ALICO, INC.

Previous wording

For the three months ended December 31, 2025 and 2024, we generated operating revenue of $1,887 and $16,894, respectively, loss from operations of $8,555 and $10,824, respectively, and net loss attributable to common stockholders of $3,481 and $9,167, respectively. Net cash used in operating activities was $5,469 and $7,597 for the three months ended December 31, 2025 and 2024, respectively.

Current wording

For the three months ended March 31, 2026 and 2025, we generated operating revenue of $5,340 and $17,980, respectively, net income (loss) from operations of $7,821 and $(153,085), respectively, and net income (loss) attributable to common stockholders of $11,381 and $(111,385), respectively. Net cash used in operating activities was $4,809 and $571 for the six months ended March 31, 2026 and 2025, respectively.

Previous wording

On January 14, 2026, we sold approximately 2,950 acres of citrus land for $26,859 ($9,110 per acre) in gross proceeds,

Current wording

During the three months ended March 31, 2026, we sold approximately 2,950 acres of land for $26,859 ($9,110 per acre) in gross proceeds.

Previous wording

The following discussion provides an analysis of our results of operations for the three months ended December 31, 2025, as compared to 2024:

Current wording

The following discussion provides an analysis of our results of operations for the three and six months ended March 31, 2026, as compared to 2025:

Previous wording

The 88.8% decrease in operating revenue for the three months ended December 31, 2025, as compared to the three months ended December 31, 2024, was primarily due to our Strategic Transformation and decision to wind down our Citrus division to focus on a long-term diversified land usage and real estate development strategy, partially offset by an increase in rock and sand royalty, farming lease revenue and sod sales.

Current wording

The 70.3% and 79.3% decrease in revenue for the three and six months ended March 31, 2026, respectively, as compared to the three and six months ended March 31, 2025, was primarily due to our Strategic Transformation and decision to wind down our Citrus division to focus on a long-term diversified land usage and real estate development strategy, partially offset by an increase in farming lease and sod revenue.

Previous wording

The decrease in operating expenses for the three months ended December 31, 2025, as compared to the three months ended December 31, 2024, was primarily driven by our decision to wind down our citrus operations and an inventory adjustment of $7,359, recognized in the three months ended December 31, 2024. See Note 3. Inventories to the Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report.

Current wording

The 94.1% and 91.0% decrease in operating expenses for the three and six months ended March 31, 2026, as compared to the three and six months ended March 31, 2025, was primarily driven by our Strategic Transformation and decision to wind down our Citrus division.

Previous wording

General and administrative expense increased $415 for the three months ended December 31, 2025 as compared to the three months ended December 31, 2024 due to an increase in contract labor and employee costs.

Current wording

General and administrative expense increased $260 for the six months ended March 31, 2026, compared to the six months ended March 31, 2025 due to an increase in contract labor costs and the provision for credit losses on certain citrus receivables, partially offset by lower depreciation expense.

Previous wording

The decrease in the income tax benefit for the three months ended December 31, 2025, as compared to the three months ended December 31, 2024, of $1,582 was principally due to the pre-tax loss and adjusted for the change in the valuation allowance, which has been included in the annual effective tax rate computations. Based upon both positive and negative evidence, management determined that it was not "more likely than not" that a portion of deferred tax assets will be realized. This conclusion is based upon an analysis of the Company's deferred tax assets and liabilities due to the cumulative three-year loss position during fiscal year ending September 30, 2026.

Current wording

The decrease in the income tax benefit for the six months ended March 31, 2026, as compared to the six months ended March 31, 2025, of $28,691 was principally due to the pre-tax gain, as opposed to a pre-tax loss in the prior period, and a change in the valuation allowance. Based upon both positive and negative evidence, management determined that it was not "more likely than not" that a portion of deferred tax assets will be realized. This conclusion is based upon an analysis of the Company's deferred tax assets and liabilities due to the cumulative three-year loss position at March 31, 2026.

Previous wording

Comparison of the Three Months Ended December 31, 2025 and 2024 for the Alico Citrus Segment

Current wording

Comparison of the Three and Six Months Ended March 31, 2026 and 2025 for the Alico Citrus Segment

Previous wording

For the three months ended December 31, 2025, we recognized a decrease in revenue from sales of Fresh Fruit and Other of $38, compared to the same period in the prior year, driven by a decrease in the amount of Fresh Fruit that was resold on behalf of grove owners, as we are no longer performing these services.

Current wording

For the three and six months ended March 31, 2026, we recognized a decrease in revenue from sales of Fresh Fruit and Other of $202 and $240, respectively, compared to the same periods in the prior year, driven by a decrease in the amount of Fresh Fruit that was resold on behalf of grove owners, as we are no longer performing these services.

Previous wording

Revenue for the three months ended December 31, 2025 from the grove owners relating to Grove Management Services decreased 98.3% compared to the prior year period, principally due to the expiration of our grove management agreement on December 31, 2024.

Current wording

Revenue for the three and six months ended March 31, 2026 from the grove owners relating to Grove Management Services decreased 100.0% and 98.5%, respectively, compared to the prior year, principally due to the expiration of our grove management agreement on December 31, 2024 and our decision to wind down our citrus operations in fiscal year 2025.

Previous wording

For the three months ended December 31, 2025, we recognized a decrease in Cost of Sales of $13,269, compared to the same period in the prior year, which was driven by our decision to wind down our citrus operations and an inventory adjustment of $7,359, recognized in the three months ended December 31, 2024, as a result of Hurricane Milton which hit in October 2024.

