Village Farms International, Inc.

Previous wording

In Canada, we converted two large-scale, advanced greenhouse facilities to cannabis production to serve the Canadian legal adult use (recreational) market and international medical markets through exportation. Through our ownership of VFN, we hold one of ten licenses to cultivate and distribute cannabis legally in the Netherlands under that country’s Controlled Cannabis Supply Chain Experiment. In the U.S., Balanced Health is our industry-leading cannabinoid business, extended our portfolio into cannabidiol (“CBD”) and hemp-derived consumer products, and the Company also owns 2.2 million square feet of advanced greenhouse facilities in Texas which may be converted to cannabis production in the future if and when permissible by all regulatory authorities.

Current wording

In Canada, we converted two large-scale, advanced greenhouse facilities to cannabis production to serve the Canadian legal adult use (recreational) market and international medical markets through exportation. Through our ownership of VFN, we hold one of ten licenses to cultivate and distribute cannabis legally in the Netherlands under that country’s Closed Cannabis Supply Chain Experiment. In the U.S., Balanced Health is our industry-leading cannabinoid business, which extended our portfolio into cannabidiol (“CBD”) and hemp-derived consumer products, and the Company also owns 2.2 million square feet of advanced greenhouse facilities in Texas which may be converted to cannabis production in the future if and when permissible by all regulatory authorities.

Previous wording

We also cultivate tomatoes and market them through Village Farms Fresh (a Verdexa Holdings Company) under the Village Farms Fresh (“VF Fresh”) brand, which sells to mass retail grocery stores and food distribution companies.

Current wording

We also cultivate tomatoes and market them through Village Farms Fresh (a Verdexa Holdings Company) under the Village Farms Fresh brand, which sells to mass retail grocery stores and food distribution companies.

Previous wording

Maintained the Company’s top five overall market share position in the Canadian market and expanded its market share in vapes and infused pre-rolls, now positioning the Company’s brand portfolio among the top 10 nationally in all major product categories 1.

Current wording

Maintained the Company’s top five overall market share position in the Canadian market and expanded its market share in vapes and infused pre-rolls, maintaining its top 10 position nationally in all major product categories 1. The Company’s Super Toast brand also recently became the Company’s first nationally distributed brand after launching in Quebec.

Previous wording

International export sales increased 74% year-over-year and 43% sequentially to a record high of $20.9 million. The Company believes it remains the largest exporter of medical cannabis to Europe with a leading market share position in Germany.

Current wording

International export sales increased 75% year-over-year to $20.8 million, in line with the previous quarter record set in Q2 of 2026. The Company remains one of the largest exporters of medical cannabis to Europe with a leading market share position in Germany.

Previous wording

During Q2 the Company harvested its first crop from the first half of its Delta 2 greenhouse expansion, and announced that it is accelerating technology upgrades quicker than previously anticipated due to increasing global demand. The Delta 2 expansion is expected to yield approximately 15 metric tonnes of dried, trimmed flower during the second half of 2026. The Delta 2 expansion is expected to ramp to its full production capacity of 40 metric tonnes by mid-2027, bringing total production capacity from the Delta campus to approximately 160 metric tonnes of dried, trimmed flower annually.

Current wording

The Company’s capacity expansion project at its Delta 2 greenhouse in British Columbia remains on track to be completed during Q1 of 2027 and expected to ramp to its full production capacity by the middle of next year. The Delta 2 expansion is expected to ramp to its full production capacity of 40 metric tonnes by mid-2027, bringing total production capacity from the Delta campus to approximately 160 metric tonnes of dried, trimmed flower annually.

Previous wording

Our results of operations for the three and six months ended June 30, 2026 and 2025 presented below reflect the operations of our consolidated wholly-owned subsidiaries and our 80% ownership interest in Rose LifeScience through May 21, 2026, and 86.6% ownership after May 21, 2026.

Current wording

Our results of operations for the three and nine months ended September 30, 2026 and 2025 presented below reflect the operations of our consolidated wholly-owned subsidiaries and our 80% ownership interest in Rose LifeScience through May 21, 2026, and 86.6% ownership after May 21, 2026.

Previous wording

The exchange rates used to translate from Canadian dollars to U.S. dollars is shown below:

Current wording

The exchange rates used to translate from Canadian dollars to U.S. dollars are shown below:

Previous wording

We caution that our results of operations for the three and six months ended June 30, 2026 and 2025 may not be indicative of our future performance.

