Village Farms International, Inc. (VFF): Business Model Canvas [Dec-2025 Updated]

You're digging into how Village Farms International, Inc. (VFF) is actually making money after their big 2025 pivot, right? Forget the noise; the numbers tell the real story: they're running a lean operation, hitting a 56% gross margin on Canadian cannabis in Q3 2025, while their international medical exports surged an incredible 758% year-over-year. This isn't just growing plants; it's a complex model blending low-cost Controlled Environment Agriculture (CEA) with clean energy royalties and strategic food equity income. Want to see the full nine blocks-from their 2.2 million sq. ft. Texas optionality to their Dutch Coffee Shop channel-that make up this unique structure? Dive in below for the full Business Model Canvas breakdown.

Village Farms International, Inc. (VFF) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Village Farms International, Inc. relies on to execute its strategy as of late 2025. These aren't just casual agreements; they are structured equity stakes and revenue-sharing models that underpin significant parts of the business.

The most significant structural change involved the fresh produce segment, which was moved into a joint venture. Village Farms International, Inc. now holds a minority equity stake in this new entity, Vanguard Food LP, which is backed by private investment firms.

Partner Entity	Relationship Type	Village Farms International, Inc. Stake/Benefit	Transaction/Metric Detail
Vanguard Food LP	Privatized Produce JV	37.9% equity ownership interest	Village Farms received $40 million in cash; Initial Investors contributed $55 million. Transaction closed May 30, 2025.
Rose LifeScience Inc.	Quebec Cannabis Commercialization Partner	80% ownership interest	Rose LifeScience is a key commercialization expert in the Province of Québec.
Terreva Renewables	Joint Venture (Village Farms Clean Energy)	Receives royalties on all revenue generated	Delta RNG facility reduces Vancouver's greenhouse gas emissions by 475,000 metric tons of CO2 per year.

The renewable natural gas partnership with Terreva Renewables provides an environmental benefit quantified as the equivalent of removing more than 100,000 vehicles off the road annually, or the energy use equivalent of powering 51,300 homes for one year. This is a clear example of how Village Farms International, Inc. monetizes its operational footprint beyond core cannabis or produce sales.

For international medical cannabis expansion, Village Farms International, Inc. relies on established distribution channels rather than direct ownership stakes in those markets, focusing on exporting from its EU GMP certified facility in Canada. These partnerships are critical for accessing specific legal markets.

• Germany
• The United Kingdom
• Israel
• Australia
• New Zealand

The company is actively expanding its export business by securing additional export contracts with new countries and customers globally. Village Farms International, Inc. also holds one of 10 licenses in Europe for Leli Holland to grow and distribute recreational cannabis within the Dutch Coffee Shop Experiment.

Finance: draft 13-week cash view by Friday.

Village Farms International, Inc. (VFF) - Canvas Business Model: Key Activities

You're looking at the core actions Village Farms International, Inc. (VFF) takes to deliver value across its diverse operations as of late 2025. It's a mix of high-tech agriculture, specialized international trade, and energy management.

Large-scale, low-cost Controlled Environment Agriculture (CEA) cultivation.

Village Farms International, Inc. (VFF) maintains significant greenhouse footprint for its operations.

• Pure Sunfarms operates one of the single largest cannabis operations in the world, covering 2.2 million square feet of greenhouse production in Canada.
• The company owns an incremental 2.6 million square feet of greenhouse capacity in Canada designated for future expansion.
• For its produce segment in Q3 2025, operations reflected contributions from the Delta 1 greenhouse and half of the Delta 2 greenhouse.

International medical cannabis export from EU GMP certified facility.

This activity centers on leveraging the EU GMP certification for high-value export sales.

• International medical export sales surged by 758% year-over-year in Q3 2025.
• Net revenue from international sales reached $11.9 million in Q3 2025.
• The company exports medical cannabis from its EU GMP certified facility in Canada to markets including Germany, the United Kingdom, Israel, and Australia.
• Village Farms International, Inc. (VFF) believes it remains the largest exporter of medical cannabis to Europe.

