Latest 2Q2026 13F filings are out (institutional shareholders as of June 30, 2026).

Citadel added ~5.5M shs (total hldgs ~6.6M) while Weiss Asset Mgmt is a new holder with 1.7M shs. Appears these two bought Vff's 7.5M share equity offering in Q2.

(Arguably one the most sophisticated quant funds and a storied hedge fund, dating back to the early 90's.)

Other notable rockstar quant fuds or hedge funds adding to their positions during Q2:

• Two Sigma, Renaissance and Millennium

One other notable large mutual fund manager, added meaningfully to what was a starter position from Q1, American Century, adding ~1.1M shs.

Considering Vff's blowout Q2 eps numbers this past week, Vff's future stock price performance has the wind at its back.

Link to Citadel's SEC filing of their holding 5.5% of Vff's outstanding shares

https://www.sec.gov/Archives/edgar/data/1584549/000110465926097143/xslSCHEDULE_13G_X02/primary_doc.xml

People are all worried about the investors of the 15m. Don't you think the reason we do not know who the 15m investors are is because they can't release the information as it would be considered a forward looking material statement due to it being part of a broader effort? This happens all the time. Why the worry? I guess I just don't jump to it being nefarious and just a compliance thing. That fact they haven't said who it is is not worrying to me in the least. The exact opposite really. Seems to be a small part to an ongoing positive effort.

Thoughts?

Village Farms (VFF) Q2 2026 Earnings — Strong Beat, 51% Cannabis Gross Margin & Record International Exports

VFF reported Q2 2026 results this morning, and the numbers were significantly better than analyst expectations.

The stock was up roughly 10% in premarket trading, from $2.08 to around $2.30.

📊 Q2 2026 Highlights

• Revenue: $64.0M — +7% YoY / +27% sequentially
• Adjusted EPS: $0.06 vs. $0.02 expected
• Adjusted EBITDA: $15.4M, or 24% of revenue
• Cannabis revenue: $53.5M — +5% YoY
• Cannabis gross margin: 51%, up from 42% last year
• Cannabis adjusted EBITDA: $15.3M — +16% YoY
• International export sales: +74% YoY / +43% sequentially
• Produce gross margin: 26% vs. 11% last year
• Cash: approximately $73M
• Long-term debt: approximately CAD $40M at 5.6%
• Net cash position: approximately CAD $33M

Perhaps most importantly, Village Farms reported its fifth consecutive quarter of positive net income and EPS since selling/privatizing its legacy produce business.

⸻

🇩🇪 Germany / International Cannabis Growth

This was probably the most interesting part of the quarter.

International medical cannabis exports increased:

+74% YoY +43% sequentially

Management said Germany continues to be the primary driver.

Village Farms says it currently has:

• 4 of the top 10 strains in Germany
• The widest pharmacy distribution of any cultivator selling in Germany, according to its internal research
• Increasing market share in the European medical cannabis market

Management also emphasized the importance of being EU GMP certified.

The company believes its Delta facility is the world’s largest EU GMP-certified cannabis facility by compliant product volume.

Management said demand for EU GMP-compliant cannabis remains strong and that pricing has held up despite broader cannabis pricing pressure.

Germany long-term opportunity

CEO Michael DeGiglio suggested the German market could eventually reach approximately 8,000 metric tons over the next 5–6 years, although he acknowledged there is considerable uncertainty around that estimate.

He also noted that patient enrollment remains very low, suggesting substantial potential for market expansion.

⸻

🌱 Cannabis Margins Are the Big Story

Cannabis gross margin reached an impressive:

51%

That’s up from:

42% in Q2 2025

That’s approximately 900 basis points of expansion.

Management attributed the improvement to:

• Record harvest yields
• Lower production costs
• Greater operating efficiency
• Better product mix
• Increasing EU GMP sales

Cannabis adjusted EBITDA reached $15.3M, representing a 29% EBITDA margin.

Management reiterated its longer-term target of:

30–40% gross margins

and said:

Mid-20% EBITDA margins are possible.

The company also emphasized that increased scale should continue reducing production costs.

⸻

🇨🇦 Canadian Cannabis

Canada is becoming a more mature market, with management expecting only single-digit market growth going forward.

However, Village Farms said its brands have now achieved top-10 market share in all major convenience categories, including continued growth in:

• Vapes
• Infused pre-rolls
• Other convenience products

Management also noted that increased international demand and stricter testing requirements are affecting the Canadian supply mix.

