Village Farms International (VFF) Q1 2026 earnings summary

Executive summary

• Consolidated net sales rose 27% year-over-year to $50.2 million in Q1 2026, driven by a 171% increase in international cannabis exports and strong Canadian market leadership.

• Net income from continuing operations reached $2.9 million ($0.03/share), up from a net loss last year, with adjusted EBITDA from continuing operations up 118% to $9.9 million, representing 20% of sales.

• Facility upgrades in British Columbia expanded EU GMP-compliant production capacity, now operating the world’s largest such facility.

• The company realigned to a single Cannabis segment, consolidating Canadian, U.S., and Netherlands operations for operational efficiency.

• Maintained top five share in Canada’s adult-use market and number one in dried flower, with Pure Sunfarms brand leading.

Financial highlights

• Net sales: $50.2 million (Q1 2026), up 27% year-over-year; gross profit: $21.0 million, up 48%; gross margin improved to 43% from 39% last year.

• Net income from continuing operations was $2.9 million ($0.03/share); adjusted EBITDA: $9.9 million, margin 20.5%.

• Cash, cash equivalents, and restricted cash at quarter-end: $55.5 million; working capital: $88.8 million.

• Cash flow from operations was negative $11.8 million, mainly due to $15.0 million in Canadian income taxes paid.

• Share repurchases totaled $6.4 million; capital expenditures were $9.2 million in Q1.

Outlook and guidance

• Expects continued profitable growth through 2027, with expanded capacity in Canada and the Netherlands coming online in the second half of 2026.

• Delta 2 greenhouse expansion in Canada to add 40 metric tonnes of annualized production by 2027; Netherlands Phase II facility to ramp to 10 metric tonnes annually by year-end 2026.

• Anticipates return to positive consolidated cash flow from operations in Q2 and for the remainder of the year.

• Regulatory changes in the U.S., including the executive order to reschedule marijuana, could benefit future operations.

• No meaningful changes to medium and long-term outlook.