-- Consolidated Net Sales Increased to $67 Million with Record Cannabis
Sales of $55 Million
-- Net Income of $10 Million or $0.08 Per Share; Operating Cash Flow of $9.5
Million
-- Adjusted EBITDA from Continuing Operations of $18.2 Million or 27% of
Sales
-- International Exports Increased 75% YoY to $20.8 Million in Line with
Previous Quarter Record
-- Company Closes Q3 with $80 Million in Cash and Net Cash Position of $41
Million
-- Company Begins Mobilizing Efforts to Activate Texas Production Assets;
Enhances Canadian Optionality by Exercising Rights to Convert 16 Acres of
Delta 1 to Cannabis
VANCOUVER, British Columbia, Nov. 09, 2026 (GLOBE NEWSWIRE) -- Village Farms International, Inc. ("Village Farms" or the "Company") (NASDAQ: VFF) today reported financial results for its third quarter ended September 30, 2026. All figures are in U.S. dollars unless otherwise indicated.
Management Commentary
President and Chief Executive Officer Michael DeGiglio commented, "Our third quarter results were driven by record cannabis revenues of $55 million and approximately 43% of cannabis sales from some of the world's most attractive and fastest growing international markets. We also delivered our sixth consecutive quarter of positive net income and EPS, clearly demonstrating the strength of our sustainably profitable and expanding global cannabis enterprise."
"In Canada, we continue to maintain our top five market share position with continued share gains in convenience product categories and a brand portfolio that remains in the top 10 of all major product categories nationally. International export sales grew 75% year-over-year, in line with last quarter's record, and more importantly with resilient pricing relative to non-GMP compliant areas of the supply chain. As we've previously discussed, we continue to expect our competitive advantage with the world's largest single-site EU-GMP certified cannabis facility will result in continued increases in demand for our compliant production capacity, and we are looking forward to our Delta 2 expansion contributing to stronger international sales growth next year along with our entrance into multiple new European jurisdictions."
"The year-over-year variance in our margin performance in Q3 was driven primarily by a softer spot trim market in the Canadian wholesale sales channel as compared to the prior year. We believe wholesale trim volumes and pricing reached trough levels in the Canadian wholesale channel during Q3, and we expect these conditions to begin normalizing in Q4 given the visibility of our order book in October and the commencement of new supply agreements with considerably stronger contracted pricing."
"We're pleased to report that our Phase II Netherlands facility is now fully planted and expected to begin contributing to stronger sales growth during Q4 and throughout 2027. Our Delta 2 expansion remains on track to reach its full production capacity by the middle of next year, positioning us for continued long-term organic sales growth through calendar year 2028. Finally, we're actively mobilizing plans to operationalize our standalone 30-acre greenhouse in Monahans, Texas for cannabis production. Monahans is the youngest, most advanced production asset in our portfolio, and we remain very focused on pursuing all potential pathways to initiate our U.S. market entry with a commencement of production in Texas."
"As anticipated, we delivered stronger sequential cash flow performance in Q3 as capex from our Netherlands and Delta 2 expansion projects is substantially complete. We closed the quarter with nearly $80 million in cash, and believe we're well positioned for continued profitable growth with one of the world's most attractive and differentiated cannabis investment platforms. We continue to evaluate additional organic and acquisitive growth investments around the globe, but will remain prudent with respect to valuation and regulatory frameworks, with a focus on profitability and long-term strategic value creation for our shareholders."
Third Quarter 2026 Financial Highlights
(All comparable periods are for the third quarter of 2025 unless otherwise stated)
Cannabis Operations
-- Net sales increased 3% to a record of $55.0 million, from $53.5 million
in the prior year period;
-- Gross margin was 48%, compared to 55% in the prior year period, with the
variance driven primarily by a softer spot trim market in Canada as
compared to the prior year period;
-- Net income was $7.8 million compared to $12.0 million in the prior year
period, with the variance driven by lower gross margins and increased
operating expenses to support future growth;
-- Adjusted EBITDA from continuing operations was $14.7 million or 27% of
sales, compared to $20.2 million or 38% of sales in the prior year
period; and
-- Cash flow from operations was $7.3 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, maintaining its top 10 position nationally in all major
product categories1. The Company's Super Toast brand also recently became
the Company's first nationally distributed brand after launching in
Quebec.
