Village Farms International Reports Q3 2026 Results
Village Farms International, Inc. (VFF) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Village Farms International Reports Q3 2026 Results Driven by Record Cannabis Revenues • Consolidated Net Sales Increased to $67 Million with Record Cannabis Sales of $55 Million • Net Income of $10 Million or $0.08 Per Share; Operating Cash Flow of $9.5 Million • Ad
How this was made
The 30-second read
Why it matters
The earnings release delivers fresh guidance on revenue growth and cash position, informing short‑term trading decisions.
Market read
Record cannabis sales and strong cash balance may drive a positive price reaction, while margin pressure tempers enthusiasm.
What to watch
Execution risk on Texas greenhouse and regulatory uncertainty around U.S. hemp ban.
Record cannabis sales of $55.0 million and 75% export growth, but cannabis gross margin fell to 48% from 55% and cannabis Adjusted EBITDA from continuing operations fell 27%
Cannabis net sales reached a record $55,000 thousand and International Exports rose 75% year over year. Against that, cannabis gross margin fell from 55% to 48%, cannabis net income fell 35%, cannabis operating cash flow fell 65%, and consolidated net income attributable to shareholders was $9,968 thousand against $10,217 thousand. The company attributes the margin decline mainly to a softer spot trim market in Canada.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales (consolidated, Q3 2026)GAAP | $66.90M | – | – |
| Cost of sales (consolidated, Q3 2026)GAAP | −$37.58M | – | – |
| Gross profit (consolidated, Q3 2026)GAAP | $29.32M | – | – |
| Selling, general and administrative expenses (consolidated, Q3 2026)GAAP | −$16.14M | – | – |
| Interest expense (Q3 2026)GAAP | −$443K | – | – |
| Interest income (Q3 2026)GAAP | $515K | – | – |
| Foreign exchange (loss) gain (Q3 2026)GAAP | −$281K | – | – |
| Other income (loss) (Q3 2026)GAAP | $146K | – | – |
| Income before taxes and equity method investment income (Q3 2026)GAAP | $13.12M | – | – |
| Provision for income taxes (Q3 2026)GAAP | −$3.18M | – | – |
| Income from continuing operations (Q3 2026)GAAP | $9.94M | – | – |
| Net income attributable to Village Farms International, Inc. shareholders (Q3 2026)GAAP | $9.97M | – | – |
| Diluted income per share attributable to shareholders (Q3 2026)GAAP | $0.08 | – | – |
| Basic income per share attributable to shareholders (Q3 2026)GAAP | $0.08 | – | – |
| Diluted income per share from continuing operations (Q3 2026)GAAP | $0.08 | – | – |
| Adjusted EBITDA from continuing operations (consolidated, Q3 2026)non-GAAP | $18.24M | – | – |
| Operating cash flow (Q3 2026, headline figure)other | $9.5M | – | – |
| Net sales (Cannabis segment, Q3 2026)GAAP | $55M | – | 3% |
| Cost of sales (Cannabis segment, Q3 2026)GAAP | −$28.86M | – | 21% |
| Gross profit (Cannabis segment, Q3 2026)GAAP | $26.14M | – | -12% |
| Gross margin (Cannabis segment, Q3 2026)GAAP | 48% | – | -13% |
| Selling, general and administrative expenses (Cannabis segment, Q3 2026)GAAP | $15.16M | – | 24% |
| Net income (Cannabis segment, Q3 2026)GAAP | $7.84M | – | -35% |
| Adjusted EBITDA from continuing operations (Cannabis segment, Q3 2026)non-GAAP | $14.75M | – | -27% |
| Adjusted EBITDA from continuing operations margin (Cannabis segment, Q3 2026)non-GAAP | 27% | – | -29% |
| Cash flow from operations (Cannabis segment, Q3 2026)GAAP | $7.26M | – | -65% |
| International export sales (Q3 2026)GAAP | $20.77M | – | 75% |
| Sales (consolidated, nine months 2026)GAAP | $181.1M | – | – |
| Cost of sales (consolidated, nine months 2026)GAAP | −$100.8M | – | – |
| Gross profit (consolidated, nine months 2026)GAAP | $80.28M | – | – |
| Selling, general and administrative expenses (consolidated, nine months 2026)GAAP | −$50.90M | – | – |
| Income from continuing operations (nine months 2026)GAAP | $19.86M | – | – |
| Net income attributable to Village Farms International, Inc. shareholders (nine months 2026)GAAP | $20.03M | – | – |
| Diluted income per share attributable to shareholders (nine months 2026)GAAP | $0.16 | – | – |
| Basic income per share attributable to shareholders (nine months 2026)GAAP | $0.17 | – | – |
| Adjusted EBITDA from continuing operations (consolidated, nine months 2026)non-GAAP | $43.54M | – | – |
| Net cash provided by operating activities from continuing operations (nine months 2026)GAAP | $1.59M | – | – |
| Purchases of property, plant and equipment (nine months 2026)GAAP | −$17.32M | – | – |
| Net sales (Cannabis segment, nine months 2026)GAAP | $158.3M | – | 10% |
