Village Farms International, Inc. reported a significant financial turnaround in its fiscal year ending December 31, 2025, achieving revenues of $215.9 million, a 10% increase from $195.9 million in 2024. The company’s gross profit surged to $87.7 million, reflecting a 91% increase compared to the previous year, primarily driven by improved margins in its Canadian cannabis segment and the first year of sales from its Netherlands operations. The net income attributable to shareholders was $32.4 million, a substantial recovery from a net loss of $35.9 million in 2024. This positive shift was also evident in the adjusted EBITDA from continuing operations, which rose to $49.9 million from $7.4 million in the prior year.
The company’s Canadian cannabis operations, which include Pure Sunfarms and Rose LifeScience, were pivotal in this growth, contributing $163.7 million in sales, a 10% increase from 2024. International sales from the Netherlands segment added $9.9 million, while U.S. cannabis sales decreased by 17% to $14.4 million due to regulatory restrictions in several states. The overall cost of sales decreased by 15% to $128.3 million, which, combined with the increase in sales, significantly boosted gross margins.
Strategically, Village Farms has made notable advancements, including the completion of its acquisition of the remaining 15% of Leli Holland, which is now fully owned and operational under the Controlled Cannabis Supply Chain Experiment in the Netherlands. The company also announced plans to expand its cannabis cultivation capacity in Canada, with the conversion of additional greenhouse space expected to increase production by 33% by 2027. Furthermore, the company has initiated a partnership with Terreva Renewables for a renewable natural gas project, which is anticipated to enhance profitability through sustainable energy solutions.
Operationally, Village Farms employed approximately 1,128 individuals across its various segments, with a focus on maintaining a strong workforce to support its growth initiatives. The company continues to navigate a competitive landscape, particularly in the cannabis sector, where it holds a significant market share in Canada. However, it faces challenges from regulatory changes, particularly in the U.S. market, where the November 2025 Appropriations Act could impact its hemp-derived product lines starting in November 2026.
Looking ahead, Village Farms remains optimistic about its growth trajectory, emphasizing its commitment to expanding its cannabis operations both domestically and internationally. The company is focused on leveraging its expertise in controlled environment agriculture to enhance product quality and market presence, while also addressing potential regulatory hurdles that may arise in the evolving cannabis landscape.
About Village Farms International, Inc.
Village Farms International is a diversified agricultural and cannabis company specializing in controlled environment agriculture (CEA) for produce and legal cannabis cultivation. It operates greenhouse-based produce farms in North America, and produces cannabis through its Canadian subsidiaries Pure Sunfarms and Rose, as well as in the Netherlands via Leli Holland. The company also develops hemp-derived CBD products in the U.S. and renewable energy projects, emphasizing sustainability and high-quality, low-cost production.
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