Verde AgriTech (NPK) Q3 2025 earnings summary

Executive summary

• Achieved first positive EBITDA since Q2 2023, reaching $0.1 million in Q3 2025, despite ongoing sector challenges from the Great Brazilian Agriculture Crisis.

• Revenue declined 18% year-over-year to $5.9 million, with sales volume down 16% to 85,136 tons.

• Net loss narrowed to $2.1 million from $2.3 million in Q3 2024, reflecting improved cost discipline and lower non-cash expenses.

• Cash position improved to $3.6 million, and short-term receivables decreased to $7.9 million.

• Discovery of a significant rare earth mineralized zone in Brazil, with accelerated project milestones for the Minas Americas Global Alliance magnetic rare earths project.

Financial highlights

• EBITDA before non-cash events was $0.1 million, up from -$0.03 million in Q3 2024.

• Gross margin excluding freight remained strong at 60%, consistent with the prior year.

• Average production cost per ton decreased by 6% due to currency devaluation and a shift to lower value-added products.

• Basic loss per share was $0.04, unchanged year-over-year.

Outlook and guidance

• Anticipates continued operational improvement and market recovery into 2026, supported by higher grain output, potential interest rate cuts, and moderating inflation.

• Expects Q4 2025 and Q1 2026 to be stronger, signaling a possible end to the agricultural downturn.

• Strategic review and accelerated milestones for rare earths project, including drilling, resource estimate, and preliminary economic assessment by mid-2026.