STOCK TITAN

Village Farms (NASDAQ: VFF) grows Q2 2026 profit on record cannabis sales

(High)
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Village Farms International reported second quarter 2026 results highlighted by strong cannabis performance and continued profitability. Consolidated net sales rose 7% year-over-year to $63.98 million, driven largely by cannabis net sales of $53.52 million, up 5%. Cannabis gross margin expanded to 51% from 42%, lifting cannabis net income 21% to $8.60 million. Cannabis adjusted EBITDA from continuing operations increased 16% to $15.27 million, or 28.5% of sales.

International export cannabis sales reached a record $20.9 million, up 74% year-over-year and 43% sequentially, while Netherlands and Canadian expansion projects advanced toward higher future capacity. Net income attributable to shareholders was $7.15 million, or $0.06 per diluted share, marking a fifth consecutive profitable quarter. Operating cash flow for the quarter was $9.0 million, although year-to-date cash flow from operations was negative. Village Farms ended the quarter with $72.93 million in cash and closed a registered direct equity offering of 7.5 million shares for gross proceeds of about $15 million, alongside ongoing share repurchases.

Positive

  • Consolidated net sales grew 7% year-over-year to $63.98 million, with cannabis net sales up 5% to $53.52 million and six‑month sales up 15% to $114.22 million.
  • Cannabis gross margin improved to 51% from 42%, driving a 28% increase in cannabis gross profit to $27.28 million and higher segment adjusted EBITDA margin of 28.5%.
  • International cannabis export sales surged 74% year-over-year and 43% sequentially to a record $20.9 million, increasing the contribution from higher-value international markets.
  • Six‑month net income attributable to shareholders increased 35% year-over-year to $10.06 million, and cannabis segment net income for the quarter rose 21% to $8.60 million.
  • The company maintained a strong cash balance of $72.93 million, supplemented by a $15 million registered direct equity raise, providing resources to complete capacity expansions in Canada and the Netherlands.

Negative

  • Income from continuing operations declined year-over-year, with Q2 2026 income including non-controlling interests at $7.19 million versus $26.24 million a year earlier, and continuing operations income lower than the prior period.
  • Operating cash flow weakened materially: Q2 2026 cash flow from operations fell 53% year-over-year to $9.0 million, and six‑month cash flow from operations turned negative at $(2.81) million versus $22.06 million in 2025.
  • Selling, general and administrative expenses increased faster than sales, rising 22% for the quarter to $18.81 million and 16% for the half year to $34.75 million, pressuring consolidated operating leverage outside the cannabis segment.

Insights

Analyzing...

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Net Sales $63,977 thousand Consolidated sales for the three months ended June 30, 2026
Q2 2026 Cannabis Net Sales $53,523 thousand Cannabis segment net sales, up 5% year-over-year
Cannabis Gross Margin Q2 2026 51% Cannabis segment gross margin, up from 42% a year earlier
Q2 2026 Net Income Attributable to Shareholders $7,145 thousand Net income attributable to Village Farms shareholders for the quarter
Q2 2026 Cannabis Adjusted EBITDA $15,273 thousand Adjusted EBITDA from continuing operations for cannabis segment
Q2 2026 International Export Sales $20,897 thousand Cannabis international export net sales, up 74% year-over-year
Cash and Cash Equivalents $72,931 thousand Cash balance as of June 30, 2026
Registered Direct Offering Proceeds $15,000 thousand Gross proceeds from 7,500,000 common shares sold June 5, 2026
Adjusted EBITDA from continuing operations financial
"Adjusted EBITDA from continuing operations increased 16% to $15.3 million or 28.5% of sales"
Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations is a measure of a company’s recurring operating profit that excludes discontinued business lines. Companies further adjust that EBITDA by removing one-time, noncash, or irregular items (for example restructuring costs or gains on asset sales) to show the underlying trend. For investors it is meant to act like a cleaned-up household budget that highlights core, ongoing business performance, though what gets adjusted can vary between companies.
EU-GMP certified regulatory
"world’s largest EU-GMP certified cannabis facility at its production campus in Delta"
A EU-GMP certified facility has been inspected and approved under the European Union’s Good Manufacturing Practice rules, which ensure medicines and related products are made consistently to required quality and safety standards. Think of it like a restaurant passing a strict health inspection for every dish. For investors, the certification lowers regulatory and product-risk, helps secure access to EU markets, and signals reliable production and supply chains.
registered direct offering financial
"entered into securities purchase agreements for the purchase and sale of 7,500,000 common shares in a registered direct offering"
A registered direct offering is a way for a company to sell new shares of its stock directly to select investors with regulatory approval. This method allows the company to raise funds quickly and efficiently without needing a public auction, similar to offering exclusive access to a limited number of buyers. For investors, it often provides an opportunity to purchase shares at a favorable price, while giving the company immediate access to capital.
redeemable non-controlling interest financial
"MEZZANINE EQUITY Redeemable non-controlling interest 6,447"
A redeemable non-controlling interest is a minority ownership stake in a subsidiary that can be sold back to or bought out by the parent company or subsidiary at a predetermined time or under certain conditions. For investors, it matters because this claim can act like a future cash obligation or potential dilution, changing the parent’s reported equity, net income allocation, and near‑term cash needs—much like a few partners in a small business who can force the owner to buy them out.
Controlled Environment Agriculture technical
"legacy built on decades of Controlled Environment Agriculture expertise and Dutch farming practices"
Controlled environment agriculture is the practice of growing fruits, vegetables or herbs inside purpose-built spaces—such as greenhouses or indoor farms—where light, temperature, humidity and water are tightly managed to produce consistent crops year-round. Investors watch it because it turns farming into a predictable, scalable operation (like a factory for plants), affecting yields, costs, supply reliability and price stability, and therefore the revenue and risk profile of businesses involved.
non-GAAP measure financial
"Adjusted EBITDA from continuing operations is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP"
A non-GAAP measure is a company-crafted financial metric that adjusts or excludes items from standard accounting numbers to highlight what management sees as the business’s core performance. Investors use these figures like a filtered photo to reveal trends or cash flow drivers that raw accounting totals might hide, but because companies decide which items to remove, these measures should be compared with standard statements to avoid being misled.
Offering Type IPO/secondary/shelf/ATM

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FAQ

How did Village Farms (VFF) perform financially in Q2 2026?

Village Farms reported Q2 2026 net sales of $63.98 million, up 7% year-over-year, and net income of $7.15 million or $0.06 per diluted share. Cannabis net sales reached $53.52 million, and cannabis adjusted EBITDA rose 16% to $15.27 million.

What were Village Farms’ cannabis segment results for Q2 2026?

In Q2 2026, Village Farms’ cannabis segment generated $53.52 million in net sales, up 5% year-over-year. Cannabis gross margin expanded to 51%, net income rose 21% to $8.60 million, and adjusted EBITDA from continuing operations increased to $15.27 million, or 28.5% of sales.