-- International export sales increased 75% year-over-year to $20.8 million,
in line with the previous quarter record set in Q2 of 2026. The Company
remains one of the largest exporters of medical cannabis to Europe with a
leading market share position in Germany.
-- The Company's capacity expansion project at its Delta 2 greenhouse in
British Columbia remains on track to be completed during Q1 of 2027. 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.
-- During the third quarter the Company's Netherlands production was
temporarily reduced by propagation activities. The Groningen facility is
now fully planted, and the Company continues to expect it will ramp to
its maximum annualized production capacity in early 2027, positioning
Village Farms Netherlands for stronger revenue growth next year.
-- The Company recently began mobilizing efforts to operationalize its
standalone 30-acre (1.3 million sq. ft.) greenhouse in Monahans, Texas
for cannabis production. Monahans is the youngest, most advanced
production asset in the Company's portfolio. Village Farms management
remains focused on pursuing all potential pathways to initiate its U.S.
market entry with a future commencement of cannabis production in Texas.
-- The Company's Balanced Health Botanicals subsidiary continues to pursue
pathways to participate in the U.S. Medicare CMMI pilot program for CBD
products, and is awaiting regulatory clarity related to the pending
December 11, 2026 federal hemp ban to further assess this opportunity.
The Company believes it is positioned well to play a meaningful role in
the future of this market if regulations preserve protections for
non-synthetic, full-spectrum products.
Corporate and Other
-- On September 10, 2026, the Company announced the appointment of Hamid
Shekarchi as Interim Chief Financial Officer, effective immediately. Mr.
Shekarchi previously served as Chief Financial Officer of the Company's
Canadian Cannabis business and brings 18 years of financial leadership
experience with a proven operational track record. The Company's former
CFO, Stephen Ruffini, was appointed to a new role as Head of Mergers &
Acquisitions and will continue his role as Executive Vice President and
Corporate Secretary.
-- On September 14, 2026, the Company announced the appointment of Deepak
Anand as Vice President of Government Affairs. Mr. Anand will lead
government relations, regulatory affairs and public policy strategies
across the Company's global footprint, with a particular focus on
activating new market and product growth opportunities.
-- During the fourth quarter of 2026, the Company notified Verdexa Holdings
that it had elected to exercise its right to convert approximately 25% of
its 60-acre (2.6 million sq. ft.) Delta 1 greenhouse in British Columbia
to cannabis production. While the Company has not formalized any
conversion plans for the Delta 1 greenhouse at this time, the notice
provided to Verdexa provides optionality to convert 16 acres (700,000 sq.
ft.) of the Delta 1 facility to cannabis production during 2027.
