Village Farms Reports Q3 2026 Financial Results

VANCOUVER – Village Farms International Inc. reported record Cannabis revenue of $55 million for the third quarter, up 3% from a year earlier. The company generated consolidated sales of $66.9 million for the three months ended September 30, up slightly from $66.7 million during the same period last year. The total exceeded consensus estimates of roughly $65 million. GAAP diluted earnings reached $0.08 per share, surpassing Wall Street expectations of $0.05 per share, with net income totaling $10 million.

Exports carried the growth. Global medical Cannabis exports expanded 75% to $20.8 million from $11.9, supported by steady pricing and sustained demand for EU-GMP certified flower. In Canada, branded retail sales registered at $25.3 million, preserving the producer’s position among the country’s five largest market share holders, even as unbranded wholesale volumes softened.

Margins went the other direction. Cannabis gross margin was 48%, compared with 55% a year earlier. Adjusted EBITDA from continuing operations was $18.2 million, or 27% of sales, down from $20.7 million. The company pointed to a softer spot market for Cannabis trim in Canada’s wholesale channel, where non-branded sales fell to $3.3 million from $7.3 million. Dutch branded sales dropped to $2.8 million from $3.6 million after planting work temporarily cut output at the Netherlands site.

President and CEO Michael DeGiglio said he believes trim volumes and pricing hit bottom in the third quarter. He expects improvement in the fourth, citing October orders and new supply agreements with higher contracted prices.

The company ended September with $79.3 million in cash and, by its own count, a net cash position of about $41 million. Operating cash flow for the quarter was $9.5 million. For the first nine months, cash from continuing operations was $1.6 million. A $33.3 million working capital outflow explains most of the gap, and trade receivables rose to $41.6 million from $23.2 million at year-end.

The Delta 2 expansion in British Columbia is due to finish in Q1 2027 and add 40 metric tons of annual capacity by mid-2027. The Groningen facility in the Netherlands is fully planted and expected to reach maximum output in early 2027. In Texas, the company said it has begun mobilizing to activate its 30-acre Monahans greenhouse for Cannabis production and is pursuing “all potential pathways” to enter the U.S. market. It gave no timeline. It also told Verdexa Holdings it is exercising its right to convert 16 acres of its Delta 1 greenhouse, giving it the option to do so during 2027, though no formal conversion plans exist yet.

The quarter beat analyst estimates, but the year-over-year comparison is the sharper reading. Revenue grew by a thin margin and earnings per share held flat, while the sales mix shifted toward exports and away from Canadian wholesale. Receivables grew over the same stretch, so cash conversion is worth watching in coming reports. Management’s fourth-quarter case rests on trim pricing improving, Dutch output rising and Delta 2 coming online. None of those shows up in the reported numbers yet. Texas adds a possible second growth route, but without a timeline or licensing detail it remains a plan rather than a revenue line.