| Cost of sales (Cannabis segment, nine months 2026)GAAP | $83.54M | – | 8% |
| Gross profit (Cannabis segment, nine months 2026)GAAP | $74.73M | – | 13% |
| Gross margin (Cannabis segment, nine months 2026)GAAP | 47% | – | 2% |
| Selling, general and administrative expenses (Cannabis segment, nine months 2026)GAAP | $45.18M | – | 27% |
| Net income (Cannabis segment, nine months 2026)GAAP | $21.22M | – | -3% |
| Adjusted EBITDA from continuing operations (Cannabis segment, nine months 2026)non-GAAP | $40.22M | – | 0% |
| Adjusted EBITDA from continuing operations margin (Cannabis segment, nine months 2026)non-GAAP | 25% | – | -11% |
| Cash flow from operations (Cannabis segment, nine months 2026)GAAP | $4.45M | – | NM |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Cannabis (total)Net sales increased 3% to a record of $55.0 million, from $53.5 million in the prior year period. The company states that gross margin variance was driven primarily by a softer spot trim market in Canada. | $55M | – | 3% |
| Other (segment sales, Q3 2026)Prior year segment sales printed as $13,234 thousand. The filing gives no explanation for the change. | $11.90M | – | – |
| Canadian BrandedPrior year printed as $26,846 thousand. Shown net of excise tax on products of $16,454 thousand, compared with $15,712 thousand in the prior year. The filing says the company maintained its top five Canadian market share and expanded in vapes and infused pre-rolls. | $25.29M | – | – |
| Canadian Non-BrandedPrior year printed as $7,344 thousand. The filing references softer spot trim market conditions in Canada in its margin commentary; no segment-specific driver is given. | $3.3M | – | – |
| International ExportsIncreased 75% year over year, in line with the previous quarter record set in Q2 2026. The CEO cites resilient pricing relative to non-GMP compliant areas of the supply chain and the EU-GMP facility. | $20.77M | – | 75% |
| U.S. CannabisPrior year printed as $3,337 thousand. The filing says Monahans, Texas is being mobilized for cannabis production; no U.S. cannabis sales driver is stated. | $2.80M | – | – |
| Netherlands BrandedPrior year printed as $3,587 thousand. The filing states Netherlands production was temporarily reduced by propagation activities during Q3. | $2.84M | – | – |
| Other (cannabis channel)Prior year printed as $535 thousand. Q3 2026 printed as a dash. No explanation given. | — | – | – |
| Other ProducePrior year printed as $12,841 thousand. No explanation given in the filing. | $11.27M | – | – |
| Clean EnergyPrior year printed as $393 thousand. No explanation given in the filing. | $633K | – | – |
No numeric guidance printed. Qualitative outlook for Q4 2026 and 2027. outlook
- NoteManagement expects wholesale trim conditions to begin normalizing in Q4 2026, citing October order book visibility and new supply agreements with considerably stronger contracted pricing.
- NoteGroningen (Netherlands) is fully planted and expected to contribute to stronger sales growth during Q4 2026 and throughout 2027; it is expected to ramp to maximum annualized production capacity in early 2027.
- NoteDelta 2 expansion expected to be completed during Q1 2027 and to reach its full production capacity of 40 metric tonnes by mid-2027; total Delta campus capacity is approximately 160 metric tonnes of dried, trimmed flower annually.
- NoteManagement expects the Delta 2 expansion to contribute to stronger international sales growth next year and to continued organic sales growth through calendar 2028.
Capital returns
- Share repurchases of $(6,787) thousand in the nine months ended September 30, 2026; none in the nine months ended September 30, 2025.
- Proceeds from issuance of common shares of $15,000 thousand in the nine months ended September 30, 2026 (issuance costs of $(958) thousand).
- No dividend payment is printed in the filing.
- Acquisition of redeemable non-controlling interest of $(1,280) thousand in the nine months ended September 30, 2026.
What drove it
- The company attributes the cannabis gross margin decline from 55% to 48% primarily to a softer spot trim market in Canada in the Canadian wholesale sales channel.
- The company attributes the cannabis net income decline to lower gross margins and increased operating expenses to support future growth.
- International exports rose 75% year over year to $20,771 thousand, in line with the Q2 2026 record.
- The company states Netherlands production was temporarily reduced by propagation activities during Q3 2026.
- Cannabis SG&A rose 24% in Q3 2026 to $15,157 thousand; the company links this to increased operating expenses to support future growth.
