Press Release: Village Farms Delivers Record Full Year 2025 Profitability with Continued Strong Performance in Q4

Dow Jones03-12
   -- Record Full Year Consolidated Net Income from Continuing Ops of $21.0 
      Million or $0.19 Per Share, Adjusted EBITDA from Continuing Ops of $49.9 
      Million, and Operating Cash Flow of $58.1 Million 
 
   -- Consolidated Q4 Net Sales Increased 9% YoY to $49.6 Million; Canadian 
      Cannabis Sales Increased 10% YoY; International Export Cannabis Sales 
      Increased 384% YoY 
 
   -- Consolidated Q4 Net Income from Continuing Ops of $2.3 Million or $0.02 
      Per Share, Adj. EBITDA from Continuing Ops of $8.6 Million, and Operating 
      Cash Flow of $11.4 Million 
 
   -- Canadian Cannabis Delivers Q4 Gross Margin of 43%; Adj. EBITDA of $9.8 
      Million or 25.8% of Sales 
 
   -- All Expansion Projects Remain on Time and Under Budget; Delta 2 Expansion 
      Commenced Cultivation March 2 and Expected to Harvest 15 Tonnes of 
      Incremental Capacity in 2026 
 
   -- Netherlands Expansion on Track to Plant First Rooms in March with Full 
      Facility Completion During Q2 
 
   -- Company Ends 2025 with $86 Million in Cash; Has Completed $6.7 Million of 
      Share Repurchases since Q3 

VANCOUVER, British Columbia, March 12, 2026 (GLOBE NEWSWIRE) -- Village Farms International, Inc. ("Village Farms" or the "Company") (NASDAQ: VFF) today reported financial results for its fourth quarter and year ended December 31, 2025. All figures are in U.S. dollars unless otherwise indicated.

Management Commentary

"Our fourth quarter results again delivered strong profitability, gross margin and cash flow from operations which contributed to record levels of performance for each of these metrics in 2025," said President and Chief Executive Officer Michael DeGiglio. "Thanks to the tireless commitment and execution of our global team, this past year was a transformational one for Village Farms. We are continuing to benefit from multiple catalysts unlocking value for our stakeholders and believe we remain in an excellent position to continue profitably scaling our platform in 2026."

"We grew global cannabis sales by 17% year-over-year despite just a partial year of contributions from our expanding Netherlands business, and international exports increased more than six-fold as we continue to capitalize on our leadership position among the world's largest EU-GMP certified cannabis operators. We've set a higher standard for our Company on the global stage, and are continuing to invest behind our proven teams with enhancements to our operating capabilities."

"Demand for our products continues to significantly outpace our current production capacity, and temporary supply constraints coupled with rapidly evolving global regulatory frameworks has created near-term variability in performance as we balance the complex needs of our diverse customer base. In response to higher demand, we are pleased to report that last week we began cultivation in the first half of our previously-announced Delta 2 expansion in Canada, and that this project remains on track to harvest an incremental 15 tonnes of production capacity during the remainder of this year."

"Our first Netherlands facility continues to operate at full capacity with healthy margin performance, and we are in the process of scaling our local operating team there to support our Phase II facility in Groningen which remains on track for its first grow rooms to be planted at the end of Q1 with the full facility completed and planted by the end of Q2. Once fully ramped, we anticipate annual production capacity of approximately 10 tonnes in the Netherlands, where we continue to see a very strong pricing environment and are well positioned to capture market share in premium product categories."

"We look to the remainder of 2026 with a growth mindset, and expect to maintain a balanced approach to capital allocation with prudent consideration of accretive organic and acquisitive investments and enhanced value creation for shareholders in the form of ongoing share repurchases. We believe our growth investments, strong net cash position, industry leading cost of capital, and continued solid execution from our teams position us for continued success in 2026 and beyond."

Fourth Quarter 2025 Financial Highlights

(All comparable periods are for the fourth quarter of 2024 unless otherwise stated)

Consolidated

   -- Consolidated net sales increased 9% to $49.6 million from $45.4 million; 
 
   -- Consolidated net income from continuing operations improved to $2.3 
      million, or $0.02 per share, from a net loss from continuing operations 
      of $7.5 million, or ($0.04) per share driven by a $10.5 million non-cash 
      impairment charge in the prior-year period related to non-flower 
      inventory purchased primarily from third parties that did not meet the 
      Company's quality standards; 
 
   -- Consolidated net income, including non-controlling interests and before 
      equity losses, was $2.4 million, or $0.02 per share compared to net loss, 
      including non-controlling interests and before equity losses, of $8.6 
      million, or ($0.07) per share; 
 
   -- Consolidated cash flow from continuing operations of $11.4 million 
      compared with $10.9 million in the prior year period; 
 
   -- Full year consolidated cash flow from continuing operations increased to 
      $58.1 million compared with $13.7 million in the prior-year period; and, 
 
   -- Consolidated adjusted EBITDA from continuing operations (a non-GAAP 
      measure) was $8.6 million or 17.3% of sales, compared with ($2.9) million 
      in the prior year period. 

Canadian Cannabis

   -- Net sales increased 10% to $37.8 million (C$52.7 million) from $34.3 
      million (C$48.0 million); 
 
   -- International export sales increased 384%; retail branded sales flat 
      year-over-year in line with expectations; 
 
   -- Gross margin increased to 43% from 2%, driven by improvements in 
      operating efficiency leading to lower costs of production, an increased 
      mix of higher-margin sales, and the non-recurrence of a non-cash 
      inventory impairment charge in the prior-year quarter; 
 
   -- Net income improved to $5.4 million (C$7.5 million) from negative $6.6 
      million (-C$9.4 million); 
 
   -- Adjusted EBITDA increased to $9.7 million (C$14.3 million) from negative 
      $6.3 million (-C$9.1 million); and, 
 
   -- Cash flow from operations increased 752% to $15.7 million (C$21.5 
      million) from $2.6 million (C$3.3 million). 

U.S. Cannabis

   -- Net sales were $3.4 million compared with $4.6 million; 
 
   -- Gross margin decreased to 60% from 70%; 
 
   -- Net loss was ($0.2 million) compared with a net loss of $0.2 million; and 
 
   -- Adjusted EBITDA was ($0.1 million) compared with $0.3 million. 

