Willamette Valley Vineyards reported a loss per common share after preferred dividends of $0.40 for the three months ended June 30, 2026, compared with a loss of $0.09 a year earlier, as lower direct sales and a credit-loss provision tied to a major distributor's bankruptcy weighed on results. Second-quarter sales revenue edged down 1.6% to $10,036,275 from $10,195,763, with a $262,493 decline in direct sales partly offset by a $103,005 increase in distributor sales. The company said weaker direct revenue was primarily linked to lower outpost sales. Gross profit fell 7.1% to $5,773,725, while selling, general and administrative expenses climbed 22.5% to $7,127,694, largely because of a higher allowance for credit losses associated with the bankruptcy filing of Republic National Distributing Company. Net income swung to a loss of $1,389,876 from income of $92,795 a year earlier. Founder and President Jim Bernau said the quarter reflected the negative effect of the company's largest distributor entering bankruptcy and the sizable amount owed to the winery, adding that it is working to limit the cash-flow impact and train new distributors. He also said lower customer traffic at retail locations was nearly offset by higher spending per visitor.