Financial Analysis

Note 15. Commitments and Contingencies Legal Proceedings From time to time, Alico has been, and may in the future be, involved in litigation relating to claims arising out of its operations in the normal course of business. There are no current legal proceedings to which the Company is a party or of which any of its property is subject that it believes will have a material adverse effect on its financial position, results of operations or cash flows.

CommitmentsAndContingenciesDisclosureTextBlock

Note 13. Employee Benefit Plans Profit Sharing and 401(k) Plans The Company maintains a 401(k) employee savings plan for eligible employees, which provides up to a 4% matching contribution payable on employee payroll deferrals. The Companys matching funds vest to the employee immediately, pursuant to a safe harbor election effective in October 2012. The Companys contributions to the plan were $189 and $347 for the years ended September 30, 2025 and 2024, respectively. The Company also maintains a Profit Sharing Plan (Plan) that is fully funded by contributions from the Company. Contributions to the Plan are discretionary and determined annually by the Board. Contributions to employee accounts are based on the participants compensation. The Company did not contribute to the Plan for the years ended September 30, 2025 and 2024, respectively. …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

(in thousands) September 30, 2025 2024 Revenue recognized at a point-in-time $ 42,253 $ 42,233 Revenue recognized over time 1,813 4,410 Total $ 44,066 $ 46,643 Revenues disaggregated by significant products and services for the years ended September 30, 2025 and 2024 are as follows: (in thousands) Years Ended September 30, 2025 2024 Alico Citrus Early and Mid-Season $ 15,577 $ 14,534 Valencias 24,089 26,925 Fresh Fruit and Other 777 774 Grove Management Services 894 2,826 Total $ 41,337 $ 45,059 Land Management and Other Operations Leasing and Royalties $ 2,393 $ 1,284 Other 336 300 Total $ 2,729 $ 1,584 Total Revenues $ 44,066 $ 46,643