Netherlands Cannabis

Village Farms Netherlands was non-operational during the comparable quarter of 2024. As a result, comparative financial performance to the prior-year quarter is not meaningful.

   -- Net sales were $3.3 million; 
 
   -- Net loss was ($0.1 million) driven by increased operating expenses to 
      support the Company's Phase II expansion; and 
 
   -- Adjusted EBITDA was $0.7 million. 

Produce

   -- Sales from continuing operations of $4.9 million were down from $6.1 
      million as compared to the prior year as 2025 sales are net of a 
      commission paid to Vanguard Food, L.P., as well as lower year-over-year 
      pricing; 
 
   -- Net loss from continuing operations was ($1.6 million) compared to net 
      income from continuing operations of $4.9 million; and, 
 
   -- Adjusted EBITDA from continuing operations was ($462 thousand) compared 
      to adjusted EBITDA from continuing operations of $6.6 million which was 
      the result of a legal settlement in the prior-year quarter. 

Strategic Growth and Operational Highlights

Canadian Cannabis

   -- The Company continues to maintain a top five overall market share 
      position in Canada and held the number one position in dried flower as of 
      February 20261 despite planned reductions in sales of lower-margin SKUs; 
 
   -- International export sales increased 384% year-over-year with demand from 
      international customers continuing to meaningfully outpace current supply 
      capabilities; 
 
   -- We surpassed the high end of our targeted gross margin range of 30-40%, 
      marking the fourth consecutive quarter meeting or exceeding the target 
      range and contributing to record annual Adjusted EBITDA performance; 
 
   -- Introduced several new and unique packaging innovations to the Canadian 
      market, including the launch of a one-way aroma valve built directly into 
      its dried flower packaging, windowed packaging for its flower products 
      which enables consumers to see product before purchase, and a proprietary 
      built-in matchbox accessory for its pre-roll offerings to meet growing 
      demand for ready-to-enjoy cannabis experiences; 
 
   -- Named the winner of Business Vancouver's $(BIV)$ 2026 BC Export Awards in 
      the Consumer Products category, recognizing our exceptional performance 
      and contribution to British Columbia's growing international trade 
      economy; 
 
   -- Published groundbreaking peer-reviewed research in Scientific Reports 
      (Nature Portfolio), highlighting the natural variability of THC potency 
      within cannabis plants, reinforcing a need for a greater focus on product 
      quality versus potency and more transparent and accurate labeling across 
      the industry; and, 
 
   -- During the fourth quarter, started the expansion of cultivation capacity 
      in the remaining half of its Delta 2 greenhouse to meet increasing demand 
      in Canadian and our international export markets. Once completed and 
      operating at full capacity, the expansion is expected to yield an 
      incremental 40 tonnes of annualized cannabis production, expanding 
      capacity by approximately 33% once completed. 

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

International Medical Cannabis (Reported Within Canadian Cannabis)

   -- International export sales increased 384% year-over-year, driven by 
      continued strength of demand in Germany and steady performance across 
      other international markets; 
 
   -- We believe we remain the largest exporter of medical cannabis to Europe, 
      with three of the top five leading cultivars in Germany and four of the 
      top 10 through our third-party distribution partners2; and 
 
   -- The Company expects to return to sequential growth in international 
      medical export sales in Q1 of 2026. 

(2. Based on Company estimates and rankings compiled by German outlet Flowzz.)

Netherlands Cannabis

   -- Operations at the Phase I facility in Drachten continue at full capacity, 
      with continued strong margin performance and operating cash flow 
      generation; 
 
   -- The Company's products are now represented in 96% of participating 
      coffeeshops, representing increased market penetration of roughly 500 
      basis points sequentially from that of the third quarter; 
 
   -- The Company continued to advance new product innovation in the 
      Netherlands market and subsequent to year end launched 10 new product 
      offerings, including the first regulated blunt in market as well as 
      infused spliffs and other pre-roll formats. It expects to continue 
      launching new and innovative products in 2026; and 
 
   -- Construction of the Company's Phase II facility in Groningen is nearing 
      completion with the first grow rooms expected to be planted in late Q1 
      with full facility completion and planting expected in Q2. Once fully 
      ramped, the Phase II facility is expected to quintuple total annualized 
      production to approximately 10 tonnes. 

U.S. Cannabis

   -- The Company believes it is poised to benefit from President Trump's 
      Executive Order to reschedule marijuana, which, if rescheduled, would 
      represent a consequential step in modernizing U.S. cannabis policy and 
      support the development of a regulatory framework more aligned with 
      international drug policies. 
 
   -- The Company's application for a Texas medicinal marijuana license remains 
      under review by the Department of Public Services ("DPS"). In December 
      2025, nine new provisional licenses were awarded and DPS will award a 
      minimum of three new awards on or before April 1, 2026. If awarded a 
      license, the Company plans to work with its listing authority to 
      structure an acceptable ownership structure and comply with all 
      applicable regulatory requirements, which are still pending in Texas. 

Corporate

   -- Brian Stevenson was appointed to the newly created role of Global Chief 
      Strategy Officer, where he is overseeing our enterprise-wide strategic 
      agenda, including long-term growth strategy, global market assessment, 
      and integration initiatives across regions and business units. 
 
   -- Brian Ellis was appointed to the newly created role of Chief Information 
      and Technology Officer (CITO), where he is overseeing our enterprise 
      architecture and IT strategy as we continue executing our global growth 
      strategy and transformation initiatives. 
 
   -- On September 29, 2025, the Company's Board of Directors unanimously 
      approved a US$10 million share repurchase authorization for up to 
      5,687,000 common shares (five percent of our issued and outstanding 
      common shares at the date of announcement). During the fourth quarter of 
      2025, the Company repurchased 812,923 shares at a cost of $3.0 million 
      and subsequent to year end it has purchased 1,099,753 shares at a cost of 
      $3.7 million. 
 
   -- Subsequent to year end, the Company amended and extended its Canadian 
      cannabis credit facility by upsizing loan commitments with existing 
      lenders by CAD $15 million and extending maturities one year. The 
      incremental financing comes in the form of a delayed draw term loan, from 
      which the Company drew an initial CAD $5 million on February 20, 2026. 
      All other terms of the credit facility loans remain unchanged, with 
      variable interest rates currently below 6.0%. 

