AVO

MKT CAP $1BP/E 295.5DIV YIELD —FCF YIELD -0.22%REV TTM $1.3B −6.2%NET INCOME $1.6M −95.9%NET DEBT $353.2M52W 10.11 – 15.34SEC XBRL · TTM TO Invalid Date

How AVO rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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New in FY2025

We report our results of operations in three operating segments which are also reportable segments: • Marketing & Distribution sources fruit from growers and then distributes the fruit through our global distribution network; • International Farming owns and operates orchards from which the vast majority of fruit produced is sold to our Marketing & Distribution segment.
Operations are principally located in Peru and Guatemala. • Blueberries consists of farming activities that include cultivating early-stage blueberry plantings and harvesting mature bushes.
Substantially all blueberries produced are sold to a single distributor under an exclusive marketing agreement.
As of October 31, 2025, our approximate international avocado planted acreage, by age and rounded to the nearest hundred, was as follows: Avocado Acreage by Age Country 0-3 years 4-6 years >7 years Total Peru — 3,200 6,400 9,600 Guatemala 1,100 500 — 1,600 Total 1,100 3,700 6,400 11,200 We are also involved in the farming of other fruits on a limited scale.
We have also invested in a blueberry farming joint venture.
While we do not market blueberries, our investment in the joint venture further allows us to leverage labor and facility investments in Peru.
Intellectual property We have registered or submitted registrations for certain trademarks with the United States Patent and Trademark Office and with the appropriate bodies in international jurisdictions, including The MISSION & TOWER DESIGN® and MISSION PRODUCE™.
People As of October 31, 2025, we had approximately 3,800 employees located worldwide, of which, 2,100 were located in Peru, 800 were located in Mexico, 500 were located in the U.S., 300 were located in Guatemala and 100 were located in the U.K. and Europe.
With a limited number of trees on our farms and on the farms from which we purchase, our ability to obtain supply from third parties and adapt to any changes in demand for our product is constrained.
We generally do not have long-term contracts with suppliers or customers, and therefore they may direct all or a portion of their business to a competitor at any time.
Fuel and transportation costs are a significant operating expense component and also make up a meaningful portion of the price of much of the fruit that we purchase from growers.
Lack of a holistic customer strategy and prioritization of customers for fulfillment during shortages or at suboptimal pricing may negatively impact financial results and cause operational challenges.
Sales to our top 10 customers amounted to approximately 67% of net sales for the year ended October 31, 2025, 69% for the year ended October 31, 2024, and 65% for the year ended October 31, 2023.
Our success largely depends on the contributions of our management team.
System security risks, data protection breaches, cyber-attacks (including artificial intelligence (AI)-enabled threats), AI-related operational errors, and systems integration issues could disrupt our internal operations or services provided to customers, and any such disruption could reduce our expected revenue, increase our expenses, damage our reputation and adversely affect our stock price.
System security risks, data protection breaches, cyber-attacks (including those leveraging AI), and systems integration issues could disrupt our internal operations or services provided to customers, and any such disruption could reduce our expected revenue, increase our expenses, damage our reputation and adversely affect our stock price.
System security risks (including risks related to AI), data protection breaches, cyber-attacks, and systems integration issues could disrupt our internal operations or services provided to customers, and any such disruption could reduce our expected revenue, increase our expenses, damage our reputation and adversely affect our stock price.
System security risks, data protection breaches, cyber-attacks and systems integration issues (including risks related to AI) could disrupt our internal operations or services provided to customers, and any such disruption could reduce our expected revenue, increase our expenses, damage our reputation and adversely affect our stock price.
The risk of cybersecurity attacks may increase as AI capabilities improve and are increasingly used to identify vulnerabilities and construct increasingly sophisticated cybersecurity attacks.
In addition, Generative AI tools may inadvertently expose, misuse, or incorporate our confidential, personal, or third‑party data, which could result in data leakage, intellectual property risks, privacy violations, or contractual breaches.
Additionally, we currently utilize certain AI tools, and as we increase our use of artificial intelligence tools, the risk of unauthorized access to our data and of making errors or erroneous decisions based on our reliance on the AI tool will increase.
Evolving and uncertain AI laws, standards, and governance expectations could impose new compliance obligations, restrictions, audit requirements, or liabilities, and our failure to comply could result in fines, remediation costs, or reputational harm.
In addition, the uncertainty of the legality of these tariffs, the time period covered by potential changes in trade policy, the varying breadth and scope of these tariffs, and the evolving nature of tariff policy have created, and may continue to cause, volatility and ambiguity in our business, including with respect to costs, pricing, and margin.
Future acquisitions by us could result in significant costs, potentially dilutive issuances of equity securities, and increased debt and contingent liabilities, any of which could have a material adverse effect on our business and the market price of our common stock.
Acquisitions entail numerous risks, including the integration of the acquired operations, diversion of management’s attention to other business concerns, risks of entering markets in which we have limited prior experience, assumption of liabilities and the potential loss of key customers or employees of acquired organizations.
On September 10, 2025, Peru enacted tax law which provided benefits to agribusiness entities.
The new law subjects us to lower Peruvian corporate income tax rates than the rate in effect on the date of repeal of 25%, as follows: 15% for calendar years 2026 to 2035 and 29.5% thereafter.
The daily trading volume of our common stock fluctuates, and we can provide no assurance that we will be able to maintain an active trading market for our common stock.
The liquidity of our common stock is also impacted by our stockholder concentration.
Our executive officers and directors, in the aggregate, own approximately 33% of our outstanding common stock as of October 31, 2025.
Pursuant to Section 404 of Sarbanes-Oxley, our management is required to report upon the effectiveness of our internal control over financial reporting.