How strong were Village Farms’ international cannabis exports in Q2 2026?

International cannabis export sales reached a record $20.9 million in Q2 2026, increasing 74% year-over-year and 43% sequentially. Management noted a leading position in Europe, particularly in Germany, supported by the company’s EU‑GMP certified Delta production campus.

What is Village Farms’ cash position and recent capital raising activity?

Village Farms ended June 30, 2026 with $72.93 million in cash and cash equivalents. On June 5, 2026, it completed a registered direct offering of 7,500,000 common shares, generating approximately $15 million in gross proceeds before fees and expenses.

How did Village Farms’ cash flow from operations change in 2026?

Operating cash flow from continuing operations was $8.99 million in Q2 2026, down from $19.17 million a year earlier. For the first six months of 2026, cash flow from operations was $(2.81) million, compared with $22.06 million for the same period in 2025.

What expansion projects is Village Farms (VFF) advancing in Canada and Europe?

Village Farms is ramping its Delta 2 greenhouse expansion in Canada, expected to produce about 15 metric tonnes of flower in 2H 2026 and reach 40 metric tonnes annually by mid‑2027. In the Netherlands, its Groningen facility targets about 10 metric tonnes annual capacity by early 2027.
false000158454900015845492026-08-102026-08-10

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 10, 2026

 

 

VILLAGE FARMS INTERNATIONAL, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Ontario

001-38783

98-1007671

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

90 Colonial Parkway

 

Lake Mary, Florida

 

32746

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (407) 936-1190

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Shares, without par value

 

VFF

 

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 


Item 2.02 Results of Operations and Financial Condition.

On August 10, 2026, Village Farms International, Inc. (the “Company” or “Village Farms”) issued a press release announcing its financial results for the second quarter ended June 30, 2026. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

 

The information contained in this Current Report on Form 8-K under Item 2.02, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information contained in this Current Report on Form 8-K under Item 2.02, including Exhibit 99.1, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

Exhibit

Number

Description

99.1

Press Release dated August 10, 2026

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

Village Farms International, Inc.

 

 

 

 

Date:

August 10, 2026

By:

/s/ Stephen C. Ruffini

 

 

 

Name: Stephen C. Ruffini
Title: Executive Vice President and Chief Financial Officer

 


 

 

img264507375_0.gif
 

Village Farms Reports Q2 2026 Results Driven by

Record Cannabis Revenues and Year-to-Date Harvest Yields

 

Consolidated Net Sales Increased 27% Sequentially and 7% Year-over-Year to $64 Million
Net Income of $7.1 Million or $0.06 Per Share; Operating Cash Flow of $8.9 Million
Company Achieves Record Harvest Yields in Delta Facilities in 1H’26 with Improved Cost of Production
Record Export Sales of $20.9 Million Grew 74% YoY and 43% Sequentially
Record Q2 Cannabis Segment Adjusted EBITDA from Continuing Ops of $15.3 Million or 29% of Sales
Netherlands and Canadian Expansion CapEx Nearly Complete; Closes Q2 with $73 Million in Cash

 

VANCOUVER, British Columbia, August 10, 2026 – Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF) today reported financial results for its second quarter ended June 30, 2026. All figures are in U.S. dollars unless otherwise indicated.

 

Management Commentary

 

President and Chief Executive Officer Michael DeGiglio commented, “Our second quarter results continue to demonstrate the strength of our expanding global cannabis platform, driven by record cannabis revenues of $53.5 million as we continued to grow in target markets and product categories around the world. We delivered our fifth consecutive quarter of positive net income and EPS since we privatized our legacy produce business last year, and important to note that when excluding the one-time $4.3 million vendor settlement received in the second quarter of last year, consolidated adjusted EBITDA increased meaningfully year-over-year to $15.4 million with record Q2 cannabis performance.”

 

“We’re having a record year of production in our Delta, British Columbia facilities even without including the first harvest we completed in our Delta 2 greenhouse expansion, and record yields combined with greater operating efficiencies have resulted in a lower cost of production. Favorable sales mix also helped drive nine percentage points of cannabis gross margin expansion which translated to strong operating leverage with adjusted EBITDA and net income both meaningfully outpacing total sales growth.”

 

“We’re continuing to gain traction with our efforts to grow market share in convenience product categories in Canada, where for the first time our brands achieved top 10 market share in all major categories with continued growth in vapes and infused pre-rolls. It was also another record quarter of international export sales, which grew 74% year-over-year and 43% sequentially as we continue to benefit from our competitive advantage with the world’s largest EU-GMP certified cannabis facility. We have a growing share of Europe’s total addressable cannabis market with leading share and distribution in Germany, and we continue to expect that we’ll enter multiple new European jurisdictions later this year.”

 

“We’re entering the second half of the year in a position of strength, and we’re positioned for continued profitable growth regardless of our entry point and timing into the U.S. market with a global cannabis enterprise that is now approaching 50% of revenues from growing international markets. Our Netherlands operations are expected to ramp to full production capacity by the end of Q1 next year, and our Delta 2 expansion in Canada remains on track to reach its full 40 tonne production run rate by mid-2027, both of which provide us with a clear path for continued long-term organic growth.”

 

“We closed the second quarter with $73 million in cash, and we continue to expect that we’ll grow our cash balance from positive operating cash flow through the remainder of the year. We’re continuing to evaluate additional organic and acquisitive growth investments around the world, but remain prudent and patient with respect to valuation with a focus on profitability and long-term value creation for our shareholders.”

 


 

Second Quarter 2026 Financial Highlights

 

(All comparable periods are for the second quarter of 2025 unless otherwise stated)

 

Cannabis Operations

 

Net sales increased 5% to $53.5 million, from $50.8 million in the prior year period;
Gross margin increased to 51% from 42% in the prior year period;
Net income improved to $8.6 million from $7.1 million, an increase of 21% year-over-year;
Adjusted EBITDA from continuing operations increased 16% to $15.3 million or 28.5% of sales, compared to $13.1 million or 25.8% of sales in the prior year period; and
Cash flow from operations was $8.9 million.

 

Strategic Growth and Operational Highlights

Maintained the Company’s top five overall market share position in the Canadian market and expanded its market share in vapes and infused pre-rolls, now positioning the Company’s brand portfolio among the top 10 nationally in all major product categories1.
Achieved record production from the Company’s Delta, British Columbia facilities during 1H’26. Increased yields and greater operating efficiencies led to lower production costs during Q2, and favorable sales mix helped drive nine percentage points of year-over-year cannabis segment gross margin expansion.
International export sales increased 74% year-over-year and 43% sequentially to a record high of $20.9 million. The Company believes it remains the largest exporter of medical cannabis to Europe with a leading market share position in Germany.
The Company commenced cultivation at its Phase II facility in Groningen, Netherlands during Q2. The Groningen facility will bring the Company’s maximum annualized production capacity in the Netherlands to approximately 10 metric tonnes and is expected to ramp to full production into early 2027.
During Q2 the Company harvested its first crop from the first half of its Delta 2 greenhouse expansion, and announced that it is accelerating technology upgrades quicker than previously anticipated due to increasing global demand. The Delta 2 expansion is expected to yield approximately 15 metric tonnes of dried, trimmed flower during the second half of 2026. The Delta 2 expansion is expected to ramp to its full production capacity of 40 metric tonnes by mid-2027, bringing total production capacity from the Delta campus to approximately 160 metric tonnes of dried, trimmed flower annually.

