasters.
Swiss Water's decaffeination process has been formally classified by US customs as "non-transformational", allowing processed beans to retain the original country-of-origin status for tariff purposes.
During the third quarter of 2025, the US administration announced its intention to increase tariffs on most Brazilian products imported into the US from 10% to 50%, effective August 7th, 2025. Brazil is the biggest producer of green coffee globally, and all Brazilian coffees processed by Swiss Water and shipped into the US are subject to this elevated tariff. The effect of this change has been a rapid demand shift away from the highest coffee volume producing nation in the world. This is expected to cause short term disruptions and volume issues for the next 3-6 months, and potentially longer.
Summary of Financial Results
In C$ ‘000s
3 months ended September 30
9 months ended September 30
except for per share amounts
2025
2024
$ Change
% Change
2025
2024
% Change
% Change
Revenue
62,747
41,778
20,969
50
%
192,714
123,880
68,834
56
%
Cost of sales
(56,307
)
(35,342
)
(20,965
)
59
%
(173,739
)
(104,664
)
(69,075
)
66
%
Gross profit
6,440
6,436
4
0
%
18,975
19,216
(241
)
-1
%
Operating expenses
(4,226
)
(3,656
)
(570
)
16
%
(11,479
)
(11,324
)
(155
)
1
%
Operating income
2,214
2,780
(566
)
-20
%
7,496
7,892