Conversion of existing greenhouses for increased cannabis capacity.

Capacity expansion is a key near-term focus, especially in Europe.

• A 40 Metric Ton Production Capacity Expansion is underway in Canada.
• The construction of a second, larger facility in Groningen, Netherlands, is on track to be operational in Q1 2026, which is expected to quintuple production capacity there.
• The Drachten facility in the Netherlands reached full operating capacity in Q3 2025, contributing $3.6 million to net sales.

Branding and marketing of Pure Sunfarms and Balanced Health Botanicals.

The focus here is shifting the mix toward higher-margin branded products, even if it means a planned reduction in some sales volumes.

Brand/Segment	Metric	Q3 2025 Value (USD)	Context/Comparison
Pure Sunfarms (Canadian Cannabis Net Sales)	Net Sales	$46.6 million	29% increase year-over-year.
Pure Sunfarms (Canadian Cannabis Gross Margin)	Gross Margin	56%	A record high, above the 30-40% targeted range.
Pure Sunfarms (Canadian Retail Branded Sales)	Net Sales	$26.8 million	4% planned decrease year-over-year due to focus on higher-margin SKUs.
Balanced Health Botanicals (US Cannabis Sales)	Net Sales	$3.3 million	Down 15.4% year-over-year.
Balanced Health Botanicals (US Cannabis Gross Margin)	Gross Margin	N/A (Q1 2025: 66%)	Gross margin was 59% in Q1 2024.

Renewable Natural Gas (RNG) production and royalty management.

This activity is managed through the Village Farms Clean Energy (VFCE) partnership, which generates revenue via royalties rather than direct sales.

• VFCE receives royalties on all revenue generated from the RNG facility, which creates clean energy from landfill gas.
• The partnership reduces greenhouse gas emissions by 475,000 metric tons of CO2 per year.
• This reduction is equivalent to removing more than 100,000 vehicles off the road or the energy use equivalent of powering 51,300 homes for one year.
• The related Produce Business (which includes the Delta greenhouses associated with the RNG facility) reported Adjusted EBITDA of $2.5 million in Q3 2025.

Finance: draft Q4 2025 cash flow projection by next Tuesday.

Village Farms International, Inc. (VFF) - Canvas Business Model: Key Resources

You're looking at the core assets Village Farms International, Inc. (VFF) is leaning on as of late 2025. These are the tangible and intangible things the company absolutely must have to make its business model work.

The physical infrastructure for cultivation is central. In Delta, British Columbia, the operational cannabis greenhouse square footage reached 2.2 million sq. ft. upon the completion of the Delta 2 conversion. This represented a 33% expansion of their cannabis production square footage. To be fair, they also own an incremental 2.6 million sq. ft. of advanced greenhouse capacity at Delta 1 for future scaling.

Financially, the balance sheet shows strength. Village Farms International ended Q3 2025 with cash reserves of approximately $88 million, which included $5 million in restricted cash. This resulted in a net cash position of $53 million. The total debt position at the close of Q3 was $35 million. Cash flow from operations for that quarter was a strong $24.4 million.

For US market optionality, the Texas assets are key. Village Farms International holds 2.2 million square feet (50 acres) of existing greenhouse capacity in West Texas. Beyond that, the company owns 950 acres of unoccupied farmland in Marfa, Texas, earmarked for future expansion. US cannabis sales, primarily from the CBD subsidiary, were $3.3 million in Q3 2025.

Brand equity is another critical resource. The company relies on its strong Canadian brand, Pure Sunfarms, and its US CBD platform, Balanced Health. Branded cannabis sales across the portfolio for Q3 2025 amounted to $26.8 million.

The European footprint is anchored by the Dutch operation. The wholly-owned Leli Holland facility holds one of the 10 licenses for recreational cannabis distribution within the Dutch Coffee Shop Experiment. This operation generated net sales of $3.6 million in Q3 2025.