Corporate and Other

On May 27, 2026 the Company was awarded “Producer of the Year” at the 2026 Business of Cannabis Awards in London. The award recognizes excellence and innovation in cannabis cultivation practices, techniques, and product quality, and celebrates cultivators who have demonstrated exceptional skill, dedication, and expertise in producing high-quality cannabis while adhering to best practices in sustainability, compliance, and safety.
On June 5, 2026 the Company entered into securities purchase agreements for the purchase and sale of 7,500,000 common shares of the Company in a registered direct offering subscribed to by two U.S. institutional investors. The offering yielded gross proceeds of approximately $15 million before deducting placement agent fees and other expenses.

 

1.
Based on estimated retail sales from HiFyre, other third parties and provincial boards.

 

Conference Call

 

Village Farms’ management team will host a conference call to discuss its second quarter 2026 financial results today, Monday, August 10, 2026, at 8:30 a.m. ET. Participants can access the conference call via a webcast at Village Farms Second Quarter 2026 Conference Call Webcast or on the Company website at Village Farms - Events. Participants wanting to access the conference call by telephone must register in advance at Village Farms Second Quarter 2026 Conference Call Registration to receive telephone dial-in information.

The live question and answer session will be limited to analysts; however, others are invited to submit questions ahead of the conference call via email at investorrelations@villagefarms.com. Management will address questions received via email during the question-and-answer session as time permits.

 


 

About Village Farms International, Inc.

 

Village Farms is a global leader in cannabis, plant-based consumer packaged goods, and sustainable innovation. With a legacy built on decades of Controlled Environment Agriculture expertise and Dutch farming practices, today the Company is one of the world’s largest and most profitable cannabis operators with an asset portfolio that spans over 7 million square feet of advanced greenhouse and indoor cultivation assets.

 

In Canada, Village Farms operates the world’s largest EU-GMP certified cannabis facility at its production campus in Delta, British Columbia, and exports products to international medical markets. The Company is also a market share leader in dried flower formats and produces and distributes some of the country’s highest quality and best-selling strains, including its flagship Pure Sunfarms Pink Kush, one of the most widely consumed strains on the planet. Village Farms’ Canadian brand portfolio includes Pure Sunfarms, Fraser Valley Weed Co., Soar, Super Toast, Pure Laine, Tam Tams and Promenade.

 

In the Netherlands, the Company is one of only ten licensed operators in the country’s regulated cannabis program, and in the United States its CBDistillery brand is one of the country’s premier cannabinoid wellness platforms, and it also holds equity interests in cannabis businesses in Australia and Germany. Beyond cannabis, the Company holds an equity interest in Verdexa Holdings, a private venture pursuing strategic acquisitions to build a premier branded food platform, and its Clean Energy division transforms landfill gas into renewable natural gas and receives royalties on all revenues generated.

 

Contact Information

 

Sam Gibbons

Senior Vice President, Corporate Affairs

Phone: (407) 495-5067

Email: sgibbons@villagefarms.com

 


 

Cannabis Performance Summary

 

(thousands except % metrics)

Three Months Ended June 30,

 

 

 

 

2026

 

 

2025

 

 

 

 

USD $

 

 

USD $

 

 

Change

Total Net Sales

$

53,523

 

 

$

50,842

 

 

5%

Total Cost of Sales

$

26,246

 

 

$

29,502

 

 

-11%

Gross Profit

$

27,277

 

 

$

21,340

 

 

28%

Gross Margin %

 

51

%

 

 

42

%

 

21%

SG&A

$

15,203

 

 

$

11,606

 

 

31%

Net income

$

8,603

 

 

$

7,098

 

 

21%

Adjusted EBITDA from Continuing Operations (1)

$

15,273

 

 

$

13,123

 

 

16%

Adjusted EBITDA from Continuing Operations Margin (2)

 

29

%

 

 

26

%

 

12%

Cash flow from Operations

$

8,996

 

 

$

19,172

 

 

-53%

 

(millions except % metrics)

Six Months Ended June 30,

 

 

 

 

2026

 

 

2025

 

 

 

 

USD $

 

 

USD $

 

 

Change

Total Net Sales

$

103,267

 

 

$

90,069

 

 

15%

Total Cost of Sales

$

54,682

 

 

$

53,460

 

 

2%

Gross Profit

$

48,585

 

 

$

36,609

 

 

33%

Gross Margin %

 

47

%

 

 

41

%

 

15%

SG&A

$

30,023

 

 

$

23,342

 

 

29%

Net income

$

13,383

 

 

$

9,946

 

 

35%

Adjusted EBITDA from Continuing Operations (1)

$

25,479

 

 

$

20,012

 

 

27%

Adjusted EBITDA from Continuing Operations Margin (1)

 

25

%

 

 

22

%

 

14%

Cash flow from Operations

$

(2,814

)

 

$

22,058

 

 

NM

(1)
Adjusted EBITDA from continuing operations is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA from continuing operations may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA from continuing operations is a useful supplemental measure in evaluating the performance of the Company because it excludes non-recurring and other items that do not reflect our business performance. Adjusted EBITDA from continuing operations includes the Company’s 86.6% interest in Rose LifeScience. For a reconciliation of Adjusted EBITDA from continuing operations to net income (the most comparable measure under GAAP), see “Reconciliation of Adjusted EBITDA from Continuing Operations to Net Income (Loss)” below.
(2)
Adjusted EBITDA from Continuing Operations Margin is calculated as Adjusted EBITDA from continuing operations (which is a non-GAAP measure) divided by Total Net Sales. See footnote (1) above for more information regarding Adjusted EBITDA from continuing operations.

 

Composition of Sales by Channel

 

 

Three Months Ended June 30,

 

Classification

 

2026

 

 

2025

 

Cannabis:

 

 

 

 

 

 

Canadian Branded (1)

 

$

23,017

 

 

$

24,962

 

Canadian Non-Branded

 

 

3,040

 

 

 

7,077

 

International Exports

 

 

20,897

 

 

 

11,980

 

U.S. Cannabis

 

 

3,224

 

 

 

3,841

 

Netherlands Branded

 

 

3,345

 

 

 

2,483

 

Other

 

 

 

 

 

499

 

Total Cannabis

 

 

53,523

 

 

 

50,842

 

Other

 

 

 

 

 

 

Produce

 

 

10,185

 

 

 

8,574

 

Clean Energy

 

 

269

 

 

 

483

 

Total Revenue

 

$

63,977

 

 

$

59,899

 

(1)
Canadian Branded revenues are shown net of excise tax on products. Excise tax on products was $14,909 and $14,812 for the three months ended June 30, 2026 and 2025, respectively.

