The company has achieved structural margin expansion with gross margins reaching 41.8% in 2026Q1, even as top-line revenue contracted by 34.8% year-over-year due to a strategic shift away from lower-margin produce.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 226.5M | 215.94M | 336.18M | 285.6M | 293.57M | 268.02M | 170.09M | 144.57M | 150M | 158.41M | 155.5M | 141.93M | 136.62M | 137.63M | 133.94M | 164.45M | 144.77M | 130.52M | 133.1M | 113.75M | 82.36M | 53.8M | 43.34M |
| Revenue Growth % | -23.63% | -35.77% | 17.71% | -2.71% | 9.53% | 57.58% | 17.65% | -3.62% | -5.31% | 1.87% | 9.56% | 3.89% | -0.74% | 2.76% | -18.55% | 13.59% | 10.91% | -1.93% | 17.01% | 38.13% | 53.07% | 24.14% | - |
| Cost of Goods Sold | 132.01M | 128.25M | 288.78M | 236.18M | 266.07M | 222.84M | 159.13M | 151.91M | 141.12M | 144.17M | 142.28M | 126.26M | 122.86M | 120.58M | 126.5M | 140.63M | 123.63M | 115.76M | 106.34M | 95.53M | 68.32M | 41.44M | 39.08M |
| COGS % of Revenue | - | 59.39% | 85.9% | 82.69% | 90.63% | 83.14% | 93.56% | 105.08% | 94.08% | 91.01% | 91.5% | 88.95% | 89.93% | 87.61% | 94.45% | 85.51% | 85.4% | 88.69% | 79.89% | 83.98% | 82.95% | 77.03% | 90.18% |
| Gross Profit | 94.49M | 87.68M | 47.4M | 49.43M | 27.5M | 45.18M | 10.96M | -7.34M | 8.88M | 14.24M | 13.22M | 15.68M | 13.76M | 17.05M | 7.44M | 23.82M | 21.14M | 14.77M | 26.76M | 18.23M | 14.04M | 12.36M | 4.26M |
| Gross Margin % | 41.72% | 40.61% | 14.1% | 17.31% | 9.37% | 16.86% | 6.44% | -5.08% | 5.92% | 8.99% | 8.5% | 11.05% | 10.07% | 12.39% | 5.55% | 14.49% | 14.6% | 11.31% | 20.11% | 16.02% | 17.05% | 22.97% | 9.82% |
| Gross Profit Growth % | - | 84.98% | -4.1% | 79.75% | -39.14% | 312.22% | 249.22% | -182.68% | -37.6% | 7.68% | -15.66% | 13.94% | -19.3% | 129.26% | -68.78% | 12.7% | 43.15% | -44.82% | 46.83% | 29.81% | 13.6% | 190.36% | - |
| Operating Expenses | 61.62M | 60.29M | 71.05M | 65.5M | 72.27M | 53.92M | 25.23M | 21.48M | 15.56M | 15.41M | 13.72M | 12.05M | 13.48M | 13.58M | 23.64M | 14.59M | 13.16M | 12.09M | 14.33M | 12.47M | 8.58M | 8.81M | 34.22M |
| OpEx % of Revenue | - | 27.92% | 21.13% | 22.93% | 24.62% | 20.12% | 14.83% | 14.86% | 10.37% | 9.73% | 8.82% | 8.49% | 9.87% | 9.86% | 17.65% | 8.87% | 9.09% | 9.26% | 10.77% | 10.96% | 10.42% | 16.37% | 78.96% |
| Selling, General & Admin | 61.62M | 60.29M | 71.05M | 65.5M | 72.27M | 53.92M | 25.23M | 21.48M | 15.56M | 15.41M | 13.72M | 12.05M | 13.38M | 12.87M | 14.54M | 14.59M | 13.16M | 12.09M | 14.33M | 11.08M | 8.3M | 5.25M | 2.61M |
| SG&A % of Revenue | - | 27.92% | 21.13% | 22.93% | 24.62% | 20.12% | 14.83% | 14.86% | 10.37% | 9.73% | 8.82% | 8.49% | 9.79% | 9.35% | 10.85% | 8.87% | 9.09% | 9.26% | 10.77% | 9.74% | 10.07% | 9.75% | 6.03% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 131K | 46K | 22K | 22K | 0 | 91K | 261K | 0 | 0 | 0 | 0 | 1.39M | 281.57K | 3.56M | 31.61M |
| Operating Income | 32.87M | 27.39M | -23.65M | -16.07M | -44.77M | -8.74M | -14.27M | -28.82M | -6.68M | -1.18M | -497K | 3.63M | 379K | 19.52M | 15.13M | 9.23M | 7.97M | 2.67M | 12.43M | 5.75M | 5.46M | 3.55M | -28.3M |