Conference Call

Village Farms' management team will host a conference call to discuss its fourth quarter and full year 2025 financial results today, Thursday, March 12, 2026, at 8:30 a.m. ET. Participants can access the conference call via a webcast at Village Farms Fourth Quarter 2025 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 Fourth Quarter 2025 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 one of the largest EU-GMP certified cannabis facilities in the world from 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 largest independent hemp-derived wellness platforms. Beyond cannabis, the Company's Clean Energy division transforms landfill gas into renewable natural gas, and it also holds an equity interest in Vanguard Food LP, a private venture pursuing strategic acquisitions to build a premier branded food platform in North America.

Contact Information

Sam Gibbons

Senior Vice President, Corporate Affairs

Phone: (407) 936-1190 ext. 328

Email: sgibbons@villagefarms.com

Lawrence Chamberlain

LodeRock Advisors

Phone: (416) 519-4196

Email: lawrence.chamberlain@loderockadvisors.com

Canadian Cannabis Performance Summary

 
(millions except    Three Months Ended December 
% metrics)                      31, 
                   ------------------------------ 
                       2025            2024 
                   -------------  --------------- 
                                                    Change 
                                                     of C 
                   CAD $   USD $  CAD $    USD $      $ 
                   ------  -----  ------   ------   ------ 
Total Net Sales    $ 52.7  $37.8  $ 48.0   $ 34.3      10% 
Total Cost of 
 Sales             $ 30.0  $22.2  $ 47.0   $ 33.4     -36% 
Gross Profit       $ 22.7  $15.8  $  1.0   $  0.9    2170% 
Gross Margin %      43%     42%     2%       3%      1968% 
SG&A               $ 11.6  $ 8.4  $ 13.4   $  9.6     -13% 
Net income (loss)  $  7.5  $ 5.4  $ (9.4)  $ (6.6)      NM 
Adjusted EBITDA 
 from Cont. 
 Ops.((1)          $ 14.3  $ 9.7  $ (9.1)  $ (6.3)      NM 
Adjusted EBITDA 
 Margin from 
 Cont. Ops.((1)     27%     26%    -19%     -18%        NM 
Cash flow from 
 Operations        $ 21.5  $15.6  $ (3.3)  $ (2.6)      NM 
 
 
(millions except 
% metrics)             Year Ended December 31, 
                   ------------------------------- 
                        2025            2024 
                   --------------  --------------- 
                                                     Change 
                                                      of C 
                   CAD $   USD $   CAD $    USD $      $ 
                   ------  ------  ------   ------   ------ 
Total Net Sales    $228.2  $163.7  $204.0   $148.9      12% 
Total Cost of 
 Sales             $127.7  $ 92.2  $162.4   $118.2     -21% 
Gross Profit       $100.5  $ 71.5  $ 41.6   $ 30.7     142% 
Gross Margin %      44%     44%     20%      21%       116% 
SG&A               $ 48.7  $ 34.9  $ 46.7   $ 34.0       4% 
Net income (loss)  $ 37.0  $ 26.6  $ (4.8)  $ (3.2)      NM 
Adjusted EBITDA 
 from Cont. 
 Ops.((1)          $ 67.0  $ 47.6  $  9.4   $  7.3     613% 
Adjusted EBITDA 
 Margin from 
 Cont. Ops.((1)     29%     29%      5%       5%       537% 
Cash flow from 
 Operations        $ 77.5  $ 56.2  $ 16.1   $ 11.7     381% 
 

Canadian Cannabis' Composition of Sales by Channel

 
(millions except 
% metrics)          Three Months Ended December 31, 
                   --------------------------------- 
                        2025              2024 
                   ---------------   --------------- 
                                                       Change 
                                                        of C 
                   CAD $    USD $    CAD $    USD $      $ 
                   ------   ------   ------   ------   ------ 
Retail Branded 
 Sales             $ 55.6   $ 39.9   $ 55.8   $ 39.9       0% 
Non-Branded Sales  $  5.7   $  4.2   $  9.5   $  6.9     -40% 
International 
 Sales             $ 12.1   $  8.7   $  2.5   $  1.7     384% 
Other              $  0.8   $  0.5   $  0.9   $  0.6     -11% 
Less: Excise 
 Taxes             $(21.5)  $(15.3)  $(20.7)  $(14.8)      4% 
Net Sales          $ 52.7   $ 37.8   $ 48.0   $ 34.3      10% 
 
 
(millions except 
% metrics)              Year Ended December 31, 
                   --------------------------------- 
                        2025              2024 
                   ---------------   --------------- 
                                                       Change 
                                                        of C 
                   CAD $    USD $    CAD $    USD $      $ 
                   ------   ------   ------   ------   ------ 
Retail Branded 
 Sales             $221.9   $158.9   $251.7   $183.9     -12% 
Non-Branded Sales  $ 34.5   $ 25.0   $ 39.6   $ 28.9     -13% 
International 
 Sales             $ 52.7   $ 37.9   $  8.4   $  6.1     527% 
Other              $  2.8   $  2.0   $  2.7   $  1.9       4% 
Less: Excise 
 Taxes             $(83.7)  $(60.0)  $(98.4)  $(72.0)    -15% 
Net Sales          $228.2   $163.9   $204.0   $148.9      12% 
 