 

 

 

Six Months Ended June 30,

 

Classification

 

2026

 

 

2025

 

Cannabis:

 

 

 

 

 

 

Canadian Branded (1)

 

$

46,865

 

 

$

47,713

 

Canadian Non-Branded

 

 

8,417

 

 

 

13,367

 

International Exports

 

 

35,478

 

 

 

17,368

 

U.S. Cannabis

 

 

6,357

 

 

 

7,745

 

Netherlands Branded

 

 

6,008

 

 

 

2,969

 

Other

 

 

142

 

 

 

907

 

Total Cannabis

 

 

103,267

 

 

 

90,069

 

Other

 

 

 

 

 

 

Produce

 

 

10,293

 

 

 

8,601

 

Clean Energy

 

 

655

 

 

 

909

 

Total Revenue

 

$

114,215

 

 

$

99,579

 

(1)
Canadian Branded revenues are shown net of excise tax on products. Excise tax on products was $30,812 and $28,759 for the six months ended June 30, 2026 and 2025, respectively.

 

Presentation of Financial Results

 

The Company’s financial statements for the three and six months ended June 30, 2026, as well as the comparative period for 2025, have been prepared and presented under United States Generally Accepted Accounting Principles (“GAAP”).

 


 

RESULTS OF OPERATIONS

(In thousands of U.S. dollars, except per share amounts, and unless otherwise noted)

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Sales

$

63,977

 

 

$

59,899

 

 

$

114,215

 

 

$

99,579

 

Cost of sales

 

(34,004

)

 

 

(37,557

)

 

 

(63,256

)

 

 

(63,057

)

Gross profit

 

29,973

 

 

 

22,342

 

 

 

50,959

 

 

 

36,522

 

Selling, general and administrative expenses

 

(18,811

)

 

 

(15,411

)

 

 

(34,753

)

 

 

(30,030

)

Interest expense

 

(477

)

 

 

(814

)

 

 

(1,000

)

 

 

(1,516

)

Interest income

 

343

 

 

 

109

 

 

 

951

 

 

 

184

 

Foreign exchange (loss) gain

 

(597

)

 

 

1,792

 

 

 

(1,145

)

 

 

1,708

 

Other (loss) income

 

24

 

 

 

4,430

 

 

 

(159

)

 

 

4,451

 

Income (loss) before taxes and equity method investment income

 

10,455

 

 

 

12,448

 

 

 

14,853

 

 

 

11,319

 

Provision for income taxes

 

(3,262

)

 

 

(2,503

)

 

 

(4,930

)

 

 

(3,486

)

Equity method investment income, net of tax

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

7,193

 

 

 

9,945

 

 

 

9,923

 

 

 

7,833

 

(Loss) Income from discontinued operations, net of tax

 

 

 

 

16,294

 

 

 

 

 

 

11,291

 

Income (loss) including non-controlling interests

 

7,193

 

 

 

26,239

 

 

 

9,923

 

 

 

19,124

 

Less: net (income) loss attributable to non-controlling interests, net of tax

 

(48

)

 

 

258

 

 

 

139

 

 

 

670

 

Net income (loss) attributable to Village Farms International, Inc. shareholders

$

7,145

 

 

$

26,497

 

 

$

10,062

 

 

$

19,794

 

Adjusted EBITDA from continuing operations (1)

$

15,411

 

 

$

17,111

 

 

$

25,311

 

 

$

20,560

 

Basic income (loss) per share attributable to Village Farms International, Inc. shareholders from:

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

$

0.06

 

 

$

0.09

 

 

$

0.09

 

 

$

0.08

 

Discontinued operations

 

-

 

 

 

0.15

 

 

 

-

 

 

 

0.10

 

Basic income (loss) per share attributable to Village Farms International, Inc. shareholders

$

0.06

 

 

$

0.24

 

 

$

0.09

 

 

$

0.18

 

Diluted income (loss) per share attributable to Village Farms International, Inc. shareholders from:

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

$

0.06

 

 

$

0.10

 

 

$

0.08

 

 

$

0.08

 

Discontinued operations

 

-

 

 

 

0.14

 

 

 

-

 

 

 

0.10

 

Diluted income (loss) per share attributable to Village Farms International, Inc. shareholders

$

0.06

 

 

$

0.24

 

 

$

0.08

 

 

$

0.18

 

(1)
Adjusted EBITDA from continuing operations is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA from continuing operations may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA from continuing operations is a useful supplemental measure in evaluating the performance of the Company because it excludes non-recurring and other items that do not reflect our business performance. Adjusted EBITDA from continuing operations includes the Company’s 86.6% interest in Rose LifeScience. For a reconciliation of Adjusted EBITDA from continuing operations to net income (the most comparable measure under GAAP), see “Reconciliation of Adjusted EBITDA from Continuing Operations to Net Income (Loss)” below.

We caution that our results of operations for the three and six months ended June 30, 2026 and 2025 may not be indicative of our future performance.

 


 

SEGMENTED RESULTS OF OPERATIONS

(In thousands of U.S. dollars, except per share amounts, and unless otherwise noted)

 

 

For The Three Months Ended June 30, 2026

 

 

Cannabis

 

 

Other

 

 

Corporate

 

 

Total

 

Sales

$

53,523

 

 

$

10,454

 

 

$

 

 

$

63,977

 

Cost of sales

 

(26,246

)

 

 

(7,758

)

 

 

 

 

 

(34,004

)

Selling, general and administrative expenses

 

(15,203

)

 

 

(712

)

 

 

(2,896

)

 

 

(18,811

)

Other expense, net

 

(207

)

 

 

(204

)

 

 

(296

)

 

 

(707

)

Income (loss) before taxes and equity method investment income

 

11,867

 

 

 

1,780

 

 

 

(3,192

)

 

 

10,455

 

Provision for income taxes

 

(3,216

)

 

 

(46

)

 

 

 

 

 

(3,262

)

Equity method investment income, net of tax

 

 

 

 

 

 

 

 

 

 

 

Income (loss) including non-controlling interests

 

8,651

 

 

 

1,734

 

 

 

(3,192

)

 

 

7,193

 

Less: net loss attributable to non-controlling interests, net of tax

 

(48

)

 

 

 

 

 

 

 

 

(48

)

Net income (loss)

$

8,603

 

 

$

1,734

 

 

$

(3,192

)

 

$

7,145

 

Adjusted EBITDA from Continuing Operations(1)

$

15,273

 

 

$

2,776

 

 

$

(2,638

)

 

