Village Farms Surges 33% After Q1 Report – Hydrofarm, iAnthus, Ascend Focus On Margins, Cash Flow
As the cannabis industry continues to navigate macroeconomic headwinds and regulatory uncertainty, a number of U.S. and Canadian operators reported first-quarter 2025 earnings this week. From margin stabilization and restructuring efforts to international expansion and asset divestitures, the results show a sector trying to find a sustainable footing.
One standout: Village Farms International, which saw its stock surge nearly 33% on Tuesday following its earnings and a major divestiture announcement. Here’s how four key players performed.
Hydrofarm
Hydrofarm (NASDAQ:HYFM), a leading supplier of hydroponic equipment, reported net sales of $40.5 million, down 25.2% year-over-year. The company cited continued oversupply in the cannabis industry as the main driver. Gross profit dropped to $6.9 million (17.0% margin), while adjusted gross profit fell to $8.5 million (21.0% margin).
Hydrofarm posted a net loss of $14.4 million, widening from $12.6 million in Q1 2024. Adjusted EBITDA came in at negative $2.4 million, compared to a slight gain in the same period last year.
Still, management highlighted progress in shifting toward higher-margin proprietary products and trimming SG&A costs, which declined by 11% on an adjusted basis. The …