Village Farms International (VFF) Q1 2026 earnings summary

Executive summary

• Achieved consolidated net sales of $50.2 million for Q1 2026, up 27% year-over-year, driven by a 171% increase in international cannabis exports and continued Canadian market leadership.

• Adjusted EBITDA from continuing operations increased 118% to $9.9 million, representing 20% of sales.

• Net income attributable to shareholders was $2.9 million, or $0.03 per share, compared to a net loss of $6.7 million in Q1 2025.

• Facility upgrades in British Columbia expanded EU GMP-compliant production capacity, now operating the world’s largest such facility.

• The company realigned to a single Cannabis segment, consolidating all operations for efficiency.

Financial highlights

• Consolidated net sales rose 27% year-over-year to $50.2 million in Q1 2026.

• Gross margin improved to 43% from 39% in Q1 2025, exceeding the targeted 30%-40% range.

• Net income from continuing operations improved to $2.9 million, reversing a $2.1 million loss in Q1 2025.

• Adjusted EBITDA increased 118% year-over-year to $9.9 million, with a margin of 20%.

• Cash and cash equivalents at quarter-end: $50.5 million.

Outlook and guidance

• Expects continued profitable growth for the remainder of 2026 and through 2027.

• Delta 2 greenhouse expansion in Canada to add 40 metric tonnes of annualized production by 2027.

• Netherlands Phase II facility to ramp up to 10 metric tonnes annually by year-end 2026.

• Confident in stable pricing for EU GMP-compliant products, especially in Germany.

• Anticipates benefiting from U.S. regulatory changes following the executive order to reschedule marijuana.