Village Farms International, Inc. Q3 2026 Earnings Recap

The stock fell 1.4% after earnings, a roughly flat reaction. Results included record cannabis revenue and higher sequential EBITDA, while Canadian branded growth remained below the company’s mid-single-digit target and gross margins faced pressure from weaker trim pricing.

Key Takeaways

• Cannabis revenue reached a record $55 million; consolidated sales were $67 million, up 5% sequentially.
• Net income was $10 million, or $0.08 per share. Adjusted EBITDA rose 18% sequentially to $18.2 million, equal to 27% of sales; operating cash flow was $9.5 million.
• International export sales grew 75% year over year to $20.8 million. The company said it remained supply-constrained and that the 9% year-over-year decline in average net selling price reflected a shift toward bulk flower, not lower pricing for EU GMP-compliant product.
• Softer Canadian trim conditions weighed on gross margins; management said spot trim prices were down about 75% year over year in Q3, and expected normalization to begin in Q4.
• Canadian branded sales were $25.3 million, with average net selling prices up 6% year over year. Management acknowledged it had not achieved its goal of growing in line with the Canadian market at mid-single digits in recent quarters.