Presentation of Financial Results

The Company's financial statements for the three months and year ended December 31, 2025, as well as the comparative periods for 2024, 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         Year Ended 
                      December 31,           December 31, 
                  -------------------   --------------------- 
                    2025       2024       2025        2024 
                  --------   --------   ---------   --------- 
Sales             $ 49,617   $ 45,385   $ 215,937   $ 195,907 
Cost of sales      (30,395)   (39,886)   (128,255)   (150,106) 
Gross margin        19,222      7,310      87,682      45,801 
Selling, general 
 and 
 administrative 
 expenses          (14,664)   (15,877)    (60,293)    (61,748) 
Interest expense      (542)      (771)     (2,704)     (3,365) 
Interest income        619        157       1,163         914 
Foreign exchange 
 (loss) gain            85     (1,914)      1,555      (2,843) 
Other income 
 (expense)               4      3,487       4,173       4,015 
Goodwill and 
 intangible 
 asset 
 impairments            --         --          --     (11,939) 
Other 
 impairments          (217)      (439)       (217)       (439) 
                   -------    -------    --------    -------- 
Loss before 
 taxes and loss 
 from equity 
 method 
 investments         4,507     (8,047)     31,359     (29,604) 
Provision for 
 income taxes       (2,168)     2,336     (10,371)      1,662 
Loss from equity 
method 
investments             --         --          --          -- 
                   -------    -------    --------    -------- 
Income (loss) 
 from continuing 
 operations          2,339     (5,711)     20,988     (27,942) 
Income (loss) 
 from 
 discontinued 
 operations, net 
 of tax                102     (1,135)     11,117      (7,702) 
                   -------    -------    --------    -------- 
Income (loss) 
 including 
 non-controlling 
 interests and 
 before equity 
 losses              2,441     (8,657)     32,105     (35,644) 
Less: net loss 
 (income) 
 attributable to 
 non-controlling 
 interests, net 
 of tax                (11)        27         336        (207) 
                   -------    -------    --------    -------- 
Net loss 
 attributable to 
 Village Farms 
 International, 
 Inc. 
 shareholders        2,430     (8,630)     32,441     (35,851) 
                   =======    =======    ========    ======== 
Adjusted EBITDA 
 from continuing 
 operations(1)       8,606     (2,942)     49,852       7,374 
                   =======    =======    ========    ======== 
Basic income 
(loss) per share 
attributable to 
Village Farms 
International, 
Inc. 
shareholders 
from: 
Continuing 
 operations       $   0.02   $  (0.05)  $    0.19   $   (0.25) 
Discontinued 
 operations           0.00      (0.03)       0.10       (0.07) 
                   -------    -------    --------    -------- 
Basic income 
 (loss) per 
 share 
 attributable to 
 Village Farms 
 International, 
 Inc. 
 shareholders     $   0.02   $  (0.07)  $    0.29   $   (0.32) 
                   =======    =======    ========    ======== 
Diluted income 
(loss) per share 
attributable to 
Village Farms 
International, 
Inc. 
shareholders 
from: 
Continuing 
 operations       $   0.02   $  (0.04)  $    0.18   $   (0.25) 
Discontinued 
 operations          (0.01)     (0.03)       0.09       (0.07) 
                   -------    -------    --------    -------- 
Diluted income 
 (loss) per 
 share 
 attributable to 
 Village Farms 
 International, 
 Inc. 
 shareholders     $   0.01   $  (0.07)  $    0.27   $   (0.32) 
                   =======    =======    ========    ======== 
 
 

(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 70% interest in Rose LifeScience through March 31, 2024, 80% interest in Rose LifeScience beginning on April 1, 2024, 85% interest in Leli through September 22, 2024, and our 100% interest in Leli beginning on September 23, 2024.

We caution that our results of operations for the three months and twelve months ended December 31, 2025, and 2024 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 December 31, 2025 
                  --------------------------------------------------------------------------------- 
                            Cannabis    Cannabis     Clean      Cannabis 
                  Produce    Canada       U.S.      Energy    Netherlands     Corporate     Total 
                  -------   ---------   ---------   -------   ------------   -----------   -------- 
Sales             $ 4,853   $  37,772   $   3,357   $   333   $      3,302    $       --   $ 49,617 
Cost of sales      (5,161)    (22,132)     (1,352)      (55)        (1,695)           --    (30,395) 
Selling, general 
 and 
 administrative 
 expenses            (990)     (8,366)     (2,180)      (25)        (1,151)       (1,952)   (14,664) 
Other (expense) 
 income, net         (246)       (243)         --        --            (64)          502        (51) 
Other 
impairments            --          --          --        --             --            --         -- 
                   ------    --------    --------    ------    -----------       -------    ------- 
Income (loss) 
 before taxes 
 and equity 
 method 
 investment 
 income            (1,544)      7,031        (175)      253            392        (1,450)     4,507 
Provision for 
 income taxes         (31)     (1,642)         --        --           (495)           --     (2,168) 
Equity method 
investment 
income, net of 
tax                    --          --          --        --             --            --         -- 
                   ------    --------    --------    ------    -----------       -------    ------- 
Income (loss) 
 from continuing 
 operations        (1,575)      5,389        (175)      253           (103)       (1,450)     2,339 
Loss from 
 discontinued 
 operations net 
 of tax               102          --          --        --             --            --        102 
                   ------    --------    --------    ------    -----------       -------    ------- 
Income (loss) 
 including 
 non-controlling 
 interests         (1,473)      5,389        (175)      253           (103)       (1,450)     2,441 
Less: net income 
 attributable to 
 non-controlling 
 interests, net 
 of tax                --         (11)         --        --             --            --        (11) 
                   ------    --------    --------    ------    -----------       -------    ------- 
Net income 
 (loss)           $(1,473)  $   5,378   $    (175)  $   253   $       (103)   $   (1,450)  $  2,430 
                   ======    ========    ========    ======    ===========       =======    ======= 
Adjusted EBITDA 
 from continuing 
 operations(1)    $  (462)  $   9,755   $    (115)  $   253   $        739    $   (1,564)  $  8,606 
                   ======    ========    ========    ======    ===========       =======    ======= 
Basic income 
 (loss) per 
 share from 
 continuing 
 operations         (0.01)       0.04        0.01     (0.01)          0.00         (0.01)      0.02 
Basic income per 
share from 
discontinued 
operations             --          --          --        --             --            --         -- 
                   ------    --------    --------    ------    -----------       -------    ------- 
Basic income 
 (loss) per 
 share            $ (0.01)  $    0.04   $    0.01   $ (0.01)  $       0.00    $    (0.01)  $   0.02 
                   ======    ========    ========    ======    ===========       =======    ======= 
Diluted income 
 (loss) per 
 share from 
 continuing 
 operations       $ (0.01)  $    0.04   $    0.00   $ (0.01)  $       0.00    $    (0.01)      0.02 
Diluted income 
 per share from 
 discontinued 
 operations         (0.01)          -           -         -              -             -      (0.01) 
                   ------    --------    --------    ------    -----------       -------    ------- 
Diluted income 
 (loss) per 
 share            $ (0.02)  $    0.04   $    0.00   $ (0.01)  $       0.00    $    (0.01)  $   0.01 
                   ======    ========    ========    ======    ===========       =======    ======= 
 
