Alico, Inc. (ALCO) Q3 2026 Earnings: Revenue $9.0M (+7.7%)
ALCO — Q3 2026 Financial Report Analysis
Q3 · Fiscal year 2026 · Published by Pham Hop
Alico's first quarter as a pure land company: revenue rose 7.7% to $9.0M and it earned $0.29/share, but ~$6.6M came from a one-off crop-insurance lease pass-through, and FY2026 guidance implies a Q4 loss.
Revenue
$9.0M
+7.7% YoY
Net income
$2.1M
Diluted EPS
$0.29
Operating margin
20.9%
This period vs a year ago
Same period last year
This period
Revenue▲+7.7%
≈$8.4M
$9.0M
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
A one-off insurance payment turned Alico's first post-citrus quarter profitable
Alico's fiscal third quarter (April–June 2026; its fiscal year ends September 30) is the first one it reported as a single-segment land company rather than a citrus grower. Revenue rose 7.7% to $9.0 million and the company earned $2.1 million ($0.29 per diluted share), against an $18.3 million loss a year earlier. But most of that revenue — about $6.6 million — was a contingent lease payment: a tenant farming Alico land received crop-insurance money after weather events, and its lease passes a share of that through to Alico. Strip that out and the underlying rental business is still small, while the year-ago loss was swollen by citrus-grove write-downs that are now finished.
At a glance
$6.7 million of "variable" lease income in the quarter vs. $0.46 million of regular lease rent — the profit came from a one-time insurance pass-through, not from a bigger rent roll.
$55.6 million of cash, net debt down to $29.8 million (from $47.4 million at September 30, 2025) — land sales earlier in the year funded a $10.0 million buyback and still left the balance sheet stronger.
Full-year Adjusted EBITDA guidance of ~$15 million, below the $24.2 million already booked in the first nine months — management's own numbers point to a loss-making fourth quarter and cash falling to ~$48 million by year-end.
The numbers
Metric
Q3 FY2026 (Apr–Jun 2026)
Q3 FY2025
YoY Change
Total operating revenue
$9.04M
$8.39M
+7.7%
– Land management & other (leases, royalties)
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$7.92M
$0.59M
n/m (about 13.5x)
– Citrus (final Valencia sales)
$1.12M
$7.81M
−85.6%
Operating expenses
$4.99M
$36.45M
−86.3%
Income (loss) from operations
$1.89M
$(25.37)M
n/m (loss to profit)
Operating margin
20.9%
−302.4%
n/m
Net income (loss) attributable to Alico
$2.13M
$(18.29)M
n/m (loss to profit)
Diluted EPS
$0.29
$(2.39)
n/m (loss to profit)
Adjusted EBITDA (company's non-GAAP)
$4.60M
$19.27M
−76.1%
Gain on land/equipment sales
$0.10M
$5.55M
−98.2%
Cash and equivalents (period-end)
$55.6M
$38.1M (Sep 30, 2025)
+$17.5M
Operating margin is the share of revenue left after running the business, before interest and tax. "n/m" = not meaningful (a percentage change from a loss to a profit has no useful reading). Source: Form 10-Q for the quarter ended June 30, 2026, and the company's August 10, 2026 earnings release for Adjusted EBITDA and net debt.
From orange groves to landlord and developer
In January 2025 Alico announced what it calls its Strategic Transformation: wind down the citrus business, which the 10-Q says faced "environmental and financial challenges", and make money from its roughly 47,300 acres of Florida land through sales, leases and real-estate development. The last significant harvest was in April 2025, and the Tropicana supply contract was terminated in May 2025. This quarter the company stopped reporting citrus as a separate segment: "we now operate as one reportable segment."
The revenue mix shows the change:
Revenue line
Q3 FY2026
Q3 FY2025
9 months FY2026
9 months FY2025
Valencia oranges
$1.12M
$7.80M
$3.28M
$24.09M
Early/mid-season oranges
—
—
$1.92M
$15.58M
Land and other leasing
$7.78M
$0.50M
$10.10M
$1.65M
Total revenue
$9.04M
$8.39M
$16.27M
$43.26M
Over nine months revenue fell 62.4% to $16.3 million, because $35.6 million of citrus sales disappeared and leasing only partly replaced them.
The land plan has three parts:
Selling land. Over the nine months Alico sold about 3,546 acres for $34.6 million ($9,761 an acre), booking a $24.8 million gain. That compares with 2,790 acres at $8,645 an acre in the same period a year earlier. There were no land sales in the third quarter itself.
Leasing with an option to buy. On June 18 Alico leased about 3,280 acres in Hendry County to a farmer for one year, extendable by ten. The tenant can buy the land for $29.5 million ($9,000 an acre) if it exercises the option by June 30, 2029. That price is a little below what Alico got per acre on its sales this year. The deal brings in rent now and could lead to a sale later.
