Village Farms International (VFF) Q2 2026 earnings summary

Executive summary

• Achieved fifth consecutive quarter of positive net income and EPS, with Q2 2026 net income of $7.1 million or $0.06 per share, driven by record cannabis revenues and international exports, especially to Germany.

• Consolidated net sales rose 27% sequentially and 7% year-over-year to $64 million, with cannabis segment net sales at $53.5 million, up 5% year-over-year.

• Gross margin expanded to 47% consolidated and 51% for cannabis, reflecting improved yields, favorable sales mix, and lower production costs.

• International export sales reached a record $20.9 million, up 74% year-over-year and 43% sequentially, with strong performance in Germany.

• Ended Q2 with $73 million in cash after a $15 million equity placement with U.S. institutional investors, positioning for further growth.

Financial highlights

• Q2 2026 consolidated net sales: $64 million, up from $59.9 million in Q2 2025; cannabis segment net sales: $53.5 million, up 5% year-over-year.

• Q2 2026 gross margin: 47% consolidated, 51% cannabis segment; adjusted EBITDA from continuing operations: $15.3 million (29% of sales), up 16% year-over-year.

• Net income from continuing operations: $7.1 million, up 21% year-over-year; basic and diluted EPS: $0.06.

• Operating cash flow: $8.9 million; cash and cash equivalents at quarter-end: $73 million.

• International export sales: $20.9 million, up 74% year-over-year and 43% sequentially.

Outlook and guidance

• Delta 2 expansion in Canada on track for full 40 metric ton run rate by mid-2027; Netherlands operations expected to reach full production by end of Q1 2027.

• Full Delta campus annualized production to reach 160 metric tons upon completion.

• Plans to enter multiple new European jurisdictions later in 2026.

• Management expects continued profitable growth, positive operating cash flow, and further cash balance increases.

• Long-term gross margin target remains 30%-40%, with EBITDA margin in the mid-20s.