 
                                    For the Three Months Ended December 31, 2024 
                  --------------------------------------------------------------------------------- 
                            Cannabis    Cannabis     Clean      Cannabis 
                  Produce    Canada       U.S.      Energy    Netherlands     Corporate     Total 
                  -------   ---------   ---------   -------   ------------   -----------   -------- 
Sales             $ 6,131   $  34,202   $   4,613   $   439   $         --    $       --   $ 45,385 
Cost of sales      (5,132)    (33,330)     (1,402)      (22)            --            --    (39,886) 
Selling, general 
 and 
 administrative 
 expenses            (675)     (9,592)     (2,932)       --           (466)       (2,212)   (15,877) 
Other expense, 
 net                2,814        (320)         --        --             --        (1,535)       959 
Goodwill and 
intangible asset 
impairments            --          --          --        --             --            --         -- 
Other 
 impairments           --          --        (439)       --             --            --       (439) 
                   ------    --------    --------    ------    -----------       -------    ------- 
Income (loss) 
 before taxes 
 and equity 
 method 
 investment 
 income             3,138      (9,040)       (160)      417           (466)       (3,747)    (9,858) 
(Provision for) 
 recovery of 
 income taxes         (77)      2,433          --        --            152          (172)     2,336 
Equity method 
investment 
income, net of 
tax                    --          --          --        --             --            --         -- 
                   ------    --------    --------    ------    -----------       -------    ------- 
Income (loss) 
 from continuing 
 operations         3,061      (6,607)       (160)      417           (314)       (3,919)    (7,522) 
Income from 
 discontinued 
 operations net 
 of tax            (1,135)         --          --        --             --            --     (1,135) 
                   ------    --------    --------    ------    -----------       -------    ------- 
Income (loss) 
 including 
 non-controlling 
 interests          1,926      (6,607)       (160)      417           (314)       (3,919)    (8,657) 
Less: net 
 (income) loss 
 attributable to 
 non-controlling 
 interests, net 
 of tax                --          27          --        --             --            --         27 
                   ------    --------    --------    ------    -----------       -------    ------- 
Net income 
 (loss)           $ 1,926   $  (6,580)  $    (160)  $   417   $       (314)   $   (3,919)  $ (8,630) 
                   ======    ========    ========    ======    ===========       =======    ======= 
Adjusted EBITDA 
 from continuing 
 operations(1)    $ 4,751   $  (6,361)  $     342   $   417   $       (140)   $   (1,951)  $ (2,942) 
                   ======    ========    ========    ======    ===========       =======    ======= 
Basic income 
 (loss) per 
 share from 
 continuing 
 operations       $  0.05   $   (0.06)  $    0.00   $  0.01   $       0.00    $    (0.04)  $  (0.04) 
Basic income per 
 share from 
 discontinued 
 operations         (0.03)          -           -         -              -             -      (0.03) 
                   ------    --------    --------    ------    -----------       -------    ------- 
Basic income 
 (loss) per 
 share            $  0.02   $   (0.06)  $    0.00   $  0.01   $       0.00    $    (0.04)  $  (0.07) 
                   ======    ========    ========    ======    ===========       =======    ======= 
Diluted income 
 (loss) per 
 share from 
 continuing 
 operations       $  0.05   $   (0.06)  $    0.00   $  0.01   $      (0.00)   $    (0.04)  $  (0.04) 
Diluted income 
 per share from 
 discontinued 
 operations         (0.03)      (0.00)          -         -           0.00             -      (0.03) 
                   ------    --------    --------    ------    -----------       -------    ------- 
Diluted income 
 (loss) per 
 share            $  0.02   $   (0.06)  $    0.00   $  0.01   $       0.00    $    (0.04)  $  (0.07) 
                   ======    ========    ========    ======    ===========       =======    ======= 
 
 
                                         For the Year Ended December 31, 2025 
                  ----------------------------------------------------------------------------------- 
                             Cannabis    Cannabis     Clean      Cannabis 
                  Produce     Canada       U.S.      Energy    Netherlands     Corporate      Total 
                  --------   ---------   ---------   -------   ------------   -----------   --------- 
Sales             $ 26,295   $ 163,710   $  14,439   $ 1,635   $      9,858    $       --   $ 215,937 
Cost of sales      (25,438)    (92,172)     (5,416)     (274)        (4,955)           --    (128,255) 
Selling, general 
 and 
 administrative 
 expenses           (2,792)    (34,872)     (9,585)      (48)        (2,849)      (10,147)    (60,293) 
Other (expense) 
 income, net         3,232      (1,063)         (3)       --           (108)        2,129       4,187 
Other 
 impairments            --          --        (217)       --             --            --        (217) 
                   -------    --------    --------    ------    -----------       -------    -------- 
Income (loss) 
 before taxes 
 and equity 
 method 
 investment 
 income              1,297      35,603        (565)    1,313          1,946        (8,018)     31,576 
Provision for 
 income taxes          (57)     (9,362)         --      (286)          (666)           --     (10,371) 
Equity method 
investment 
income, net of 
tax                     --          --          --        --             --            --          -- 
                   -------    --------    --------    ------    -----------       -------    -------- 
Income (loss) 
 from continuing 
 operations          1,240      26,241        (782)    1,027          1,280        (8,018)     20,988 
Loss from 
 discontinued 
 operations net 
 of tax             11,117          --          --        --             --            --      11,117 
                   -------    --------    --------    ------    -----------       -------    -------- 
Income (loss) 
 including 
 non-controlling 
 interests          12,357      26,241        (782)    1,027          1,280        (8,018)     32,105 
Less: net income 
 attributable to 
 non-controlling 
 interests, net 
 of tax                 --         336          --        --             --            --         336 
                   -------    --------    --------    ------    -----------       -------    -------- 
Net income 
 (loss)           $ 12,357   $  26,577   $    (782)  $ 1,027   $      1,280    $   (8,018)  $  32,441 
                   =======    ========    ========    ======    ===========       =======    ======== 
Adjusted EBITDA 
 from continuing 
 operations(1)    $  6,666   $  47,623   $    (288)  $ 1,313   $      3,299    $   (8,761)  $  49,852 
                   =======    ========    ========    ======    ===========       =======    ======== 
Basic income 
 (loss) per 
 share from 
 continuing 
 operations       $   0.01   $    0.23   $      --   $  0.01   $       0.01    $    (0.07)  $    0.19 
Basic income per 
 share from 
 discontinued 
 operations           0.10          --          --        --             --            --        0.10 
                   -------    --------    --------    ------    -----------       -------    -------- 
Basic income 
 (loss) per 
 share            $   0.11   $    0.23   $      --   $  0.01   $       0.01    $    (0.07)  $    0.29 
                   =======    ========    ========    ======    ===========       =======    ======== 
Diluted income 
 (loss) per 
 share from 
 continuing 
 operations       $   0.01   $    0.22   $   (0.01)  $  0.01   $       0.01    $    (0.07)  $    0.18 
Diluted income 
 per share from 
 discontinued 
 operations           0.09           -           -         -              -             -        0.09 
                   -------    --------    --------    ------    -----------       -------    -------- 
Diluted income 
 (loss) per 
 share            $   0.10   $    0.22   $   (0.01)  $  0.01   $       0.01    $    (0.07)  $    0.27 
                   =======    ========    ========    ======    ===========       =======    ======== 
 
