Village Farms Reports Q1 2026 Results Driven by Record International Export Sales
Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF) today reported financial results for its quarter ended March 31, 2026. All figures are in U.S. dollars unless otherwise indicated.
Notice Regarding Changes to Segment Financial Reporting
During the first quarter of 2026, the Company realigned its structure toward a unified cannabis operating model, including changes and additions to its leadership team, to gain operational efficiencies and better align resources with customer and market opportunities. The Company’s operations are now organized, managed and classified into one reportable segment—Cannabis. The Company’s remaining operations are not reportable segments, as defined by the applicable accounting standard, and are classified as Other. Corporate expenses reflect the operations costs that are not allocated to the Company’s operating units.
Management Commentary
President and Chief Executive Officer Michael DeGiglio commented, “Our first quarter results reflect a strong start to the year and continued momentum in our largest markets, with adjusted EBITDA growth of 118% year-over-year significantly outpacing revenue growth of 27%, driven by our international businesses and continued leadership in Canada. Our operations and commercial teams are executing with precision, delivering continued margin strength and a fourth consecutive quarter of positive net income which clearly demonstrates the sustainably profitable nature of our expanding global cannabis enterprise.”
“In Canada, we’re continuing to benefit from efforts to shift our business toward higher-margin products, growing market share in targeted and profitable product categories, and our Pure Sunfarms brand has now increased its share of dried flower formats for 15 consecutive months. It was also a record quarter of international medical export sales, which grew 171% year-over-year and 60% sequentially, supported by increasing demand for Village Farms’ EU-GMP compliant products, particularly in Germany where we are capturing an increasing share of a growing market and continue to see a stable pricing environment for our products for the foreseeable future.”
“After making recent facility upgrades at our 4.8 million square foot production campus in British Columbia, we now believe we operate the world’s largest EU-GMP certified cannabis facility. Our production capabilities, product quality, and regulatory and supply chain excellence provide us with a unique collection of durable competitive advantages that we have methodically built over the last six years. Our capacity expansion projects will begin contributing to stronger sales growth through the remainder of this year and into 2027, and we look forward to showcasing the combined strengths of our global platform as the year progresses.”
“We remain in an excellent position to continue scaling profitably with increasing global demand, and believe the strength of our balance sheet and cash generation profile will enable flexibility to make additional accretive organic and acquisitive growth investments. We have a lot of attractive opportunities emerging for us in the U.S. and international markets, but we plan to be prudent and patient with respect to the various strategic M&A opportunities we are pursuing.”
First Quarter 2026 Financial Highlights
(All comparable periods are for the first quarter of 2025 unless otherwise stated)
Cannabis Operations
Net sales increased 27% to $49.7 million from $39.2 million;
International export sales increased 171%; Canadian retail branded sales increased 5%; Netherlands sales increased 448%;
Gross margin increased to 43% from 39% in the prior year period;
Net income improved to $4.8 million from $2.8 million, an increase of 68% year-over-year;
Adjusted EBITDA from continuing operations increased 48% to $10.2 million or 20.5% of sales, compared to $6.9 million or 17.5% of sales in the prior year period;
Cash flow used in operations was ($11.8) million, driven by the impact of US $15.0 million of Canadian income taxes paid in Q1 2026 related to tax obligations from the previous fiscal year.
Strategic Growth and Operational Highlights
Surpassed the high end of its targeted gross margin range for cannabis of 30-40% for the fourth consecutive quarter; and recorded positive EPS from continuing operations for the fourth consecutive quarter.
Maintained a top five overall market share position in the Canadian market, and continued to hold the number one market share position in dried flower. The Company’s Pure Sunfarms brand expanded its market share position for the 15th consecutive month in April, reflecting improving consumer preference for the Company’s strains following recent introductions of packaging innovations that showcase the Company’s flower quality and aromas1.
International export sales from Canada increased 171% year-over-year to a record high of $14.6 million. The Company believes it remains the largest exporter of medical cannabis to Europe, with three of the top five leading cultivars in Germany and four of the top 10 through our distribution partners2.
The Company recently completed facility upgrades at its 4.8 million square foot production campus in Delta, British Columbia, the Company now believes it operates the world’s largest EU-GMP certified cannabis facility.
Began planting the first half of its Delta 2 greenhouse expansion in Canada, which is expected to begin contributing to sales late in the second quarter of 2026. The full expansion is expected to yield an incremental 40 metric tonnes of annualized cannabis production, expanding Canadian capacity by approximately 33% once completed in 2027.