Here's a quick look at the primary cultivation assets and their status as of Q3 2025:

Asset Location	Primary Use/Status	Operational Square Footage	Recent Financial Contribution (Q3 2025 Sales)
Delta, BC (Operational Cannabis)	Full operation, conversion of Delta 2 commencing Nov 2025	2.2 million sq. ft.	Canadian Cannabis Net Sales: $46.6 million
Texas Greenhouses	US THC optionality, currently supporting CBD sales	2.2 million sq. ft.	US Cannabis Sales: $3.3 million
Netherlands (Leli Holland)	Recreational cannabis supply to coffee shops	Not specified	Net Sales: $3.6 million

The company also maintains other intangible, yet vital, resources:

• Incremental Canadian greenhouse capacity: 2.6 million sq. ft.
• Ownership interest in Rose LifeScience Inc.: 80%
• Canadian Cannabis Record Gross Margin (Q3 2025): 56%
• International Medical Export Sales Growth (YoY Q3 2025): 758%

Finance: draft 13-week cash view by Friday.

Village Farms International, Inc. (VFF) - Canvas Business Model: Value Propositions

You're looking at how Village Farms International, Inc. (VFF) creates value for its customers and stakeholders, and honestly, it's a story about scale, efficiency, and strategic market access. The core value proposition rests on being a low-cost, high-quality producer across multiple high-growth plant-based sectors.

Low-Cost Producer Status and Profitability

Village Farms International, Inc. has successfully positioned its Canadian cannabis segment, driven by Pure Sunfarms, as a low-cost operator at scale. This efficiency directly translates to superior financial performance in that segment. For the third quarter of 2025, the Canadian cannabis operations achieved a 56% gross margin. This is a significant jump from the 26% gross margin reported in Q3 2024. This margin performance is a direct result of their vertically integrated structure and manufacturing excellence.

Here's a quick look at how the key cannabis segment performed in Q3 2025, which underpins this cost advantage:

Metric	Value (Q3 2025)	Comparison Point
Canadian Cannabis Gross Margin	56%	Up from 26% in Q3 2024
Canadian Cannabis Net Sales	$64.1 million (CAD)	Up 29% year over year
Canadian Cannabis Adjusted EBITDA	$19.3 million (CAD)	Up 309% year over year
Consolidated Cash on Balance Sheet	Approximately $88 million	Up from $65 million at the end of Q2 2025

High-Quality, Best-Selling Brand in Canada

The Pure Sunfarms brand is positioned as one of Canada's highest quality and best-selling cannabis brands. The company emphasizes delivering quality cannabis flower at scale. This brand strength allows Village Farms International, Inc. to command favorable pricing and drive higher-margin product sales, contributing to the improved gross margin.

• Pure Sunfarms is one of the single largest cannabis operations in the world with 2.2 million square feet of greenhouse production.
• The company is focused on executing a strategy to drive more profitable sales in Canadian Cannabis.
• The net average selling price of branded flower increased by 11% in the first quarter of 2025 compared to 2024, excluding pre-roll formats.

Vertical Integration for Control

Village Farms International, Inc. employs vertical integration, meaning they own the supply chain from seed to sale across their cannabis and produce segments. This ownership structure is a deliberate strategy to maintain tight control over both product quality and operational costs. This control is key to achieving the high gross margins seen in the Canadian cannabis business. The company leverages decades of Controlled Environment Agriculture (CEA) expertise to execute this efficiently.

Access to Nascent European Recreational Market

Village Farms International, Inc. is actively targeting nascent, legal cannabis opportunities internationally, with a specific foothold in Europe through the Dutch Coffee Shop Experiment. The wholly-owned Leli Holland facility holds one of only 10 licenses approved under this pilot program to grow and distribute recreational cannabis. Shipments to Dutch coffeeshops commenced in January 2025. By Q2 2025, Leli Holland products were represented in 66 of 80 participating coffeeshops, showing 82.5% market penetration within the pilot. This provides access to what could become a blueprint for broader European legalization.

