Village Farms International, Inc. (NASDAQ:VFF) reported fourth-quarter results on Thursday that fell short of analyst expectations.
Following the release, the company’s shares dropped 11.97% in premarket trading.
The cannabis and produce company reported adjusted earnings per share of $0.01 for the quarter, below the analyst consensus estimate of $0.02. Revenue totaled $49.6 million, well under the $60.88 million expected by analysts, though it represented a 9% increase from $45.4 million in the same quarter a year earlier.
Net income from continuing operations came in at $2.3 million, or $0.02 per share, compared with a net loss of $7.5 million, or -$0.04 per share, in the fourth quarter of 2024. The prior-year results included a $10.5 million non-cash impairment charge. Adjusted EBITDA from continuing operations reached $8.6 million, or 17.3% of sales, compared with negative $2.9 million a year earlier.
Canadian cannabis revenue rose 10% year-over-year to $37.8 million, while international cannabis export sales surged 384%. The Canadian cannabis segment recorded a gross margin of 43%, up sharply from 2% in the same period last year, supported by improved operating efficiency and a more profitable product mix.
“Our fourth quarter results again delivered strong profitability, gross margin and cash flow from operations which contributed to record levels of performance for each of these metrics in 2025,” said President and CEO Michael DeGiglio.
The company reported consolidated cash flow from continuing operations of $11.4 million for the quarter, compared with $10.9 million a year earlier. For the full year, consolidated cash flow from continuing operations increased to $58.1 million from $13.7 million.
Village Farms ended 2025 with $86 million in cash and said it has repurchased $6.7 million of its shares since the third quarter. The company also began cultivation at its Delta 2 expansion facility in Canada, which is expected to add about 15 tonnes of production capacity in 2026.