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 third quarter 2026 financial results today, Monday, November 9, 2026, at 8:30 a.m. ET. Participants can access the conference call via a webcast at Village Farms Third 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 Third 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 and Investor Relations
Phone: (407) 495-5067
Email: sgibbons@villagefarms.com
Cannabis
Performance
Summary
(thousands except
% metrics) Three Months Ended September 30,
---------------------------------------- --------
2026 2025
---------------- ----------------
USD $ USD $ Change
---------------- ---------------- --------
Total Net Sales $ 55,000 $ 53,507 3%
Total Cost of
Sales $ 28,857 $ 23,904 21%
Gross Profit $ 26,143 $ 29,603 -12%
Gross Margin % 48% 55% -13%
SG&A $ 15,157 $ 12,267 24%
Net income $ 7,839 $ 12,029 -35%
Adjusted EBITDA
from Continuing
Operations (1) $ 14,749 $ 20,243 -27%
Adjusted EBITDA
from Continuing
Operations Margin
(1) 27% 38% -29%
Cash flow from
Operations $ 7,263 $ 20,596 -65%
(thousands except %
metrics) Nine Months Ended September 30,
------------------------------------- --------
2026 2025
----------------- -------------
USD $ USD $ Change
----------------- ------------- --------
Total Net Sales $ 158,267 $ 143,576 10%
Total Cost of Sales $ 83,539 $ 77,364 8%
Gross Profit $ 74,728 $ 66,212 13%
Gross Margin % 47% 46% 2%
SG&A $ 45,180 $ 35,609 27%
Net income $ 21,222 $ 21,975 -3%
Adjusted EBITDA
from Continuing
Operations (1) $ 40,218 $ 40,255 0%
Adjusted EBITDA
from Continuing
Operations Margin
(1) 25% 28% -11%
Cash flow from
Operations $ 4,449 $ 42,654 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 September 30,
-------------------------- --------------------------------------
Classification 2026 2025
-------------------------- ------------------- -----------------
Cannabis:
Canadian Branded (1) $ 25,294 $ 26,846
Canadian Non-Branded 3,300 7,344
International Exports 20,771 11,858
U.S. Cannabis 2,797 3,337
Netherlands Branded 2,838 3,587
Other -- 535
--- -------------- -------------
Total Cannabis 55,000 53,507
Other
Produce 11,270 12,841
Clean Energy 633 393
--- -------------- -------------
Total Revenue $ 66,903 $ 66,741
=== ============== =============
(1) (Canadian Branded revenues are shown net of excise
tax on products. Excise tax on products was $16,454
and $15,712 for the three months ended September 30,
2026 and 2025, respectively.)
Nine Months Ended September 30,
-------------------------- -------------------------------------
Classification 2026 2025
-------------------------- ------------------ -----------------
Cannabis:
Canadian Branded (1) $ 72,159 $ 74,554
Canadian Non-Branded 11,717 20,715
International Exports 56,249 29,226
U.S. Cannabis 9,154 11,082
Netherlands Branded 8,846 6,556
Other 142 1,443
-------------- -------------
Total Cannabis 158,267 143,576
Other
Produce 21,563 21,442
Clean Energy 1,288 1,302
-------------- -------------
Total Revenue $ 181,118 $ 166,320
============== =============
(1) (Canadian Branded revenues are shown net of excise
tax on products. Excise tax on products was $47,265
and $44,476 for the nine months ended September 30,
2026 and 2025, respectively.)
Presentation of Financial Results
The Company's financial statements for the three and nine months ended September 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 Nine Months Ended
September 30, September 30,
2026 2025 2026 2025
-------- ---------- --------- ----------
Sales $ 66,903 $ 66,741 $ 181,118 $ 166,320
Cost of sales (37,578) (34,803) (100,834) (97,860)
Gross profit 29,325 31,938 80,284 68,460
Selling, general
and
administrative
expenses (16,142) (15,599) (50,895) (45,629)
Interest expense (443) (646) (1,443) (2,162)
Interest income 515 360 1,466 544
Foreign exchange
(loss) gain (281) (238) (1,426) 1,470
Other (loss)
income 146 (282) (14) 4,169
Income before
taxes and
equity method
investment
income 13,120 15,533 27,972 26,852
Provision for
income taxes (3,177) (4,717) (8,107) (8,203)
Equity method
investment
income, net of
tax -- -- -- --
Income from
continuing
operations 9,943 10,816 19,865 18,649
(Loss) Income
from
discontinued
operations, net
of tax -- (276) -- 11,015
Income including
non-controlling
interests 9,943 10,540 19,865 29,664
Less: net
(income) loss
attributable to
non-controlling
interests, net
of tax 25 (323) 165 347
Net income
attributable to
Village Farms
International,
Inc.
shareholders $ 9,968 $ 10,217 $ 20,030 $ 30,011
======= ========= ======== =========
Adjusted EBITDA
from continuing
operations $ 18,241 $ 20,686 $ 43,542 $ 41,246
======= ========= ======== =========
Basic income per
share
attributable to
Village Farms
International,
Inc.