Sustainable Operations via Clean Energy

The company demonstrates a commitment to sustainability through its Clean Energy segment. Village Farms Clean Energy (VFCE), in partnership with Terreva Renewables, operates the Delta Renewable Natural Gas (RNG) production facility. This facility converts landfill methane gas into RNG, which serves as a low-carbon replacement for natural gas. The output from the Delta RNG project is expected to contribute nearly 3% of British Columbia's targeted RNG volumes under the Province's 30BY30 plan. VFCE receives a royalty on all revenue generated from this facility.

Finance: draft 13-week cash view by Friday.

Village Farms International, Inc. (VFF) - Canvas Business Model: Customer Relationships

You're looking at how Village Farms International, Inc. (VFF) manages its connections with different customer groups as of late 2025. It's a mix of direct-to-consumer digital sales and deep, long-standing business partnerships.

Automated e-commerce platform for US CBD sales (Balanced Health)

The US CBD business, managed through the wholly owned subsidiary Balanced Health, shows sales activity but also reports losses for the period.

• US cannabis sales for the three months ended September 30, 2025 (Q3 2025) were $3.3 million.
• This Q3 2025 figure represented a year-over-year decrease of 15.4%.
• The US cannabis sales in Q3 2025 resulted in a $436,000 loss.
• For the second quarter ended June 30, 2025 (Q2 2025), the US cannabis segment reported net sales of $3.8 million.
• The gross margin for the US cannabis segment in Q2 2025 was 63%.

Long-term, high-volume B2B relationships with provincial distributors

The core of Village Farms International, Inc.'s (VFF) volume relationships is within its Canadian cannabis operations, which serve provincial distributors. These relationships are characterized by high sales volume and improving margins.

Metric	Q3 2025 Value (USD)	Year-over-Year Change
Canadian Cannabis Segment Net Sales	$46.6 million	29% increase
Canadian Cannabis Gross Margin	56%	Record high
Non-Branded (Wholesale) Sales (Q3 2025)	$7.3 million	Down 0.8%

The Canadian cannabis segment delivered record net sales of $46.6 million in Q3 2025. The gross margin for this segment hit a record 56% in the same period.

Dedicated B2B sales team for international medical export partners

International medical export is the fastest-growing relationship channel, showing massive year-over-year growth driven by European demand, particularly in Germany.

The growth in this area is staggering, indicating strong B2B partner engagement.

• Net revenue from international sales in Q3 2025 was $11.9 million.
• This represented a year-over-year increase of 771.9% in Q3 2025.
• International medical export sales surged by 758% in Q3 2025 compared to the prior year.
• In Q2 2025, international medical export sales had increased 690% year-over-year.
• Village Farms International, Inc. believes it remains the largest exporter of medical cannabis to Europe.
• The company has gained market share sequentially in Germany in each of the past four quarters.

Strategic minority ownership in Vanguard Food LP ensures supply continuity

Supply continuity for the fresh produce side of the business is secured through a strategic joint venture structure, which also provided a significant cash infusion.

The transformative transaction to privatize certain produce assets created Vanguard Food LP.

• Village Farms International, Inc. holds a 37.9% equity ownership interest in Vanguard Food LP.
• The transaction provided $40 million in cash proceeds to Village Farms International, Inc.
• For Q3 2025, sales from continuing operations for Village Farms Produce were $12.8 million.
• Adjusted EBITDA from continuing operations for the Produce segment in Q3 2025 improved to $2.5 million.

Finance: draft 13-week cash view by Friday.

Village Farms International, Inc. (VFF) - Canvas Business Model: Channels

You're looking at how Village Farms International, Inc. (VFF) gets its products to market as of late 2025, based on the third quarter results ending September 30, 2025. The strategy clearly leans heavily on its Canadian cannabis operations while aggressively scaling international medical exports.

