Village Farms Reports Record 2025 Profitability as Strong Q4 Results Continue Momentum
Village Farms International, Inc. (NASDAQ: VFF) reported record profitability for full-year 2025, driven by strong growth in its cannabis operations and improving margins across the business. The company also delivered solid fourth-quarter results as demand for its cannabis products and international exports continued to expand.
The results highlight Village Farms’ ongoing transition toward a cannabis-focused growth strategy while strengthening its financial performance.
Record financial performance in 2025
Village Farms generated approximately $21 million in net income from continuing operations during 2025, marking a major improvement compared with the previous year. The company also reported about $49.9 million in adjusted EBITDA and $58.1 million in operating cash flow, reflecting stronger operational efficiency and improved profitability.
Global cannabis sales increased roughly 70 percent year over year. International export sales grew even faster, rising more than sixfold as the company expanded shipments to European markets.
Strong fourth-quarter results
Village Farms reported fourth-quarter net sales of approximately $49.6 million, representing a 9 percent increase compared with the same period in 2024. The company posted net income of $2.3 million for the quarter, compared with a net loss of $5.7 million in the prior year period.
Adjusted EBITDA reached $8.6 million during the fourth quarter, compared with a loss of $2.9 million a year earlier. Operating cash flow also improved significantly, reaching about $11.4 million.
The company’s Canadian cannabis operations played a major role in the strong performance. Gross margin in the segment reached approximately 43 percent in the fourth quarter, supported by higher-margin international exports and an improved product mix.
International expansion supports future growth
Village Farms continues to expand production capacity to meet growing global demand for cannabis products. The company recently began cultivation at its Delta 2 greenhouse facility in Canada, which is expected to produce about 15 metric tons of cannabis annually in 2026 and potentially reach 40 metric tons by mid-2027.
In Europe, Village Farms is expanding its Groningen facility in the Netherlands, where the second phase of development is expected to increase annual production capacity to approximately 10 metric tons.
These expansion projects are designed to address supply constraints while supporting the company’s long-term international growth strategy.
Investor perspective
For investors, Village Farms’ record profitability highlights the company’s successful pivot toward higher-margin cannabis operations. Rising global demand, expanding export markets, and increasing production capacity position the company for continued growth.
Village Farms ended the year with roughly $86 million in cash, providing additional financial flexibility to support expansion initiatives and future strategic investments.
Bottom line
Village Farms delivered record profitability in 2025, supported by strong cannabis sales, growing international exports, and improved margins. With production expansions underway in Canada and Europe, Village Farms is positioning itself to capture increasing demand in the global cannabis market.