- Nine-month consolidated net income attributable to shareholders fell to $20,030 thousand from $30,011 thousand. The prior-year period included income from discontinued operations of $11,015 thousand.
Concerns
- Cannabis gross margin fell to 48% from 55%, and cannabis Adjusted EBITDA from continuing operations margin fell to 27% from 38%.
- Cannabis cash flow from operations was $7,263 thousand in Q3 2026 against $20,596 thousand a year earlier, a 65% decline.
- Nine-month consolidated net cash provided by operating activities from continuing operations was $1,595 thousand against $46,710 thousand, with working capital absorbing $(33,252) thousand.
- Trade receivables rose to $41,613 thousand from $23,151 thousand at December 31, 2025.
- Other expenses are not reconciled in this filing to the Q3 cash flow statement; only cannabis-segment quarterly cash flow is printed.
- The Texas (Monahans) U.S. market entry is at an early mobilization stage with no commencement date printed.
- Balanced Health Botanicals is awaiting regulatory clarity related to the pending December 11, 2026 federal hemp ban.
- Interim Chief Financial Officer Hamid Shekarchi was appointed on September 10, 2026, replacing Stephen Ruffini, who moved to Head of Mergers and Acquisitions.
What to watch
- Whether Canadian wholesale trim pricing normalizes in Q4 2026 as management expects, and whether cannabis gross margin recovers from 48%.
- Q4 2026 International Exports against the Q2 2026 record and the Q3 2026 figure of $20,771 thousand.
- Groningen ramp progress toward maximum annualized capacity in early 2027.
- Delta 2 completion in Q1 2027 and full production capacity of 40 metric tonnes by mid-2027.
- Operating cash flow in Q4 2026 following the completed capex program described by the CEO.
- Status of the Delta 1 conversion option (16 acres, 700,000 sq. ft.) and any formalized plans, which the company says have not been formalized.
- Outcome of the Balanced Health Botanicals CMMI pilot pathway and the December 11, 2026 federal hemp ban.
- Permanent CFO appointment, as the current role is interim.
Balance sheet and cash flow
- Cash and cash equivalents of $79,289 thousand at September 30, 2026, compared with $81,189 thousand at December 31, 2025. Restricted cash of $624 thousand compared with $5,063 thousand.
- Headline states nearly $80 million in cash and a net cash position of $41 million; the net cash figure is not shown in the statement tables.
- Total assets of $441,356 thousand at September 30, 2026, compared with $423,096 thousand at December 31, 2025.
- Total shareholders' equity of $322,806 thousand, compared with $299,898 thousand at December 31, 2025.
- Long-term debt of $33,427 thousand, compared with $28,769 thousand at December 31, 2025. Current maturities of long-term debt of $5,253 thousand, compared with $4,885 thousand.
- Trade receivables of $41,613 thousand, compared with $23,151 thousand at December 31, 2025. Inventories of $46,423 thousand, compared with $41,519 thousand.
- Redeemable non-controlling interest (mezzanine equity) of $6,408 thousand, compared with $10,164 thousand at December 31, 2025.
- Nine-month proceeds from borrowings of $9,389 thousand and repayments on borrowings of $(3,744) thousand.
- Net cash provided by operating activities from continuing operations of $1,595 thousand for nine months 2026, against $46,710 thousand for nine months 2025. Changes in non-cash working capital items were $(33,252) thousand in nine months 2026 and $13,630 thousand in nine months 2025.
- Headline reports operating cash flow of $9.5 million for the quarter; the consolidated quarterly cash flow statement is not printed in the filing.
- Net decrease in cash, cash equivalents and restricted cash of $(6,339) thousand in nine months 2026, against a net increase of $62,930 thousand in nine months 2025.
- The CEO states that capex from the Netherlands and Delta 2 expansion projects is substantially complete.
Analysis
Village Farms reported Q3 2026 consolidated sales of $66,903 thousand, essentially flat against $66,741 thousand in Q3 2025, and net income attributable to shareholders of $9,968 thousand against $10,217 thousand. The mix moved decisively toward cannabis exports. Cannabis net sales rose 3% to a record $55,000 thousand, and International Exports rose 75% to $20,771 thousand. Canadian Branded fell to $25,294 thousand from $26,846 thousand, Canadian Non-Branded fell to $3,300 thousand from $7,344 thousand, and Other Produce fell to $11,270 thousand from $12,841 thousand. The company describes its international growth as supported by its EU-GMP facility and by resilient export pricing.
Profitability weakened sharply at the cannabis level. Cannabis gross margin was 48% against 55%, and cannabis gross profit fell 12% to $26,143 thousand. Cannabis SG&A rose 24% to $15,157 thousand. Cannabis net income fell 35% to $7,839 thousand, and cannabis Adjusted EBITDA from continuing operations fell 27% to $14,749 thousand. The company attributes the margin decline mainly to a softer spot trim market in the Canadian wholesale channel and says the cost increase is linked to higher operating expenses to support future growth. Consolidated Adjusted EBITDA from continuing operations was $18,241 thousand against $20,686 thousand, a non-GAAP measure reconciled in the filing.