The overall consolidated net sales for Village Farms International, Inc. in Q3 2025 hit $66.7 million USD. The channels driving this are segmented across domestic Canadian sales, international medical markets, and the US CBD business.

Here is a breakdown of the revenue contribution and performance metrics for the key distribution channels as of Q3 2025:

Channel Segment	Q3 2025 Revenue Reported	Year-over-Year Change
Canadian Cannabis (Total Net Sales)	$46.6 million USD (Net Sales)	Up 29%
Canadian Provincial Retailers (Branded)	CAD 37 million	Planned decrease of 4%
Wholesale to other Licensed Producers (Non-Branded)	$7.3 million USD	Down 0.8%
Direct International Export (Medical Markets)	$11.9 million USD	Up 771.9%
Licensed Dutch Coffee Shops (via Leli Holland)	$3.6 million USD	New revenue stream in 2025
Direct-to-Consumer (Balanced Health Botanicals - US)	$3.3 million USD	Down 15.4%

The international medical export channel shows explosive growth, which is a major focus for Village Farms International, Inc. Net revenue from international sales was $11.9 million USD in the quarter, marking an increase of 771.9% year-over-year. This segment is heavily driven by demand in Germany.

For the Canadian market, the strategy involves a mix of retail and wholesale, with a clear pivot toward higher-margin products:

• Canadian retail branded sales were CAD 37 million in Q3 2025, which was in line with expectations following a portfolio realignment.
• The non-branded (wholesale) channel generated $7.3 million USD in sales, representing a slight decrease of 0.8%.
• The overall Canadian cannabis segment achieved a record gross margin of 56%.

The European expansion through Leli Holland in the Netherlands is now contributing meaningfully. Sales from the Netherlands operations reached $3.6 million USD in Q3 2025, and the operation achieved positive EBITDA, with an adjusted EBITDA of $1.3 million. The Drachten facility reached full operating capacity, and construction on a second facility in Groningen is on track for Q1 2026.

The US Direct-to-Consumer channel, managed by Balanced Health Botanicals, saw sales of $3.3 million USD in Q3 2025, which was a decline of 15.4% year-over-year. To be defintely clear, the Q2 2025 sales for this segment were $3.8 million USD.

Village Farms International, Inc. (VFF) - Canvas Business Model: Customer Segments

You're looking at the customer base for Village Farms International, Inc. as of late 2025. It's a mix of regulated recreational buyers, established medical channels, and the evolving US hemp/CBD space. Honestly, the international medical export growth is what's really moving the needle right now.

The core of the business, driven by the Pure Sunfarms and Rose LifeScience subsidiaries, targets the Canadian market, which relies heavily on provincial and territorial government wholesalers for distribution into the adult-use recreational system. This segment is mature but still growing, especially as Village Farms International focuses on higher-margin products.

• Maintained a top-three overall market share in Canada year-to-date through July 2025.
• Held the number one spot in dried flower sales in Canada.
• Canadian operations achieved a gross margin of 56% in Q3 2025.
• Canadian Cannabis Net Sales reached $64.1 million in Q3 2025.

The international medical segment is where the explosive growth is happening, primarily serving licensed distributors and pharmacies in markets like Germany, which rely on EU Good Manufacturing Practice (GMP) certified supply. The Netherlands operation is a unique segment serving a regulated adult-use pilot program directly through coffee shops.

For the US, the focus is on CBD and hemp-derived products through the Balanced Health subsidiary. This segment faces headwinds from regulatory uncertainty and competition from the unregulated market, which you can see in the sales figures.