DisaggregationOfRevenueTableTextBlock

"Note 9. Income Taxes The Federal and State filings remain subject to examination by tax authorities for tax periods ending after September 30, 2022 and 2021, respectively. On July 4, 2025, the One Big Beautiful Bill Act (""OBBBA"") was signed into law, which includes a broad range of tax reform provisions that may affect the Company's financial results. The OBBBA allows for the addback of tax depreciation and amortization when computing interest limitations under Section 163(j) of the U.S. Internal Revenue Code of 1986, as amended, a reinstatement of elective 100% first-year bonus depreciation for qualified property acquired after January 19, 2025, and a more favorable tax rate on Foreign-derived Deduction Eligible Income and income from non-U.S. subsidiaries (Net CFC Tested Income), among other provisions. The Company has evaluated the impact of these provisions and noted an immaterial impact to fiscal year 2025. However, the Company is still currently evaluating the impact of these provisions which could affect the Companys effective tax rate and deferred tax assets in future periods. A quantitative estimate of the specific financial effects cannot be reasonably determined at this time due to the complexity of the changes in the tax reform. The impact of those tax provisions in the OBBBA will depend on our facts in each year and anticipated guidance from the U.S. Department of the Treasury. The income tax (benefit) provision for the years ended September 30, 2025 and 2024 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 12. Leases The Company determines whether an arrangement is a lease at inception. The Companys leases consist of operating lease arrangements for certain office space and IT facilities. When these lease arrangements include lease and non-lease components, the Company accounts for lease components and non-lease components (e.g., common area maintenance) separately based on their relative standalone prices. Any lease arrangements with an initial term of 12 months or less are not recorded on the Companys Consolidated Balance Sheets, and it recognizes lease cost for these lease arrangements on a straight-line basis over the applicable lease term. Many lease arrangements provide the options to exercise one or more renewal terms or to terminate the lease arrangement. When the options are reasonably certain to be exercised the Company includes these options when it will be reasonably certain to exercise them in the lease term used to establish the right-of-use assets and lease liabilities. Generally, lease agreements do not include an option to purchase the leased asset, residual value guarantees or material restrictive covenants. As most of our lease arrangements do not provide an implicit interest rate, the Company applies an incremental borrowing rate based on the information available at the commencement date of the lease arrangement to determine the present value of lease payments. No lease costs associated with finance leases and sale-leaseback transactions occurred and o …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Note 8. Long-Term Debt and Lines of Credit The following table summarizes long-term debt at September 30, 2025 and September 30, 2024: (in thousands) Interest Rate September 30, 2025 September 30, 2024 Long-term debt, net of current portion: Met fixed-rate term loans 3.85% $ 70,000 $ 70,000 Met fixed-rate term loan II 6.21% 10,000 Met Citree term loan 5.28% 3,450 3,700 Pru loans A & B 10,457 Deferred financing fees (403) (434) 83,047 83,723 Less current portion of long-term debt 250 1,410 Long-term debt, net $ 82,797 $ 82,313 The following table summarizes amounts outstanding under lines of credit and related deferred financing costs, net of accumulated amortization at September 30, 2025 and September 30, 2024: (in thousands) September 30, 2025 September 30, 2024 Lines of Credit: RLOC $ 2,500 $ 8,394 Deferred financing fees (1) (719) (671) Lines of Credit, net $ 1,781 $ 7,723 1- Represents deferred financing fees on the RLOC, included within Other non-current assets in the consolidated balance sheets. Future maturities of long-term debt and lines of credit as of September 30, 2025 are as follows: (in thousands) September 30, 2025 Due within one year $ 250 Due between one and two years 250 Due between two and three years 250 Due between three and four years 2,700 Due between four and five years 70,000 Due beyond five years 12,500 Total future maturities $ 85,950 Interest costs expensed and capitalized were as follows: (in thousands) Years Ended September 30, 2025 2024 Int …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures, which amends Topic 280 primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. ASU 2023-07 became effective for us on October 1, 2024. The adoption resulted in incremental disclosures in our Segment Information footnote (see Note 11. Segment Information for further information ) but did not have an impact on the Company's consolidated statements of operations, balance sheets, or cash flows in its Consolidated Financial Statements. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which amends Topic 740 primarily through enhanced disclosures about an entitys tax risks and tax planning. The amendments are effective for public business entities in annual periods beginning after December 15, 2024, with early adoption permitted on a prospective or retrospective basis. ASU 2023-09 will become effective for us on October 1, 2025. The Company expects to include certain additional income tax disclosures as a result of the adoption of this accounting pronouncement but it will not impact the Company's results of operations, financial condition or cash flows. In November 2024, the FASB issued ASU 2024-03, Disaggregation of I …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 14. Related Party Transactions Capital Contribution On June 10, 2024, all operating partners of Citree received a funding notice relating to an additional Cash Capital Contribution (Contribution) requirement of $750, as a result of trees producing limited revenue as they continue to recover from Hurricane Ian. The Companys and noncontrolling parties portions of the Contribution of $382 and $368, respectively, were funded on July 11, 2024. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Note 7. Restructure and Other Charges On January 3, 2025, the Board approved the Strategic Transformation and associated reduction in the Companys current workforce by up to 172 employees. This workforce reduction was effective on January 6, 2025 with respect to 135 employees, and was effective between April 1, 2025 and May 30, 2025 with respect to 34 employees (see Note 1. Description of Business and Basis of Presentation for further information on the Strategic Transformation). (in thousands) Personnel Other Total Balance at September 30, 2024 $ $ $ Restructure expense 2,325 313 2,638 Restructure payments (2,325) (313) (2,638) Balance at September 30, 2025 $ $ $ These Restructure and other charges were incurred in the Companys Citrus Segment with Personnel costs of $2,093 and $232 being recognized in Operating expenses and General and administrative expenses , respectively, and Other costs of $313, principally representing legal costs, recognized in General and administrative expense during the year ended September 30, 2025 (see Note 5. Property and Equipment, Net for information on the Asset Impairment ). As of September 30, 2025, the restructuring plan is complete. …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Note 11. Segment Information Segments Our Chief Executive Officer, who is also our chief operating decision maker (CODM), assesses performance and allocates resources based on the operating performance of two reportable segments: Alico Citrus and Land Management and Other Operations. The operating segments represent the primary components that engage in business activities from which they may earn revenues and incur expenses for which separate financial information is available and which is regularly provided to the Companys CODM. In identifying our reportable segments, the Company also considered the nature of services provided by our operating segments, economic characteristics in which the segments operate and other relevant factors. Total revenues represent sales to unaffiliated customers, as reported in the Consolidated Statements of Operations. Goods and services produced by these segments are sold to wholesalers and processors in the United States who prepare the products for consumption. The Company's CODM evaluates the segments performance based on Revenues and Gross profit (loss) from operations. Information by reportable segment is as follows: (in thousands) Years Ended September 30, 2025 2024 Revenues: Alico Citrus $ 41,337 $ 45,059 Land Management and Other Operations 2,729 1,584 Total operating revenues $ 44,066 $ 46,643 Segment expenses: Alico Citrus Cost of Sales 245,123 89,420 Harvesting and Hauling 10,743 11,843 Fresh Fruit and other (20,193) (228) Grove Man …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 2. Summary of Significant Accounting Policies Revenue Recognition Revenues are derived from the sale of processed fruit, fresh fruit, other citrus revenue, revenues from grove management services, leasing revenue, royalties received from rock and sand mining and oil extraction rights and other resource revenues. Most of the revenue is generated from the sale of citrus fruit to processing facilities, fresh fruit sales and grove management services. For fruit sales, the Company recognizes revenue in the amount it expects to be entitled to be paid, determined when control of the products or services is transferred to its customers, which occurs upon delivery of and acceptance of the fruit by the customer and when the Company has a right to payment. For the sale of fruit, the Company has identified one performance obligation, which is the delivery of fruit to the processing facility of the customer (or harvesting of the citrus in the case of fresh fruit) for each separate variety of fruit identified in the respective contract with the respective customer. The Company initially recognizes revenue in an amount which is estimated based on contractual and market prices, if such market price falls within the range (known as floor and ceiling prices) identified in the specific respective contracts. Additionally, the Company also has a contractual agreement whereby revenue is determined based on applying a cost-plus structure methodology. As such, since all these contracts contain …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Note 10. Stock-based Compensation Effective January 27, 2015, the Board adopted the 2015 Stock Incentive Plan (the 2015 Plan), which provides for up to 1,250,000 common shares available for issuance to provide a long-term incentive plan for officers, employees, directors and/or consultants to directly link incentives to stockholder value, with 1,073,879 remaining available for issuance under the 2015 Plan. The 2015 Plan was approved by the Companys stockholders in February 2015. An amendment and restatement of the 2015 Plan was approved by the Board on December 17, 2024 and by shareholders on February 28, 2025 at the Company Annual Shareholders Meeting (the Amended and Restated 2015 Plan). The Amended and Restated 2015 Plan provides for grants to eligible participants in various forms including restricted shares of the Companys common stock, restricted stock units and stock options. Awards are discretionary and are determined by the Compensation Committee of the Board of Directors. Awards vest based upon service conditions. Non-vested restricted shares generally vest over requisite service periods of one to six years from the date of grant. The Company recognizes stock-based compensation expense for (i) Board fees (generally paid in treasury stock); and (ii) other awards under the 2015 Plan (paid in restricted stock and stock options). Stock-based compensation expense is recognized in general and administrative expenses in the Consolidated Statements of Operations. Stock Com …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 16. Subsequent Events On October 27, 2025, the CGSD, a special district formed to facilitate financing and development of community infrastructure within its boundaries, entered into a Locally Funded Agreement (the CGSD Funding Agreement) with the State of Florida Department of Transportation (FDOT). The CGSD was established in June 2025 and it will assist the Company in its efforts to effectively finance infrastructure, help restore and manage natural areas, and oversee the administration of master planned communities and lands. The Companys Chief Executive Officer, John Kiernan, is the Board Chairman of the CGSD. Through the CGSD Funding Agreement, the Company will provide funding to FDOT to support the construction of a wildlife-crossing planned as part of the Corkscrew Villages Project in eastern Collier County and on November 14, 2025, the Company deposited $5,071 with FDOT to fund the project. The payment to the CGSD is reimbursable to the Company under the CGSD Funding Agreement. On November 4, 2025, the Company sold 579 acres of citrus land for $6,077 and on November 19, 2025, sold our office and shop in Frostproof for $1,675. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