The Company expects to commence all operations at its Phase II facility in the Netherlands during Q2 and ramp to full capacity by the end of 2026. Once operating at full capacity, the Phase II facility is expected to quintuple total Netherlands production to approximately 10 metric tonnes annually.
Corporate and Other
Began a succession planning process for Chief Financial Officer Steve Ruffini, who will remain an employee of the Company to help ensure a smooth transition of CFO responsibilities, and will be appointed to a new leadership position focused on evaluating strategic M&A opportunities.
Favorably amended and extended its loan with its long-term lender, Farm Credit Canada (FCC). The Company improved the interest rate on the loan by 50 basis points and extended the maturity date by three years and nine months to February 3, 2031. The FCC loan carries a variable interest rate currently below 7.0%, with a current balance of US $15.4 million.
On April 23, 2026, President Trump issued an executive order to (1) immediately place both FDA-approved products containing marijuana and marijuana products regulated by a state medical marijuana license in Schedule III of the Controlled Substances Act, and (2) initiate an expedited administrative hearing process to consider the broader rescheduling of marijuana from Schedule I to Schedule III, which is expected to commence on June 29, 2026. The Company believes it is poised to benefit from President Trump’s Executive Order, which, if the broader rescheduling is enacted as anticipated, would represent a consequential step in modernizing U.S. cannabis policy and support the development of a regulatory framework more aligned with international drug policies.
1. Based on estimated retail sales from HiFyre, other third parties and provincial boards.
2. Based on Company estimates and rankings compiled by German outlet Flowzz.
Conference Call
Village Farms’ management team will host a conference call to discuss its first quarter 2026 financial results today, Monday, May 11, 2026, at 8:30 a.m. ET. Participants can access the conference call via a webcast at Village Farms First Quarter 2026 Conference Call Webcast or on the Company website at Village Farms – Events. Participants wanting to access the conference call by telephone must register in advance at Village Farms First Quarter 2026 Conference Call Registration to receive telephone dial-in information.
The live question and answer session will be limited to analysts; however, others are invited to submit questions ahead of the conference call via email at investorrelations@villagefarms.com. Management will address questions received via email during the question-and-answer session as time permits.
About Village Farms International, Inc.
Village Farms is a global leader in cannabis, plant-based consumer packaged goods, and sustainable innovation. With a legacy built on decades of Controlled Environment Agriculture expertise and Dutch farming practices, today the Company is one of the world’s largest and most profitable cannabis operators with an asset portfolio that spans over 7 million square feet of advanced greenhouse and indoor cultivation assets.
In Canada, Village Farms operates the world’s largest EU-GMP certified cannabis facility at its production campus in Delta, British Columbia, and exports products to international medical markets. The Company is also a market share leader in dried flower formats and produces and distributes some of the country’s highest quality and best-selling strains, including its flagship Pure Sunfarms Pink Kush, one of the most widely consumed strains on the planet. Village Farms’ Canadian brand portfolio includes Pure Sunfarms, Fraser Valley Weed Co., Soar, Super Toast, Pure Laine, Tam Tams and Promenade.
In the Netherlands, the Company is one of only ten licensed operators in the country’s regulated cannabis program, and in the United States its CBDistillery brand is one of the country’s premier cannabinoid wellness platforms, and it also holds equity interests in cannabis businesses in Australia and Germany. Beyond cannabis, the Company’s Clean Energy division transforms landfill gas into renewable natural gas, and it also holds an equity interest in Verdexa Holdings (formerly Vanguard Food LP), a private venture pursuing strategic acquisitions to build a premier branded food platform in North America.
Contact Information
Sam Gibbons
Senior Vice President, Corporate Affairs
Phone: (407) 936-1190 ext. 328
Email: sgibbons@villagefarms.com
Lawrence Chamberlain
LodeRock Advisors
Phone: (416) 519-4196
Email: lawrence.chamberlain@loderockadvisors.com
Cannabis Performance Summary
($ US thousands, except % metrics)
Three Months Ended March 31,
2026
2025
Change
Total Net Sales
$
49,744
$
39,227
27%
Total Cost of Sales
$
28,436
$
23,958
19%
Gross Profit
$
21,308
$
15,269
40%
Gross Margin %
43%
39%
10%
SG&A
$
14,820
$
11,736
26%
Net income
$
4,780
$
2,848
68%
Adjusted EBITDA from Continuing Operations(1)
$
10,196
$
6,889
48%
Adjusted EBITDA from Continuing Operations Margin(1)
20%
18%
11%
Cash flow from Operations
$
(11,810
)
$
2,886
NM
(1) Adjusted EBITDA from continuing operations is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA from continuing operations may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA from continuing operations is a useful supplemental measure in evaluating the performance of the Company because it excludes non-recurring and other items that do not reflect our business performance. Adjusted EBITDA from continuing operations includes the Company’s 80% interest in Rose LifeScience.
