Village Farms: U.S. Cannabis Optionality (Rating Upgrade)

Village Farms International delivered strong Q1'26 results, with sales up 27% YoY and adjusted EBITDA rising 48% to $10.2 million. VFF's international cannabis sales surged, notably exports up 171%, while Canadian sales remained challenged; gross margin reached 43% with disciplined SG&A. The company holds a strategic 2.2 million sq. ft. Texas greenhouse, offering a $400M+ U.S. revenue opportunity pending regulatory catalysts.