Note 13. Commitments and Contingencies Legal Proceedings From time to time, Alico may be involved in litigation relating to claims arising out of its operations in the normal course of business. There are no current legal proceedings to which the Company is a party or of which any of its property is subject that it believes will have a material adverse effect on its financial condition.

CommitmentsAndContingenciesDisclosureTextBlock

(in thousands) Three Months Ended December 31, 2025 2024 Revenue recognized at a point-in-time $ 1,466 $ 15,555 Revenue recognized over time 1,339 Total $ 1,466 $ 16,894 Revenues disaggregated by significant products and services for the three months ended December 31, 2025 and 2024 are as follows: (in thousands) Three Months Ended December 31, 2025 2024 Alico Citrus Early and Mid-Season $ 282 $ 14,929 Fresh Fruit and Other 588 626 Grove Management Services 13 771 Total $ 883 $ 16,326 Land Management and Other Operations Land and Other Leasing $ 903 $ 479 Other 101 89 Total $ 1,004 $ 568 Total Revenues $ 1,887 $ 16,894 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Note 9. Income Taxes The Companys effective tax rate for the three months ended December 31, 2025 was a benefit of 14.3%. The rate for the three months ended December 31, 2025 differed from the Federal Statutory rate of 21.0%, primarily due to a change in the valuation allowance. Based on 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 projected deferred tax assets and liabilities due to the expected cumulative three-year loss position during fiscal year ending September 30, 2026. As the Company continues its strategic transformation, it has concluded that it cannot make a reasonable estimate of the annual effective tax rate due to an inability to reliably forecast the timing and implications of subsequent pending land lease agreements, principally depreciation expense (the Companys most significant timing difference between its book and tax basis results), which will vary based on the noncancelable term, renewal options and likelihood of renewal of such options. Therefore, the valuation allowance analysis discussed above is based upon a projection of the Company's deferred tax position as of December 31, 2025. The Companys effective tax rate for the three months ended December 31, 2024 was a provision of 19.1%. The rate for the three months ended December 31, 2024 differed from the Federal Statutory rate of 21.0%, …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 11. Leases The Company determines whether an arrangement is a lease at inception. The Companys leases consist of operating lease arrangements for certain office space, tractor leases and IT facilities. When these lease arrangements include lease and non-lease components, the Company accounts for lease components and non-lease components (e.g., common area maintenance) separately based on their relative standalone prices. Any lease arrangements with an initial term of twelve months or less are not recorded on the Companys Condensed Consolidated Balance Sheets, and it recognizes lease cost for these lease arrangements on a straight-line basis over the applicable lease term. Many lease arrangements provide the options to exercise one or more renewal terms or to terminate the lease arrangement. The Company includes these options when it will be reasonably certain to exercise them in the lease term used to establish the right-of-use assets and lease liabilities. Generally, lease agreements do not include an option to purchase the leased asset, residual value guarantees or material restrictive covenants. As most of our lease arrangements do not provide an implicit interest rate, the Company applies an incremental borrowing rate based on the information available at the commencement date of the lease arrangement to determine the present value of lease payments. No lease costs associated with finance leases and sale-leaseback transactions occurred and our lease income associated …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Note 8. Long-Term Debt and Lines of Credit The following table summarizes long-term debt and related deferred financing costs, net of accumulated amortization, at December 31, 2025 and September 30, 2025: (in thousands) Interest Rate December 31, 2025 September 30, 2025 Long-term debt, net of current portion: Met Fixed-Rate Term Loans 3.85% $ 70,000 $ 70,000 Met Fixed-Rate Term Loan II 6.21% $ 10,000 $ 10,000 Met Citree Term Loan 5.28% 3,387 3,450 Deferred financing fees (386) (403) 83,001 83,047 Less current portion 250 250 Long-term debt $ 82,751 $ 82,797 The following table summarizes the line of credit and related deferred financing costs, net of accumulated amortization at December 31, 2025 and September 30, 2025: (in thousands) December 31, 2025 September 30, 2025 Line of Credit: RLOC $ 2,500 $ 2,500 Deferred financing fees (697) (719) Line of Credit $ 1,803 $ 1,781 Interest costs expensed and capitalized were as follows: (in thousands) Three Months Ended December 31, 2025 2024 Interest expense $ 965 $ 898 Interest capitalized 53 301 Total $ 1,018 $ 1,199 Debt The Companys credit facilities consist of fixed interest rate term loans (Met Fixed-Rate Term Loans) and a $95,000 revolving line of credit (RLOC) with Metropolitan Life Insurance Company (Met). The term loans and RLOC are secured by real property consisting of approximately 40,428 gross acres of land. The Met Fixed-Rate Term Loans and Fixed-Rate Term Loan II, are interest-only with a balloon payment at maturity …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which amends Topic 740 primarily through enhanced disclosures about an entitys tax risks and tax planning. The amendments are effective for public business entities in annual periods beginning after December 15, 2024, with early adoption permitted on a prospective or retrospective basis. ASU 2023-09 will become effective for us on October 1, 2025, for the year ended September 30, 2026. The Company expects to include certain additional income tax disclosures as a result of the adoption of this accounting pronouncement but it will not impact the Company's results of operations, financial condition or cash flows. In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which amends Topic 220 primarily through requiring disclosures in the notes to financial statements about certain costs and expenses. The amendments are effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted on a prospective or retrospective basis. ASU 2024-03 becomes effective for us on October 1, 2027. The Company is currently evaluating the impact of the adoption of this accounting pronouncement. In December 2025, the FASB issued ASU 2025-10, Disclosures by Business Entities about Government Assistance, to address requests from investors for increased transparency abo …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 14. Related Party Transactions Corkscrew Grove Stewardship District On November 14, 2025, the Company provided funding of $5,071 to the CGSD which was then paid to the FDOT to fund a wildlife-crossing planned as part of the Corkscrew Villages Project in eastern Collier County.