Here's the quick math on the revenue contribution from these segments in Q3 2025, based on reported revenue lines (amounts in US$ millions):

Customer Segment Group	Specific Channel/Market	Q3 2025 Revenue (US$ Millions)	Year-over-Year Growth	Key Metric/Status
Canadian Adult-Use & Wholesalers	Retail Branded Sales	42.5	Planned decrease of 4% (focus on higher margin)	Excise Taxes Paid: $21.6 million
Canadian Adult-Use & Wholesalers	Non-Branded (Wholesale)	7.3	Essentially flat at 0% change	Part of the overall Canadian Cannabis Net Sales of $64.1 million
International Medical Distributors/Pharmacies	International Export Sales (Total)	11.9	Up 758%	Supplying markets like Germany
International Medical Distributors/Pharmacies	Netherlands (Leli Holland)	3.6	Sequential gain	Products in 91% of participating coffee shops
US Consumers (CBD/Hemp)	US Cannabis Sales (Balanced Health)	3.3	Down 15.4%	Resulted in a $436,000 loss

To be fair, the Canadian segment's total net sales of $64.1 million is the aggregate of its domestic wholesale/retail and its international medical exports. The $11.9 million international revenue is a distinct line item that drove a 758% year-over-year surge in international sales. The US segment, at $3.3 million in Q3 2025 sales, showed a 15.4% decline.

The provincial and territorial government wholesalers are the gatekeepers for the Canadian recreational market, purchasing the Retail Branded and Non-Branded products. The net income from the Canadian operations alone was $11.7 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

Village Farms International, Inc. (VFF) - Canvas Business Model: Cost Structure

You're looking at the cost side of Village Farms International, Inc.'s (VFF) operations as of late 2025, which is heavily influenced by large-scale controlled environment agriculture (CEA) and the complexities of the global cannabis market. The cost structure reflects significant upfront investment in infrastructure and ongoing operational expenses tied to cultivation and regulatory adherence.

High capital expenditures (CapEx) for greenhouse conversions represent a major cost driver, reflecting the long-term commitment to high-tech cultivation platforms. While specific Q3 2025 CapEx isn't itemized in the latest reports, the ongoing strategic build-out is clear. For instance, the expansion of cultivation capacity in the Delta 2 greenhouse, which began subsequent to Q3 2025, is a key investment area, funded by existing cash on hand to yield an incremental 40 metric tons of annualized cannabis production. The example of a $10 million spend for a conversion like Delta 2 illustrates the scale of these infrastructure projects.

Costs of Goods Sold (COGS) for CEA cultivation and processing are central to the operational cost base. For the third quarter ended September 30, 2025, Village Farms International reported consolidated revenue of $66.7 million and a consolidated gross profit of $31.9 million. This implies a consolidated COGS of approximately $34.8 million for the quarter. The Canadian cannabis segment, a key profit driver, achieved a record gross margin of 56% in Q3 2025, indicating strong control over its direct cultivation and processing costs relative to its sales in that segment.

The burden of excise taxes on Canadian cannabis sales is a significant, non-production-related cost. For the three months ended September 30, 2025, the reported excise tax expense was ($15.7 million). This figure, noted in the revenue breakdown, highlights how heavily the Canadian adult-use market structure impacts the net realization from those sales. This tax is often cited as the single largest cost of participating in that specific market channel.

Research, development, and regulatory compliance costs are embedded within operating expenses, supporting the multi-national structure. These costs are necessary to maintain EU GMP compliance for international exports, particularly to markets like Germany, and to navigate the evolving regulatory landscapes in both Canada and the U.S. for its Balanced Health CBD products. Specific R&D figures aren't broken out in the summary results, but compliance is a non-negotiable operational expense for cross-border cannabis trade.

The Sales, General, and Administrative (SG&A) for the multi-national corporate structure is managed alongside other operating costs. While direct SG&A is not explicitly stated, the consolidated Adjusted EBITDA for Q3 2025 was reported at $20.2 million, representing 30.3% of sales. This metric, which is revenue minus COGS and operating expenses (including SG&A, but before depreciation and amortization), shows the efficiency of the overhead structure relative to revenue generation. The company ended Q3 2025 with $88 million in cash and $35 million in total debt, indicating a relatively healthy liquidity position to cover these ongoing corporate costs.

