Village Farms posts record cannabis sales, returns to profitability in third quarter of 2026
Key Facts
The CEO said the company delivered positive net income and earnings per share for a sixth consecutive quarter, putting the results in the context of sustained profitability rather than a new return to it. Figures are in U.S. dollars unless otherwise stated. The results focus on expanding international cannabis sales alongside continued growth in the core business. The company also cited expansion plans in the Netherlands and Texas, which are expected to support its business in coming periods.
The growth shows that overseas markets were one of the performance drivers during the quarter, as total cannabis sales reached a record level. International exports had set a record of $20.9 million in the second quarter of 2026, up 74% year over year, and accounted for about 39% of cannabis revenue at the time. Third-quarter sales were therefore below the prior quarter’s level, despite a higher annual growth rate. The comparison highlights the weight of exports in the company’s business and the shift in sales momentum from one quarter to another.
The company’s run of positive earnings has extended to six consecutive quarters, the CEO said in the results statement. In the second quarter of 2026, the company reported net income of $9.5 million and basic earnings per share of $0.08, compared with a net loss of $16.6 million and a basic loss per share of $0.14 in the second quarter of 2025. These figures provide context for the trajectory management described as sustained profitability, but relate to the prior quarter and are not third-quarter results. Revenue growth came alongside pressure in Canada’s wholesale market and a decline in adjusted earnings, two factors highlighted in coverage of the results. The information presented here did not include detailed figures for those pressures or the size of the decline, so a quantitative assessment of adjusted profitability is unavailable.
On expansion, the company said its Phase 2 facility in the Netherlands had been fully planted and that it expects it to begin contributing to sales growth in the fourth quarter of 2026 and throughout 2027. That puts the facility among the growth drivers management is tracking after record cannabis sales in the third quarter. The company also said it had begun mobilizing efforts to operate its standalone cannabis production facility in Monahans, Texas, which covers 30 acres. The company aims to use the project to enter the U.S. market. The information provided did not specify when production in Texas would begin, while the timing of the Netherlands facility’s contribution remains tied to the company’s expectations for the fourth quarter and beyond.
In its second-quarter update, the company said the Delta 2 expansion was expected to add about 15 metric tons of dried and trimmed flower in the second half of 2026. It said at the time that the expansion was aimed at reaching its full production capacity of 40 metric tons by mid-2027. These figures provide context for the production growth plan, alongside planting at the Netherlands Phase 2 facility and work on the Texas facility. The company had set Nov. 9 for a discussion of its third-quarter results at 8:30 a.m. Eastern time, after expecting to release the results in a statement at 7:00 a.m. the same day. In trading, VFF shares closed at $2.88 on Nov. 6, the latest closing price cited in the available information.