Village Farms International Reports 12% Revenue Growth and Net Income Turnaround in Q2 2025

Village Farms International, Inc. reported a significant turnaround in its financial performance for the second quarter of 2025, with total revenues reaching $59.9 million, a 12% increase from $53.6 million in the same period last year. The company achieved a gross profit of $22.3 million, up 64% from $13.6 million in Q2 2024, driven by improved margins in its Canadian Cannabis segment and the introduction of new products from its Netherlands operations. The net income attributable to Village Farms shareholders was $26.5 million, compared to a net loss of $23.5 million in the prior year, marking a substantial recovery.

The company’s operational metrics also showed improvement, with selling, general, and administrative expenses decreasing to $15.4 million from $17.1 million year-over-year. This reduction was attributed to lower share-based compensation costs. Additionally, the company reported a notable increase in adjusted EBITDA from continuing operations, which rose to $17.1 million from $2.9 million in the previous year, reflecting enhanced operational efficiency and profitability.

Strategically, Village Farms has made significant moves, including the completion of its acquisition of the remaining 15% equity interest in Leli Holland, which is expected to bolster its presence in the Netherlands cannabis market. The company also privatized certain assets and operations of its Fresh Produce segment, receiving $40 million in cash and a 37.9% equity interest in Vanguard Food LP. This transaction is anticipated to streamline operations and focus on higher-margin cannabis products.

In terms of operational developments, Village Farms reported a 690% year-over-year increase in international cannabis export sales, driven by strong demand in markets such as Germany and the United Kingdom. The company has also expanded its product offerings, launching new cannabis products in the Netherlands and enhancing its cultivation capacity in British Columbia. As of June 30, 2025, the company had cash and cash equivalents of $64.9 million, a significant increase from $24.6 million at the end of 2024, providing a solid liquidity position for future growth initiatives.

Looking ahead, Village Farms remains optimistic about its growth trajectory, particularly in the international cannabis market, where it aims to leverage its established production capabilities and market presence. The company plans to continue expanding its product lines and geographic reach while maintaining a focus on operational efficiency and profitability. However, management acknowledges potential risks, including regulatory changes and market competition, which could impact future performance.