Current wording

We caution that our results of operations for the three and nine months ended September 30, 2026 and 2025 may not be indicative of our future performance.

Previous wording

Canadian Branded revenues are shown net of excise tax on products. Excise tax on products was $14,909 and $14,812 for the three months ended June 30, 2026 and 2025, respectively.

Current wording

Canadian Branded revenues are shown net of excise tax on products. Excise tax on products was $16,454 and $15,712 for the three months ended September 30, 2026 and 2025, respectively.

Previous wording

The increase in consolidated revenues of $4,078, or 7%, was primarily due to an increase in International Exports of $8,917, or 74%, driven by continued growth in export volumes to Germany, partially offset by a decrease in the net average selling price of 16% due to a shift in product mix in favor of bulk flower over packaged flower. For the three months ended June 30, 2026, International Export sales represented 33% of revenue, compared with 20% of revenue for the three months ended June 30, 2025.

Current wording

International Exports increased by $8,913, or 75%, driven by continued growth in export volumes to Germany, partially offset by a decrease in the net average selling price of 9% due to a shift in product mix in favor of bulk flower over packaged flower. For the three months ended September 30, 2026, International Export sales represented 31% of revenue, compared with 18% of revenue for the three months ended September 30, 2025.

Previous wording

Canadian Branded Sales decreased by $1,945, or 8%, to $23,017, or 36% of sales, from $24,962, or 42% of sales, primarily due to a decrease in volume of value brands, while the average net selling price increased 5% over the prior period.

Current wording

Canadian Branded Sales decreased by $1,552, or 6%, to $25,294, or 38% of sales, from $26,846, or 40% of sales, primarily due to a decrease in volume of value brands, while the average net selling price increased 6% over the prior period.

Previous wording

Netherlands Branded sales increased by $862 over the prior year, due to an increase in volume.

Current wording

Netherlands Branded sales decreased by $749 over the prior year, due to a decrease in volume.

Previous wording

Canadian Non-Branded sales decreased by $4,037, or 57%, due to a shift in volume towards International Exports.

Current wording

Canadian Non-Branded sales decreased by $4,044, or 55%, due to a planned shift in volume towards International Exports.

Previous wording

Sales for U.S. Cannabis decreased by $617, or 16%, due to lower direct-to-consumer sales resulting from the proliferation of unregulated hemp-derived products on the market and the continuing effect of changes in state regulations restricting sales.

Current wording

Sales for U.S. Cannabis decreased by $540, or 16%, due to lower direct-to-consumer sales resulting from the proliferation of unregulated hemp-derived products on the market and the continuing effect of changes in state regulations restricting sales.

Previous wording

We continue to pay a burdensome excise tax on our Canadian Branded sales (sales to provincial distributors). For the three months ended June 30, 2026, the Company incurred excise duties of $14,909, or 39% of gross Canadian Branded sales, compared with $14,812, or 37% of gross Canadian Branded sales, for the three months ended June 30, 2025. The Canadian excise duty is our single largest cost of participating in the branded adult-use market in Canada.

Current wording

We continue to pay a burdensome excise tax on our Canadian Branded sales (sales to provincial distributors). For the three months ended September 30, 2026, the Company incurred excise duties of $16,454, or 39% of gross Canadian Branded sales, compared with $15,712, or 37% of gross Canadian Branded sales, for the three months ended September 30, 2025. The Canadian excise duty is our single largest cost of participating in the branded adult-use market in Canada.

Previous wording

Cost of sales for the three months ended June 30, 2026 were $34,004 compared with $37,557 for the three months ended June 30, 2025. The decrease of $3,553, or 9%, was primarily due to improved yields and a favorable shift in sales mix towards bulk flower, from packaged flower, within our International Export sales, which has a lower average cost per gram over other packaged products.

Current wording

Cost of sales for the three months ended September 30, 2026 were $37,578 compared with $34,803 for the three months ended September 30, 2025. The increase of $2,775, or 8%, was primarily due to an unfavorable shift in sales mix away from bulk trim, which has a lower average cost per gram over other products.

Previous wording

Selling, general and administrative expenses for the three months ended June 30, 2026 were $18,811 (29% of sales) compared with $15,411 (26% of sales) for the three months ended June 30, 2025.

