Village Farms International (VFF) Q4 2025 earnings summary

Executive summary

• Achieved record profitability, gross margin, and cash flow from operations in 2025, with consolidated net income from continuing operations of $21 million ($0.19/share), adjusted EBITDA of $49.9 million, and operating cash flow of $58.1 million, marking a significant improvement over 2024.

• Global cannabis sales grew 70% year-over-year, with international export sales increasing more than six-fold, driven by expansion in the Netherlands and strong demand in Germany.

• Q4 consolidated net sales increased 9% year-over-year to $49.6 million, led by Canadian cannabis and Netherlands contributions.

• Transitioned legacy produce business to private ownership, allowing focus on cannabis operations and retaining greenhouse asset optionality.

• Ended 2025 with $86 million in cash and completed $6.7 million in share repurchases since Q3.

Financial highlights

• Full-year consolidated net sales reached $228 million, up 12% year-over-year, with Q4 net sales at $49.6 million.

• Q4 gross margin improved to 39% from 16% year-over-year; full-year gross margin was 41%.

• Q4 adjusted EBITDA from continuing operations was $8.6 million (17.3% margin), up from -$2.9 million (-6.4%) in Q4 2024.

• Full-year adjusted EBITDA from continuing operations was $49.9 million, up from $7.4 million in 2024.

• Ended Q4 with $86 million in cash and $34 million in total debt, maintaining a strong net cash position.

Outlook and guidance

• Expansion projects in Canada and the Netherlands remain on schedule and under budget, with significant new cultivation capacity expected in 2026.

• Expecting sequential growth in international exports in Q1 2026 and expansion into new jurisdictions.

• Management remains focused on balanced capital allocation, ongoing share repurchases, and opportunistic growth investments.

• Anticipates continued strong demand and plans to scale production to meet market needs.