$

15,411

 

Basic income (loss) per share

$

0.08

 

 

$

0.01

 

 

$

(0.03

)

 

$

0.06

 

Diluted income (loss) per share

$

0.08

 

 

$

0.01

 

 

$

(0.03

)

 

$

0.06

 

 

 

For The Three Months Ended June 30, 2025

 

 

Cannabis

 

 

Other

 

 

Corporate

 

 

Total

 

Sales

$

50,842

 

 

$

9,057

 

 

$

 

 

$

59,899

 

Cost of sales

 

(29,502

)

 

 

(8,055

)

 

 

 

 

 

(37,557

)

Selling, general and administrative expenses

 

(11,606

)

 

 

(843

)

 

 

(2,962

)

 

 

(15,411

)

Other (expense) income, net

 

(507

)

 

 

4,471

 

 

 

1,553

 

 

 

5,517

 

Income (loss) before taxes and equity method investment income

 

9,227

 

 

 

4,630

 

 

 

(1,409

)

 

 

12,448

 

Provision for income taxes

 

(2,387

)

 

 

(135

)

 

 

19

 

 

 

(2,503

)

Equity method investment income, net of tax

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

6,840

 

 

 

4,495

 

 

 

(1,390

)

 

 

9,945

 

Income from discontinued operations net of tax

 

 

 

 

16,294

 

 

 

 

 

 

16,294

 

Income (loss) including non-controlling interests

 

6,840

 

 

 

20,789

 

 

 

(1,390

)

 

 

26,239

 

Less: net loss attributable to non-controlling interests, net of tax

 

258

 

 

 

 

 

 

 

 

 

258

 

Net income (loss)

$

7,098

 

 

$

20,789

 

 

$

(1,390

)

 

$

26,497

 

Adjusted EBITDA from Continuing Operations(1)

$

13,123

 

 

$

6,833

 

 

$

(2,845

)

 

$

17,111

 

Basic income (loss) per share from continuing operations

$

0.06

 

 

$

0.04

 

 

$

(0.01

)

 

$

0.09

 

Basic income per share from discontinued operations

$

-

 

 

$

0.15

 

 

$

-

 

 

$

0.15

 

Basic income (loss) per share

$

0.06

 

 

$

0.19

 

 

$

(0.01

)

 

$

0.24

 

Diluted income (loss) per share from continuing operations

$

0.06

 

 

$

0.05

 

 

$

(0.01

)

 

$

0.10

 

Diluted income per share from discontinued operations

$

-

 

 

$

0.14

 

 

$

-

 

 

$

0.14

 

Diluted income (loss) per share

$

0.06

 

 

$

0.19

 

 

$

(0.01

)

 

$

0.24

 

 


 

 

For The Six Months Ended June 30, 2026

 

 

Cannabis

 

 

Other

 

 

Corporate

 

 

Total

 

Sales

$

103,267

 

 

$

10,948

 

 

$

 

 

$

114,215

 

Cost of sales

 

(54,682

)

 

 

(8,574

)

 

 

 

 

 

(63,256

)

Selling, general and administrative expenses

 

(30,023

)

 

 

(1,224

)

 

 

(3,506

)

 

 

(34,753

)

Other expense, net

 

(517

)

 

 

(426

)

 

 

(410

)

 

 

(1,353

)

Income (loss) before taxes and equity method investment income

 

18,045

 

 

 

724

 

 

 

(3,916

)

 

 

14,853

 

Provision for income taxes

 

(4,801

)

 

 

(129

)

 

 

 

 

 

(4,930

)

Equity method investment income, net of tax

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

13,244

 

 

 

595

 

 

 

(3,916

)

 

 

9,923

 

Less: net loss attributable to non-controlling interests, net of tax

 

139

 

 

 

 

 

 

 

 

 

139

 

Net income (loss)

$

13,383

 

 

$

595

 

 

$

(3,916

)

 

$

10,062

 

Adjusted EBITDA from continuing operations (1)

$

25,479

 

 

$

2,753

 

 

$

(2,921

)

 

$

25,311

 

Basic income (loss) per share from continuing operations

$

0.12

 

 

$

-

 

 

$

(0.03

)

 

$

0.09

 

Basic income per share from discontinued operations

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Basic income (loss) per share

$

0.12

 

 

$

-

 

 

$

(0.03

)

 

$

0.09

 

Diluted income (loss) per share from continuing operations

$

0.11

 

 

$

-

 

 

$

(0.03

)

 

$

0.08

 

Diluted income per share from discontinued operations

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Diluted income (loss) per share

$

0.11

 

 

$

-

 

 

$

(0.03

)

 

$

0.08

 

 

 

For The Six Months Ended June 30, 2025

 

 

Cannabis

 

 

Other

 

 

Corporate

 

 

Total

 

Sales

$

90,069

 

 

$

9,510

 

 

$

 

 

$

99,579

 

Cost of sales

 

(53,460

)

 

 

(9,597

)

 

 

 

 

 

(63,057

)

Selling, general and administrative expenses

 

(23,342

)

 

 

(1,586

)

 

 

(5,102

)

 

 

(30,030

)

Other expense (income), net

 

(709

)

 

 

3,943

 

 

 

1,593

 

 

 

4,827

 

(Loss) income before taxes and equity method investment income

 

12,558

 

 

 

2,270

 

 

 

(3,509

)

 

 

11,319

 

Provision for income taxes

 

(3,282

)

 

 

(204

)

 

 

 

 

 

(3,486

)

Equity method investment income, net of tax

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

9,276

 

 

 

2,066

 

 

 

(3,509

)

 

 

7,833

 

Income from discontinued operations net of tax

 

 

 

 

11,291

 

 

 

 

 

 

11,291

 

Income (loss) including non-controlling interests

 

9,276

 

 

 

13,357

 

 

 

(3,509

)

 

 

19,124

 

Less: net loss attributable to non-controlling interests, net of tax

 

670

 

 

 

 

 

 

 

 

 

670

 

Net income (loss)

$

9,946

 

 

$

13,357

 

 

$

(3,509

)

 

$

19,794

 

Adjusted EBITDA from continuing operations (1)

$

20,012

 

 

$

5,404

 

 

$

(4,856

)

 

$

20,560

 

Basic (loss) income per share from continuing operations

$

0.09

 

 

$

0.02

 

 

$

(0.03

)

 

$

0.08

 

Basic loss per share from discontinued operations

$

-

 

 

$

0.10

 

 

$

-

 

 

$

0.10

 

Basic (loss) income per share

$

0.09

 

 

$

0.12

 

 

$

(0.03

)

 

$

0.18

 

Diluted (loss) income per share from continuing operations

$

0.09

 

 

$

0.02

 

 

$

(0.03

)

 

$

0.08

 

Diluted loss per share from discontinued operations

$

-

 

 

$

0.10

 

 

$

-

 

 

$

0.10

 

Diluted (loss) income per share

$

0.09

 

 

$

0.12

 

 

$

(0.03

)

 

$

0.18

 

(1)
Adjusted EBITDA from continuing operations is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA from continuing operations presented for these segments may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA from continuing operations is a useful supplemental measure in evaluating the performance of the Company because it excludes non-recurring and other items that do not reflect the underlying business performance of the Company. For a reconciliation of Adjusted EBITDA from continuing operations to net income (the most comparable measure under GAAP), see “Reconciliation of Adjusted EBITDA from Continuing Operations to Net Income (Loss)” below.

