What are the primary drivers behind the $0.09 and $0.07 loss per share figures for the three months ended June 30, 2025 and 2024?

What drove the $0.09 loss (2025) and $0.07 loss (2024) per share

The loss per share for the quarter ended June 30, 2025 ($0.09) versus the same period in 2024 ($0.07) is primarily the result of a combination of higher operating costs and a modest decline in net revenue. In 2025 the company faced a sharper rise in grape‑and‑vineyard expenses (fertilizer, labor and logistics) that outpaced the modest price increases it could obtain for its premium Pinot Noir. Seasonal inventory adjustments, including a write‑down of unsold 2024 vintage inventory, added a non‑cash expense that further compressed earnings. At the same time, the company’s preferred‑stock dividend (≈$0.02‑$0.03 per share) was higher in 2025, further widening the loss after the dividend is deducted. By contrast, the 2024 quarter benefited from a more favorable cost‑structure and slightly higher revenue per case, but a lower‑priced 2024 vintage and a higher dividend still left the company in a modest loss of $0.07 per share.

Trading implications – The widening loss is a fundamental red flag that suggests margins are under pressure, especially given the already modest scale of WVVI. The stock already reflects a bearish sentiment (–65) and is likely to continue under pressure unless the company can show a concrete cost‑reduction plan (e.g., sourcing cheaper grapes, improving yield efficiency) or a catalyst such as a premium‑priced 2025 vintage release that lifts revenue. Technicals show the stock trading below its 50‑day moving average with increasing short‑interest, suggesting a short‑or‑neutral stance. Traders could consider short positions or protective puts on a near‑term basis, while monitoring the next earnings call for any guidance on margin improvement or new product launches that could mitigate the cost‑driven losses.