Village Farms Reports Q4 and FY 2025 Financial Results

VANCOUVER – Village Farms International, Inc. released earnings demonstrating a significant operational turnaround – the result of deliberate strategies focused on enhancing production efficiencies, expanding global export channels, and optimizing product mix in its Cannabis operations.

The company posted net income from continuing operations of $21 million for the year ended December 31, compared with a loss of $27.9 million in 2024. Adjusted EBITDA from continuing operations reached $49.9 million, up sharply from $7.4 million the prior year. Cash flow from operations climbed to $58.1 million from $13.7 million.

Consolidated revenue rose to $215.9 million from $195.9 million. The improvement came largely from the Canadian Cannabis segment, which generated net sales of $163.7 million, up 10% in local currency terms. Gross margins there expanded to 44% from 20%, reflecting better cost control and higher-value sales channels.

In the fourth quarter alone, sales increased 9% to $49.6 million. Net income from continuing operations turned positive at $2.3 million versus a loss the year before. Adjusted EBITDA reached $8.6 million. Canadian Cannabis sales rose 10% to $37.8 million, with gross margins hitting 43%.

International medicinal Cannabis exports from Canada surged 384% in the quarter and more than fivefold for the full year, reaching $37.9 million. The company noted that global Cannabis sales grew 17% overall, even with only partial contributions from its new Netherlands recreational facility.

Chief Executive Michael DeGiglio said the year reflected years of planning. “Thanks to the tireless commitment and execution of our global team, this past year was a transformational one for Village Farms,” he stated in the release. He pointed to multiple growth drivers and said the company is “in an excellent position to continue profitably scaling our platform in 2026.”

The balance sheet strengthened as well. Cash and equivalents stood at roughly $86 million at year-end. The company also repurchased $6.7 million of its shares since the third quarter.

Retail branded sales in Canada held steady in the quarter but declined 12% for the year, partly because of temporary supply limits and other operational factors. Excise taxes continued to weigh on reported figures, totaling $21.5 million in the quarter. Management noted demand still exceeds current capacity and said it started cultivation in the first phase of its Delta 2 greenhouse expansion, aiming to add 15 tons of production later this year.

Here, at Highly Capitalized Network, we see these numbers as evidence that Village Farms has moved past years of volatility into a phase of operational discipline and cash generation. The export momentum and margin gains highlight the value of its EU-GMP certification and greenhouse expertise at a time when more countries are opening regulated markets.

However, the market reaction to the results was notably negative: shares fell nearly 12% in premarket trading on March 12, driven by a Q4 revenue shortfall of about $11 million against analyst expectations of around $61 million and an adjusted EPS of $0.01 missing the $0.02 consensus.

Management attributed the Q4 softness to temporary factors, including a British Columbia labor strike that cut sales by roughly $2.5 million and delays in some international shipments shifted to the current quarter. Near-term supply bottlenecks and regulatory shifts will likely keep results uneven, but the $58 million in operating cash flow gives the company real flexibility to fund expansions without heavy reliance on external capital. That positions it to compete more effectively as the industry matures, provided it can convert capacity additions into consistent top-line delivery.