Gone since FY2024

We report our results of operations in three operating segments which are also reportable segments: • Marketing & Distribution sources fruit from growers and then distributes fruit through our global distribution network; • International Farming owns and operates orchards from which the vast majority of fruit produced is sold to our Marketing & Distribution segment.
Operations are principally located in Peru, with smaller operations emerging in other areas of Latin America. • Blueberries is a farming operation that cultivates blueberry plants in Peru.
The entity farms high-quality varieties of blueberries, and has plants in various stages of development, from seedling to mature.
As of October 31, 2024, our approximate international avocado planted acreage, by age and rounded to the nearest hundred, was as follows: Avocado Acreage by Age Country 0-3 years 4-6 years >7 years Total Peru 500 2,700 6,400 9,600 Guatemala 1,600 200 — 1,800 Colombia (1) 900 1,100 — 2,000 Total 3,000 4,000 6,400 13,400 (1) Acreage in Colombia is farmed through a joint venture.
We are also involved in the farming of other fruits on a limited scale.
We have also invested in a blueberry farming joint venture, Moruga.
While we do not market blueberries, our investment in Moruga further allows us to leverage labor and facility investments in Peru.
Intellectual property We have registered or submitted registrations for certain trademarks with the United Stated Patent and Trademark Office and with the appropriate bodies in international jurisdictions, including The MISSION & TOWER DESIGN® and MISSION PRODUCE™.
People As of October 31, 2024, we had approximately 3,100 employees located worldwide, of which, 1,500 were located in Peru, 700 were located in Mexico, 500 were located in the U.S., and 400 were located in other regions such as Guatemala, the U.K., Europe and Canada.
With a limited number of trees on our farms and on the farms from which we purchase, our ability to obtain supply from third parties and adapt to any changes in demand of our product is constrained.
Fuel and transportation costs are a significant cost component and make up a meaningful portion of the price of much of the fruit that we purchase from growers.
Lack of a holistic customer strategy and prioritization of customers for fulfillment during shortages or at sub optimal pricing may negatively impact financial results and cause operational challenges.
Sales to our top 10 customers amounted to approximately 69% of net sales for the year ended October 31, 2024, 65% for the year ended October 31, 2023, and 59% for the year ended October 31, 2022.
Our success largely depends on the contributions of our management team, including Stephen Barnard, our CEO.
System security risks, data protection breaches, cyber-attacks and systems integration issues could disrupt our internal operations or services provided to customers, and any such disruption could reduce our expected revenue, increase our expenses, damage our reputation and adversely affect our stock price.
Future acquisitions by us could result in accounting charges, potentially dilutive issuances of equity securities, and increased debt and contingent liabilities, any of which could have a material adverse effect on our business and the market price of our common stock.
Acquisitions entail numerous risks, including the integration of the acquired operations, diversion of management’s attention to other business concerns, risks of entering markets in which we have limited prior experience, assumption of liabilities and the potential loss of key employees of acquired organizations.
On December 30, 2020, Peru enacted tax law repealing current tax law which provided benefits to agribusiness entities.
The new law subjects us to higher Peruvian corporate income tax rates than the rate in effect on the date of repeal of 15%, as follows: 20% for calendar years 2023 to 2024, 25% for calendar years 2025 to 2027, and 29.5% thereafter.
Our common stock began trading on Nasdaq in October 2020, but we can provide no assurance that we will be able to maintain an active trading market for our common stock.
Our executive officers and directors, in the aggregate, own approximately 34% of our outstanding common stock as of October 31, 2024.
Pursuant to Section 404 of Sarbanes-Oxley, our management is required to report upon the effectiveness of our internal control over financial reporting beginning with the annual report for our fiscal year ending October 31, 2021.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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