shareholders
from:
Continuing
operations $ 0.08 $ 0.09 $ 0.17 $ 0.17
Discontinued
operations - - - 0.10
Basic income per
share
attributable to
Village Farms
International,
Inc.
shareholders $ 0.08 $ 0.09 $ 0.17 $ 0.27
======= ========= ======== =========
Diluted income
per share
attributable to
Village Farms
International,
Inc.
shareholders
from:
Continuing
operations $ 0.08 $ 0.08 $ 0.16 $ 0.16
Discontinued
operations - - - 0.10
Diluted income
per share
attributable to
Village Farms
International,
Inc.
shareholders $ 0.08 $ 0.08 $ 0.16 $ 0.26
======= ========= ======== =========
(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 nine months ended September 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 September 30, 2026
----------------------------------------------
Cannabis Other Corporate Total
--------- ------- ----------- ----------
Sales $ 55,000 $11,903 $ -- $ 66,903
Cost of sales (28,857) (8,721) -- (37,578)
Selling, general
and
administrative
expenses (15,157) (755) (230) (16,142)
Other expense,
net (178) 38 77 (63)
-------- ------ ------- ---------
Income (loss)
before taxes
and equity
method
investment
income 10,808 2,465 (153) 13,120
Provision for
income taxes (2,994) (183) -- (3,177)
Equity method
investment
income, net of
tax -- -- -- --
-------- ------ ------- ---------
Income (loss)
including
non-controlling
interests 7,814 2,282 (153) 9,943
Less: net loss
attributable to
non-controlling
interests, net
of tax 25 -- -- 25
-------- ------ ------- ---------
Net income
(loss) $ 7,839 $ 2,282 $ (153) $ 9,968
======== ====== ======= =========
Adjusted EBITDA
from Continuing
Operations((1) $ 14,749 $ 3,439 $ 53 $ 18,241
======== ====== ======= =========
Basic income per
share $ 0.06 $ 0.02 $ - $ 0.08
======== ====== ======= =========
Diluted income
per share $ 0.06 $ 0.02 $ - $ 0.08
======== ====== ======= =========
For The Three Months Ended September 30, 2025
-----------------------------------------------
Cannabis Other Corporate Total
--------- -------- ----------- ----------
Sales $ 53,507 $ 13,234 $ -- $ 66,741
Cost of sales (23,904) (10,899) -- (34,803)
Selling, general
and
administrative
expenses (12,267) (239) (3,093) (15,599)
Other (expense)
income, net (375) (465) 34 (806)
-------- ------- ------- ---------
Income (loss)
before taxes
and equity
method
investment
income 16,961 1,631 (3,059) 15,533
Provision for
income taxes (4,609) (108) -- (4,717)
Equity method
investment
income, net of
tax -- -- -- --
-------- ------- ------- ---------
Income (loss)
from continuing
operations 12,352 1,523 (3,059) 10,816
Income from
discontinued
operations net
of tax -- (276) -- (276)
-------- ------- ------- ---------
Income (loss)
including
non-controlling
interests 12,352 1,247 (3,059) 10,540
Less: net income
attributable to
non-controlling
interests, net
of tax (323) -- -- (323)
-------- ------- ------- ---------
Net income
(loss) $ 12,029 $ 1,247 $ (3,059) $ 10,217
======== ======= ======= =========
Adjusted EBITDA
from Continuing
Operations((1) $ 20,243 $ 2,784 $ (2,341) $ 20,686
======== ======= ======= =========
Basic income
(loss) per
share from
continuing
operations $ 0.11 $ 0.01 $ (0.03) $ 0.09
Basic income per
share from
discontinued
operations $ - $ - $ - $ -
-------- ------- ------- ---------
Basic income
(loss) per
share $ 0.11 $ 0.01 $ (0.03) $ 0.09
======== ======= ======= =========
Diluted income
(loss) per
share from
continuing
operations $ 0.10 $ 0.01 $ (0.03) $ 0.08
Diluted income
per share from
discontinued
operations $ - $ - $ - $ -