The nine-month figures show the same pattern with more emphasis on cash. Consolidated sales rose to $181,118 thousand from $166,320 thousand, and consolidated gross profit rose to $80,284 thousand from $68,460 thousand. Nine-month net income attributable to shareholders fell to $20,030 thousand from $30,011 thousand, but the prior year included $11,015 thousand of income from discontinued operations, so the two periods are not directly comparable on that line. Net cash from operating activities from continuing operations fell to $1,595 thousand from $46,710 thousand, with working capital changes of $(33,252) thousand. Purchases of property, plant and equipment were $(17,315) thousand. The CEO states that capex for the Netherlands and Delta 2 projects is substantially complete and that Q3 cash flow was stronger sequentially, but the filing does not print a consolidated quarterly cash flow statement, so that sequential comparison cannot be checked against the statements.
Capital allocation included $(6,787) thousand of share repurchases and $15,000 thousand of share issuance proceeds in the nine months. Cash and cash equivalents were $79,289 thousand at September 30, 2026, against $81,189 thousand at December 31, 2025, and long-term debt rose to $33,427 thousand from $28,769 thousand. The headline cites a net cash position of $41 million, which the statement tables do not show.
The guidance is qualitative only. Management expects Canadian wholesale trim conditions to normalize in Q4 2026, expects Groningen to ramp toward full capacity in early 2027, and expects Delta 2 to reach 40 metric tonnes of capacity by mid-2027. No numeric revenue, margin or earnings outlook is printed, so the period cannot be checked against a prior outlook. The filing also notes a pending federal hemp ban effective December 11, 2026, an interim CFO appointment, and an optionality notice on 16 acres of Delta 1. Whether the margin recovery management describes appears in the Q4 2026 results is the key question for the next report.
Management, verbatim
Our third quarter results were driven by record cannabis revenues of $55 million and approximately 43% of cannabis sales from some of the world's most attractive and fastest growing international markets.
Michael DeGiglio, President and Chief Executive Officer
The year-over-year variance in our margin performance in Q3 was driven primarily by a softer spot trim market in the Canadian wholesale sales channel as compared to the prior year.
Michael DeGiglio, President and Chief Executive Officer
We believe wholesale trim volumes and pricing reached trough levels in the Canadian wholesale channel during Q3, and we expect these conditions to begin normalizing in Q4 given the visibility of our order book in October and the commencement of new supply agreements with considerably stronger contracted pricing.
Michael DeGiglio, President and Chief Executive Officer
Not in the filing
stated, not guessed- Consolidated gross margin percentage not printed (only the cannabis segment gross margin is printed).
- Year-over-year percentage changes for consolidated sales, gross profit, net income and Adjusted EBITDA are not printed.
- Prior-quarter (Q2 2026) figures are not printed for any line; sequential comparisons are not available except as stated in narrative text.
- Consolidated quarterly operating cash flow statement not printed; the $9.5 million figure appears only in the headline.
- Net cash position of $41 million appears only in the headline and is not shown in the statement tables.
- Numeric forward guidance for revenue, gross margin, operating expenses or tax rate is not printed.
- Prior-period outlook not provided, so vs_prior_guidance cannot be evaluated.
- Dividend payments not printed.
- Balance sheet prior-period comparisons are to December 31, 2025, not to the same quarter of the prior year; they are shown in balance_sheet_cash_flow only.
- Consensus estimates, analyst expectations and share price reaction are not in the document.
- Segment-level prior-year changes for Canadian Branded, Canadian Non-Branded, U.S. Cannabis, Netherlands Branded, Other Produce and Clean Energy are not printed as percentages.
- Reasons for the year-over-year changes in Canadian Branded, Canadian Non-Branded, Other Produce and Clean Energy revenue are not given in the filing.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
SEC Form 8‑K filing provides the first public disclosure of Village Farms' Q3 2026 financials.
Ticker impact
Village Farms International reported Q3 2026 results with record cannabis sales of $55M, net income of $10M and cash of $80M.
potential upside as record cannabis revenues boost growth outlook
New earnings release shows strong top-line growth and solid cash balance, suggesting investors may bid the stock higher despite lower margins.
Market effects
Highlights continued demand for cannabis production capacity, may benefit peers with EU‑GMP facilities.
Strengthens outlook for North American and European cannabis markets.
Shows resilience in the global medical cannabis sector.
Counterpoint
Margin compression and lower net income YoY could pressure the stock if investors focus on profitability.
Key entities
- CompanyVillage Farms International
Cannabis producer reporting Q3 2026 results.