| Operating Margin % | 14.51% | 12.68% | -7.03% | -5.63% | -15.25% | -3.26% | -8.39% | -19.94% | -4.45% | -0.74% | -0.32% | 2.56% | 0.28% | 14.19% | 11.3% | 5.61% | 5.51% | 2.05% | 9.34% | 5.06% | 6.63% | 6.6% | -65.31% |
| Operating Income Growth % | - | 215.82% | -47.11% | 64.09% | -412.34% | 38.76% | 50.49% | -331.58% | -468.34% | -136.42% | -113.68% | 858.31% | -98.06% | 29.04% | 63.98% | 15.74% | 198.35% | -78.5% | 116% | 5.32% | 53.71% | 112.55% | - |
| EBITDA | 48.65M | 43.77M | -4.81M | -149K | -31.71M | 3.97M | -7.44M | -21.45M | 349K | 6.41M | 7.67M | 11.92M | 8.26M | 26.84M | 22.68M | 15.24M | 13.77M | 8.44M | 18.88M | 12.33M | 9.53M | 7.11M | -25.25M |
| EBITDA Margin % | 21.48% | 20.27% | -1.43% | -0.05% | -10.8% | 1.48% | -4.38% | -14.84% | 0.23% | 4.05% | 4.93% | 8.4% | 6.05% | 19.5% | 16.93% | 9.27% | 9.51% | 6.47% | 14.19% | 10.84% | 11.57% | 13.22% | -58.26% |
| EBITDA Growth % | 2581.03% | 1009.94% | -3128.19% | 99.53% | -898.64% | 153.35% | 65.31% | -6247.56% | -94.56% | -16.38% | -35.66% | 44.2% | -69.21% | 18.32% | 48.86% | 10.69% | 63.05% | -55.29% | 53.16% | 29.35% | 34.01% | 128.17% | - |
| D&A (Non-Cash Add-back) | 15.78M | 16.38M | 18.84M | 15.93M | 13.05M | 12.71M | 6.83M | 7.37M | 7.03M | 7.59M | 8.16M | 8.29M | 7.88M | 7.31M | 7.55M | 6.01M | 5.79M | 5.77M | 6.46M | 6.58M | 4.07M | 3.56M | 3.06M |
| EBIT | 39.53M | 34.06M | -33.94M | -22.86M | -90.82M | -9.51M | 9.87M | -14.7M | -6.85M | -2.36M | -497K | 3.19M | -875K | 3.47M | 16.54M | 10.76M | 6.64M | 3.55M | 10.55M | 9.04M | 5.46M | 6.92M | -29.96M |
| Net Interest Income | -829K | -1.54M | -2.45M | -3.49M | -3.04M | -2.71M | -1.43M | -1.58M | -2.48M | -2.69M | -2.51M | -2.26M | -2.49M | -3.67M | -4.33M | -3.02M | -2.77M | -3.16M | -3.62M | -5.61M | -1.35M | -2.47M | 0 |
| Interest Income | 1.7M | 1.16M | 914K | 1.02M | 207K | 126K | 625K | 1.04M | 311K | 0 | 0 | 0 | 0 | 3K | 2K | 17K | 0 | 0 | 68K | 223K | 0 | 0 | 0 |
| Interest Expense | 2.52M | 2.7M | 3.37M | 4.51M | 3.24M | 2.83M | 2.06M | 2.61M | 2.79M | 2.69M | 2.51M | 2.26M | 2.49M | 3.67M | 4.33M | 3.03M | 2.77M | 3.16M | 3.69M | 5.84M | 1.35M | 2.47M | 0 |
| Other Income/Expense | 4.01M | 3.97M | -13.66M | -11.29M | -51.97M | -3.91M | 23.09M | 25.28M | -2.97M | -2.63M | -2.59M | -2.7M | -3.75M | 11.89M | 19.42M | -1.76M | -4.14M | -2.28M | -5.49M | -3.95M | -2.51M | 2.37M | 611.1K |
| Pretax Income | 36.88M | 31.36M | -37.3M | -27.37M | -96.73M | -12.65M | 8.82M | -3.54M | -7.62M | 3.96M | -3.09M | 933K | -3.37M | 15.96M | 12.21M | 7.73M | 5.88M | 389K | 6.93M | 3.2M | 2.96M | 1.73M | -30.04M |
| Pretax Margin % | 16.29% | 14.52% | -11.1% | -9.58% | -32.95% | -4.72% | 5.18% | -2.45% | -5.08% | 2.5% | -1.99% | 0.66% | -2.47% | 11.6% | 9.12% | 4.7% | 4.06% | 0.3% | 5.21% | 2.81% | 3.59% | 3.22% | -69.3% |
| Income Tax | 11.06M | 10.37M | -1.66M | 7.45M | 4.68M | -3.53M | -2.79M | -5.87M | -2.48M | 138K | -1.1M | -1.16M | -3.26M | 5.48M | 4.31M | 1.93M | 285K | -6.28M | 2.39M | 793.48K | 1.92M | -2.17M | -3.65M |
| Effective Tax Rate % | 29.97% | 33.07% | 4.46% | -27.23% | -4.84% | 27.87% | -31.64% | 165.66% | 32.48% | 3.48% | 35.76% | -124.44% | 96.82% | 34.31% | 35.3% | 24.91% | 4.84% | -1614.4% | 34.51% | 24.8% | 64.91% | -125.65% | 12.16% |
