Core Insights - Village Farms International's third-quarter 2025 performance demonstrates improved margins due to sustained cost discipline and operational efficiency [1] Financial Performance - Consolidated adjusted EBITDA from continuing operations reached $20.7 million, representing 31% of sales, a significant increase from $4.7 million or 8.5% of sales in the prior-year quarter [2] - Operating cash flow strengthened to $24.4 million, indicating improved cost absorption and efficiency [2] Segment Analysis - The Canadian cannabis business showed significant cost discipline, with gross margin expanding to 56% from 26% a year ago, driven by operational efficiency and a favorable mix towards higher-margin international export sales [3] - Canadian cannabis adjusted EBITDA increased 306% year over year to $19.3 million, or 41% of segment sales, attributed to higher productivity, improved crop yields, and lower packaging inputs [4] Management Insights - Management emphasized that cost control is integral to the company's culture and maintained a long-term gross margin target range of 30%-40% [5] - The third-quarter results reflect how consistent cost discipline and operational focus are reshaping the company's margin profile [5] Market Performance - Village Farms' shares have surged 383.3% over the past year, outperforming the industry's decline of 11.8% and the S&P 500's increase of 21.8% [6] - In comparison, shares of Scotts Miracle-Gro declined by 10.2%, while Mission Produce rose by 1.5% during the same period [6] Valuation Metrics - Village Farms' forward 12-month price-to-sales ratio is 1.6, lower than the industry's 2.05, indicating a relatively favorable valuation [9] - The company is trading at a premium compared to Scotts Miracle-Gro (1.03) and Mission Produce (0.7) [9] Growth Projections - The Zacks Consensus Estimate indicates year-over-year growth of 165.6% for the current financial year and 14.3% for the next financial year [10]

Core Viewpoint - Village Farms International (VFF) has launched 10 new product offerings in the Netherlands through its subsidiary Leli Holland, focusing on innovation and consumer preferences in the cannabis market [1] Group 1: Product Launch - The new product portfolio expansion is based on the company's operational expertise and consumer insights from regulated cannabis markets globally [1] - The launch reflects an intentional focus on format innovation, consumption occasions, and competitive differentiation [1] - The offerings are designed to align with the unique demands of legacy market consumer preferences in the Netherlands [1]

Core Insights - Village Farms International, Inc. has launched 10 new cannabis product offerings in the Netherlands, focusing on consumer preferences and convenience in the regulated market [1][3][4] Product Portfolio Expansion - The new product offerings include the first regulated blunt in the market, infused spliffs, and various pre-roll formats, showcasing the company's commitment to innovation and consumer-driven categories [1][3] - The product range includes: - Leli's Blunt: A 1.4g pure cannabis blunt, the only blunt available in the regulated Dutch market [5] - Apollo 13 Infused Spliffs: A 1.4g infused pre-roll with tobacco and cannabis, featuring a kief-rolled cone for enhanced potency [5] - Cosmic Hash Spliffs: A 1.3g hash-forward pre-roll made with tobacco and hash, catering to consumer demand for hash products [5] - Strain-Specific Single Spliffs: A 1.2g mixed format with four distinct SKUs for different cannabis genetics [5] - Dogwalker Pre-Rolls: Three 0.5g pure cannabis flower pre-rolls designed for convenience and portion control [5] - Grutte Pier Reserve Spliffs: A large 1.4g mixed pre-roll for sharing occasions [5] - Leli's Blend Spliffs: A 1.4g balanced mixed format tailored to traditional Dutch consumption preferences [5] Market Strategy and Consumer Focus - The company emphasizes the importance of product innovation in the evolving Dutch market to better serve consumers and reduce illicit market activity [4] - Village Farms leverages its global expertise and local insights to introduce innovative formats that align with existing consumer behaviors [2][4]