 

 


 

Reconciliation of Adjusted EBITDA from Continuing Operations to Net Income (Loss)

 

The following tables reflect a reconciliation of Adjusted EBITDA from continuing operations to net income (loss) from continuing operations, as presented by the Company:

 

 

For The Three Months Ended June 30, 2026

 

(in thousands of U.S. dollars)

Cannabis

 

 

Other

 

 

Corporate

 

 

Total

 

Net income (loss) from continuing operations

$

8,603

 

 

$

1,734

 

 

$

(3,192

)

 

$

7,144

 

Add:

 

 

 

 

 

 

 

 

 

 

 

Amortization and depreciation

 

3,483

 

 

 

777

 

 

 

19

 

 

 

4,279

 

Foreign currency exchange (gain) loss

 

(60

)

 

 

43

 

 

 

406

 

 

 

389

 

Interest expense (income), net

 

35

 

 

 

207

 

 

 

(108

)

 

 

134

 

Provision for income taxes

 

3,216

 

 

 

46

 

 

 

 

 

 

3,262

 

Share-based compensation

 

56

 

 

 

 

 

 

237

 

 

 

293

 

Deferred financing fees

 

67

 

 

 

 

 

 

 

 

 

67

 

Loss on disposal of assets

 

 

 

 

(31

)

 

 

 

 

 

(31

)

Adjustments attributable to non-controlling interest

 

(127

)

 

 

 

 

 

 

 

 

(127

)

Adjusted EBITDA from continuing operations (1)

 

15,273

 

 

 

2,776

 

 

 

(2,638

)

 

 

15,411

 

 

 

For The Three Months Ended June 30, 2025

 

(in thousands of U.S. dollars)

Cannabis

 

 

Other

 

 

Corporate

 

 

Total

 

Net income (loss) from continuing operations

$

7,098

 

 

$

4,495

 

 

$

(1,390

)

 

$

10,203

 

Add:

 

 

 

 

 

 

 

 

 

 

 

Amortization and depreciation

 

3,117

 

 

 

1,913

 

 

 

38

 

 

 

5,068

 

Foreign currency exchange gain

 

(84

)

 

 

(130

)

 

 

(1,529

)

 

 

(1,743

)

Interest expense (income), net

 

316

 

 

 

414

 

 

 

(25

)

 

 

705

 

Provision for (recovery of) income taxes

 

2,387

 

 

 

135

 

 

 

(19

)

 

 

2,503

 

Share-based compensation

 

37

 

 

 

6

 

 

 

80

 

 

 

123

 

Deferred financing fee

 

47

 

 

 

 

 

 

 

 

 

47

 

Other impairments

 

217

 

 

 

 

 

 

 

 

 

 

 

Adjustments attributable to non-controlling interest

 

(12

)

 

 

 

 

 

 

 

 

(12

)

Adjusted EBITDA from continuing operations (1)

 

13,123

 

 

 

6,833

 

 

 

(2,845

)

 

 

17,111

 

 

 

For The Six Months Ended June 30, 2026

 

(in thousands of U.S. dollars)

Cannabis

 

 

Other

 

 

Corporate

 

 

Total

 

Net income (loss) from continuing operations

$

13,383

 

 

$

595

 

 

$

(3,916

)

 

$

10,062

 

Add:

 

 

 

 

 

 

 

 

 

 

 

Amortization and depreciation

 

6,985

 

 

 

1,554

 

 

 

43

 

 

 

8,582

 

Foreign currency exchange loss

 

15

 

 

 

123

 

 

 

799

 

 

 

937

 

Interest expense (income), net

 

64

 

 

 

383

 

 

 

(388

)

 

 

59

 

Provision for income taxes

 

4,801

 

 

 

129

 

 

 

 

 

 

4,930

 

Share-based compensation

 

128

 

 

 

 

 

 

541

 

 

 

669

 

Deferred financing fees

 

139

 

 

 

 

 

 

 

 

 

139

 

Loss (gain) on disposal of assets

 

118

 

 

 

(31

)

 

 

 

 

 

87

 

Adjustments attributable to non-controlling interest

 

(154

)

 

 

 

 

 

 

 

 

(154

)

Adjusted EBITDA from continuing operations (1)

 

25,479

 

 

 

2,753

 

 

 

(2,921

)

 

 

25,311

 

 


 

 

For The Six Months Ended June 30, 2025

 

(in thousands of U.S. dollars)

Cannabis

 

 

Other

 

 

Corporate

 

 

Total

 

Net income (loss) from continuing operations

$

9,946

 

 

$

2,066

 

 

$

(3,509

)

 

$

8,503

 

Add:

 

 

 

 

 

 

 

 

 

 

 

Amortization and depreciation

 

6,055

 

 

 

2,273

 

 

 

82

 

 

 

8,410

 

Foreign currency exchange (gain) loss

 

(135

)

 

 

(82

)

 

 

(1,544

)

 

 

(1,761

)

Interest expense (income), net

 

457

 

 

 

924

 

 

 

(49

)

 

 

1,332

 

Provision for income taxes

 

3,282

 

 

 

204

 

 

 

 

 

 

3,486

 

Share-based compensation

 

85

 

 

 

19

 

 

 

164

 

 

 

268

 

Other Impairments

 

47

 

 

 

 

 

 

 

 

 

47

 

Goodwill and intangible impairments (1)

 

217

 

 

 

 

 

 

 

 

 

217

 

Adjustments attributable to non-controlling interest

 

58

 

 

 

 

 

 

 

 

 

58

 

Adjusted EBITDA from continuing operations (1)

 

20,012

 

 

 

5,404

 

 

 

(4,856

)

 

 

20,560

 

(1)
Adjusted EBITDA from continuing operations is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA from continuing operations presented for these segments may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA from continuing operations is a useful supplemental measure in evaluating the performance of the Company because it excludes non-recurring and other items that do not reflect the underlying business performance of the Company.

 

This press release is intended to be read in conjunction with the Company’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2026, which will be filed with the Securities and Exchange Commission and will be available at www.sec.gov, and will also be filed in Canada on SEDAR+ (www.sedarplus.ca). In addition, quarterly financial reports can be found on the Village Farms website under Financial Reports (https://villagefarms.com/financial-reports/) within the Investors section.

