Free cash flow margins have plummeted to -39.5% in 2026Q2, highlighting a fundamental inability to generate positive cash flow despite ongoing capital expenditures representing 20.9% of revenue.
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 |
|---|
| Cash from Operations | -17.91M | -5.67M | 17.85M | -15.87M | 14.83M | 9.61M | -11.32M | 1.36M | 18.4M | 18.48M | 14.3M | 7.7M | 15.65M | 5.25M | 6.33M | 6M | 7.14M | -997K | 6.92M |
| Operating CF Margin % | - | -3.55% | 9.32% | -8.82% | 8.03% | 5.79% | -6.88% | 0.8% | 14.22% | 15.24% | 12.8% | 7.67% | 15.13% | 6.19% | 9.61% | 11.43% | 13.16% | -2.86% | 12.92% |
| Operating CF Growth % | -334.06% | -131.76% | 212.5% | -207.01% | 54.4% | 184.87% | -929.08% | -92.58% | -0.46% | 29.21% | 85.89% | -50.84% | 197.91% | -16.97% | 5.47% | -16.01% | 816.55% | -114.42% | - |
| Net Income | -40.39M | -16.36M | 7.17M | 9.12M | -474K | -3.9M | -17.94M | -5.47M | 20.21M | 6.55M | 8.06M | 7.08M | 6.99M | 4.91M | 3.15M | 1.6M | 366K | -2.87M | 3.75M |
| Depreciation & Amortization | 7.1M | 9.21M | 8.37M | 8.58M | 9.8M | 9.81M | 10.1M | 8.63M | 7.28M | 6.47M | 5.34M | 4.18M | 3.52M | 2.4M | 2.13M | 2.21M | 2.37M | 2.32M | 2.43M |
| Stock-Based Compensation | 1.9M | 3.08M | 4.12M | 3.84M | 2.73M | 2.58M | 2.04M | 1.79M | 1.37M | 1.33M | 1.31M | 1.08M | 1.12M | 753K | 947K | 795K | 1.16M | 770K | 600K |
| Deferred Taxes | -8.17M | -4.71M | -2.09M | -1.95M | 548K | -189K | -2.13M | -773K | -7.31M | 2.29M | 6.2M | -350K | 129K | -1.03M | 1.4M | 1.78M | -843K | -2.23M | 407K |
| Other Non-Cash Items | 22.43M | 7.97M | -1.38M | -32.99M | -3.08M | -2.02M | 7.6M | -1.84M | -2.73M | 1.15M | -4.55M | -4.9M | 761K | -2.25M | -647K | -640K | 4.74M | 3.75M | 2.4M |
| Working Capital Changes | 523K | -4.87M | 1.66M | -2.47M | 5.31M | 3.32M | -10.99M | -978K | -420K | 696K | -2.04M | 598K | 3.14M | 475K | -652K | 256K | -650K | -2.75M | -2.68M |
| Change in Receivables | 5.85M | 466K | 1.1M | 815K | 1.84M | -5.08M | -309K | -4.01M | -3.23M | -1.56M | -1.88M | -184K | -810K | -2.15M | -1.74M | 209K | 0 | -1.21M | -122K |
| Change in Inventory | -365K | 0 | 0 | 0 | -1.15M | -5.39M | 5.54M | -3.39M | 2.15M | 971K | -808.6M | 871.59M | 433K | -89.95M | -1.33M | 133K | 0 | 288K | 32K |
| Change in Payables | -6.23M | -1.72M | -3.34M | -1.77M | 1.85M | 5.39M | -5.54M | 3.39M | 707K | 808K | 808M | -873M | 0 | 93M | 1.84M | 263K | 0 | -1.43M | 40K |
| Cash from Investing | -15.57M | -18.68M | -9.19M | 90.58M | 19.43M | -10.24M | 3.85M | -23.65M | -50.81M | -26.42M | -11.52M | -25.81M | -28.18M | -11.35M | -11.27M | -1.47M | -2.73M | -1.48M | -29.35M |
| Capital Expenditures | -15.07M | -13.54M | -9.41M | -10.3M | -10.07M | -9.83M | -10.6M | -16.26M | -26.98M | -12.9M | -31.35M | -34.64M | -25.61M | -10.73M | -8.47M | -6.36M | -5.5M | -7.16M | -29.21M |
| CapEx % of Revenue | 11.38% | 8.48% | 4.92% | 5.73% | 5.45% | 5.92% | 6.44% | 9.49% | 20.85% | 10.63% | 28.04% | 34.54% | 24.75% | 12.65% | 12.86% | 12.11% | 10.14% | 20.55% | 54.58% |
| Acquisitions | -4.12M | -6.85M | 0 | 0 | -48K | 119K | -2.8M | -19M | -28.5M | -13.16M | 15.11M | 2.7M | -2.46M | -5.51M | -2.91M | 4.87M | 0 | 26K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 3.61M | 2.22M | 226K | 102.25M | 22.14M | 250K | 6.26M | 7.3M | 299K | -12.9M | 995K | 8.84M | 1K | 430K | -18K | -66K | 2.85M | -21K | 512K |