| Net Income | 42.06M | 32.44M | -35.85M | -34.8M | -101.15M | -9.08M | 11.61M | 2.33M | -5.14M | 3.82M | -1.98M | 2.09M | -107K | 10.49M | 7.9M | 5.8M | 5.6M | 6.67M | 4.54M | 2.41M | 1.04M | 4.62M | -17.92M |
| Net Margin % | 18.57% | 15.02% | -10.66% | -12.18% | -34.45% | -3.39% | 6.82% | 1.61% | -3.43% | 2.41% | -1.28% | 1.48% | -0.08% | 7.62% | 5.9% | 3.53% | 3.87% | 5.11% | 3.41% | 2.12% | 1.26% | 8.58% | -41.34% |
| Net Income Growth % | 205.94% | 190.49% | -3.02% | 65.6% | -1014.07% | -178.21% | 399.27% | 145.19% | -234.62% | 292.74% | -194.7% | 2057.01% | -101.02% | 32.73% | 36.12% | 3.7% | -16.06% | 46.86% | 88.69% | 132.07% | -77.54% | 125.77% | - |
| Net Income (Continuing) | 25.83M | 20.99M | -35.64M | -34.82M | -101.42M | -9.13M | 11.61M | 2.33M | -7.34M | 3.82M | -1.98M | 2.09M | -107K | 10.49M | 7.9M | 5.8M | 4.25M | 6.67M | 4.54M | 2.41M | 1.04M | 3.88M | -24.33M |
| Discontinued Operations | 826K | 11.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 9.82M | 10.16M | 9.95M | 16.32M | 16.93M | 16.43M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.61M | 3.61M | 8.72M | 9.14M |
| EPS (Diluted) | 0.35 | 0.27 | -0.32 | -0.29 | -1.11 | -0.11 | 0.19 | -0.22 | -0.12 | -0.12 | -0.05 | 0.05 | -0.00 | 0.27 | 0.20 | 0.15 | 0.11 | 0.17 | 0.12 | 0.06 | 0.03 | 0.15 | -2.54 |
| EPS Growth % | 201.63% | 184.38% | -10.34% | 73.87% | -909.09% | -157.89% | 186.36% | -83.33% | 0% | -137.15% | -201.2% | - | -101% | 35% | 33.33% | 36.36% | -35.29% | 41.67% | 100% | 74.93% | -77.13% | 105.91% | - |
| EPS (Basic) | - | 0.29 | -0.32 | -0.29 | -1.11 | -0.11 | 0.20 | -0.23 | -0.12 | -0.12 | -0.05 | 0.05 | -0.00 | 0.27 | 0.20 | 0.15 | 0.11 | 0.17 | 0.12 | 0.07 | 0.03 | 0.15 | -2.54 |
| Diluted Shares Outstanding | 120.56M | 120.56M | 111.37M | 108.73M | 89.13M | 82.16M | 61.49M | 51.18M | 44.36M | 39.14M | 39.18M | 38.87M | 38.98M | 38.84M | 38.71M | 38.87M | 38.85M | 38.71M | 38.71M | 38.71M | 27.66M | 25.65M | 7.06M |
| Basic Shares Outstanding | 113.04M | 113.04M | 111.37M | 108.73M | 89.13M | 82.16M | 58.53M | 49.42M | 44.36M | 39.14M | 38.88M | 38.81M | 38.71M | 38.71M | 38.71M | 38.87M | 38.71M | 38.71M | 36.37M | 36.35M | 27.19M | 25.65M | 7.06M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 23.24% | 91.1% | 154.31% | 2475.41% | 3.95% | - |
Commodity price volatility
As reported in recent financial filings, Village Farms experienced a significant revenue decline of 35.77% year-over-year, reflecting a strategic pivot away from lower-margin produce volumes toward a more selective, cannabis-focused revenue mix that prioritizes profitability over the aggressive top-line expansion seen in prior fiscal periods.
The persistent negative revenue growth suggests that management is intentionally pruning underperforming produce contracts to preserve capital. Investors should monitor whether this contraction represents a permanent downsizing of the agricultural footprint or a temporary consolidation phase before potential U.S. market entry.