Composition of Sales by Channel
For the Three Months Ended March 31,
Classification
2026
2025
Cannabis:
Canadian Branded(1)
$
23,848
$
22,761
Canadian Non-Branded
5,377
6,279
International Exports
14,581
5,388
U.S. Cannabis
3,133
3,904
Netherlands Branded
2,663
486
Other
142
409
Total Cannabis
49,744
39,227
Other:
Produce
108
27
Clean Energy
386
426
Total Revenue
$
50,238
$
39,680
(1) Canadian Branded revenues are shown net of excise tax on products. Excise tax on products was $15,903 and $13,947 for the three months ended March 31, 2026 and 2025, respectively.
Presentation of Financial Results
The Company’s financial statements for the three months ended March 31, 2026, as well as the comparative period for 2025, have been prepared and presented under United States Generally Accepted Accounting Principles (“GAAP”).
RESULTS OF OPERATIONS
(In thousands of U.S. dollars, except per share amounts, and unless otherwise noted)
Three Months Ended
March 31,
2026
2025
Sales
$
50,238
$
39,680
Cost of sales
(29,252
)
(25,501
)
Gross profit
20,986
14,179
Selling, general and administrative expenses
(15,942
)
(14,619
)
Interest expense
(523
)
(701
)
Interest income
608
75
Foreign exchange (loss) gain
(548
)
(84
)
Other (loss) income
(184
)
22
Income (loss) before taxes and equity method investment income
4,397
(1,128
)
Provision for income taxes
(1,668
)
(983
)
Equity method investment income, net of tax
—
—
Income (loss) from continuing operations
2,729
(2,111
)
(Loss) Income from discontinued operations, net of tax
—
(5,004
)
Income (loss) including non-controlling interests
2,729
(7,115
)
Less: net (income) loss attributable to non-controlling interests, net of tax
188
412
Net income (loss) attributable to Village Farms International, Inc. shareholders
$
2,917
$
(6,703
)
Adjusted EBITDA from continuing operations(1)
$
9,890
$
4,546
Basic income (loss) per share attributable to Village Farms International, Inc. shareholders from:
Continuing operations
$
0.03
$
(0.02
)
Discontinued operations
–
(0.04
)
Basic income (loss) per share attributable to Village Farms International, Inc. shareholders
$
0.03
$
(0.06
)
Diluted income (loss) per share attributable to Village Farms International, Inc. shareholders from:
Continuing operations
$
0.02
$
(0.02
)
Discontinued operations
$
—
$
(0.04
)
Diluted income (loss) per share attributable to Village Farms International, Inc. shareholders
$
0.02
$
(0.06
)
(1) Adjusted EBITDA from continuing operations is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA from continuing operations may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA from continuing operations is a useful supplemental measure in evaluating the performance of the Company because it excludes non-recurring and other items that do not reflect our business performance. Adjusted EBITDA from continuing operations includes the Company’s 80% interest in Rose LifeScience.
We caution that our results of operations for the three months ended March 31, 2026 and 2025 may not be indicative of our future performance.
