Village Farms Posts Record Cannabis Revenue as Export Sales Jump 74%

Village Farms International reported second-quarter results on August 10, 2026 showing record cannabis revenue of US$53.5 million, up 5% from the same period last year, as record international export sales and record first-half harvest yields at its Delta, British Columbia facilities drove expanded margins across the business.

Consolidated net sales rose 7% year-over-year to US$64 million, and the Vancouver-based company posted net income of US$7.1 million, or US$0.06 per share, with US$8.9 million in operating cash flow, according to its second-quarter earnings release. It is the fifth consecutive quarter of positive net income since the company privatized its legacy produce business in 2025.

The quarter’s standout figure was export sales: a record US$20.9 million, up 74% from a year earlier and 43% from the first quarter of 2026. Village Farms, which operates what it describes as the world’s largest EU-GMP certified cannabis facility at its Delta campus, says it remains the largest exporter of medical cannabis to Europe with a leading market share position in Germany. International markets now account for close to half of revenue across the company’s global cannabis operations.

“Our second quarter results continue to demonstrate the strength of our expanding global cannabis platform, driven by record cannabis revenues of $53.5 million as we continued to grow in target markets and product categories around the world,” President and Chief Executive Officer Michael DeGiglio said in the release.

Gross margin in the cannabis segment climbed to 51% from 42% a year earlier, a nine-percentage-point expansion the company attributes to higher harvest yields, lower production costs, and a more favourable sales mix. Adjusted EBITDA from continuing cannabis operations rose 16% to US$15.3 million, or 28.5% of sales.

Exports Now Rival the Canadian Retail Book

The channel breakdown in the earnings release shows how quickly the revenue mix has shifted. Canadian branded sales, shown net of excise tax, came in at US$23.0 million for the quarter, down from US$25.0 million a year earlier, while Canadian non-branded sales fell to US$3.0 million from US$7.1 million. International exports nearly closed the gap with the entire branded retail business in a single year, rising from US$12.0 million in the second quarter of 2025.

Domestically, the company says it held a top-five overall market share position in Canada and, for the first time, placed its brand portfolio among the top 10 nationally in all major product categories, with continued growth in vapes and infused pre-rolls. The market-share figures draw on estimated retail sales from HiFyre, other third parties, and provincial boards. Village Farms’ Canadian portfolio includes Pure Sunfarms, Fraser Valley Weed Co., Soar, Super Toast, Pure Laine, Tam Tams and Promenade.

One line in the release puts the quarter’s profitability in context: the year-ago period included a one-time US$4.3 million vendor settlement. Excluding that item, consolidated adjusted EBITDA rose year-over-year to US$15.4 million — up from the roughly US$12.8 million implied by the year-ago US$17.1 million as-reported figure once the settlement is stripped out, a comparison the company says shows underlying growth.

Capacity Buildouts in British Columbia and the Netherlands

Village Farms harvested its first crop from the first half of its Delta 2 greenhouse expansion during the quarter and said it is accelerating technology upgrades in response to global demand. The expansion is expected to yield approximately 15 metric tonnes of dried, trimmed flower in the second half of 2026 and ramp to a full 40-tonne production run rate by mid-2027, bringing total capacity at the Delta campus to roughly 160 metric tonnes annually.

In the Netherlands, where Village Farms is one of ten licensed operators in the country’s regulated cannabis program, the company commenced cultivation at its Phase II facility in Groningen during the quarter. That site brings maximum annualized Dutch production capacity to approximately 10 metric tonnes and is expected to ramp to full production into early 2027. DeGiglio said the company continues to expect entry into multiple new European jurisdictions later in 2026.

The Quarter in Figures

• Consolidated net sales: US$64.0 million, up 7% year-over-year and 27% sequentially
• Cannabis segment net sales: US$53.5 million, up 5% from US$50.8 million in Q2 2025
• Cannabis gross margin: 51%, up from 42%
• Cannabis net income: US$8.6 million, up 21% from US$7.1 million
• Cannabis adjusted EBITDA from continuing operations: US$15.3 million, or 28.5% of sales
• International export sales: US$20.9 million, up 74% year-over-year
• Cash position at June 30, 2026: US$72.9 million
• June 5, 2026 registered direct offering: 7.5 million common shares for gross proceeds of approximately US$15 million

What Happens Next

The company’s full quarterly report for the three and six months ended June 30, 2026 will be filed with the U.S. Securities and Exchange Commission and on SEDAR+ in Canada. Village Farms reports under U.S. GAAP in U.S. dollars, and its adjusted EBITDA figures are non-GAAP measures that the company cautions may not be comparable to similar measures from other issuers.

On the operational calendar, the Groningen facility is expected to reach full production capacity by the end of the first quarter of 2027, and Delta 2 is expected to reach its full 40-tonne run rate by mid-2027. Management also said it expects to grow the company’s cash balance from positive operating cash flow through the remainder of 2026 while evaluating additional organic and acquisitive growth investments.