Cannabis firm Village Farms' Q2 revenue misses estimates

Overview

• Village Farms 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 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

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 is $2.50, about 31.2% above its August 8 closing price of $1.72

Press Release: ID:nGNX8Vs3PD