 
                                         For the Year Ended December 31, 2024 
                  ----------------------------------------------------------------------------------- 
                             Cannabis    Cannabis     Clean      Cannabis 
                  Produce     Canada       U.S.      Energy    Netherlands     Corporate      Total 
                  --------   ---------   ---------   -------   ------------   -----------   --------- 
Sales             $ 28,909   $ 148,856   $  17,390   $   752   $         --    $       --   $ 195,907 
Cost of sales      (25,450)   (118,172)     (6,355)     (129)            --            --    (150,106) 
Selling, general 
 and 
 administrative 
 expenses           (2,949)    (34,028)    (11,990)      (38)        (1,555)      (11,188)    (61,748) 
Other expense, 
 net                 1,408      (1,007)         --       170             --        (1,850)     (1,279) 
Goodwill and 
 intangible 
 asset 
 impairments            --          --     (11,939)       --             --            --     (11,939) 
Other 
 impairments            --          --        (439)       --             --            --        (439) 
                   -------    --------    --------    ------    -----------       -------    -------- 
Income (loss) 
 before taxes 
 and equity 
 method 
 investment 
 income              1,918      (4,351)    (13,333)      755         (1,555)      (13,038)    (29,604) 
(Provision for) 
 recovery of 
 income taxes         (100)      1,537          --        --            391          (166)      1,662 
Equity method 
investment 
income, net of 
tax                     --          --          --        --             --            --          -- 
                   -------    --------    --------    ------    -----------       -------    -------- 
Income (loss) 
 from continuing 
 operations          1,818      (2,814)    (13,333)      755         (1,164)      (13,204)    (27,942) 
Income from 
 discontinued 
 operations net 
 of tax             (7,702)         --          --        --             --            --      (7,702) 
                   -------    --------    --------    ------    -----------       -------    -------- 
Income (loss) 
 including 
 non-controlling 
 interests          (5,884)     (2,814)    (13,333)      755         (1,164)      (13,204)    (35,644) 
Less: net 
 (income) loss 
 attributable to 
 non-controlling 
 interests, net 
 of tax                 --        (367)         --        --            160            --        (207) 
                   -------    --------    --------    ------    -----------       -------    -------- 
Net income 
 (loss)           $ (5,884)  $  (3,181)  $ (13,333)  $   755   $     (1,004)   $  (13,204)  $ (35,851) 
                   =======    ========    ========    ======    ===========       =======    ======== 
Adjusted EBITDA 
 from continuing 
 operations(1)    $  7,742   $   7,282   $    (672)  $   771   $       (259)   $   (7,490)  $   7,374 
                   =======    ========    ========    ======    ===========       =======    ======== 
Basic income 
 (loss) per 
 share from 
 continuing 
 operations       $   0.02   $   (0.03)  $   (0.12)  $  0.01   $      (0.01)   $    (0.12)  $   (0.25) 
Basic income per 
 share from 
 discontinued 
 operations          (0.07)         --          --        --             --            --       (0.07) 
                   -------    --------    --------    ------    -----------       -------    -------- 
Basic income 
 (loss) per 
 share            $  (0.05)  $   (0.03)  $   (0.12)  $  0.01   $      (0.01)   $    (0.12)  $   (0.32) 
                   =======    ========    ========    ======    ===========       =======    ======== 
Diluted income 
 (loss) per 
 share from 
 continuing 
 operations       $   0.02   $   (0.03)  $   (0.12)  $  0.01   $      (0.01)   $    (0.12)  $   (0.25) 
Diluted income 
 per share from 
 discontinued 
 operations          (0.07)      (0.00)          -         -           0.00             -       (0.07) 
                   -------    --------    --------    ------    -----------       -------    -------- 
Diluted income 
 (loss) per 
 share            $  (0.05)  $   (0.03)  $   (0.12)  $  0.01   $      (0.01)   $    (0.12)  $   (0.32) 
                   =======    ========    ========    ======    ===========       =======    ======== 
 
 

(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.

Reconciliation of Net Income (Loss) to Adjusted EBITDA

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

 
                                      For the Three Months Ended December 31, 2025 
                     ------------------------------------------------------------------------------ 
(in thousands of               Cannabis    Cannabis     Clean     Cannabis 
U.S. dollars)        Produce    Canada       U.S.      Energy   Netherlands     Corporate    Total 
                     -------   ---------   ---------   -------  ------------   -----------   ------ 
Net income (loss) 
 from continuing 
 operations          $(1,575)  $   5,389   $    (175)  $   253  $       (103)   $   (1,450)  $2,339 
Add: 
   Amortization and 
    depreciation         795       2,595          47        --           348            22    3,807 
   Foreign currency 
    exchange loss        (38)         16          --        --            (1)         (117)    (140) 
   Interest expense 
    (income), net        237          73          --        --            (2)         (385)     (77) 
   Provision for 
    (recovery of) 
    income taxes          30       1,643          --        --           495            --    2,168 
   Share-based 
    compensation          (8)         90           9        --             2           366      459 
   Deferred 
    financing fees        --          37          --        --            --            --       37 
   Other 
   impairments            --          --          --        --            --            --       -- 
   Other expense, 
    net                   97          --           4        --            --            --      101 
   Adjustments 
    attributable to 
    non-controlling 
    interest              --         (88)         --        --            --            --      (88) 
                      ------    --------    --------    ------   -----------       -------    ----- 
   Adjusted EBITDA 
    from continuing 
    operations((2) 
    ()               $  (462)  $   9,755   $    (115)  $   253  $        739    $   (1,564)  $8,606 
                      ======    ========    ========    ======   ===========       =======    ===== 
 
