Village Farms Q2 2026 Results: Record Cannabis Sales Drive Profitability and Export Growth Key Points

Key Points

• Village Farms International reported Q2 2026 net sales of $64.0 million, up 27% from Q1 2026 and 7% from the prior-year quarter.
• Cannabis revenue reached a record $53.5 million, supported by record international export sales of $20.9 million.
• Net income attributable to shareholders was $7.1 million, or $0.06 per share, while cannabis adjusted EBITDA from continuing operations reached a record $15.3 million.

Village Farms International (Nasdaq: VFF) delivered a strong second quarter in 2026 as record cannabis revenue, growing international exports, and improved margins supported another profitable period. The results reflect the company’s transition into a cannabis-focused business following the privatization of its legacy fresh-produce operations.

Record cannabis revenue drives Village Farms’ second-quarter growth

Village Farms generated a record $53.5 million in cannabis net sales during Q2 2026, accounting for the large majority of its $64.0 million in consolidated quarterly revenue. Sales increased 27% sequentially and 7% year over year, driven by growth across core cannabis markets, product categories, and production output.

The quarter reinforces the central role of cannabis in Village Farms’ business model. With Canadian operations and a growing European presence through the Netherlands, the company is increasingly focused on expanding its global cannabis platform rather than its former produce business.

International medical cannabis exports reach a new quarterly high

International cannabis export sales rose to a record $20.9 million in the second quarter, increasing 74% from the prior-year period and 43% from Q1 2026. The growth reflects Village Farms’ expanding participation in international medical-cannabis markets, which are becoming an increasingly important contributor to company revenue.

Higher exports can provide access to new customers and potentially more favorable pricing than some domestic markets. At the same time, the business remains dependent on international regulations, customer demand, product availability, export approvals, and execution across each market.

Higher harvest yields and stronger margins lift cannabis profitability

Cannabis gross margin increased to 51% in Q2 2026 from 42% in the prior-year quarter. Cannabis adjusted EBITDA from continuing operations climbed 16% to a record $15.3 million, representing roughly 29% of cannabis sales.

Village Farms attributed the improved performance in part to stronger production efficiency and record year-to-date harvest yields at its Delta facilities. If the company can maintain higher yields while expanding sales, it may continue to benefit from improved operating leverage and profitability.

Net income and operating cash flow remain positive

Village Farms reported net income attributable to shareholders of $7.1 million, or $0.06 per share, during the second quarter. Operating cash flow totaled $8.9 million, extending the company’s profitable trend as it scales its cannabis operations.

The company ended the quarter with approximately $72.9 million in cash and cash equivalents. Its balance sheet was further supported by a $15 million registered direct equity offering completed in June, which provides added capital for operating needs and future growth initiatives.

What Village Farms investors should watch after Q2 2026

For VFF investors, the second-quarter results point to momentum in cannabis revenue, export growth, margins, and profitability. The most important measures to follow are cannabis sales growth, international export performance, production yields, gross margin, adjusted EBITDA, and the pace of expansion in Canada and the Netherlands.

Village Farms is building a more globally diversified cannabis business, but future results will still depend on market pricing, regulatory developments, international execution, capital needs, and the company’s ability to sustain high-margin export growth.