Core Insights - Village Farms International (VFF) has expanded its cannabis operations significantly in Q3 2025, with strong performance in Canada and a notable increase in international medical cannabis exports [1][7] Group 1: Canadian Operations - Canadian cannabis net sales increased by 29% year over year to $46.6 million, driven by improved execution in targeted sales channels and a shift towards higher-margin products [2][7] - The cannabis gross margin improved to 56% in the quarter, compared to 26% in the prior year, due to portfolio rationalization and operational improvements [2] Group 2: International Exports - International medical cannabis exports surged by 758% year over year, primarily due to shipments to Germany, with additional sales to other international markets [3][7] - International medical cannabis sales are characterized by a higher-margin profile compared to domestic sales [3] Group 3: Netherlands Operations - The Netherlands cannabis business achieved further scale, with the Phase I cultivation facility in Drachten generating $3.6 million in net sales and $1.3 million in adjusted EBITDA [4] - Products from the Drachten facility were available in 91% of participating coffeeshops under the regulated program [4] Group 4: Future Growth and Capacity Expansion - Village Farms is investing in capacity expansion, with a 40-metric-ton expansion underway in Canada and the Phase II facility in the Netherlands expected to be operational in Q1 2026, increasing total annual production capacity to approximately 10,000 kilograms [5] Group 5: Market Performance and Valuation - Village Farms' shares have increased by 338.8% over the past year, contrasting with a 13.8% decline in the industry [6] - The forward 12-month price-to-sales ratio for Village Farms is 1.62, lower than the industry average of 2.03, indicating a relatively attractive valuation [9] Group 6: Financial Outlook - The Zacks Consensus Estimate indicates year-over-year growth of 165.6% for the current financial year and 14.3% for the next financial year for Village Farms [11]

Industry Overview - 2025 is anticipated to be a breakthrough year for the cannabis industry, with signs of growth and regulatory progress emerging after years of stagnation [2] - President Trump signed an executive order to reclassify marijuana to Schedule III, acknowledging its medical use and potentially improving the industry's profitability by eliminating IRS Rule 280E [3][4] Company Analysis: Cronos Group - Cronos Group holds a Zacks Rank 1 and is expanding its international presence, recently acquiring CanAdelaar B.V. for $67 million, positioning itself in the Netherlands' adult-use market [5][6] - The company has shown operational progress with revenue growth driven by demand in Europe and Israel, and improved gross margins due to a focus on higher-value markets [7] - Estimates for Cronos' 2025 loss per share have narrowed from 8 cents to 1 cent, while EPS estimates for 2026 have increased from 6 cents to 8 cents; the stock has risen approximately 30% year to date [8] Company Analysis: Village Farms - Village Farms also has a Zacks Rank 1 and is enhancing its cannabis operations by exiting fresh-produce businesses to focus on higher-margin cannabis assets, leading to improved performance [9][10] - The company's medical cannabis export sales surged 758% year over year in Q3 2026, driven by strong demand in Germany and other international markets [10][11] - EPS estimates for Village Farms have increased from 12 cents to 21 cents for 2025, and from 14 cents to 24 cents for 2026; the stock has skyrocketed 371% year to date [12] Company Analysis: Tilray Brands - Tilray Brands, with a Zacks Rank 3, is expanding its medical cannabis operations in Europe, particularly in Germany and Italy, supported by new product launches and its distribution network [13] - The company is diversifying its portfolio with craft beverages to stabilize results, while its cannabis business benefits from stronger Canadian adult-use demand and growth in international medical sales [14] - Loss estimates per share for Tilray's fiscal 2026 have improved from 27 cents to 25 cents, although shares have declined by 32% this year [15]

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices involving Village Farms International, Inc. and its officers or directors [1]. Group 1: Company Developments - On December 2, 2025, Village Farms announced it did not receive a conditional medical license from the Texas Department of Public Safety, which was part of the Phase I license awards [3]. - Following this announcement, Village Farms' stock price decreased by $0.37 per share, representing a 9.3% decline, closing at $3.61 per share on the same day [3]. Group 2: Legal Investigation - Pomerantz LLP is reaching out to investors of Village Farms to discuss claims related to potential securities fraud [1]. - The firm is recognized for its expertise in corporate, securities, and antitrust class litigation, having a long history of fighting for victims of securities fraud and corporate misconduct [4].

