Verde AgriTech (NPK) Q4 2025 earnings summary

Executive summary

• FY 2025 revenue declined to $16.6 million from $21.6 million year-over-year, reflecting disciplined credit-risk management amid a stressed Brazilian agricultural input market.

• Q4 2025 revenue rose to $3.1 million from $2.9 million in Q4 2024, with higher revenue per ton and lower expected credit losses indicating improved commercial quality.

• Net loss narrowed to $(11.7) million in FY 2025 from $(12.6) million in FY 2024.

• Gross margin remained strong at 72% for FY 2025 (71% in FY 2024), despite lower sales volumes.

• Advanced rare earths project in Minas Gerais, Brazil, confirming significant clay-hosted mineralization and strong early drilling results.

Financial highlights

• FY 2025 sales volume was 258,432 tons, down from 318,870 tons in FY 2024; Q4 2025 sales were 45,113 tons versus 47,888 tons in Q4 2024.

• Allowance for expected credit losses dropped to $0.9 million in FY 2025 from $2.3 million in FY 2024.

• EBITDA before non-cash events was $(2.8) million in FY 2025, stable year-over-year; Q4 2025 EBITDA improved to $(1.3) million from $(2.1) million in Q4 2024.

• As of December 31, 2025, cash was $3.0 million and short-term receivables were $5.3 million.

• Basic loss per share was $(0.22) in FY 2025, compared to $(0.24) in FY 2024.

Outlook and guidance

• Market conditions are expected to remain challenging, with tight agricultural credit likely to constrain fertilizer sales and Q1 2026 volumes projected below prior year.

• Strategic adjustments, including workforce reductions and contract reviews, are expected to generate over BRL 6 million in annual savings and support positive EBITDA in 2026 if fertilizer prices persist.

• Brazilian Central Bank projects SELIC rate to decline to 12.5% by year-end 2026 and to 10% by 2028, but financing conditions remain restrictive for growers.

• Fertilizer purchases for the 2026/27 season are at roughly 50% of the historical pace, indicating continued market caution.