Building homes. Corkscrew Grove Villages is a plan for about 9,000 homes and 480,000 sq ft of commercial space on around 4,660 acres in Collier County, with more than 6,000 acres set aside for conservation. Collier County gave final local approval for the East Village in April 2026. State and federal permits (South Florida Water Management District, U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service) are still needed, and the company says construction "could begin in 2028 or 2029 if all approvals are granted." Alico has also advanced $5.1 million to the project's stewardship district to pay for a planned wildlife crossing. The district is a special-purpose public body run by Alico employees, and the money is reimbursable to Alico at 5% interest.
In June the company also bought the 49% of Citree it did not already own, which gives it full control of about 1,200 acres in DeSoto County. It paid $2.0 million in cash and took on about $3.3 million of Citree debt. If Alico sells land above $12,000 an acre within 24 months, it owes the seller an extra payment.
Takeaway: The profit this quarter came from a one-time insurance pass-through. Regular lease rent was just $456K in the quarter and $1.76M over nine months, which does not cover G&A of about $2.3M a quarter. For now Alico is a balance sheet that sells land, not a self-funding landlord. What it is worth depends on what Corkscrew Grove is eventually allowed to build and how fast it gets permits.
What the headline numbers hide
Most of the revenue was a one-off. The 10-Q credits the 7.7% revenue increase to "approximately $6.6 million of contingent lease payments received from a lessee for crop insurance payments as a result of weather events." Variable lease income was $6.69 million of the quarter's $9.04 million. Without it, revenue would have been about $2.4 million, and with $4.99 million of operating costs and $2.26 million of G&A, the quarter would have shown an operating loss.
The year-ago loss was mostly depreciation, not cash losses. Depreciation is the accounting charge that spreads an asset's cost over its useful life. When Alico decided to stop farming, it "accelerated" the depreciation on its trees, so a year ago operating expenses carried $44.4 million of it. This quarter that figure was $2.1 million. A year ago, expenses were also reduced by $16.0 million of Hurricane Milton crop-insurance money. The "loss to profit" swing mostly reflects the end of tree write-offs, not better operations.
Cash conversion is weak once the insurance money is set aside. Operating cash flow was $7.1 million in the quarter, helped by the insurance pass-through. Over nine months it was just $2.3 million against $9.3 million of net income. The difference is largely because the $24.8 million land gain counts toward profit, while the sale proceeds show up as investing cash flow, not operating cash flow. The company's cash increase this year ($17.5 million) came from land sales, not from day-to-day operations.
Adjusted EBITDA counts land-sale gains. EBITDA is earnings before interest, tax, depreciation and amortization. Since December 2025, Alico's "Adjusted EBITDA" no longer removes gains on property sales. So the nine-month figure of $24.2 million includes the $24.8 million land gain. This quarter, with no land sales, Adjusted EBITDA equalled plain EBITDA at $4.6 million.
Buybacks helped EPS a little. Alico has spent $10.0 million this fiscal year repurchasing 245,399 shares at an average $40.76. Diluted shares fell 2.7% year on year, to 7.44 million. That is a small effect next to the swing in profit.
Taxes: the tax benefit was only $93K on $1.47 million of pre-tax income. The company says it still records a valuation allowance against its deferred tax assets (it does not expect to use all its past tax losses) because of a "cumulative three-year loss position." So reported net income is close to pre-tax income for now.
Clean on receivables: citrus receivables fell to $0 from $575K at the start of the fiscal year, and assets held for sale went from $9.2 million to zero as groves were sold. There are no signs of money owed piling up.
Balance sheet and guidance
Total debt was steady at $85.4 million, with $92.5 million still available on the $95 million revolving credit line. Total assets were $198.7 million and Alico stockholders' equity was $104.8 million. Management says its cash "extended our financial runway through fiscal year 2029, without requiring any additional asset sales." The quarterly dividend stays at $0.05 a share.
Management raised full-year guidance in the August 10 earnings release:
FY2026 guidance
May 2026
August 2026
Adjusted EBITDA
~$14M
~$15M
Year-end cash
~$40M
~$48M
Year-end net debt
~$45M
~$37M
Two things stand out. First, the higher guidance mostly reflects the insurance money already received. Second, the nine months to June already produced $24.2 million of Adjusted EBITDA. A full-year target of ~$15 million therefore implies a fourth quarter of about −$9 million, with cash falling from $55.6 million to ~$48 million. The release does not explain the expected fourth-quarter loss. It could be seasonal costs, property taxes or remaining wind-down costs, but the filing does not say which.
Outlook
The next few quarters should be judged on three things. First, regular lease rent: whether the new 3,280-acre Hendry lease and others raise it well above the current ~$0.5 million a quarter. Second, the price of any land sales compared with this year's $9,761 an acre. Third, progress on state and federal permits for Corkscrew Grove's East Village. Management is also cutting overhead, including a new office lease it expects to save money starting in the second quarter of fiscal 2027. The company has enough cash to wait for permits without selling more land. On current numbers, though, the recurring business does not cover its costs, so each quarter's result will continue to depend on land sales and one-off items. The fiscal 2026 annual report (10-K) is due around late November.