 
                                       For the Three Months Ended December 31, 2024 
                     -------------------------------------------------------------------------------- 
(in thousands of                Cannabis    Cannabis     Clean     Cannabis 
U.S. dollars)         Produce    Canada       U.S.      Energy   Netherlands     Corporate     Total 
                     ---------  ---------   ---------   -------  ------------   -----------   ------- 
Net income (loss) 
 from continuing 
 operations           $  3,061  $  (6,607)  $    (160)  $   417  $       (314)   $   (3,919)  $(7,522) 
Add: 
   Amortization and 
    depreciation           802      2,569          50        --           324            44     3,789 
   Foreign currency 
    exchange (gain) 
    loss                   259         48          --        --            --         1,562     1,869 
   Interest expense 
    (income), net          535        105          --        --            --           (26)      614 
   Provision for 
    (recovery of) 
    income taxes            77     (2,433)         --        --          (150)          170    (2,336) 
   Share-based 
    compensation            --         40          13        --            --           218       271 
   Deferred 
   financing fees           --         --          --        --            --            --        -- 
   Goodwill and 
   intangible 
   impairments              --         --          --        --            --            --        -- 
   Other 
    impairments             --         --         439        --            --            --       439 
   Other expense            17         --          --        --            --            --        17 
   Adjustments 
    attributable to 
    non-controlling 
    interest                --        (83)         --        --            --            --       (83) 
                         -----   --------    --------    ------   -----------       -------    ------ 
Adjusted EBITDA 
 from continuing 
 operations((2) ()    $  4,751  $  (6,361)  $     342   $   417  $       (140)   $   (1,951)  $(2,942) 
                         =====   ========    ========    ======   ===========       =======    ====== 
 
 
                                           For the Year Ended December 31, 2025 
                     --------------------------------------------------------------------------------- 
(in thousands of                 Cannabis    Cannabis     Clean     Cannabis 
U.S. dollars)         Produce     Canada       U.S.      Energy   Netherlands     Corporate     Total 
                     ---------   ---------   ---------   -------  ------------   -----------   ------- 
Net income (loss) 
 from continuing 
 operations           $  1,240   $  26,241   $    (782)  $ 1,027  $      1,280    $   (8,018)  $20,988 
Add: 
   Amortization and 
    depreciation         3,881      10,826         192        --         1,351           129    16,379 
   Foreign currency 
    exchange loss         (132)       (100)         --        --            (1)       (1,444)   (1,677) 
   Interest expense 
    (income), net        1,506         722          --        --            (2)         (685)    1,541 
   Provision for 
    (recovery of) 
    income taxes            56       9,363          --       286           666            --    10,371 
   Share-based 
    compensation            18         380          81        --             5         1,257     1,741 
   Deferred 
    financing fees          --         116          --        --            --            --       116 
   Other 
    impairments             --          --         217        --            --            --       217 
   Other expense, 
    net                     97          --           4        --            --            --       101 
   Adjustments 
    attributable to 
    non-controlling 
    interest                --          75          --        --            --            --        75 
                         -----    --------    --------    ------   -----------       -------    ------ 
Adjusted EBITDA 
 from continuing 
 operations((2) ()    $  6,666   $  47,623   $    (288)  $ 1,313  $      3,299    $   (8,761)  $49,852 
                         =====    ========    ========    ======   ===========       =======    ====== 
 
 
                                           For the Year Ended December 31, 2024 
                     --------------------------------------------------------------------------------- 
(in thousands of                Cannabis    Cannabis     Clean     Cannabis 
U.S. dollars)         Produce    Canada       U.S.      Energy   Netherlands     Corporate     Total 
                     ---------  ---------   ---------   -------  ------------   -----------   -------- 
Net income (loss) 
 from continuing 
 operations           $  1,818  $  (2,814)  $ (13,333)  $   755  $     (1,164)   $  (13,204)  $(27,942) 
Add: 
   Amortization and 
    depreciation         3,258     11,790         204        --         1,275           196     16,723 
   Foreign currency 
    exchange (gain) 
    loss                   317         42          --        --            --         2,276      2,635 
   Interest expense 
    (income), net        2,232        629          --        16            --          (426)     2,451 
   Provision for 
    (recovery of) 
    income taxes           100     (1,537)         --        --          (391)          166     (1,662) 
   Share-based 
    compensation            --        166          79        --            --         3,502      3,747 
   Deferred 
    financing fees          --         10          --        --            --            --         10 
   Goodwill and 
    intangible 
    impairments((3) 
    ()                      --         --      11,939        --            --            --     11,939 
   Other 
    impairments             --         --         439        --            --            --        439 
   Other expense            17         --          --        --            --            --         17 
   Adjustments 
    attributable to 
    non-controlling 
    interest                --     (1,004)         --        --            21            --       (983) 
                         -----   --------    --------    ------   -----------       -------    ------- 
Adjusted EBITDA 
 from continuing 
 operations((2) ()    $  7,742  $   7,282   $    (672)  $   771  $       (259)   $   (7,490)  $  7,374 
                         =====   ========    ========    ======   ===========       =======    ======= 
 
 

(2) 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.

(3) Reflects impairment to goodwill and intangibles of $11,939 in U.S. Cannabis that was based on recent historical performance, near-term forecasts, and the state of the CBD industry in the United States. See "Critical Accounting Estimates and Judgments" in the Annual Report (as defined below) for more information.

This press release is intended to be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2025 (the "Annual Report"), 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.sedar.com). In addition, the Annual Report 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 or statements regarding the anticipated benefits from the closing of the transaction involving Vanguard Food LP. 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", 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; risks relating to the integration of Balanced Health and Rose into our consolidated business; 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; 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 its 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 Annual Report.

