Village Farms Posts 2025 Profit Turnaround on Surging EU-Certified Cannabis Exports

Overview

• For FY2025, global cannabis sales rose about 70% year over year as the company reported $21 million in net income, $50 million in adjusted EBITDA, and $58 million in operating cash flow.
• Q4 2025 marked a third straight profitable quarter with net sales of $49.6 million, net income of $2.3 million, and adjusted EBITDA of $8.6 million, with results affected by a British Columbia labor strike and German shipment timing.
• International export sales increased more than sixfold, which executives attributed to EU GMP certification and early contributions from the commercialized Netherlands pilot that delivered positive net income after three quarters.
• Capacity expansions are underway, with Delta 2 in Canada expected to add roughly 15 metric tons in 2025 on a path to about 40 metric tons annually by mid-2027, and Netherlands Phase II targeting a 10 metric ton ramp beginning with planting expected in late March.
• Canadian excise taxes totaled $21.5 million for the year, and management expects about $16 million of Canadian income tax payments to weigh on 2026 cash flow, while recent actions included approximately $6.7 million in share repurchases and a $15 million delayed-draw loan to enhance EU GMP capabilities.