Village Farms Cannabis Co Sees Strong Start To 2026 With Revenue And Margin Gains

Village Farms International, Inc. (NASDAQ: VFF) reported its first-quarter financial results on Monday, revealing a 27% year-over-year increase in revenue to $50.2 million, driven by international businesses and Canadian operations.  Adjusted EBITDA from continuing operations more than doubled to $9.9 million from $4.5 million.

Michael DeGiglio, the company’s president and CEO, praised the company’s performance during the period, saying the “first quarter results reflect a strong start to the year and continued momentum in our largest markets.”

“In Canada, we’re continuing to benefit from efforts to shift our business toward higher-margin products, growing market share in targeted and profitable product categories, and our Pure Sunfarms brand has now increased its share of dried flower formats for 15 consecutive months,” DeGiglio continued. “It was also a record quarter of international medical export sales, which grew 171% year-over-year and 60% sequentially, supported by increasing demand for Village Farms’ EU-GMP compliant products, particularly in Germany, where we are capturing an increasing share of a growing market and continue to see a stable pricing environment for our products for the foreseeable future.”

Q1 2026 Financial Highlights

• Gross profit increased 48% year-over-year to $21 million.
• Gross margin expanded to 43% from 39% in the prior year’s period.
• Net income attributable to shareholders improved to $2.9 million versus a $6.7 million loss in last year’s quarter. That’s the fourth consecutive quarter of positive net income.
• Cannabis segment net income rose 68% over the same period to $4.8 million.
• Adjusted EBITDA margin improved to roughly 20% of sales.
• Operating cash flow was negative $11.8 million, as the company paid $15 million in Canadian taxes tied to prior-year obligations.

VFF Price Action

Village Farms’ shares traded 1.95% higher at $2.62 per share as of Monday morning.