Group 1 - Village Farms (VFF) is shifting from a low-margin grower to a cannabis regulatory platform, focusing on cost structure and distribution discipline rather than packaging or branding [1] - Investors continue to treat Village Farms as a traditional grower despite its transition to a regulatory platform [1] Group 2 - The investment strategy discussed combines technical analysis with the CAN SLIM methodology to identify high-growth companies often overlooked by mainstream analysts [1] - The research process integrates both fundamental and technical perspectives, paying attention to indicators such as relative strength, unusual trading volume, and earnings acceleration [1] - The goal is to spot opportunities early before broader market recognition drives prices higher [1]

Core Viewpoint - The potential rescheduling of marijuana to a Schedule III drug under the Controlled Substances Act could significantly transform the cannabis industry, particularly benefiting Village Farms International, Inc. and its CBDistillery business [1][2]. Group 1: Company Advocacy and Legal Strategy - Village Farms commended President Trump's Executive Order aimed at rescheduling marijuana, which could modernize U.S. cannabis policy and align it with international standards [1][2]. - The company's legal strategy during DEA proceedings was pivotal in advocating for the rescheduling of cannabis, showcasing its commitment to reform and collaboration with policymakers [2]. Group 2: Production and Market Position - Village Farms operates one of the largest cannabis cultivation facilities globally, with 2.2 million square feet of greenhouse assets and 950 acres of farmland in Texas, positioning it well to meet increasing demand for medical cannabis products [2][4]. - The company has a strong foundation in controlled environment agriculture and is leveraging its expertise to expand into cannabinoid-based therapeutic products while maintaining its produce assets [3]. Group 3: International and Domestic Expansion - Internationally, Village Farms is targeting growth opportunities in legal cannabis markets, exporting medical cannabis to countries like Germany, the UK, and Australia, and expanding its export business [5]. - In the U.S., the company plans to enter the THC market using its Texas-based greenhouse assets, which include 2.2 million square feet of existing capacity and additional land for future expansion [6].

Core Insights - Village Farms International, Inc. has appointed Brian Stevenson as the Global Chief Strategy Officer to lead the company's strategic agenda focused on long-term growth and global market assessment [1][4] - The appointment reflects the company's commitment to disciplined global expansion and long-term value creation in regulated markets, particularly in cannabis [4] Company Overview - Village Farms is a large-scale, vertically-integrated supplier of high-value, plant-based Consumer Packaged Goods, leveraging decades of experience in Controlled Environment Agriculture [5] - The company has a strong foundation as a leading fresh produce supplier in the US and Canada, now focusing on high-growth cannabinoid opportunities while maintaining its produce assets [5] Cannabis Operations - In Canada, Village Farms operates Pure Sunfarms, one of the largest cannabis operations globally, with 2.2 million square feet of greenhouse production and plans for future expansion with an additional 2.6 million square feet [6] - The company owns 80% of Rose LifeScience, a leader in cannabis product commercialization in Quebec [6] International Expansion - Village Farms is targeting legal cannabis opportunities internationally, exporting medical cannabis from its EU GMP certified facility in Canada to markets such as Germany, the UK, Israel, Australia, and New Zealand [7] - The company is expanding its export business and making investments in international production assets, including a license to grow and distribute recreational cannabis in the Netherlands [7] US Market Strategy - In the US, Village Farms' subsidiary Balanced Health Botanicals is a leading CBD and hemp-derived brand, with plans to enter the US THC market leveraging its Texas-based greenhouse assets [8][9] - The company has 2.2 million square feet of existing greenhouse capacity and 950 acres of owned land for future expansion in the US [9] Renewable Energy Initiatives - Village Farms Clean Energy, in partnership with Terreva Renewables, generates renewable natural gas from landfill gas, receiving royalties on all generated revenue [9]

Group 1: Village Farms International (VFF) - Village Farms International is a producer, marketer, and distributor of greenhouse-grown tomatoes, bell peppers, and cucumbers primarily in North America [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a 75% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Shares of Village Farms International gained 34.8% over the last three months compared to the S&P 500's gain of 3.9%, and it possesses a Momentum Score of A [2] Group 2: Seanergy Maritime Holdings (SHIP) - Seanergy Maritime Holdings is a pure-play Capesize ship company providing marine dry bulk transportation services through a modern fleet of Capesize vessels [2] - The company has a Zacks Rank of 1 and has experienced a 72.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Shares of Seanergy Maritime Holdings increased by 18.8% over the last three months compared to the S&P 500's gain of 3.9%, and it also has a Momentum Score of A [3] Group 3: BHP Group Limited (BHP) - BHP Group Limited is one of the world's largest mining companies, with operations in Australia, Brazil, Canada, Chile, Peru, and the United States [3] - The company holds a Zacks Rank of 1 and has seen a 9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Shares of BHP Group Limited gained 8.9% over the last three months compared to the S&P 500's gain of 3.9%, and it possesses a Momentum Score of A [4]