Start here if you're new
what it is
Village Farms sells cannabis, CBD, and greenhouse products through a patchwork of businesses across Canada, the U.S., and the Netherlands.
how it gets paid
Last year Vff made $216M in revenue.
why it's growing
Revenue grew 10.2% last year. 41.2% gross margin matters most because margin expansion.
what just happened
The quarter finally looked alive, with revenue hitting $166M and EPS rising to $0.26.
At a glance
C++ balance sheet — some cracks in the foundation
30/100 earnings predictability — expect surprises
19.2x trailing p/e — priced about right
4.8% return on capital — nothing to write home about
-$0.32 fy2024 eps est
xvary composite: 41/100 — below average
What they do
Village Farms sells cannabis, CBD, and greenhouse products through a patchwork of businesses across Canada, the U.S., and the Netherlands.
VFF wins by owning more of the chain than most peers. Vertical integration → it grows, processes, and sells its own product → so what: you keep more margin when pricing gets ugly. You can see that operating leverage in the latest quarter, with gross margin at 41.2% versus 0.0% operating margin on the broader trailing base.
How they make money
$216M
annual revenue · their business grew +10.2% last year
total revenue
$216M
+10.2%
The products that matter
cultivates and sells cannabis
Canadian Cannabis
$163.7M · 44% gross margin
This generated $163.7M in sales last year at a 44% gross margin. That is the main engine and the number you should care about most.
main engine
exports cannabis into other markets
International Cannabis Exports
+384% growth
Export sales grew 384% from a year ago. The base is still small. In human-speak: the arrow is pointing the right way, but it is not large enough yet to carry the whole story.
small base, fast growth
sells greenhouse produce
Produce
$3.4M q4 sales · 60% margin
Produce generated $3.4M in Q4, down from $4.6M, while gross margin fell to 60% from 70%. It is still on the page. It is not the reason your thesis works.
legacy business
Key numbers
$33M
long-term debt
Debt equals 9% of capital. Plain English: leverage is present, but it is not yet the thing crushing the equity.
41.2%
gross margin
Gross margin → money left after direct costs → so what: this is the clearest proof the turnaround has something real underneath it.
$216M
annual revenue
The business is real in sales terms. The problem is converting $216M of revenue into durable profit.
4.8%
return on capital
Return on capital → profit earned on the money invested → so what: 4.8% says this company still earns like a weak turnaround, not a great operator.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $33M (9% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for VFF right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The quarter finally looked alive, with revenue hitting $166M and EPS rising to $0.26.
Gross margin reached 41.2%, which tells you cost control improved while sales surged 149% vs. prior year. Deadpan version: a company with 0.0% operating margin just posted a quarter that looked almost normal.
$166M
revenue
$0.26
eps
41.2%
gross margin
the number that mattered
41.2% gross margin matters most because margin expansion, not raw sales, is what can turn a $0.32 full-year loss into durable earnings.
source: company earnings report, 2026
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What could go wrong
VFF's risk profile is not abstract. It sits right in the numbers. $163.7M of cannabis sales at a 44% gross margin funded the turnaround, while the balance sheet still grades C++ and the stock scores 5/100 on price stability.
med
Canadian cannabis pricing cracks
This is still a regulated crop business in a competitive market. If wholesale pricing weakens or discounting rises, that 44% cannabis gross margin can compress fast.
The impact is immediate because Canadian cannabis produced $163.7M of sales. That is the engine, not a side segment.
med
One profitable year might not be enough
A 6.5% selloff after record results says the quiet part loud. Investors do not trust one clean year in a messy sector.
If profit slips back toward losses, a 15.6x earnings multiple does not look cheap. It looks temporary.
med
Exports are growing faster than they matter
Export sales grew 384% from a year ago, which is impressive. The problem is scale. There is no segment dollar figure here large enough to offset a domestic stumble.
If export momentum cools before it becomes material, the growth narrative gets thinner and your valuation support goes with it.
med
Produce is still capable of making the page uglier
Q4 produce sales fell to $3.4M from $4.6M, and gross margin dropped to 60% from 70%. It is a smaller business, but small drags still count in a $330M company.
This does not break the cannabis thesis by itself. It just reduces the margin for error that a C++ balance sheet already does not provide.
The bottom line: if you own VFF, you are betting that 44% cannabis gross margin and positive cash generation are the start of a pattern, not the high-water mark.
source: institutional data · regulatory filings · risk analysis
Pay attention to
margin
Cannabis gross margin holding near 44%
This is the cleanest metric on the page. If 44% starts falling, you will know the profit story is under pressure before net income says it out loud.
calendar
Q1 2026 earnings report
Expected around May 11, 2026. You want to see whether record profitability carried into the next quarter or stopped at one good print.
growth
Export growth after the 384% jump
Fast growth from a small base still matters. The next question is whether exports keep scaling enough to matter to consolidated results.
balance sheet
Debt and facility usage
Long-term debt is $33M. If debt rises before margins prove durable, your downside gets more interesting than your upside.
Analyst rankings
earnings predictability
30 / 100
in human-speak, analysts do not expect smooth quarter-to-quarter results here.
risk rank
3
That puts VFF around the middle on safety. Not a bunker stock. Not an obvious blowup either.
price stability
5 / 100
This stock moves a lot. If you own it, volatility is part of the job description.
source: institutional data
Institutional activity
institutional ownership data for VFF is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$3
current price
n/a
target midpoint · n/a from current
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