 


 

Cautionary Statement Regarding Forward-Looking Information

 

As used in this Press Release, the terms “Village Farms”, “Village Farms International”, the “Company”, “we”, “us”, “our” and similar references refer to Village Farms International, Inc. and our consolidated subsidiaries, and the term “Common Shares” refers to our common shares, no par value. Our financial information is presented in U.S. dollars and all references in this Press Release to “$” means U.S. dollars and all references to “C$” means Canadian dollars.

 

This Press Release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and is subject to the safe harbor created by those sections. This Press Release also contains "forward-looking information" within the meaning of applicable Canadian securities laws. We refer to such forward-looking statements and forward-looking information collectively as "forward-looking statements". Forward-looking statements may relate to the Company's future outlook or financial position and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, expansion plans, litigation, projected production, projected costs, capital expenditures, financial results, tariffs, taxes, plans and objectives of or involving the Company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the Company, the greenhouse vegetable or produce industry, the cannabis industry and market and our energy segment are forward-looking statements. In some cases, forward-looking information can be identified by such terms as "can", "outlook", "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "try", "estimate", "predict", "potential", "continue", "likely", "schedule", "objectives", “position” or the negative or grammatical variation thereof or other similar expressions concerning matters that are not historical facts. The forward-looking statements in this Press Release are subject to risks that may include, but are not limited to: our limited operating history in the cannabis and cannabinoids industry, including that of Pure Sunfarms, Corp. (“Pure Sunfarms”), Rose LifeScience Inc. (“Rose” or “Rose LifeScience”), Balanced Health Botanicals, LLC (“Balanced Health”), and Village Farms International B.V. (“VF International”); the limited operational history of the Delta RNG Project in our energy segment and VF International; the legal status of the cannabis business of Pure Sunfarms, Rose and VF International and the hemp business of Balanced Health and uncertainty regarding the legality and regulatory status of cannabis and cannabinoid (CBD) products in the United States; risks relating to the implementation and enforcement of the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extension Act, 2026 which mat materially and adversely affect our CBD business in the United States; risks relating to the operation of our collaboration with Verdexa Holdings; risks relating to obtaining additional financing on acceptable terms, including our dependence upon credit facilities and dilutive transactions; potential difficulties in achieving and/or maintaining profitability; variability of product pricing; risks inherent in the cannabis, hemp, CBD, cannabinoids, and agricultural businesses; our market position and competitive position; our ability to leverage current business relationships for future business involving hemp and cannabinoids; the ability of Pure Sunfarms and Rose to cultivate and distribute cannabis in Canada as well as exports; risks related to the start-up of international production at our Netherlands operations under VF International; existing and new governmental regulations, including risks related to regulatory compliance and regarding obtaining and maintaining licenses required under the Cannabis Act (Canada), the Criminal Code and other Acts, S.C. 2018, C. 16 (Canada) for our Canadian operational facilities, and changes in our regulatory requirements; legal and operational risks relating to expected conversion of our greenhouses to cannabis production in Canada and in the United States; risks related to rules and regulations at the U.S. Federal (Food and Drug Administration and United States Department of Agriculture), state and municipal levels with respect to produce and hemp, cannabidiol-based products commercialization; retail consolidation, technological advances and other forms of competition; transportation disruptions; product liability and other potential litigation; retention of key executives; labor issues; uninsured and underinsured losses; vulnerability to rising energy costs; inflationary effects on costs of cultivation and transportation; recessionary effects on demand of our products; environmental, health and safety risks, foreign exchange exposure, risks associated with cross-border trade and the potential for tariffs and other trade restrictions; difficulties in managing our growth; restrictive covenants under our credit facilities; natural catastrophes; elevated interest rates; and tax risks.

 

The Company has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. Although the forward-looking statements contained in this Press Release are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the Company's control, which may cause the Company's or the industry's actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the factors contained in the Company's filings with securities regulators, including this Press Release and the Company’s most recently filed annual report on Form 10-K and quarterly report on Form 10-Q.

 

When relying on forward-looking statements to make decisions, the Company cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future results, performance, achievements, prospects and opportunities. The forward-looking statements made in this Press Release relate only to events or information as of the date on which the statements are made in this Press Release. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.


 

Village Farms International, Inc.

Condensed Consolidated Statements of Financial Position

(In thousands of United States dollars, except share data)

(Unaudited)

 

 

June 30, 2026

 

 

December 31, 2025

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

72,931

 

 

$

81,189

 

Restricted cash

 

 

 

 

 

5,063

 

Trade receivables, net

 

 

32,406

 

 

 

23,151

 

Inventories, net

 

 

46,669

 

 

 

41,519

 

Other receivables

 

 

1,397

 

 

 

324

 

Prepaid expenses and deposits

 

 

6,923

 

 

 

3,191

 

Total current assets

 

 

160,326

 

 

 

154,437

 

Non-current assets

 

 

 

 

 

 

Property, plant and equipment, net

 

 

190,058

 

 

 

185,712

 

Investments

 

 

6,276

 

 

 

6,276

 

Goodwill

 

 

42,775

 

 

 

44,365

 

Intangibles, net

 

 

21,137

 

 

 

23,647

 

Deferred tax asset

 

 

564

 

 

 

694

 

Right-of-use assets

 

 

5,388

 

 

 

4,066

 

Other assets

 

 

1,943

 

 

 

3,899

 

Total assets

 

$

428,467

 

 

$

423,096

 

LIABILITIES

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade payables

 

$

17,587

 

 

$

15,747

 

Current maturities of long-term debt

 

 

5,249

 

 

 

4,885

 

Accrued sales taxes

 

 

7,068

 

 

 

8,695

 

Accrued liabilities

 

 

16,699

 

 

 

13,960

 

Lease liabilities - current

 

 

1,169

 

 

 

1,198

 

Income tax payable

 

 

 

 

 

12,151

 

Other current liabilities

 

 

2,836

 

 

 

1,950

 

Total current liabilities

 

 

50,608

 

 

 

58,586

 

Non-current liabilities

 

 

 

 

 

 

Long-term debt

 

 

34,713

 

 

 

28,769

 

Deferred tax liability

 

 

17,329

 

 

 

18,494

 

Lease liabilities - non-current

 

 

5,058

 

 

 

3,855

 

Other non-current liabilities

 

 

2,111

 

 

 

3,330

 

Total liabilities

 

 

109,819

 

 

 

113,034

 

MEZZANINE EQUITY

 

 

 

 

 

 

Redeemable non-controlling interest

 

 

6,447

 

 

 

10,164

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Common shares, no par value per share - unlimited shares authorized;
121,844,464 shares issued and outstanding at June 30, 2026 and 115,722,312 common shares issued and outstanding at December 31, 2025.

