Fourth Quarter 2025 Highlights
Q4'25 processed volumes decreased 2% compared to Q4'24;
Revenue of $66.0 million, an increase of 34% over Q4'24;
Net income of $1.2 million, a decrease of $0.8 million compared to Q4'24;
Adjusted EBITDA of $4.2 million, a decrease of $0.7 million or 14% compared to Q4'24;
The NY'C' coffee futures price for Arabica coffee remained volatile during Q4'25, peaking at US$4.23/lb in November. During Q4'25, the NY'C' averaged US$3.83/lb, compared to an average of US$2.83/lb in Q4'24, an increase of 35%.
Fiscal Year 2025 Financial Highlights
Processed volumes increased 2% over 2024;
Revenue of $258.7 million, an increase of 49% over 2024;
Net income of $1.6 million, an increase of $0.3 million over 2024;
Adjusted EBITDA of $11.3 million, a decrease of $3.0 million or 21% compared to 2024;
Operating credit facility renewed and expanded to $80M;
Repayment of $5.4 million of construction debt in 2025;
Repurchased and cancelled outstanding warrants held by Mill Road Capital.
"Despite unprecedented volatility, leading to an abnormal distribution of sales activity by quarter, 2025 was a year of meaningful progress for Swiss Water. The year was marked by disciplined execution, a strengthened balance sheet, and enduring customer demand for our chemical-free decaffeination process," said Frank Dennis, CEO of Swiss Water. "In a global coffee market defined by persistent price volatility, an inverted futures curve, and shifting tariff conditions, we are pleased to report solid operational performance that reflects both the resilience and discipline of our organization and the trust our customers continue to place in us."
"Although Adjusted EBITDA declined year over year due to timing differences on the recapture of market inversion costs, we closed the year with improved financial footing, bolstered by the repurchase and cancellation of the MRC warrants earlier in the year, and the expansion of our operating credit facilities. Both were significant milestones that meaningfully expand our financial flexibility going forward. Additionally, recovery of fiscal year 2025 inversion costs will continue in 2026. As market conditions begin to normalize, we remain steadfastly committed to supporting our customers and to building on the strong foundation we have established, confidently pursuing the growth opportunities and debt reduction plans that lie ahead."
Summary of Operational Performance
Total processing volumes in pounds for the three months and the full year ended December 31, 2025, decreased by 2% and increased by 2%, respectively, 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 Q4, peaking at US$4.23/lb in November 2025. Spot availability of green coffees remains very low, pressure on the futures market intensified during the first half of 2025, and remained intense during the second half of the year.
Swiss Water's decaffeination process has been formally classified by US customs as "non-transformational", allowing processed beans to retain the original country-of-origin status for tariff purposes.
Throughout 2025, Swiss Water was impacted by unpredictable and rapidly changing US tariff policy. On November 20, 2025, the Company returned to a tariff free operating model. Strategies are in place to manage future tariff exposures, should they emerge.
During the year, elevated coffee prices, market inversion and broader uncertainty led certain US customers to moderate advance purchase commitments and manage inventories more conservatively. In recent weeks, as coffee futures prices have declined and market conditions have begun to normalize, the Company has started to observe early signs of improved purchasing activity. However, customers continue to exercise prudent inventory management, and the movement of customers towards more normalized buying patterns is expected to be slow.
Summary of Financial Results
In C$ ‘000s
3 months ended December 31
12 months ended December 31
except for per share amounts
2025
2024
$ Change
% Change
2025
2024
% Change
% Change
Revenue
66,005
49,249
16,756
34
%
258,719
173,129
85,590
49
%
Cost of sales
(57,989
)
(42,275
)
(15,714
)
37
%
(231,728
)
(146,939
)
(84,789
)
58
%
Gross profit
8,016
6,974
1,042
15
%
26,991
26,190
801
3
%
Operating expenses
(3,453
)
(3,811
)
358
-9
%
(14,932
)
(15,135
)
203
-1
%
Operating income
4,563
3,163
1,400
44
%
12,059
11,055
1,004
9
%
Non-operating or other
(2,926
)
(299
)
(2,627
)
879