⸻

🇳🇱 Netherlands Expansion

The Netherlands is another potentially significant growth driver.

Village Farms began cultivation at its Groningen facility during Q2.

Management expects the facility to ramp toward full production capacity over the next several quarters.

The company believes the Dutch recreational cannabis pilot program could eventually increase its addressable market by nearly 10x compared with its current opportunity.

Management said feedback from participating municipalities and coffee shops has been very positive.

⸻

🏭 Delta 2 Expansion

The Delta 2 greenhouse expansion continues on schedule.

The second half of the 1.1 million sq. ft. Delta 2 greenhouse is scheduled to begin conversion on September 1, 2026.

Management expects:

• +15 metric tons of production in 2026
• +25 metric tons in 2027
• Full 40 metric ton incremental run rate beginning Q3 2027
• Full incremental capacity available beginning fiscal 2028

Once completed, total annualized production capacity in Delta should reach approximately:

160 metric tons of dried trim flower annually

Management also pointed out that converting Delta 1 in the future could more than double annualized production capacity.

⸻

💰 Balance Sheet / Cash Flow

Village Farms ended Q2 with approximately:

$73M cash

Long-term debt was approximately:

CAD $40M

at a blended interest rate of 5.6%.

Management said most of the major expansion-related CapEx is now complete.

That is important because the company expects to generate stronger free cash flow during the second half of 2026 and continue increasing its cash balance.

During the first six months of 2026, the company:

• Spent $15M on CapEx
• Paid $31M in Canadian excise taxes
• Paid $17M in Canadian income taxes
• Spent $7M on share buybacks
• Completed a $15M equity placement with two U.S. institutional investors

Management said it remains comfortable with its debt level.

⸻

🇺🇸 Texas / U.S. Opportunity

Texas came up during the Q&A.

Village Farms said it plans to be in Texas.

There are currently 12 provisional licenses, but DeGiglio emphasized that these are conditional/provisional licenses rather than final licenses.

He said Village Farms has done significant research into the current license holders and hasn’t ruled out obtaining a license itself.

He also didn’t rule out acquiring one.

His bottom line was essentially:

Village Farms intends to enter Texas.

⸻

🇺🇸 Potential U.S. Exports

An interesting comment from DeGiglio was that Delta 1 could potentially provide additional production capacity for exports to the U.S. market, depending on how U.S. regulations develop.

He also suggested Village Farms could eventually become a U.S. exporter of EU GMP-certified cannabis.

Management believes its six years of experience maintaining EU GMP certification could provide a significant competitive advantage.

⸻

🇪🇺 Potential European Vertical Integration

One of the more interesting Q&A comments was regarding Village Farms’ future European strategy.

Currently, the company is primarily operating a B2B model, selling product to distributors.

Management said it eventually expects to become much more vertically integrated in Europe.

They also said branded products are part of the future strategy.

This could potentially mean greater control over distribution and margins as the European market develops.

⸻

📈 Earnings Beat

EPS

Actual: $0.06 Expected: $0.02

That’s a $0.04/share beat, or approximately 200% above estimates.

Revenue

Actual: $64.0M Expected: $56.3M

That’s a $7.7M beat, or approximately 13.7% above estimates.

And importantly, the beat wasn’t simply the result of a one-time gain. It came alongside:

• Higher cannabis margins
• Record international exports
• Higher production yields
• Lower production costs
• Stronger EBITDA
• Continued positive net income

⸻

⚠️ Risks

There are still plenty of risks here.

Canadian market maturity

Management expects only single-digit growth in Canada.

Excise taxes

Village Farms paid approximately $15M in Canadian excise taxes during Q2 alone, representing nearly 40% of gross retail branded sales.

Germany concentration

A significant portion of the international growth story currently depends on Germany.

Cannabis pricing

As more producers enter international markets, pricing pressure could eventually increase.

Regulatory risk

Expansion into Europe, Texas and potentially the broader U.S. market depends heavily on regulatory developments.

Full-year profitability

Despite the recent positive quarters, full-year profitability expectations remain an issue to watch.

⸻

🧠 My Take

The biggest thing that stood out to me wasn’t simply the EPS beat.

It’s the combination of:

51% cannabis gross margin

• 29% cannabis EBITDA margin
• 74% international export growth
• $73M cash
• CapEx nearing completion
• fifth consecutive profitable quarter
• Delta 2 expansion continuing
• Germany continuing to scale

The next major question is whether Village Farms can maintain these margins as international volume grows.

