Verde AgriTech (NPK) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales volume was 80,354 tons, maintaining stable year-over-year volumes despite a 6% decrease, and generated $4.8 million in revenue.

• Gross margin excluding freight improved to 58% from 55% year-over-year, reflecting cost control and AI integration.

• Debt restructuring shifted 99.5% of loans to long-term, reducing short-term obligations and improving financial flexibility.

• Net loss narrowed to $2.4 million from $2.6 million in Q2 2024, with basic loss per share improving to -$0.04.

• Sustainability efforts included capturing 6,890 tons of CO2 and avoiding 4,102 tons of CO2e emissions in Q2 2025.

Financial highlights

• Revenue declined 6% year-over-year, with average revenue per ton down 21% due to currency devaluation and lower specialty product sales.

• Average production cost per ton dropped 24% through renegotiated supplier contracts and operational efficiencies.

• EBITDA before non-cash events was -$0.2 million, compared to nil in Q2 2024.

• G&A expenses decreased from $2.4 million to $2.1 million.

• Cash position at quarter-end was $2.4 million, with short-term receivables at $8.2 million.

Outlook and guidance

• Management expects potential market normalization and acceleration as the agricultural crisis bottoms out.

• Focus for H2 2025 includes expanding the product portfolio with new multi-nutrient formulations and strengthening commercial reach.

• Anticipates improved financial performance if Brazilian interest rates decrease as forecasted by major banks.

• Continued research on carbon capture projects and leveraging expanded sales team to drive market penetration.

• Focus remains on achieving full plant utilization and targeting an EPS of $0.90 at 3-4% market share.