| Cash from Financing | 32.39M | 22.84M | -9.29M | -71.92M | -33.52M | 534K | 7.36M | 22.43M | 32.55M | 8.38M | -2.78M | 18.06M | 12.54M | 6.17M | 4.93M | -4.77M | -4.75M | 3M | 22.08M |
| Debt Issued (Net) | 39.69M | 30.86M | -1.07M | -65.47M | -26.17M | 7.04M | 16.99M | 28.91M | -26.37M | 12.5M | 1.02M | 21.47M | 6.22M | -27.53M | 6.76M | -3.07M | -3.07M | 4.13M | 27.11M |
| Equity Issued (Net) | -1.05M | -1.96M | -2.31M | -567K | -1.53M | -700K | -3.49M | -605K | 64.1M | 0 | -190K | 0 | 9.3M | -236K | -6K | -42K | 0 | -5K | -1.15M |
| Dividends Paid | -4.07M | -5.92M | -5.91M | -5.88M | -5.82M | -5.8M | -5.86M | -5.83M | -4.53M | -3.71M | -3.46M | -3.17M | -2.75M | -2.21M | -1.73M | -1.66M | -1.67M | -963K | -3.88M |
| Share Repurchases | 485K | -1.96M | -2.31M | -567K | -1.53M | -700K | -3.71M | -605K | 0 | -294K | -3.86B | -6.31B | -9.17B | 0 | -6K | -42K | 0 | -5K | -1.15M |
| Other Financing | -2.18M | -155K | 0 | 0 | 0 | 0 | -279K | -35K | -656K | -402K | -151K | -237K | -230K | 36.13M | -91K | 0 | -21K | -166K | 0 |
| Net Change in Cash | -1.19M | -1.49M | -635K | 2.77M | 418K | -62K | -115K | 7K | 117K | 454K | -1K | -53K | 10K | 71K | -10K | -241K | -345K | 513K | -396K |
| Free Cash Flow | -32.99M | -19.21M | 8.44M | -26.18M | 4.76M | -229K | -21.92M | -14.9M | -8.59M | 5.58M | -17.05M | -26.95M | -9.96M | -5.48M | -2.14M | -359K | 1.64M | -8.16M | -22.29M |
| FCF Margin % | -24.91% | -12.03% | 4.41% | -14.55% | 2.58% | -0.14% | -13.32% | -8.69% | -6.64% | 4.6% | -15.25% | -26.86% | -9.62% | -6.46% | -3.25% | -0.68% | 3.02% | -23.41% | -41.65% |
| FCF Growth % | -320.1% | -327.59% | 132.24% | -649.43% | 2180.35% | 98.96% | -47.1% | -73.51% | -253.86% | 132.74% | 36.74% | -170.64% | -81.7% | -156.19% | -495.82% | -121.86% | 120.13% | 63.41% | - |
| FCF per Share | -1.84 | -1.08 | 0.48 | -1.49 | 0.27 | -0.01 | -1.24 | -0.85 | -0.53 | 0.39 | -1.20 | -1.91 | -0.71 | -0.43 | -0.19 | -0.03 | 0.15 | -0.73 | -2.00 |
| FCF Conversion (FCF/Net Income) | 0.82x | 0.35x | 2.31x | -1.69x | -31.29x | -2.46x | 0.63x | -0.25x | 0.91x | 2.80x | 1.78x | 1.09x | 2.24x | 1.07x | 2.01x | 3.75x | 22.12x | 0.35x | 1.98x |
| Interest Paid | 1.12M | 1.19M | 971K | 0 | 2.06M | 0 | 0 | 2.53M | 1.58M | 0 | 1.41M | 55K | 0 | 478K | 3.48M | 3.79M | 3.59M | 3M | 0 |
| Taxes Paid | 200K | 707K | 5.19M | 0 | 83K | 0 | 0 | 130K | 210K | 0 | 2.13M | 2.96M | 0 | 1.91M | 252K | 709K | 2.03M | 987K | 0 |
Liquidity and operational insolvency
As reported in recent financial statements, Limoneira's operating cash flow frequently diverges from net income, with the 2026Q2 OCF/NI ratio of 0.21 highlighting a fundamental inability to convert accounting losses into cash, suggesting that accruals and non-cash adjustments are masking the severity of the underlying cash burn.
The consistent failure of operating cash flow to track with net income suggests that the company's earnings quality is severely compromised by non-cash items and working capital volatility. Investors should monitor this divergence closely, as it indicates that the core agribusiness operations are not generating the liquidity required to sustain the current cost structure.
