Village Farms International Reports 7% Revenue Increase to $63.98 Million in Q2 2026

Village Farms International, Inc. reported a revenue increase of 7% for the second quarter of 2026, reaching $63.98 million compared to $59.90 million in the same period last year. The growth was primarily driven by a significant 74% rise in international export sales, which totaled $20.90 million, reflecting the company's expanding market presence in Europe, particularly in Germany. However, the company experienced a decline in net income attributable to shareholders, which fell to $7.15 million from $26.50 million in the prior year, largely due to the absence of income from discontinued operations that had contributed $16.29 million in the previous year.

In terms of profitability, the gross profit for the second quarter increased to $29.97 million, resulting in a gross margin of 47%, up from 37% in the same quarter of 2025. This improvement was attributed to better sales volumes in international markets and a favorable sales mix. Selling, general, and administrative expenses rose to $18.81 million, reflecting increased commercial and marketing expenditures. The company reported an adjusted EBITDA from continuing operations of $15.41 million, down from $17.11 million a year earlier, indicating a 10% decrease primarily due to a favorable vendor settlement in the previous year.

Strategically, Village Farms has made significant organizational changes, including a realignment of its operations into a unified cannabis segment, which now encompasses its various cannabis-related businesses. This restructuring aims to enhance operational efficiencies and better align resources with market opportunities. Additionally, the company completed the acquisition of an additional 6.6% interest in Rose LifeScience, increasing its ownership to 86.6%, which is expected to strengthen its market position in Quebec.

Operationally, the company has reported a notable increase in production capacity, particularly with the commencement of cultivation at its Phase II facility in Groningen, Netherlands. This facility is projected to enhance the company's annual production capacity to approximately 10 metric tonnes. Furthermore, Village Farms has harvested its first crop from the Delta 2 greenhouse expansion, which is anticipated to yield around 15 metric tonnes of dried flower in the latter half of 2026.

Looking ahead, Village Farms remains optimistic about its growth trajectory, particularly in international markets where it expects to leverage its competitive advantages in production and distribution. The company plans to continue expanding its cannabis operations while managing its costs effectively to enhance profitability. However, it acknowledges potential risks related to market conditions, regulatory changes, and operational challenges that could impact its performance in the future.