Current wording

Selling, general and administrative expenses for the three months ended September 30, 2026 were $16,142 (24% of sales) compared with $15,599 (23% of sales) for the three months ended September 30, 2025.

Previous wording

Cannabis SG&A increased by approximately $3,597, or 24%, primarily due to higher commercial and marketing expenses and an update to the Company's transfer pricing policies.

Current wording

Cannabis SG&A increased by approximately $2,890, or 24%, primarily due to higher commercial and marketing expenses and a higher allocation of corporate costs as a result of an update to the Company's transfer pricing policies.

Previous wording

Interest expense for the three months ended June 30, 2026 was $477 compared with $814 for the three months ended June 30, 2025 due to a decrease in the average debt balance and a decrease in interest rates from the prior year.

Current wording

Interest expense for the three months ended September 30, 2026 was $443 compared with $646 for the three months ended September 30, 2025 due to a decrease in the average debt balance and a decrease in interest rates from the prior year.

Previous wording

Interest income for the three months ended June 30, 2026 was $343 compared with $109 for the three months ended June 30, 2025 due primarily to an increase in the average cash, cash equivalents, and restricted cash.

Current wording

Interest income for the three months ended September 30, 2026 was $515 compared with $360 for the three months ended September 30, 2025 due primarily to an increase in average cash, cash equivalents, and restricted cash.

Previous wording

Adjusted EBITDA from Continuing Operations for the three months ended June 30, 2026 was $15,411 compared with $17,111 for the three months ended June 30, 2025. The decrease of $1,700, or 10%, was driven primarily by the favorable vendor settlement in 2025, partially offset by higher sales and higher margins during the three months ended June 30, 2026. For additional information, refer to the reconciliation of Adjusted EBITDA from Continuing Operations to net income (loss) in “Non-GAAP Measures—Reconciliation of Net Income (Loss) to Adjusted EBITDA”.

Current wording

Adjusted EBITDA from Continuing Operations for the three months ended September 30, 2026 decreased $2,445, or 12%, to $18,241 compared to $20,686 for the three months ended September 30, 2025. The decrease was driven primarily by lower margins in the three months ended September 30, 2026. For additional information, refer to the reconciliation of Adjusted EBITDA from Continuing Operations to net income (loss) in “Non-GAAP Measures—Reconciliation of Net Income (Loss) to Adjusted EBITDA”.

Previous wording

Sales for the six months ended June 30, 2026 and 2025 were as follows:

Current wording

Sales for the nine months ended September 30, 2026 and 2025 were as follows:

Previous wording

Canadian Branded revenues are shown net of excise tax on products. Excise tax on products was $30,812 and $28,759 for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Canadian Branded revenues are shown net of excise tax on products. Excise tax on products was $47,265 and $44,476 for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

The increase in consolidated revenues of $14,636, or 15%, was primarily due to an increase in International Exports of $18,110, or 104%, driven by continued growth in export volumes to Germany, partially offset by a decrease in the net average selling price of 15% due to a shift in product mix in favor of bulk flower over packaged flower. For the six months ended June 30, 2026, International Export sales represented 31% of revenue, compared with 17% of revenue for the six months ended June 30, 2025.

Current wording

The increase in consolidated revenues of $14,798, or 9%, was primarily due to an increase in International Exports of $27,023, or 92%, driven by continued growth in export volumes to Germany, partially offset by a decrease in the net average selling price of 9% due to a shift in product mix in favor of bulk flower over packaged flower. For the nine months ended September 30, 2026, International Export sales represented 31% of revenue, compared with 18% of revenue for the nine months ended September 30, 2025.

Previous wording

Canadian Branded Sales decreased by $848, or 2%, to $46,865, or 41% of sales, from $47,713, or 48% of sales, primarily due to a decrease in volume of value brands, while the average net selling price remained in line with the prior period.

Current wording

Canadian Branded Sales decreased by $2,395, or 3%, to $72,159, or 40% of sales, from $74,554, or 45% of sales, primarily due to a decrease in volume of value brands, while the average net selling price increased 3% over the prior period.

Previous wording

Netherlands Branded sales increased by $3,039 over the prior year period, as the prior year only had four months of sales.

Current wording

Netherlands Branded sales increased by $2,290 over the prior year period, as the prior year only had seven months of sales.

Previous wording

Canadian Non-Branded sales decreased by $4,950, or 37%, due to a shift in volume to International Exports.