-------- ------- ------- ---------
Diluted income
(loss) per
share $ 0.10 $ 0.01 $ (0.03) $ 0.08
======== ======= ======= =========
For The Nine Months Ended September 30, 2026
-----------------------------------------------
Cannabis Other Corporate Total
--------- -------- ----------- ----------
Sales $ 158,267 $ 22,851 $ -- $ 181,118
Cost of sales (83,539) (17,295) -- (100,834)
Selling, general
and
administrative
expenses (45,180) (1,979) (3,736) (50,895)
Other expense,
net (696) (388) (333) (1,417)
-------- ------- ------- ---------
Income (loss)
before taxes
and equity
method
investment
income 28,852 3,189 (4,069) 27,972
Provision for
income taxes (7,795) (312) -- (8,107)
Equity method
investment
income, net of
tax -- -- -- --
-------- ------- ------- ---------
Income (loss)
from continuing
operations 21,057 2,877 (4,069) 19,865
Less: net loss
attributable to
non-controlling
interests, net
of tax 165 -- -- 165
-------- ------- ------- ---------
Net income
(loss) $ 21,222 $ 2,877 $ (4,069) $ 20,030
======== ======= ======= =========
Adjusted EBITDA
from continuing
operations (1) $ 40,218 $ 6,192 $ (2,868) $ 43,542
======== ======= ======= =========
Basic income
(loss) per
share from
continuing
operations $ 0.18 $ 0.02 $ (0.03) $ 0.17
Basic income per
share from
discontinued
operations $ - $ - $ - $ -
-------- ------- ------- ---------
Basic income
(loss) per
share $ 0.18 $ 0.02 $ (0.03) $ 0.17
======== ======= ======= =========
Diluted income
(loss) per
share from
continuing
operations $ 0.17 $ 0.02 $ (0.03) $ 0.16
Diluted income
per share from
discontinued
operations $ - $ - $ - $ -
-------- ------- ------- ---------
Diluted income
(loss) per
share $ 0.17 $ 0.02 $ (0.03) $ 0.16
======== ======= ======= =========
For The Nine Months Ended September 30, 2025
-----------------------------------------------
Cannabis Other Corporate Total
--------- -------- ----------- ----------
Sales $ 143,576 $ 22,744 $ -- $ 166,320
Cost of sales (77,364) (20,496) -- (97,860)
Selling, general
and
administrative
expenses (35,609) (1,825) (8,195) (45,629)
Other expense
(income), net (1,084) 3,478 1,627 4,021
-------- ------- ------- ---------
Income (loss)
before taxes
and equity
method
investment
income 29,519 3,901 (6,568) 26,852
Provision for
income taxes (7,891) (312) -- (8,203)
Equity method
investment
income, net of
tax -- -- -- --
-------- ------- ------- ---------
Income (loss)
from continuing
operations 21,628 3,589 (6,568) 18,649
Income from
discontinued
operations net
of tax -- 11,015 -- 11,015
-------- ------- ------- ---------
Income (loss)
including
non-controlling
interests 21,628 14,604 (6,568) 29,664
Less: net loss
attributable to
non-controlling
interests, net
of tax 347 -- -- 347
-------- ------- ------- ---------
Net income
(loss) $ 21,975 $ 14,604 $ (6,568) $ 30,011
======== ======= ======= =========
Adjusted EBITDA
from continuing
operations (1) $ 40,255 $ 8,188 $ (7,197) $ 41,246
======== ======= ======= =========
Basic (loss)
income per
share from
continuing
operations $ 0.20 $ 0.03 $ (0.06) $ 0.17
Basic loss per
share from
discontinued
operations $ - $ 0.10 $ - $ 0.10
-------- ------- ------- ---------
Basic (loss)
income per
share $ 0.20 $ 0.13 $ (0.06) $ 0.27
======== ======= ======= =========
Diluted (loss)
income per
share from
continuing
operations $ 0.19 $ 0.03 $ (0.06) $ 0.16
Diluted loss per
share from
discontinued
operations $ - $ 0.10 $ - $ 0.10
-------- ------- ------- ---------
Diluted (loss)
income per
share $ 0.19 $ 0.13 $ (0.06) $ 0.26
