Overview

* Village Farms ( VFF ) Q2 rev rises 12% yr/yr, missing analyst expectations

* Adj. EBITDA from continuing ops hits record $17.1 mln, driven by margin improvements

* Co completes transaction to privatize produce assets, receiving $40 mln cash

Outlook

* Company expects continued profitable growth in 2026 and beyond

* Company plans to expand cannabis cultivation capacity in Canada and Netherlands

* Village Farms ( VFF ) anticipates strong international export sales performance

Result Drivers

* MARGIN IMPROVEMENTS - Canadian cannabis adjusted EBITDA up 146% YoY, driven by margin improvement initiatives

* INTERNATIONAL SALES - International medical export sales increased 690%, boosting overall performance

* PRODUCE TRANSACTION - Completion of produce asset privatization provided $40 mln cash, supporting future growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $59.90 $61.20

mln mln (3

Analysts

)

Q2 $18 mln

Operatin

g Cash

Flow

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the fishing & farming peer group is "buy"

* Wall Street's median 12-month price target for Village Farms International Inc ( VFF ) is $2.50, about 31.2% above its August 8 closing price of $1.72

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)