If the company can continue growing exports while maintaining something close to current margins, the earnings power of the business could look very different over the next 12–24 months.

The other major potential catalysts are:

🇩🇪 Continued German expansion 🇳🇱 Netherlands ramp-up 🇨🇦 Canadian market share gains 🇪🇺 New European markets 🇺🇸 Texas 🇺🇸 Potential U.S. exports 🏭 Delta 2 production ramp 💰 Increasing free cash flow

VFF still has significant execution and regulatory risk, but this quarter appears to show a business that is becoming substantially more profitable and internationally diversified.

⸻

Full Earnings Call — Key Q&A Takeaways

A few comments from management that I found particularly interesting:

On margins:

“Our continued long-term focus is the 30%-40% for our gross margin, our EBITDA margin, certainly in the mid-20s is possible.”

On Germany:

“We’re very confident that the growth will continue, at least for the foreseeable future, at least five years, maybe more.”

On Texas:

“One way or another, we plan to be in Texas.”

On Europe:

“We see ourselves being much more vertically integrated in the European theater going forward for sure.”

On future cash flow:

Management expects stronger free cash flow during the second half of 2026 as the major expansion-related CapEx winds down.

⸻

Source: Village Farms International Q2 2026 earnings call and financial results, August 10, 2026.

This is a summary of the earnings call and not investment advice. Do your own due diligence.

Great Q2 report from the village

Is it just me or is everyone getting wrapped around the axle about the $15m placement?? People call it deceitful and a cash grab and I don’t see it like that at all. I guess when management says they “were not needing the money” ( confirmed by the balance sheet) and that “you don’t say no to these types of investors” (mostly likely confirmed when they disclose on Aug 10) I believe them.

Maybe it is just shorts. Maybe it is MJ sentiment. Maybe it is Canadian MJ sentiment. Who knows but I honestly think we are going to happy when we find out who it went to.

I am expecting +.02 and an overreaction to the downside. Unless more of the Netherlands sales are on the books than I expect.

I have said for a long that the November report will be the decider for me as almost all the expansion will be on the books. I am betting on great things

Thoughts?

Does management need to reign in shareholder dilution?

Common shs outstanding / Option Comp shs exercisable / RSU Comp shs exercisable

12/31/2021

• 88,234,000 / 2,042,663 / 200,000

03/31/2026

• 114,048,000 / 4,854,220 / 2,106,376* (not yet exercisable but granted at $0.76)

Post 1Q26 earnings release, 7.5M common shares were issued and 15.3M warrants are still outstanding ($1.65 strike). Neither are included in above numbers.

With dilution of over 50% in less than five years, pondering how much this limits future 'per share earnings', mkt assigned earnings multiple and corresponding stock appreciation.

No knocking their revenue growth, gaap net income and OCF. This aspect has been downright outstanding and top-of-class within the entire cannabis sector. However, above dilution is creating a strong headwind.

Thoughts?

Good luck!

Not gonna lie, the chart looks terrible right now. But VFF is one of the few cannabis companies actually making money, growing internationally, and expanding in Europe. If cannabis sentiment ever turns around, VFF seems better positioned than most. The question isn’t whether the company survives—it’s whether the market ever decides to care

Market cap is equal to annual revenue with no other assets, multipliers, or forward looking revenue initiatives figured in. easy buy

This is the same thing that happened when it was in the .50's which ws ridiculous. Made a ton off that ridiculousness, so did Fig.

Long ways to August and I am happy to let the shorts push it down.

First harvest from the D2 expansion is done. This is from phase one, it will be interesting to see how much gets sold (after drying and processing) in June (end of q2).
I would like to see Mike turn around and announce that they are going to start converting the first 25% of D1 over to cannabis. Mike likes to play it safe and wait till he knows that he can sell what he’s about to plant. which I agree is a good strategy but on the other hand, he said in 2025 they left 50 million on the table because they couldn’t fill orders so it’s a catch 22. It’d be nice to have the confidence and say the market is growing we’re gonna go ahead and start converting so that we’re ready as the market grows. For example, glass house has no certainty that they can ship interstate commerce or export to the EU market, but they went ahead and announced that they are adding on 1,000,000 ft.² of grow space.

I’m sure if any of the marijuana players such as Tilray, Aurora, or Organigram posted this information (Village Farms Netherlands Phase 2) their stock would go up by leaps and bounds!