======== ======= ======= =========
(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 September 30, 2026
---------------------------------------------
(in thousands of
U.S. dollars) Cannabis Other Corporate Total
--------- ------ ----------- ----------
Net income (loss)
from continuing
operations $ 7,814 $2,282 $ (153) $ 9,943
Add:
Amortization and
depreciation 3,753 779 19 4,551
Foreign currency
exchange (gain)
loss 40 (32) 185 193
Interest expense
(income), net (36) 227 (263) (72)
Provision for
income taxes 2,994 183 -- 3,177
Share-based
compensation 192 -- 265 457
Deferred
financing fees 66 -- -- 66
Loss on disposal
of assets -- -- -- --
Adjustments
attributable to
non-controlling
interest (74) -- -- (74)
-------- ----- ------- ---------
Adjusted EBITDA
from continuing
operations (1) 14,749 3,439 53 18,241
======== ===== ======= =========
For The Three Months Ended September 30,
2025
------------------------------------------
(in thousands of
U.S. dollars) Cannabis Other Corporate Total
--------- ------ --------- ---------
Net income (loss)
from continuing
operations $ 12,352 $1,523 $ (3,059) $ 10,816
Add:
Amortization and
depreciation 3,324 813 25 4,162
Foreign currency
exchange loss
(gain) 19 (12) 217 224
Interest expense
(income), net 192 345 (251) 286
Provision for
(recovery of)
income taxes 4,609 108 -- 4,717
Share-based
compensation 280 7 727 1,014
Deferred
financing fee 32 -- -- 32
Other
impairments (242) -- -- (242)
Adjustments
attributable to
non-controlling
interest (323) -- -- (323)
-------- ----- -------- --------
Adjusted EBITDA
from continuing
operations (1) 20,243 2,784 (2,341) 20,686
======== ===== ======== ========
For The Nine Months Ended September 30,
2026
------------------------------------------
(in thousands of
U.S. dollars) Cannabis Other Corporate Total
--------- ------ --------- ---------
Net income
(loss) from
continuing
operations $ 21,057 $2,877 $ (4,069) $ 19,865
Add: -- -- -- --
Amortization
and
depreciation 10,738 2,333 62 13,133
Foreign
currency
exchange
gain 55 91 984 1,130
Interest
expense
(income),
net 18 610 (651) (23)
Provision for
income
taxes 7,795 312 -- 8,107
Share-based
compensation 320 -- 806 1,126
Deferred
financing
fees 205 -- -- 205
Loss (gain)
on disposal
of assets 118 (31) -- 87
Adjustments
attributable to
non-controlling
interest (88) -- -- (88)
-------- ----- -------- --------
Adjusted EBITDA
from continuing
operations (1) 40,218 6,192 (2,868) 43,542
======== ===== ======== ========
For The Nine Months Ended September 30,
2025
------------------------------------------
(in thousands of
U.S. dollars) Cannabis Other Corporate Total
--------- ------ --------- ---------
Net income
(loss) from
continuing
operations $ 21,628 $3,589 $ (6,568) $ 18,649
Add:
Amortization
and
depreciation 9,379 3,086 107 12,572
Foreign
currency
exchange
(gain) loss (116) (94) (1,327) (1,537)
Interest
expense
(income),
net 649 1,269 (300) 1,618
Provision for
income
taxes 7,891 312 -- 8,203
Share-based
compensation 365 26 891 1,282
Deferred
financing
fees 79 -- -- 79
Other
impairments 217 -- -- 217
Adjustments
attributable to
non-controlling
interest 163 -- -- 163
-------- ----- -------- --------
Adjusted EBITDA
from continuing
operations (1) 40,255 8,188 (7,197) 41,246
======== ===== ======== ========
(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 nine months ended September 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 may 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)
September 30, 2026 December 31, 2025
