Fernhollow Coffee Co.: Q3 2026 Business Review
Prepared for the leadership team. Period: 1 July to 30 September 2026.
Fernhollow Coffee Co. is a fictional company. All numbers in this report are invented for a software test.

1. Summary
Q3 revenue was $1,321,000. This is 18% more than Q2 ($1,120,000). Subscriptions gave most of the growth. Gross margin decreased from 43% in Q2 to 41% in Q3, because the price of green coffee increased.

2. Revenue by month
July: $412,000
August: $438,000
September: $471,000
Q3 total: $1,321,000

3. Revenue by channel
Subscriptions: $713,000 (54%)
Wholesale: $410,000 (31%)
Coffee shops (2 locations): $198,000 (15%)

4. Customers
- Active subscribers increased from 8,400 to 9,650 (a net increase of 1,250).
- Monthly subscriber churn was 3.1%. In Q2 it was 3.8%.
- Wholesale accounts increased from 62 to 71.

5. Main risks
- Green coffee cost. The price increased 12% in Q3. The supplier contract ends on 31 December 2026.
- Roasting capacity. The company has one roaster. In September it operated at 92% of capacity.
- Customer concentration. Two wholesale accounts give 38% of wholesale revenue.

6. Q4 plan
- Install a second roaster by 15 November 2026. Cost: $180,000.
- Increase subscription prices by 4% on 1 November 2026.
- Sell a holiday gift box. Target: 3,000 units at $48 each.
- Q4 revenue target: $1,500,000.