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. 
              Consolidated Statements of Financial Position 
          (In thousands of United States dollars, except share 
                                  data) 
                               (Unaudited) 
 
                             December 31, 2025     December 31, 2024 
                            -------------------   ------------------- 
ASSETS 
   Current assets 
     Cash and cash 
      equivalents            $           81,189    $           24,631 
     Restricted cash                      5,063                    -- 
     Trade receivables, 
      net                                23,151                22,160 
     Inventories, net                    41,519                41,256 
     Other receivables                      324                   247 
     Prepaid expenses and 
      deposits                            3,191                 2,806 
     Current assets of 
      discontinued 
      operations (Note 
      10)                                    --                24,919 
                                ---------------       --------------- 
   Total current assets                 154,437               116,019 
                                ---------------       --------------- 
   Non-current assets 
     Property, plant and 
      equipment, net                    185,712               175,226 
     Investments                          6,276                 2,656 
     Goodwill                            44,365                42,315 
     Intangibles, net                    23,647                25,105 
     Deferred tax asset                     694                 1,005 
     Right-of-use assets                  4,066                 4,372 
     Other assets                         3,899                 2,178 
     Non-current assets of 
      discontinued 
      operations (Note 
      10)                                    --                20,430 
                                ---------------       --------------- 
   Total assets              $          423,096    $          389,306 
                                ===============       =============== 
LIABILITIES 
   Current liabilities 
     Line of credit          $               --    $            4,000 
     Trade payables                      15,748                11,254 
     Current maturities of 
      long-term debt                      4,885                 8,142 
     Accrued sales taxes                  8,695                 8,740 
     Accrued loyalty 
      program                               541                 1,029 
     Accrued liabilities                 13,419                 8,972 
     Lease liabilities - 
      current                             1,198                 1,060 
     Income tax payable                  12,151                    51 
     Other current 
      liabilities                         1,950                 1,053 
     Current liabilities 
      of discontinued 
      operations (Note 
      10)                                    --                17,918 
                                ---------------       --------------- 
   Total current 
    liabilities                          58,587                62,219 
                                ---------------       --------------- 
   Non-current 
   liabilities 
     Long-term debt                      28,769                32,420 
     Deferred tax 
      liability                          18,494                19,940 
     Lease liabilities - 
      non-current                         3,855                 4,199 
     Other liabilities                    3,330                 2,196 
     Non-current 
      liabilities of 
      discontinued 
      operations (Note 
      10)                                    --                 4,374 
                                ---------------       --------------- 
   Total liabilities                    113,035               125,348 
                                ---------------       --------------- 
     Commitments and 
     contingencies (Note 
     12) 
MEZZANINE EQUITY 
   Redeemable 
    non-controlling 
    interests                            10,163                 9,953 
SHAREHOLDERS' EQUITY 
     Common stock, no par 
      value per share - 
      unlimited shares 
      authorized; 
      115,722,312 shares 
      issued and 
      outstanding at 
      December 31, 2025 
      and 112,337,049 
      shares issued and 
      outstanding at 
      December 31, 2024.                392,380               387,349 
     Additional paid in 
      capital                            29,374                30,604 
     Accumulated other 
      comprehensive loss                 (9,281)              (18,932) 
     Retained earnings                 (112,575)             (145,016) 
                                ---------------       --------------- 
   Total shareholders' 
    equity                              299,898               254,005 
                                ---------------       --------------- 
   Total liabilities, 
    mezzanine equity and 
    shareholders' equity     $          423,096    $          389,306 
                                ===============       =============== 
 
 
 
 
               Village Farms International, Inc. 
     Consolidated Statements of Operations and Comprehensive 
                          Income (Loss) 
       (In thousands of United States dollars, except per 
                           share data) 
                           (Unaudited) 
 
                  Three Months Ended         Year Ended 
                      December 31,           December 31, 
                  -------------------   --------------------- 
                    2025       2024       2025        2024 
                  --------   --------   ---------   --------- 
Sales             $ 49,617   $ 45,385   $ 215,937   $ 195,907 
Cost of sales      (30,395)   (39,886)   (128,255)   (150,106) 
Gross margin        19,222      7,310      87,682      45,801 
Selling, general 
 and 
 administrative 
 expenses          (14,664)   (15,877)    (60,293)    (61,748) 
Interest expense      (542)      (771)     (2,704)     (3,365) 
Interest income        619        157       1,163         914 
Foreign exchange 
 (loss) gain            85     (1,914)      1,555      (2,843) 
Other income 
 (expense)               4      3,487       4,173       4,015 
Goodwill and 
 intangible 
 asset 
 impairments            --         --          --     (11,939) 
Other 
 impairments          (217)      (439)       (217)       (439) 
                   -------    -------    --------    -------- 
Loss before 
 taxes and loss 
 from equity 
 method 
 investments         4,507     (8,047)     31,359     (29,604) 
Provision for 
 income taxes       (2,168)     2,336     (10,371)      1,662 
Loss from equity 
method 
investments             --         --          --          -- 
                   -------    -------    --------    -------- 
Income (loss) 
 from continuing 
 operations          2,339     (5,711)     20,988     (27,942) 
Income (loss) 
 from 
 discontinued 
 operations, net 
 of tax                102     (1,135)     11,117      (7,702) 
                   -------    -------    --------    -------- 
Loss including 
 non-controlling 
 interests and 
 before equity 
 losses              2,441     (8,657)     32,105     (35,644) 
Less: net 
 (income) loss 
 attributable to 
 non-controlling 
 interests, net 
 of tax                (11)        27         336        (207) 
                   -------    -------    --------    -------- 
Net loss 
 attributable to 
 Village Farms 
 International, 
 Inc. 
 shareholders        2,430     (8,630)     32,441     (35,851) 
                   =======    =======    ========    ======== 
Adjusted EBITDA 
 from continuing 
 operations          8,606     (2,942)     49,852       7,374 
                   =======    =======    ========    ======== 
Basic income 
(loss) per share 
attributable to 
Village Farms 
International, 
Inc. 
shareholders 
from: 
Continuing 
 operations       $   0.02   $  (0.05)  $    0.19   $   (0.25) 
Discontinued 
 operations           0.00      (0.03)       0.10       (0.07) 

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March 12, 2026 07:00 ET (11:00 GMT)

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