Current wording

For the three and six months ended March 31, 2026 we recognized a 94.8% and 91.5% decrease in Cost of Sales, compared to the prior year period, which was driven by the decision to wind down our citrus operations. Crop Insurance Proceeds of $4,040, received in connection with claims resulting from Hurricane Milton, in the quarter ended March 31, 2025 are recorded within Fresh Fruit and Other in the table above.

Previous wording

The table below presents key operating measures for the three months ended December 31, 2025 and 2024 for the Land Management and Other Operations segment:

Current wording

The table below presents key operating measures for the three and six months ended March 31, 2026 and 2025 for the Land Management and Other Operations segment:

Previous wording

Comparison of the Three Months Ended December 31, 2025 and 2024 for the Land Management and Other Operations Segment

Current wording

Comparison of the Three and Six Months Ended March 31, 2026 and 2025 for the Land Management and Other Operations Segment

Previous wording

The principal uses of cash that affect our liquidity position have historically included the following: operating expenses including employee costs, the cost of maintaining the citrus groves, harvesting and hauling of citrus products, capital expenditures, property taxes, stock repurchases, dividends, debt service costs including interest and principal payments on term loans and other credit facilities and acquisitions. Our expected principal uses of cash that affect our liquidity position, in light of the Strategic Transformation and the fiscal year 2025 workforce reduction, are expected to include lower employee costs, lower costs of maintaining citrus groves and lower capital expenditures. In addition, on March 25, 2025, our Board approved a stock repurchase program authorizing us to repurchase up to $50.0 million shares of Common Stock, with the amount and timing of repurchases depending on market conditions and corporate needs.

Current wording

The principal uses of cash that affect our liquidity position have historically included the following: operating expenses including employee costs, the cost of maintaining the citrus groves, harvesting and hauling of citrus products, capital expenditures, property taxes, stock repurchases, dividends, debt service costs including interest and principal payments on term loans and other credit facilities and acquisitions. Our expected principal uses of cash that affect our liquidity position, in light of the Strategic Transformation and the fiscal year 2025 workforce reduction, are expected to include lower employee costs, lower costs of maintaining citrus groves and lower capital expenditures. In addition, on March 25, 2025, our Board approved a stock repurchase program authorizing us to repurchase up to $50.0 million shares of Common Stock, with the amount and timing of repurchases depending on market conditions and corporate needs. During the three months ended March 31, 2026, the Company repurchased 207,340 shares of stock, at a weighted average price per share of $40.38, for $8,372 (see Note 15. Subsequent Events to the accompanying Condensed Consolidated Financial Statements).

Previous wording

During the fiscal year ended September 30, 2025, we recorded an additional valuation allowance against our deferred tax assets, which is recorded in the annual effective tax rate. We are required to assess the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss expected to be incurred over a three-year period during the year ending September 30, 2025. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as our projections for growth.

Current wording

During the three and six months ended March 31, 2025, we recorded an additional valuation allowance against our deferred tax assets, which is recorded in the annual effective tax rate. We are required to assess the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss expected to be incurred over a three-year period during the year ending September 30, 2025. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as our projections for growth.

Previous wording

Our credit facilities are subject to a Minimum Liquidity Requirement of $5,831 and an LTV Cap of 50.0%. As of December 31, 2025, we were in compliance with all of the financial covenants and were able to draw the entire amount of the RLOC, less current borrowings, and remain under the LTV Cap.

Current wording

Our credit facilities are subject to a Minimum Liquidity Requirement of $5,824 and an LTV Cap of 50.0%. As of March 31, 2026, we were in compliance with all of the financial covenants and were able to draw the entire amount of the RLOC, less current borrowings, and remain under the LTV Cap.

Previous wording

The term loans and RLOC are secured by real property. The security for the term loans and RLOC as of the most recent amendment, consists of approximately 40,428 gross acres of land.

Current wording

The term loans and RLOC are secured by real property. The security for the term loans and RLOC as of the most recent amendment, consists of approximately 40,263 gross acres of land.

Previous wording

The $2,128 decrease in Net cash used in operating activities was driven by lower operating expenses, partially offset by lower revenues, during the three months ended December 31, 2025, as compared to the three months ended December 31, 2024, due to our Strategic Transformation which began in January 2025.

Current wording

The $4,238 increase in Net cash used in operating activities was driven by lower revenues and a smaller tax refund, partially offset by lower operating expenses during the six months ended March 31, 2026, as compared to the six months ended March 31, 2025, due to our Strategic Transformation which began in January 2025.

Previous wording

Net Cash Provided By (Used In) Investing Activities

Current wording

Net Cash Provided By Investing Activities

Previous wording

The $5,288 increase in Net cash provided by (used in) investing activities for the three months ended December 31, 2025, compared to the three months ended December 31, 2024, was principally the result of land sales in the three months ended December 31, 2025, partially offset by an advance of $5,071 to fund a wildlife-crossing planned as part of the Corkscrew Villages Project (see Note 2. Summary of Significant Accounting Policies to the Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report for details).

Current wording

The $12,588 increase in Net cash provided by investing activities for the six months ended March 31, 2026, compared to the six months ended March 31, 2025, was principally the result of greater land sales in the six months ended March 31, 2026, partially offset by an advance of $5,071 to fund a wildlife-crossing planned as part of the Corkscrew Villages Project (see Note 2. Summary of Significant Accounting Policies to the Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report for details).

Previous wording

The $12,540 change in Net cash (used in) provided by financing activities for the three months ended December 31, 2025, as compared to the three months ended December 31, 2024, was primarily the result of there being no borrowings under the RLOC during the three months ended December 31, 2025.

Current wording

The $5,622 increase in Net cash used in financing activities for the six months ended March 31, 2026, as compared to the six months ended March 31, 2025, was primarily the result of common stock repurchases of $8,372, partially offset by lower debt repayments in the six months ended March 31, 2026.