Based on the company's reported figures, the free cash flow margin has deteriorated to -39.5% in 2026Q2, reflecting a sustained period of negative cash generation that underscores the structural challenges inherent in the current asset-heavy agricultural production model and the ongoing transition to an asset-light strategy.
The trajectory of free cash flow indicates that capital expenditures continue to outpace the company's ability to generate internal cash, forcing a reliance on external financing or asset liquidations. This trend suggests that the business is currently in a state of cash consumption that may be unsustainable without significant operational restructuring.
According to recent SEC filings, Limoneira's capital expenditure as a percentage of revenue reached 20.9% in 2026Q2, a significant escalation that suggests the company is struggling to maintain its agricultural infrastructure despite a shrinking top-line revenue base and persistent negative operating margins across its primary segments.
The high capital intensity relative to revenue suggests that the company is locked into a fixed-cost cycle that requires constant reinvestment just to maintain current production levels. This capital-heavy requirement appears to be a primary driver of the company's liquidity strain, as the returns on these investments have failed to materialize in the form of positive cash flow.
Data from the latest quarterly filings reveals significant volatility in working capital, with a $2.4 million outflow in 2026Q2 following a $10.9 million inflow in 2025Q4, indicating that the company's cash position is highly sensitive to the timing of seasonal harvests and the collection of receivables.
The erratic nature of working capital changes suggests that the company lacks a stable cash conversion cycle, which complicates liquidity planning. This volatility may indicate that the company is struggling to manage its inventory and payables effectively, further exacerbating the risks associated with its already thin cash reserves.
As reported in financial statements, Limoneira has continued to pay dividends despite negative free cash flow, with $1.5 million in quarterly outflows in early 2026, a practice that appears increasingly difficult to justify given the company's limited cash position of approximately $1.5 million as of recent reporting.
The decision to prioritize dividend payments while the core business is burning cash suggests a management focus on shareholder optics that may be at odds with the company's immediate liquidity needs. This capital allocation strategy warrants further investigation, as it may be depleting the very resources needed to fund the transition to an asset-light model.
Quick answers to the most common questions about buying LMNR stock.
Limoneira Company (LMNR) generated $-5.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Limoneira Company (LMNR) reported negative free cash flow of $19.2M in 2025, indicating capital requirements exceeded cash from operations.
Limoneira Company (LMNR) spent $13.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Limoneira Company (LMNR) returned $5.9M to shareholders via cash dividends and spent $2.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.