Verde AgriTech (NPK) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales volume was 80,354 tons, a 6% decrease year-over-year, generating $4.8 million in revenue, down 26% from Q2 2024.

• Net loss narrowed to $2.4 million from $2.6 million in Q2 2024, with basic loss per share improving to -$0.04.

• Gross margin excluding freight rose to 58% from 55% year-over-year, reflecting cost control and operational efficiencies.

• Debt restructuring shifted 99.5% of loans to long-term, reducing short-term obligations from $22.9 million to $0.2 million and improving financial flexibility.

• Positive operating cash inflow of $0.2 million, reversing a $0.3 million outflow in Q2 2024.

Financial highlights

• EBITDA before non-cash events was -$0.2 million, compared to nil in Q2 2024.

• Cash balance at quarter-end was $2.4 million, down from $2.7 million a year earlier.

• Short-term receivables decreased to $8.2 million from $12.8 million in Q2 2024.

• YTD net loss reduced from $7.4 million in 2024 to $6.2 million in 2025.

• Average revenue per ton sold fell 21% year-over-year to $60, while average production cost per ton dropped 24% to $16.

Outlook and guidance

• Management expects potential market normalization and acceleration as the agricultural crisis bottoms out, with focus on expanding the product portfolio and strengthening commercial reach.

• Anticipates improved financial performance if Brazilian interest rates decrease as forecasted by major banks.

• Continued research on carbon capture projects and leveraging expanded sales team to drive market penetration.

• Forward-looking statements highlight risks in regulatory approvals, commodity prices, and demand in Brazil.

• No guarantee of reaching 25 million tonnes in sales; business model depends on market development.