-- 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, Aug. 10, 2026 (GLOBE NEWSWIRE) -- 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 Six Months Ended
June 30, 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 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 Six Months Ended
June 30, 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
=========== =========