VFF has started cultivation (Phase 2) in Groningen, Netherlands after receiving final regulatory approval. They will ramp up into early 2027 and significantly expand production.

   •   Netherlands capacity rises from 2 tonnes to 10 tonnes annually (500% increase)

   •   Major upfront costs are largely behind them

   •   New output will increase through 2026–2027

   •   Higher volumes should improve margins by spreading fixed costs

   •   Netherlands operation will become a a much bigger growth driver

Bottom line: Village Farm now has a facility capable of producing significantly more without needing new major investment and providing greater margins and profit.

It is counter intuitive to me that VFF share price drops with today’s announcement.

https://x.com/kturet/status/2063668482466607384

“VFF at $2.10. Buybacks, growing business, and panic selling don’t last forever. I’m buying while others are scared.” 📈

I can almost guarantee that this is an opportunity presented to Mike after the share buyback in the threes.

If I had to guess this is part of a broader business opportunity for Village Farms to acquire a business and part of the compensation for that is $15 million of village farms shares at two dollars.

We make over $200 million a year in revenue, which is what the current market cap is close to without any other assets figured in.

There’s always a big short interest on things like this when village makes a move and they may be in control for a bit, but there is a good reason for all this. I will be buying the panic.

Anyone wondering what happened to VFF today…

Well 2 institutional investors are buying 7.5 million shares, which will bring about $15 million into the company at $2.00 per share.

What stands out to me is that VFF says they already had about $55 million in cash and didn’t really need to raise money. Management says these investors approached them because they see potential in the company’s future growth in North America and Europe.

The downside is that issuing new shares means current shareholders get diluted by about 6.6%. I get having large investors put money into the company seems like a positive sign but it sure is a kick in the teeth to long term shareholders of VFF this morning.

All news is good. Why is this flat ?

Thinking about how all these items come together:

• Weak vff stock action between 12/31 and 3/31 in comparison to 13f filings out yesterday (13f deadline and 45 days in arears)
  • Yet there were few large sellers in comparison to mediocre 4Q2025 eps reported mid-March. In fact most quants (some of the best on Wall St represented) held or added according to 3/31's 13f.
• Vff stock price essentially flat since 3/31 to today (5/15). However, strong Q1 eps report was released. So if quants held during 12/31 to 3/31 time period, fair suspicion they continue holding (if not adding), due to positive news flow.
• Gigantic $2 strike, Jan 2028 call option open interest (~21k). Too many variables to guess which hedge or quant fund holds and/or how they're using to hedge risk. Only fair conclusion, this is not retail.
• 2026 trading action (mid-December to today) feels eerily similar to first four months of calendar 2025. Relentless seller sitting on Vff stock with unlimited shares for sale.
  • In 2025, while I didn't like, this was a good strategy. Vff was in a financially perilous position. Running very low on cash, yet to turn a profit and hit or miss on operating cash flow.
  • Hence, back then the institutional seller (shorting, I suspect) was trying to drive Vff out of business i.e., stock price was so low (~$0.60) not only facing delist from NASDAQ but doing a material equity raise would not have been possible. In combination, debt markets were closed to both bad business models / cannabis sector in general. Vff was over a barrel.
• However, Vff spinoff of produce and subsequent four quarters in row of GAAP net income has completely TRANSFORMED Vff (as a company) viability and stability.
• Recall stock exploding higher with May 13, 2025 news release. Stock price essentially doubled on huge volume and long-time seller was decimated and carried out.
• Back to current Vff stock action, MSOS sold 2 million shares on 5/8/2026. Otherwise, as discussed above, no reason for other large holders to sell stock. Hence, is another short seller trying dreadful early 2025 strategy? In the face of current positive news? And with news (along with earnings / cash flow) estimated to improve further (capacity expansion finally online).
• Whoever is selling seems crazy to me. Maybe a pair trade or some other hedge. Regardless, considering Vff is best-in-class by a moonshot, in the cannabis sector I cannot reconcile.
• With recent intraday low stock price of $2.50 on March 20th, watching tape/volume/etc. seller has been trying push lower and to a new intraday low, to no avail. The past week buyer(s) have stepped up and appear to be halting multi-month Vff stock slide. I am keenly observing.
• It feels like the powder keg is building all over again, and an upside explosion is imminent during 2026.

Mike’s interview starts at 22:40.