Verde AgriTech (NPK) Q3 2026 earnings summary

Executive summary

• Q3 revenue was C$3.498M, down 40% YoY, as volume fell 49.2% to 43,260 tonnes amid tight customer liquidity and shorter fertilizer application windows.

• Priorities included cash preservation, selective sales with suitable margins and payment terms, and shifting toward near-zero EBITDA or cash flow within 12 months.

• Felipe Paolucci became CEO effective Nov. 5, 2026, following Reberth Machado's departure.

Financial highlights

• Q3 EBITDA was C$(703K) versus C$100K YoY; net loss was C$(3.1)M versus C$(2.1)M.

• 9M revenue was C$8.6M versus C$13.5M; EBITDA before non-cash events was C$(3.3)M versus C$(1.5)M, and net loss was C$(10.5)M versus C$(8.3)M.

• Q3 SG&A declined 11% to C$1.66M; sales and marketing expenses fell 22% to C$709K, while general and administrative expenses were nearly flat at C$950K.

• Cash was C$4.7M and trade and other receivables C$4.1M at Sept. 30, 2026, versus C$3.6M and C$7.9M a year earlier.

Outlook and guidance

• A Nov. 5 program targets ~R$13M in 2027 cost and expense savings versus the full-year 2026 estimate, through management simplification, contract renegotiation and spending controls.

• Management aims for near-zero EBITDA or cash flow within 12 months and to stop cash burn by end-2027, assuming cost reductions and no CapEx.

• Further general-expense and SG&A improvements are expected from Q1 as severance and contract-reduction costs incurred in 2026 roll off.

• Larger-customer opportunities in eucalyptus, coffee and sugarcane could contribute from 2027; trials were ongoing with positive results reported.

• Brazil production capacity is estimated at 3M tonnes annually, with both factories operating and capacity to support growth without additional CapEx.