Current wording

Canadian Non-Branded sales decreased by $8,998, or 43%, due to a planned shift in volume to International Exports.

Previous wording

Sales for U.S. Cannabis decreased by $1,388, or 18%, due to lower direct-to-consumer sales resulting from the proliferation of unregulated hemp-derived products on the market and the continuing effect of changes in state regulations restricting sales.

Current wording

Sales for U.S. Cannabis decreased by $1,928, or 17%, due to lower direct-to-consumer sales resulting from the proliferation of unregulated hemp-derived products on the market and the continuing effect of changes in state regulations restricting sales.

Previous wording

We continue to pay a burdensome excise tax on our Canadian Branded sales (sales to provincial distributors). For the six months ended June 30, 2026, the Company incurred excise duties of $30,812, or 40% of gross Canadian Branded sales, compared with $28,759, or 38% of gross Canadian Branded sales, for the six months ended June 30, 2025. The increase of $2,053, or 7%, was due to an increase in Cannabis 2.0 products sold in the Canadian Branded channel, which have a higher proportional excise tax. The Canadian excise duty is our single largest cost of participating in the branded adult-use market in Canada.

Current wording

We continue to pay a burdensome excise tax on our Canadian Branded sales (sales to provincial distributors). For the nine months ended September 30, 2026, the Company incurred excise duties of $47,265, or 40% of gross Canadian Branded sales, compared with $44,476, or 37% of gross Canadian Branded sales, for the nine months ended September 30, 2025. The increase of $2,789, or 6%, was due to an increase in Cannabis 2.0 products sold in the Canadian Branded channel, which have a higher proportional excise tax. The Canadian excise duty is our single largest cost of participating in the branded adult-use market in Canada.

Previous wording

Cost of sales for the six months ended June 30, 2026 were $63,256 compared with $63,057 for the six months ended June 30, 2025. During the six months ended June 30, 2026, the increase in volume was offset by shift to bulk flower, from packaged flower, within our International Exports sales, lower sales of value brands within the branded sales category, as well as an improvement in year over year yields leading to a lower cost per gram.

Current wording

Cost of sales for the nine months ended September 30, 2026 were $100,834 compared with $97,860 for the nine months ended September 30, 2025. During the nine months ended September 30, 2026, the increase in volume was offset by a shift to bulk flower, from packaged flower, within our International Exports sales, lower sales of value brands within the branded sales category, as well as an improvement in year over year yields leading to a lower cost per gram.

Previous wording

Selling, general and administrative expenses for the six months ended June 30, 2026 were $34,753 (30% of sales) compared with $30,030 (30% of sales) for the six months ended June 30, 2025.

Current wording

Selling, general and administrative expenses for the nine months ended September 30, 2026 were $50,895 (28% of sales) compared with $45,629 (27% of sales) for the nine months ended September 30, 2025.

Previous wording

Cannabis SG&A increased by approximately $6,681, or 29%, primarily due to higher commercial and marketing expenses and an update to the Company's transfer pricing policies.

Current wording

Cannabis SG&A increased by approximately $9,571, or 27%, primarily due to higher commercial and marketing expenses and a higher allocation of corporate costs as a result of an update to the Company's transfer pricing policies.

Previous wording

Interest expense for the six months ended June 30, 2026 was $1,000 compared with $1,516 for the six months ended June 30, 2025 due to a decrease in the average debt balance and a decrease in interest rates from the prior year.

Current wording

Interest expense for the nine months ended September 30, 2026 was $1,443 compared with $2,162 for the nine months ended September 30, 2025 due to a decrease in the average debt balance and a decrease in interest rates from the prior year.

Previous wording

Interest income for the six months ended June 30, 2026 was $951 compared with $184 for the six months ended June 30, 2025 due primarily to an increase in the average cash, cash equivalents, and restricted cash.

Current wording

Interest income for the nine months ended September 30, 2026 was $1,466 compared with $544 for the nine months ended September 30, 2025 due primarily to an increase in the average cash, cash equivalents, and restricted cash balances.

Previous wording

Other expense for the six months ended June 30, 2026 was $159 compared with other income of $4,451 for the six months ended June 30, 2025. Other income for the six months ended 2025 included a favorable vendor settlement relating to the partial recovery of operational losses from the ToBRFV infestation.

