Village Farms International Reports 27% Sales Increase and Profit Turnaround in Q1 2026

Village Farms International, Inc. reported a significant increase in financial performance for the first quarter of 2026, with total sales reaching $50.2 million, a 27% increase from $39.7 million in the same period last year. The company achieved a gross profit of $21.0 million, up 48% from $14.2 million, driven primarily by a 171% increase in international export sales, which accounted for 29% of total revenue. The net income attributable to Village Farms shareholders was $2.9 million, compared to a net loss of $6.7 million in the prior year, marking a substantial turnaround in profitability.

The company’s operational metrics showed notable changes compared to the previous fiscal period. The increase in revenue was attributed to higher sales volumes, particularly in international markets, despite a 12% decrease in the average selling price due to a shift towards bulk flower products. Canadian branded sales also rose by 5%, while U.S. cannabis sales declined by 20%, reflecting challenges in the direct-to-consumer market amid increased competition from unregulated products.

Strategically, Village Farms has undergone a reorganization to streamline its operations into a unified cannabis segment, which includes its subsidiaries Pure Sunfarms, Balanced Health, and Rose LifeScience. This restructuring aims to enhance operational efficiencies and better align resources with market opportunities. The company also completed facility upgrades at its Delta production campus, positioning it as one of the largest EU-GMP certified cannabis facilities globally. Additionally, the company is expanding its Delta 2 greenhouse, expected to increase production capacity by 33% by 2027.

Operationally, Village Farms reported a decrease in cash and cash equivalents to $55.5 million from $86.3 million at the end of 2025, primarily due to increased cash used in operating and investing activities. The company’s total assets decreased to $400.9 million from $423.1 million, while total liabilities also fell to $97.1 million from $113.0 million. The company maintained compliance with its financial covenants and has access to additional liquidity through its credit facilities, which were recently amended to improve terms.

Looking ahead, Village Farms anticipates continued growth driven by its international expansion and product innovation. The company expects to ramp up operations at its Phase II facility in the Netherlands by the end of 2026, significantly increasing production capacity. Furthermore, the recent executive order from President Trump regarding cannabis regulation is viewed as a potential catalyst for future growth, aligning U.S. policies more closely with international standards.