Contradictions in the Canadian Cannabis Market: Pricing, Expansion, and International Growth Insights

Record Financial Performance:
- Village Farms International reported consolidated net income from continuing operations of $9.9 million or $0.09 per share for Q2 2025, up from a net loss of $16.6 million in Q2 2024.
- This record performance was driven by operational and financial improvements, including growth in international sales and margin expansion.

International Sales Growth:
- International exports increased by 690% year-over-year and over 120% sequentially in Q2 2025, reaching CAD $16.6 million.
- The growth was primarily due to increased sales to existing customers and onboarding of new partners in markets like Germany and the UK.

Canadian Cannabis Sales and Margin Improvement:
- Canadian cannabis gross margin reached the top of its target range at 39%, with a significant improvement from 26% in Q2 2024.
- This was achieved through the successful execution of initiatives to align product portfolios towards higher-margin SKUs and favorable supply-demand dynamics.

Recreational Cannabis in the Netherlands:
- The company's recreational cannabis sales in the Netherlands reached $2.5 million in Q2 2025, with an adjusted EBITDA of $1.2 million.
- The growth was driven by the full operational capacity of the Phase 1 facility and positive consumer preference for Village Farms products.