Current wording

Other expense for the nine months ended September 30, 2026 was $14 compared with other income of $4,169 for the nine months ended September 30, 2025. Other income for the nine months ended September 30, 2025 included a favorable vendor settlement relating to the partial recovery of operational losses from the Tomato Brown Rugose Fruit Virus ("ToBRFV") infestation.

Previous wording

Income before taxes for the six months ended June 30, 2026 was $14,853 compared with $11,319 for the six months ended June 30, 2025. The change of $3,534 was primarily due to the improved gross profit.

Current wording

Income before taxes for the nine months ended September 30, 2026 was $27,972 compared with $26,852 for the nine months ended September 30, 2025. The change of $1,120 was primarily due to the improved gross profit.

Previous wording

Net income attributable to Village Farms International, Inc. shareholders for the three months ended June 30, 2026 was $7,145 compared with $26,497 for the three months ended June 30, 2025. The decrease of $19,352 was primarily due to $16,294 from discontinued operations resulting from the sale of the Texas greenhouses and a favorable vendor settlement in 2025. This was partially offset by higher sales and an improved gross margin during the three months ended June 30, 2026.

Current wording

Net income attributable to Village Farms International, Inc. shareholders for the nine months ended September 30, 2026 was $20,030 compared with $30,011 for the nine months ended September 30, 2025. The decrease of $9,981 was primarily due to $11,015 from discontinued operations resulting from the sale of the Texas greenhouses and a favorable vendor settlement in 2025 described above. This was partially offset by higher sales and an improved gross margin during the nine months ended September 30, 2026.

Previous wording

Adjusted EBITDA from Continuing Operations for the six months ended June 30, 2026 was $25,311 compared with $20,560 for the six months ended June 30, 2025. The increase of $4,751, or 23%, was driven primarily by higher sales and higher margins in Cannabis, partially offset by the favorable vendor settlement in 2025. For additional information, refer to the reconciliation of Adjusted EBITDA from Continuing Operations to net income (loss) in “Non-GAAP Measures—Reconciliation of Net Income (Loss) to Adjusted EBITDA”.

Current wording

Adjusted EBITDA from Continuing Operations for the nine months ended September 30, 2026 was $43,377 compared with $41,246 for the nine months ended September 30, 2025. The increase of $2,131, or 5%, was driven primarily by higher sales and higher margins in Cannabis, partially offset by the favorable vendor settlement in 2025 described above. For additional information, refer to the reconciliation of Adjusted EBITDA from Continuing Operations to net income (loss) in “Non-GAAP Measures—Reconciliation of Net Income (Loss) to Adjusted EBITDA”.

Previous wording

At June 30, 2026, cash, cash equivalents, and restricted cash were $72,931 and working capital was $109,718, compared with cash, cash equivalents, and restricted cash of $86,252 and working capital of $95,851 at December 31, 2025. We believe that our existing cash, cash generated from our operating activities and the availability under our Pure Sunfarms Revolving Credit Facility (as defined below), will provide us with sufficient liquidity to meet our working capital needs, repayments of our long-term debt and future contractual obligations and fund our planned capital expenditures for the next 12 months. An additional potential source of liquidity is access to capital markets for additional equity or debt financing. We intend to use our cash on hand for daily operational funding requirements.

Current wording

At September 30, 2026, cash, cash equivalents, and restricted cash were $79,913 and working capital was $121,212, compared with cash, cash equivalents, and restricted cash of $86,252 and working capital of $95,851 at December 31, 2025. We believe that our existing cash, cash generated from our operating activities and the availability under our Pure Sunfarms Revolving Credit Facility (as defined below), will provide us with sufficient liquidity to meet our working capital needs, repayments of our long-term debt and future contractual obligations and fund our planned capital expenditures for the next 12 months. An additional potential source of liquidity is access to capital markets for additional equity or debt financing. We intend to use our cash on hand for daily operational funding requirements.

Previous wording

Accrued interest payable on the FCC Term Loan and Pure Sunfarms Secured Credit Facilities (as defined below) as of June 30, 2026 and December 31, 2025 was $211 and $166, respectively. These amounts are included in accrued liabilities in the accompanying Condensed Consolidated Statements of Financial Position.

Current wording

Accrued interest payable on the FCC Term Loan and Pure Sunfarms Secured Credit Facilities (as defined below) as of September 30, 2026 and December 31, 2025 was $138 and $166, respectively. These amounts are included in accrued liabilities in the accompanying Condensed Consolidated Statements of Financial Position.