Based on the company's latest quarterly data, gross margins have expanded to 41.8%, a notable improvement from the sub-10% levels observed in late 2024, indicating that the shift toward higher-margin cannabis products is successfully offsetting the inherent volatility of the legacy produce business.
This margin profile appears to be a direct result of operational efficiencies within the Pure Sunfarms segment. The ability to maintain these levels suggests that the company's greenhouse infrastructure provides a distinct cost advantage over indoor-grown competitors, though energy price sensitivity remains a latent risk.
According to the most recent income statement, operating income has reached $5.0M, marking a significant turnaround from the $11.5M operating loss reported in 2024Q4, which suggests that management has successfully achieved better overhead absorption despite the lower overall revenue base during the same period.
The reduction in SG&A relative to gross profit indicates improved expense discipline and a more streamlined operational structure. This scaling suggests that the company is moving toward a more sustainable operating model, provided that the current cost-per-gram metrics remain competitive in the Canadian wholesale market.
As indicated by the provided financial statements, net income has shown extreme variability, swinging from a $26.5M gain in 2025Q2 to a $6.7M loss in 2025Q1, largely due to non-cash adjustments related to biological assets that complicate the assessment of true underlying operational performance.
The reliance on fair value adjustments for biological assets warrants caution, as these non-cash items can obscure the company's actual cash-generating capability. Analysts should prioritize adjusted EBITDA and operating cash flow to better understand the core earnings power of the business.
While recent margins appear robust, the counter-argument remains that the company's reliance on a volatile produce segment and the cyclical nature of Canadian cannabis pricing may lead to future margin compression if energy costs spike or if wholesale cannabis prices continue their long-term downward trend.
Short-term margin improvements may be driven by temporary cost-cutting measures rather than structural brand power. Investors should investigate whether the current profitability is sustainable in a high-inflation environment or if it is merely a byproduct of aggressive inventory management and reduced operational scale.
Quick answers to the most common questions about buying VFF stock.
For fiscal year 2025, Village Farms International, Inc. (VFF) reported total revenue of $215.9M. This represents a 398.3% increase compared to $43.3M in 2004.
Village Farms International, Inc. (VFF) is profitable, generating $32.4M in net income for the fiscal year ending 2025 with a net profit margin of 15.0%.
Village Farms International, Inc. (VFF) reported an operating income of $27.4M, resulting in an operating profit margin of 12.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Village Farms International, Inc. (VFF) generated $87.7M in gross profit for the year, representing a gross profit margin of 40.6%. This demonstrates the company's core pricing power and production efficiency.