SEGMENTED RESULTS OF OPERATIONS
(In thousands of U.S. dollars, except per share amounts, and unless otherwise noted)
For The Three Months Ended March 31, 2026
Cannabis
Other
Corporate
Total
Sales
$
49,744
$
494
$
—
$
50,238
Cost of sales
(28,436
)
(816
)
—
(29,252
)
Selling, general and administrative expenses
(14,820
)
(512
)
(610
)
(15,942
)
Other expense, net
(311
)
(222
)
(114
)
(647
)
Income (loss) before taxes and equity method investment income
6,177
(1,056
)
(724
)
4,397
Provision for income taxes
(1,585
)
(83
)
—
(1,668
)
Equity method investment income, net of tax
—
—
—
—
Income (loss) including non-controlling interests
4,592
(1,139
)
(724
)
2,729
Less: net loss attributable to non-controlling interests, net of tax
188
—
—
188
Net income (loss)
$
4,780
$
(1,139
)
$
(724
)
$
2,917
Adjusted EBITDA from Continuing Operations(1)
$
10,196
$
(23
)
$
(283
)
$
9,890
Basic income (loss) per share
$
0.05
$
(0.01
)
$
(0.01
)
$
0.03
Diluted income (loss) per share
$
0.04
$
(0.01
)
$
(0.01
)
$
0.02
For The Three Months Ended March 31, 2025
Cannabis
Other
Corporate
Total
Sales
$
39,227
$
453
$
—
$
39,680
Cost of sales
(23,958
)
(1,543
)
—
(25,501
)
Selling, general and administrative expenses
(11,736
)
(743
)
(2,140
)
(14,619
)
Other (expense) income, net
(202
)
(526
)
40
(688
)
Income (loss) before taxes and equity method investment income
3,331
(2,359
)
(2,100
)
(1,128
)
Provision for income taxes
(895
)
(69
)
(19
)
(983
)
Equity method investment income, net of tax
—
—
—
—
Income (loss) from continuing operations
2,436
(2,428
)
(2,119
)
(2,111
)
Income (loss) from discontinued operations, net of tax
—
(5,004
)
—
(5,004
)
Income (loss) including non-controlling interests
2,436
(7,432
)
(2,119
)
(7,115
)
Less: net loss attributable to non-controlling interests, net of tax
412
—
—
412
Net income (loss)
$
2,848
$
(7,432
)
$
(2,119
)
$
(6,703
)
Adjusted EBITDA from Continuing Operations(1)
$
6,889
$
(332
)
$
(2,011
)
$
4,546
Basic income (loss) per share from continuing operations
$
0.03
$
(0.03
)
$
(0.02
)
$
(0.02
)
Basic income per share from discontinued operations
$
–
$
(0.04
)
$
–
$
(0.04
)
Basic income (loss) per share
$
0.03
$
(0.07
)
$
(0.02
)
$
(0.06
)
Diluted income (loss) per share from continuing operations
$
0.03
$
(0.03
)
$
(0.02
)
$
(0.02
)
Diluted income per share from discontinued operations
$
–
$
(0.04
)
$
–
$
(0.04
)
Diluted income (loss) per share
$
0.03
$
(0.07
)
$
(0.02
)
$
(0.06
)
(1) Adjusted EBITDA from continuing operations is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA from continuing operations presented for these segments may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA from continuing operations is a useful supplemental measure in evaluating the performance of the Company because it excludes non-recurring and other items that do not reflect the underlying business performance of the Company.
Reconciliation of Adjusted EBITDA from Continuing Operations to Net Income (Loss)
The following tables reflect a reconciliation of Adjusted EBITDA from continuing operations to net income (loss) from continuing operations, as presented by the Company:
For The Three Months Ended March 31, 2026
(in thousands of U.S. dollars)
Cannabis
Other
Corporate
Total
Net income (loss) from continuing operations
$
4,780
$
(1,139
)
$
(724
)
$
2,917
Add:
Amortization and depreciation
3,502
777
24
4,303
Foreign currency exchange (gain) loss
75
80
393
548
Interest expense (income), net
19
176
(280
)
(85
)
Provision for income taxes
1,585
83
—
1,668
Share-based compensation
72
—
304
376
Deferred financing fees
72
—
—
72
Loss on disposal of assets
118
—
—
118
Adjustments attributable to non-controlling interest
(27
)
—
—
(27
)
Adjusted EBITDA from continuing operations(1)
$
10,196
$
(23
)
$
(283
)
$
9,890
For The Three Months Ended March 31, 2025
(in thousands of U.S. dollars)
Cannabis
Other
Corporate
Total
Net income (loss) from continuing operations
$
2,848
$
(2,428
)
$
(2,119
)
$
(1,699
)
Add:
Amortization and depreciation
2,938
1,457
44
4,439
Foreign currency exchange loss (gain)
(51
)
48
(15
)
(18
)
Interest expense (income), net
141
509
(24
)
626
Provision for (recovery of) income taxes
895
69
19
983
Share-based compensation
48
13
84
145
Adjustments attributable to non-controlling interest
70
—
—
70
Adjusted EBITDA from continuing operations(1)
$
6,889
$
(332
)
$
(2,011
)
$
4,546
(1) Adjusted EBITDA from continuing operations is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA from continuing operations presented for these segments may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA from continuing operations is a useful supplemental measure in evaluating the performance of the Company because it excludes non-recurring and other items that do not reflect the underlying business performance of the Company.
This press release is intended to be read in conjunction with the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2026, which will be filed with the Securities and Exchange Commission and will be available at www.sec.gov, and will also be filed in Canada on SEDAR (www.sedarplus.ca). In addition, quarterly financial reports can be found on the Village Farms website under Financial Reports (https://villagefarms.com/financial-reports/) within the Investors section.
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