| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 50.24 | 34.8% |
| Total Income | 50.24 | 34.8% |
| Expenditure | 45.19 | 45.4% |
| PBT | 4.40 | 171.8% |
| Net Profit | 2.92 | 143.6% |
| OPM | 10.04% | |
| NPM | 5.81% | 14.50pp |
| EPS | 0.03 | 150.0% |
Village Farms Reports Q1 2026: Net Sales Up 27% to $50.2 Million
11 May 2026 · 11 May, 4:37 pm
Summary
Village Farms International reported a strong start to 2026, with consolidated net sales increasing by 27% to $50.2 million. Net income for Q1 2026 was $2.9 million, or $0.03 per share. Adjusted EBITDA from continuing operations increased significantly by 118% to $9.9 million. The company's international export sales experienced substantial growth, increasing by 171%. Management anticipates further sales growth in the latter half of the year due to expansions in the Netherlands and Canada.
Key Highlights
- 1
Village Farms International's consolidated net sales increased by 27% to $50.2 million in Q1 2026.
- 2
The company reported a net income of $2.9 million, or $0.03 per share, for the first quarter of 2026.
- 3
Adjusted EBITDA from continuing operations increased by 118% to $9.9 million, representing 20% of sales.
- 4
International export sales grew by 171% due to increasing demand.
- 5
Net sales for cannabis operations increased by 27% to $49.7 million.
- 6
Gross margin for cannabis operations increased to 43% from 39% in the prior year period.
- 7
The company expects Netherlands and Canadian expansions to contribute to stronger sales during the second half of 2026.
Management Comments
Michael DeGiglio
Our first quarter results reflect a strong start to the year and continued momentum in our largest markets, with adjusted EBITDA growth of 118% year-over-year significantly outpacing revenue growth of 27%, driven by our international businesses and continued leadership in Canada. Our operations and commercial teams are executing with precision, delivering continued margin strength and a fourth consecutive quarter of positive net income which clearly demonstrates the sustainably profitable nature of our expanding global cannabis enterprise. In Canada, we’re continuing to benefit from efforts to shift our business toward higher‑margin products, growing market share in targeted and profitable product categories, and our Pure Sunfarms brand has now increased its share of dried flower formats for 15 consecutive months. It was also a record quarter of international medical export sales, which grew 171% year-over-year and 60% sequentially, supported by increasing demand for Village Farms’ EU-GMP compliant products, particularly in Germany where we are capturing an increasing share of a growing market and continue to see a stable pricing environment for our products for the foreseeable future. After making recent facility upgrades at our 4.8 million square foot production campus in British Columbia, we now believe we operate the world’s largest EU-GMP certified cannabis facility. Our production capabilities, product quality, and regulatory and supply chain excellence provide us with a unique collection of durable competitive advantages that we have methodically built over the last six years. Our capacity expansion projects will begin contributing to stronger sales growth through the remainder of this year and into 2027, and we look forward to showcasing the combined strengths of our global platform as the year progresses. We remain in an excellent position to continue scaling profitably with increasing global demand, and believe the strength of our balance sheet and cash generation profile will enable flexibility to make additional accretive organic and acquisitive growth investments. We have a lot of attractive opportunities emerging for us in the U.S. and international markets, but we plan to be prudent and patient with respect to the various strategic M&A opportunities we are pursuing.
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