RelatedPartyTransactionsDisclosureTextBlock

Note 7. Restructure and Other Charges In December 2025, the Company accrued for severance costs associated with an ongoing benefit arrangement, as described in ASC 712-10, Other Postemployment Benefits. (ASC 712) with four employees. As a result, during the three months ended December 31, 2025, the Company accrued severance costs of $309 for these employees within Operating expenses , when the Company determined that the liability was probable and estimable. All of these employees exited the Company in January 2026. No Restructure and Other Charges were recognized in the three months ended December 31, 2024. …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Note 10. Segment Information Segments Our Chief Executive Officer, who is also our CODM, assesses performance and allocates resources based on the operating performance of two reportable segments: Alico Citrus and Land Management and Other Operations. The operating segments represent the primary components that engage in business activities from which they may earn revenues and incur expenses for which separate financial information is available and which is regularly provided to the Companys CODM. In identifying our reportable segments, the Company also considered the nature of services provided by our operating segments, economic characteristics in which the segments operate and other relevant factors. Total revenues represent sales to unaffiliated customers, as reported in the Consolidated Statements of Operations. Goods and services produced by these segments are sold to wholesalers and processors in the United States who prepare the products for consumption. The Company's CODM evaluates the segments performance based on Revenues and Gross profit (loss) from operations. Information by operating segment is as follows: (in thousands) Three Months Ended December 31, 2025 2024 Revenues: Alico Citrus $ 883 $ 16,326 Land Management and Other Operations 1,004 568 Total operating revenues $ 1,887 $ 16,894 Segment expenses: Alico Citrus Cost of Sales $ 7,239 $ 20,508 Harvesting and Hauling 153 4,095 Fresh Fruit and other 50 Grove Management Services 458 Total Alico Citrus operatin …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Note 2. Summary of Significant Accounting Policies The Companys significant accounting policies are fully described in Note 2 Summary of Significant Accounting Policies in our 2025 Annual Report on Form 10-K. Revenue Recognition The Company recognizes revenue under Financial Accounting Standards Board Accounting Standards Codification (ASC) 606. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle: Step 1: Identify the contract with the customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when the company satisfies a performance obligation Revenues are derived from the sale of processed fruit, fresh fruit, other citrus revenue, revenues from grove management services, leasing revenue and other resource revenues. Most of the revenue is generated from the sale of citrus fruit to processing facilities, fresh fruit sales and grove management services. For fruit sales, the Company recognizes revenue in the amount it expects to be entitled to be paid, determined when control of the products or services is transferred to its …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 12. Stock-based Compensation Effective January 27, 2015, the Companys Board of Directors adopted the 2015 Stock Incentive Plan (the 2015 Plan) which provides for up to 1,250,000 common shares available for issuance to provide a long-term incentive plan for officers, employees, directors and/or consultants to directly link incentives to stockholder value. The 2015 Plan was approved by the Companys stockholders in February 2015. An amendment and restatement of the 2015 Plan was approved by the board of directors on December 17, 2024 and by shareholders on February 28, 2025 at the Company Annual Shareholders Meeting (the Amended and Restated 2015 Plan). The Amended and Restated 2015 Plan provides for grants to eligible participants in various forms including restricted shares of the Companys common stock, restricted stock units and stock options. Awards are discretionary and are determined by the Compensation Committee of the Board of Directors. Awards vest based upon service and/or performance conditions. The Company recognizes stock-based compensation expense for (i) Board of Directors fees (generally paid in treasury stock), and (ii) other awards under the Amended and Restated 2015 Plan (paid in restricted stock, stock options or Market-based Restricted Stock Units (MRSUs)). Stock-based compensation expense is recognized in general and administrative expenses in the Condensed Consolidated Statements of Operations. Stock Compensation Board of Directors The Board of Direct …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 15. Subsequent Events On January 14, 2026, the Company sold approximately 2,950 acres of citrus land for $26,859 ($9,110 per acre) in gross proceeds.

SubsequentEventsTextBlock