Village Farms International (VFF) Q4 2025 earnings summary

Executive summary

• Achieved record full-year consolidated net income from continuing operations of $21 million ($0.19/share), adjusted EBITDA of $49.9 million, and operating cash flow of $58.1 million for 2025.

• Q4 consolidated net sales rose 9% year-over-year to $49.6 million, with Canadian cannabis sales up 10% and international export cannabis sales up 384%.

• Q4 consolidated net income from continuing operations was $2.3 million ($0.02/share), with adjusted EBITDA of $8.6 million and operating cash flow of $11.4 million.

• Ended 2025 with $86 million in cash and completed $6.7 million in share repurchases since Q3.

• Transitioned legacy produce business to private ownership, allowing focus on cannabis operations and retaining greenhouse asset optionality.

Financial highlights

• Full-year consolidated net income from continuing operations reached $21 million, reversing a prior-year loss of $27.9 million.

• Full-year consolidated net sales reached $215.9 million, up from $195.9 million in 2024.

• Q4 gross margin improved to 39% from 16% year-over-year; full-year gross margin was 41%.

• Full-year adjusted EBITDA from continuing operations was $49.9 million, up from $7.4 million in 2024.

• Q4 adjusted EBITDA margin was 17.3% of sales, compared to negative in the prior year.

Outlook and guidance

• Expansion projects in Canada and the Netherlands remain on schedule and under budget, with significant new cultivation capacity expected in 2026.

• Management expects continued profitable growth in 2026, supported by a strong net cash position and ongoing investments.

• Anticipates annual production capacity of approximately 10 tonnes in the Netherlands once fully ramped.

• Management remains focused on balanced capital allocation, ongoing share repurchases, and opportunistic growth investments.

• Expecting sequential growth in international exports in Q1 2026 and new jurisdiction shipments in coming months.