Key Takeaways:
- Village Farms International reported consolidated net sales of $66.7 million, a 21% year-over-year increase, driven by strong cannabis performance.
- Canadian operations achieved a 56% gross margin, 29% sales growth, and a 900% increase in net income.
- Netherlands operations reached full capacity, generating $3.6 million in sales and positive EBITDA.
- Cash flow from operations rose to $24.4 million, boosting total cash reserves to $87.6 million.
- Expansion projects in Canada and the Netherlands remain on track for 2026 completion.
Village Farms International Posts Record Third Quarter Performance
Village Farms International (NASDAQ: VFF) reported strong financial results for the third quarter ended September 30, 2025, with continued growth in its Canadian and European cannabis operations. Consolidated net sales rose 21% to $66.7 million, compared with $54.9 million in the same period last year.
The company posted net income from continuing operations of $10.8 million, or $0.09 per share, reversing a loss of $0.8 million in Q3 2024. Adjusted EBITDA grew sharply to $20.7 million, representing 31% of sales, up from 8.5% a year ago.
Founder, President, and CEO Michael DeGiglio said the results reflect “continued success in profitably scaling what we believe is one of the most attractive platforms for value creation in the global cannabis industry.” He added that the company saw record gains in net income, adjusted EBITDA, and cash flow from operations.
Canadian Cannabis Drives Revenue Growth
The Canadian cannabis business delivered another strong quarter, with net sales up 29% to $46.6 million and gross margin improving to 56%, compared with 26% in Q3 2024. This growth was attributed to higher-margin products, increased export sales, and cost efficiencies.
Net income from Canadian operations reached $11.7 million, and adjusted EBITDA climbed 306% to $19.3 million. The company also reported a 331% increase in cash flow from operations, reflecting improved operating performance and growing international demand.
“Our recent efforts to align our product portfolio toward higher-margin SKUs are driving sales growth in targeted channels,” said DeGiglio, adding that the company’s 40-metric-ton capacity expansion in Delta, British Columbia, is progressing on schedule to support future export opportunities.
Village Farms International Expands in Europe with Leli Holland
In the Netherlands, Village Farms International’s Leli Holland subsidiary achieved full operating capacity at its Drachten facility, generating $3.6 million in sales and $1.3 million in adjusted EBITDA during the quarter.
Construction of the company’s second Dutch facility in Groningen remains on track for completion in Q1 2026. Once operational, it is expected to increase total annual production capacity fivefold to approximately 10,000 kilograms, positioning the company for further growth in the European market.
DeGiglio stated that the Netherlands business “continues to improve its portfolio of offerings to coffeeshops and strengthen its competitive position in the Dutch market.”
Financial Strength and Strategic Initiatives
Strong operating performance drove cash flow from operations of $24.4 million, up from $6.5 million a year earlier, bringing total cash reserves to $87.6 million. The company’s board of directors approved a $10 million share repurchase program at the end of the quarter, signaling confidence in its balance sheet and growth outlook.
The company also announced the appointment of Brian Ellis as Chief Information and Technology Officer (CITO), to lead global IT and digital transformation efforts.
Outlook for 2026
Looking ahead, Village Farms International plans to build on its momentum with new production capacity in both Canada and Europe coming online in 2026. Management said the company will continue focusing on profitability, cash flow generation, and operational efficiency while exploring new international markets.
DeGiglio concluded, “We remain confident in our ability to deliver profitable growth as we expand our footprint and pursue new opportunities around the world.”
Village Farms International
Village Farms International operates as a vertically integrated Controlled Environment Agriculture (CEA) company, supplying fresh produce and plant-based consumer packaged goods (CPG) across North America. The company is active in both traditional food markets and emerging categories such as cannabis and CBD.
Its Canadian subsidiary, Pure Sunfarms, is among the largest greenhouse-based cannabis producers, while ROSE LifeScience in Québec supports cannabis commercialization efforts. In the U.S., Balanced Health Botanicals manages CBD products and e-commerce. Village Farms also plans to enter the U.S. high-THC cannabis market, leveraging over 5.5 million sq ft of greenhouse space in Texas, pending regulatory developments.
3 Comments