-------------------- -------------------
ASSETS
Current assets
Cash and cash
equivalents $ 79,289 $ 81,189
Restricted cash 624 5,063
Trade receivables,
net 41,613 23,151
Inventories, net 46,423 41,519
Other receivables 1,190 324
Prepaid expenses and
deposits 6,952 3,191
--- --------------- ---------------
Total current assets 176,091 154,437
--- --------------- ---------------
Non-current assets
Property, plant and
equipment, net 188,542 185,712
Investments 6,276 6,276
Goodwill 42,823 44,365
Intangibles, net 20,237 23,647
Deferred tax asset 389 694
Right-of-use assets 5,126 4,066
Other assets 1,872 3,899
--- --------------- ---------------
Total assets $ 441,356 $ 423,096
=== =============== ===============
LIABILITIES
Current liabilities
Trade payables $ 12,514 $ 15,747
Current maturities
of long-term debt 5,253 4,885
Accrued sales taxes 11,574 8,695
Accrued liabilities 17,174 13,960
Lease liabilities -
current 1,216 1,198
Income tax payable 579 12,151
Other current
liabilities 6,569 1,950
--- --------------- ---------------
Total current
liabilities 54,879 58,586
--- --------------- ---------------
Non-current
liabilities
Long-term debt 33,427 28,769
Deferred tax
liability 17,146 18,494
Lease liabilities -
non-current 4,744 3,855
Other non-current
liabilities 1,946 3,330
--- --------------- ---------------
Total liabilities 112,142 113,034
--- --------------- ---------------
MEZZANINE EQUITY
Redeemable
non-controlling
interest 6,408 10,164
SHAREHOLDERS' EQUITY
Common shares, no
par value per share
- unlimited shares
authorized;
122,319,352 shares
issued and
outstanding at
September 30, 2026
and 115,722,312
common shares
issued and
outstanding at
December 31, 2025. 407,055 392,380
Additional paid in
capital 25,308 29,374
Accumulated other
comprehensive loss (17,012) (9,281)
Retained earnings (92,545) (112,575)
--- --------------- ---------------
Total shareholders'
equity 322,806 299,898
--- --------------- ---------------
Total liabilities,
mezzanine equity and
shareholders' equity $ 441,356 $ 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 Nine Months Ended
September 30, September 30,
--------------------- ----------------------
2026 2025 2026 2025
-------- ---------- --------- ----------
Sales $ 66,903 $ 66,741 $ 181,118 $ 166,320
Cost of sales (37,578) (34,803) (100,834) (97,860)
------- --------- -------- ---------
Gross profit 29,325 31,938 80,284 68,460
Selling, general and
administrative
expenses (16,142) (15,599) (50,895) (45,629)
Interest expense (443) (646) (1,443) (2,162)
Interest income 515 360 1,466 544
Foreign exchange
(loss) gain (281) (238) (1,426) 1,470
Other income (loss) 146 (282) (14) 4,169
------- --------- -------- ---------
Income before taxes
and equity method
investment income 13,120 15,533 27,972 26,852
Provision for income
taxes (3,177) (4,717) (8,107) (8,203)
Equity method
investment income,
net of tax -- -- -- --
------- --------- -------- ---------
Income from
continuing
operations 9,943 10,816 19,865 18,649
(Loss) income from
discontinued
operations, net of
tax -- (276) -- 11,015
------- --------- -------- ---------
Income including
non-controlling
interests 9,943 10,540 19,865 29,664
Less: net (income)
loss attributable
to non-controlling
interests, net of
tax 25 (323) 165 347
------- --------- -------- ---------
Net income
attributable to
Village Farms
International, Inc.
shareholders $ 9,968 $ 10,217 $ 20,030 $ 30,011
======= ========= ======== =========
Basic income per
share attributable
to Village Farms
International, Inc.
