Verde AgriTech (NPK) Q3 2025 earnings summary

Executive summary

• Achieved first positive EBITDA since Q2 2023, reaching $0.1 million in Q3 2025, despite ongoing sector challenges and the prolonged Brazilian agricultural crisis.

• Revenue declined 18% year-over-year to $5.9 million, with sales volume down 16% to 85,136 tons.

• Net loss narrowed to BRL 2.1 million from BRL 2.3 million year-over-year, reflecting improved cost discipline and lower non-cash expenses.

• Cash position improved to CAD 3.6 million, and short-term receivables decreased to CAD 7.9 million.

• Discovery and rapid advancement of a significant rare earth mineralized zone in Brazil, with accelerated milestones for the Minas Americas Global Alliance magnetic rare earths project.

Financial highlights

• Positive EBITDA of CAD 100,000, first since Q2 2023, with EBITDA before non-cash events up from -$0.03 million in Q3 2024.

• Gross margin excluding freight remained strong at 60% year-over-year; including freight, gross margin was 75%.

• Cash on hand increased to CAD 3.6 million; receivables reduced from CAD 11.3 million to CAD 7.9 million.

• Bad debt provision reduced by nearly 80%, from $785,000 to $163,000.

• Average production cost per ton sold decreased 6% to $17.

Outlook and guidance

• Optimism for sector recovery in the next cycle, with expectations for improved year-over-year comparisons and stronger Q4 2025 and Q1 2026.

• Anticipates leveraging large production capacity to lower costs per ton as volumes grow.

• Strategic shift to sales agents with higher commissions but lower fixed costs expected to benefit future results.

• Strategic review and accelerated milestones for rare earths project, including drilling, resource estimate, and preliminary economic assessment by mid-2026.

• Fully funded to execute initial rare earths project work while maintaining fertilizer operations.