Verde Announces Q3 2025 Earnings Results

Core Insights - Verde AgriTech Ltd reported its Q3 2025 financial results, highlighting a challenging operating environment due to the Great Brazilian Agriculture Crisis, but noted sequential improvements in performance [2][6][30] Financial Performance - EBITDA before non-cash events was $0.1 million in Q3 2025, marking the first positive EBITDA since Q2 2023, compared to a loss of $0.03 million in Q3 2024 [6][25] - Sales volume decreased by 16% to 85,136 tons in Q3 2025 compared to Q3 2024, while revenue fell by 18% to $5.9 million [6][23] - Gross margin excluding freight remained stable at 60%, consistent with Q3 2024 [6] - Net loss narrowed to $2.1 million in Q3 2025 from a loss of $2.3 million in Q3 2024 [6][25] - Cash position improved slightly to $3.6 million from $3.4 million year-over-year, with short-term receivables at $7.9 million [6][29] Market Conditions - The agricultural sector continues to face pressures from geopolitical tensions, extreme climate risks, and high input costs, but there are signs of recovery as Brazilian farmers begin the 2025/26 planting season [8][9] - The Companhia Nacional de Abastecimento (Conab) reported expectations for high soybean, corn, and grain production, indicating resilience in agricultural output [8] - The global potash market is projected to reach $34.8 billion by 2033, with a CAGR of 2.66%, driven by population growth and food security [8][14] Sustainability Initiatives - Verde's products have the potential to capture up to 10,214 tons of CO2 through Enhanced Rock Weathering, with a net estimated capture of 7,106 tons [6][47] - The company has prevented the application of 6,740 tons of chloride in Q3 2025 by offering a chloride-free alternative to potassium chloride fertilizers [6][48] Rare Earths Exploration - Verde announced the discovery of a continuous, clay-hosted rare earth element mineralized zone in Minas Gerais, Brazil, covering approximately 5,500 hectares [6][7] - A three-rig drilling program has commenced to define high-quality magnet rare earth resources, with key project milestones outlined for 2026 [7][31] Economic Outlook - Brazil's economy is projected to grow by around 0.3% in Q3 2025, with a full-year growth forecast of 2.0% by the Brazilian Central Bank [15] - The SELIC interest rate remains high at 15%, but potential cuts may occur if inflation continues to ease, with forecasts suggesting a decline to 12.25% in 2026 [15][18]