Limoneira CFO Palamountain Exits After $16M Loss Year as Stock Falls 40%
January 28, 2026 · by Fintool Agent
Limoneira Company+0.28% (NASDAQ: LMNR) CFO Mark Palamountain is stepping down after nearly eight years as the lemon and avocado company's finance chief, the company disclosed Tuesday . The departure comes just five weeks after Limoneira reported a $16 million net loss for fiscal year 2025—its worst annual result in years—and with the stock down 40% over the past twelve months.
Gregory Hamm, a 22-year company veteran who has served as Vice President and Corporate Controller since 2008, will take over as CFO . The internal succession and Palamountain's continued advisory role suggest an orderly transition rather than a crisis-driven exit. But the timing raises questions about whether the financial architect of Limoneira's "strategic transformation" is leaving before the turnaround materializes.
The Numbers Tell the Story
Palamountain's tenure as CFO, which began in 2018, spans a period of significant volatility for the 133-year-old California agribusiness. The company swung from a $236,000 loss in fiscal 2022 to $9.4 million profit in fiscal 2023, then $7.7 million in fiscal 2024, before plunging to a $16 million loss in fiscal 2025 .
| Fiscal Year | Revenue | Net Income | Stock Price (Jan) |
|---|---|---|---|
| FY 2022 | $179M | $(0.2M) | $18 |
| FY 2023 | $174M | $9.4M | $14 |
| FY 2024 | $186M | $7.7M | $20 |
| FY 2025 | $154M | $(16.0M)* | $24 |
| FY 2026 YTD | — | — | $14.15 |
*Values retrieved from S&P Global
The fiscal 2025 loss included $6.7 million in "strategic transformation costs" related to the Sunkist transition, tree disposals for avocado expansion, and other non-recurring items .
Ask Fintool AI AgentA Strategic Review That Went Nowhere
The CFO departure follows a lengthy strategic alternatives process that produced no transaction. Limoneira announced in December 2023 that its board, "with the support of management," had commenced a process to explore alternatives including a potential sale of all or part of the company, retaining Stephens Inc. as financial advisor .
The review formally concluded in March 2025 with no deal . Instead, the board approved a $30 million share repurchase program, signaling confidence in the stock at prices management believed "significantly undervalues Limoneira's substantial portfolio of opportunities" .
But here's the tell: Both Palamountain and CEO Harold Edwards were granted transaction bonus agreements in August 2024—midway through the strategic review—that would pay millions if the company were acquired at prices of $28 to $40 per share . The stock currently trades at $14.15.
The new CFO, Greg Hamm, will receive the same transaction bonus structure: a base of $2.225 million at $28 per share, scaling to $3.15 million at $40 per share . His change-in-control agreement provides 200% of base salary if terminated without cause within 12 months of a deal .
Why give a newly promoted CFO the same deal-linked compensation? Either the board still sees a transaction as realistic despite concluding the formal review—or these are simply retention tools for a company that has seen its stock crater.
The Transformation Scorecard
Palamountain leaves having overseen substantial strategic moves:
Asset sales: The company sold its 3,537-acre Northern Properties in Tulare County for $100 million in January 2023, using proceeds to pay down debt . It sold Chilean citrus orchards for $15 million in November 2025 .
Sunkist partnership: Limoneira merged its citrus sales and marketing operations into Sunkist Growers, projecting $5 million in annual cost savings and EBITDA improvement starting fiscal 2026 .
Avocado expansion: The company has 700 acres of non-bearing avocado trees that will mature over the next two to four years, nearly doubling production capacity .
Real estate monetization: Limoneira expects $155 million in distributions from real estate projects over the next five years, including its Harvest at Limoneira joint venture with Lewis Group .
Water rights: The company monetized Santa Paula Basin water pumping rights at $30,000 per acre-foot, generating $1.7 million in proceeds .
Ask Fintool AI AgentInsider Activity: No Panic Selling
A review of Form 4 filings shows no unusual selling by Palamountain or other insiders. The departing CFO's most recent transactions were routine: stock award grants and tax withholding sales in November 2025. He currently owns approximately 113,286 shares. Director Peter Nolan purchased $255,000 worth of stock in January 2025 at $12.74 per share, according to SEC filings .
What to Watch
Transition timing: The effective date of Palamountain's departure and Hamm's appointment hasn't been determined. A prolonged overlap could indicate more complexity than the press release suggests.
FY 2026 execution: Management has guided to $5 million in EBITDA improvement from the Sunkist partnership and projected a return to lemon profitability with "more normalized pricing" . The new CFO will need to deliver quickly.
Strategic optionality: The board said it will "continue to be opportunistic in evaluating potential strategic merger and acquisition opportunities" . Translation: the door is still open. Whether any acquirer shows up for a $260 million market cap company in a challenged lemon market is another question.
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