shareholders from:
Continuing
operations $ 0.08 $ 0.09 $ 0.17 $ 0.17
Discontinued
operations - - - 0.10
------- --------- -------- ---------
Basic income per
share attributable
to Village Farms
International, Inc.
shareholders $ 0.08 $ 0.09 $ 0.17 $ 0.27
======= ========= ======== =========
Diluted income per
share attributable
to Village Farms
International, Inc.
shareholders from:
Continuing
operations $ 0.08 $ 0.08 $ 0.16 $ 0.16
Discontinued
operations - - - 0.10
------- --------- -------- ---------
Diluted income per
share attributable
to Village Farms
International, Inc.
shareholders $ 0.08 $ 0.08 $ 0.16 $ 0.26
======= ========= ======== =========
Weighted average
number of common
shares used in the
computation of net
income (loss) per
share (in
thousands):
Basic 122,265 113,039 117,929 112,577
======= ========= ======== =========
Diluted 130,618 120,565 127,455 115,292
======= ========= ======== =========
Income including
non-controlling
interests $ 9,943 $ 10,540 $ 19,865 $ 29,664
Other comprehensive
income (loss):
Foreign currency
translation
adjustment 222 (3,920) (7,974) 6,915
------- --------- -------- ---------
Comprehensive income
including
non-controlling
interests 10,165 6,620 11,891 36,579
------- --------- -------- ---------
Comprehensive
loss (income)
attributable to
non-controlling
interests (11) (140) 407 (40)
------- --------- -------- ---------
Comprehensive income
attributable to
Village Farms
International, Inc.
shareholders $ 10,154 $ 6,480 $ 12,298 $ 36,539
======= ========= ======== =========
Village Farms International, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands of United States dollars)
(Unaudited)
Nine Months Ended September 30,
---------------------------------------
2026 2025
------------------ ---------------
Cash flows provided by
operating activities:
Income from continuing
operations including
non-controlling interests $ 19,865 $ 18,649
Adjustments to reconcile
income from continuing
operations including
non-controlling interests
to net cash provided by
operating activities of
continuing operations:
Depreciation and
amortization 13,133 12,572
Amortization of deferred
charges 205 79
Interest expense 1,443 2,162
Interest paid on
long-term debt (1,622) (2,215)
Unrealized foreign
exchange loss (gain) 341 (56)
Loss on disposal of
assets 87 --
Non-cash lease expense 754 740
Share-based compensation 1,126 1,282
Deferred income taxes (485) (133)
Changes in non-cash
working capital items (33,252) 13,630
-------------- -----------
Net cash provided by
operating activities
from continuing
operations 1,595 46,710
-------------- -----------
Cash flows used in investing
activities:
Purchases of property,
plant and equipment (17,315) (7,117)
-------------- -----------
Net cash used in
investing activities
from continuing
operations (17,315) (7,117)
-------------- -----------
Cash flows provided by (used
in) financing activities:
Proceeds from issuance of
common shares 15,000 --
Issuance costs (958) --
Proceeds from borrowings 9,389 --
Repayments on borrowings (3,744) (6,612)
Share repurchases (6,787) --
Acquisition of redeemable
non-controlling interest (1,280) --
Proceeds from exercise of
warrants and options 633 3,544
Other financing activities (701) (543)
-------------- -----------
Net cash provided by
(used in) financing
activities from
continuing operations 11,552 (3,611)
-------------- -----------
Discontinued Operations
Net cash (used in) provided
by operating activities
from discontinued
operations -- (5,865)
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 -- 28,845
-------------- -----------
Effect of exchange rate
changes on cash and cash
equivalents (2,171) (1,897)
-------------- -----------
Net (decrease) increase in
cash, cash equivalents and
restricted cash (6,339) 62,930
Cash, cash equivalents and
restricted cash, beginning of
period 86,252 24,631
-------------- -----------
Cash, cash equivalents and
restricted cash, end of
period $ 79,913 $ 87,561
============== ===========
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