Here's a quick look at the key Q3 2025 financial metrics that inform the cost structure:

Financial Metric	Amount (US$ Millions)	Segment/Context
Consolidated Net Sales	66.7	Q3 2025
Consolidated Gross Profit	31.9	Q3 2025
Implied Consolidated COGS	34.8	Calculated from Sales and Gross Profit
Excise Taxes	(15.7)	Q3 2025 Expense
Canadian Cannabis Gross Margin	56%	Q3 2025
Consolidated Adjusted EBITDA	20.2	Q3 2025 (30.3% of Sales)

You should keep an eye on how the Delta 2 expansion, which is expected to be fully operational by Q1 2027, impacts future COGS and CapEx schedules. The company is clearly prioritizing capital allocation toward growth, as evidenced by the cash position and the initiation of a $10 million share repurchase program.

• Ongoing operational costs for the Drachten facility in the Netherlands.
• Costs associated with capacity expansion underway in Canada (Delta 2).
• Fixed overhead costs supporting the multi-jurisdictional corporate entity.
• Energy costs, which are a vulnerability for intensive greenhouse operations.

Finance: draft 13-week cash view by Friday.

Village Farms International, Inc. (VFF) - Canvas Business Model: Revenue Streams

You're looking at the core ways Village Farms International, Inc. brings in money as of late 2025. It's definitely shifted heavily toward cannabis, but those other streams still play a part in the overall picture.

The cannabis operations are the clear engine now, especially with international medical exports showing explosive growth. Here's a breakdown of the key revenue components based on the Q3 2025 performance.

Revenue Stream Component	Q3 2025 Financial Metric	Amount/Rate
Canadian Cannabis Sales (Segment Net Sales)	Net Sales	$46.6 million
International Medical Export Sales	Year-over-Year Growth	758%
International Medical Export Sales	Net Revenue (USD)	$11.9 million
Netherlands Cannabis Sales (Leli Holland)	Net Sales	$3.6 million
Netherlands Cannabis Sales (Leli Holland)	Adjusted EBITDA	$1.3 million

The Canadian cannabis segment is showing strong operational leverage, which directly impacts revenue quality. You can see this in the margin improvement alongside the sales figures.

• Canadian Cannabis Gross Margin for Q3 2025 reached 56%, up from 26% in Q3 2024.
• Canadian Cannabis Adjusted EBITDA for the quarter was $19.3 million, a 309% increase year-over-year.
• Retail branded sales within the Canadian segment saw a planned decrease of 4% due to a mix shift toward higher-margin products.

International medical export demand, particularly in Germany, is a massive driver. That 758% surge shows how effectively Village Farms International is scaling its EU GMP certified supply chain.

The Netherlands business, through Leli Holland, is now contributing meaningfully after its Phase 1 facility reached full operating capacity.

• Leli Holland sales of $3.6 million in Q3 2025 were a meaningful increase quarter-over-quarter.
• Products are now represented in 91% of participating coffee shops in the Netherlands.

The legacy produce business still generates revenue, though it's structured differently now, involving a commission arrangement. This segment contributes to the overall financial picture, but it's not the primary growth focus.

For the continuing produce operations:

• Sales from continuing operations were $12.8 million, essentially flat year-over-year due to the commission structure.
• Net income from continuing operations improved to $1.3 million, up from $0.3 million in the prior year.
• Adjusted EBITDA from continuing operations improved to $2.5 million from $1.7 million.

Finally, there's a passive income stream tied to renewable energy. Village Farms Clean Energy (VFCE) is involved in creating renewable natural gas at its Delta RNG facility.

VFCE receives royalties on all revenue generated from the Delta RNG facility through its partnership with Terreva Renewables. Specific Q3 2025 royalty amounts weren't detailed in the primary financial highlights, but the structure is a defined revenue source.