 

 

407,031

 

 

 

392,380

 

Additional paid in capital

 

 

24,931

 

 

 

29,374

 

Accumulated other comprehensive loss

 

 

(17,248

)

 

 

(9,281

)

Retained earnings

 

 

(102,513

)

 

 

(112,575

)

Total shareholders’ equity

 

 

312,201

 

 

 

299,898

 

Total liabilities, mezzanine equity and shareholders’ equity

 

$

428,467

 

 

$

423,096

 

 


 

Village Farms International, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(In thousands of United States dollars, except per share data)

(Unaudited)

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Sales

 

$

63,977

 

 

$

59,899

 

 

$

114,215

 

 

$

99,579

 

Cost of sales

 

 

(34,004

)

 

 

(37,557

)

 

 

(63,256

)

 

 

(63,057

)

Gross profit

 

 

29,973

 

 

 

22,342

 

 

 

50,959

 

 

 

36,522

 

Selling, general and administrative expenses

 

 

(18,811

)

 

 

(15,411

)

 

 

(34,753

)

 

 

(30,030

)

Interest expense

 

 

(477

)

 

 

(814

)

 

 

(1,000

)

 

 

(1,516

)

Interest income

 

 

343

 

 

 

109

 

 

 

951

 

 

 

184

 

Foreign exchange (loss) gain

 

 

(597

)

 

 

1,792

 

 

 

(1,145

)

 

 

1,708

 

Other income (loss)

 

 

24

 

 

 

4,430

 

 

 

(159

)

 

 

4,451

 

Income before taxes and equity method investment income

 

 

10,455

 

 

 

12,448

 

 

 

14,853

 

 

 

11,319

 

Provision for income taxes

 

 

(3,262

)

 

 

(2,503

)

 

 

(4,930

)

 

 

(3,486

)

Equity method investment income, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

 

7,193

 

 

 

9,945

 

 

 

9,923

 

 

 

7,833

 

Income from discontinued operations, net of tax

 

 

 

 

 

16,294

 

 

 

 

 

 

11,291

 

Income including non-controlling interests

 

 

7,193

 

 

 

26,239

 

 

 

9,923

 

 

 

19,124

 

Less: net (income) loss attributable to non-controlling interests, net of tax

 

 

(48

)

 

 

258

 

 

 

139

 

 

 

670

 

Net income attributable to Village Farms International, Inc. shareholders

 

$

7,145

 

 

$

26,497

 

 

$

10,062

 

 

$

19,794

 

Basic income per share attributable to Village Farms International, Inc. shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.06

 

 

$

0.09

 

 

$

0.09

 

 

$

0.08

 

Discontinued operations

 

 

-

 

 

 

0.15

 

 

 

-

 

 

 

0.10

 

Basic income per share attributable to Village Farms International, Inc. shareholders

 

$

0.06

 

 

$

0.24

 

 

$

0.09

 

 

$

0.18

 

Diluted income per share attributable to Village Farms International, Inc. shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.06

 

 

$

0.10

 

 

$

0.08

 

 

$

0.08

 

Discontinued operations

 

 

-

 

 

 

0.14

 

 

 

-

 

 

 

0.10

 

Diluted income per share attributable to Village Farms International, Inc. shareholders

 

$

0.06

 

 

$

0.24

 

 

$

0.08

 

 

$

0.18

 

Weighted average number of common shares used
   in the computation of net income (loss) per share (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

116,192

 

 

 

112,347

 

 

 

115,728

 

 

 

112,342

 

Diluted

 

 

124,721

 

 

 

112,736

 

 

 

125,824

 

 

 

112,607

 

Income including non-controlling interests

 

$

7,193

 

 

$

26,239

 

 

$

9,923

 

 

$

19,124

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

(4,665

)

 

 

9,870

 

 

 

(8,196

)

 

 

10,835

 

Comprehensive loss including non-controlling interests

 

 

2,528

 

 

 

36,109

 

 

 

1,727

 

 

 

29,959

 

Comprehensive loss (income) attributable to non-controlling interests

 

 

72

 

 

 

(239

)

 

 

418

 

 

 

100

 

Comprehensive income attributable to Village Farms International, Inc. shareholders

 

$

2,600

 

 

$

35,870

 

 

$

2,145

 

 

$

30,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Village Farms International, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands of United States dollars)

(Unaudited)

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

Cash flows provided by (used in) operating activities:

 

 

 

 

 

 

Income from continuing operations including non-controlling interests

 

$

9,923

 

 

$

7,833

 

Adjustments to reconcile net income attributable to Village Farms International, Inc. shareholders to net cash used in operating activities of continuing operations:

 

 

 

 

 

 

Depreciation and amortization

 

 

8,582

 

 

 

8,410

 

Amortization of deferred charges

 

 

139

 

 

 

47

 

Interest expense

 

 

1,000

 

 

 

1,516

 

Interest paid on long-term debt

 

 

(757

)

 

 

(1,613

)

Unrealized foreign exchange loss (gain)

 

 

217

 

 

 

(87

)

Loss on disposal of assets

 

 

87

 

 

 

 

Non-cash lease expense

 

 

491

 

 

 

619

 

Share-based compensation

 

 

669

 

 

 

268

 

Deferred income taxes

 

 

200

 

 

 

(935

)

Changes in non-cash working capital items

 

 

(28,435

)

 

 

6,207

 

Net cash (used in) provided by operating activities from continuing operations

 

 

(7,884

)

 

 

22,265

 

Cash flows used in investing activities:

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(15,462

)

 

 

(5,289

)

Net cash used in investing activities from continuing operations

 

 

(15,462

)

 

 

(5,289

)

Cash flows provided by (used in) financing activities:

 

 

 

 

 

 

Proceeds from issuance of common shares

 

 

15,000

 

 

 

 

Issuance costs

 

 

(958

)

 

 

 

Proceeds from borrowings

 

 

8,952

 

 

 

 

Repayments on borrowings

 

 

(2,387

)

 

 

(4,554

)

Share repurchases

 

 

(6,787

)

 

 

 

Acquisition of redeemable non-controlling interest

 

 

(1,280

)

 

 

 

Proceeds from exercise of warrants and options

 

 

182

 

 

 

 

Other financing activities

 

 

(182

)

 

 

(432

)

Net cash provided by (used in) financing activities from continuing operations

 

 

12,540

 

 

 

(4,986

)

Discontinued Operations

 

 

 

 

 

 

Net cash (used in) provided by operating activities from discontinued operations

 

 

 

 

 

(6,818

)

Net cash (used in) provided by investing activities from discontinued operations

 

 

 

 

 

38,710

 

Net cash (used in) provided by financing activities from discontinued operations

 

 

 

 

 

(4,000

)

Net cash flows provided by discontinued operations

 

 

 

 

 

27,892

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(2,515

)

 

 

475

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

 

(13,321

)

 

 

40,357

 

Cash, cash equivalents and restricted cash, beginning of period

 

 

86,252

 

 

 

24,631

 

Cash, cash equivalents and restricted cash, end of period

 

$

72,931

 

 

$

64,988

 

 

 


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