Verde AgriTech Announces Q2 2026 Financial and Operating Results

Verde Agritech Ltd (NPK) reported second-quarter 2026 revenue of C$3.4 million, a 29% decline from the C$4.8 million recorded in Q2 2025. Sales volume fell 42% to 46,709 tons, down from 80,354 tons in the same period last year. For the first half of 2026, total volume stood at 74,000 tons compared to 128,000 tons in H1 2025.

The company highlighted ex-freight revenue per ton of C$40, up from C$38, and ex-freight gross profit per ton of C$23, compared to C$22 previously. Reported IFRS gross profit decreased to C$1.8 million from C$2.8 million, with the as-reported gross margin contracting to 52% from 57%. EBITDA before non-cash events posted a negative C$1.2 million, widening from a negative C$0.2 million in the prior year. The net loss expanded to C$3.6 million from C$2.4 million.

For the first half of 2026, the net loss reached C$7.4 million, up from C$6.2 million in H1 2025. Basic and diluted loss per share was C$0.064 in Q2, compared to C$0.046 previously. The company held C$4.1 million in cash and C$5.7 million in short-term receivables, resulting in working capital of C$1.7 million.

Total loan balance stood at C$55.1 million with an average interest rate of 16.25% per annum. Current liabilities increased to C$10.0 million from C$3.5 million, primarily due to borrowings reclassified as current while repayment terms remain under renegotiation.

Regarding its Magnes Rare Earths subsidiary, Verde Agritech restated data for 297 reported drill holes. The company targets maiden resource estimates before the end of 2026, with a Preliminary Economic Assessment (PEA) scheduled for H1 2027 and a potential future U.S. listing.

Verde Agritech Ltd (NPK) released earnings that highlight deteriorating core fertilizer results and increasing balance-sheet stress. The company reported a widened quarterly loss, alongside an expected credit loss of C$0.5 million linked to a customer entering judicial reorganization. Current liabilities jumped to C$10.0 million as borrowings became current.

The company’s working capital stands at only C$1.7 million against C$55.1 million of total debt carrying an average interest rate of 16.25%, presenting a clear refinancing and liquidity warning. While the rare earths content largely restates June 16, 2026 drill results and previously stated milestones, this does not offset the operating deterioration. The market has already corrected sharply from C$2.20 to C$0.87, but the balance-sheet and credit deterioration remains incrementally negative.

Verde Agritech Ltd. (NPK) is a Brazil-focused specialty fertilizer producer listed on the TSX and OTCQX. Its product portfolio includes K Forte, BAKS, YBA, Silicio Forte, and related low-carbon potassium, silicon, and micronutrient fertilizers. The company’s operating assets are located in São Gotardo, Minas Gerais, Brazil, situated near agricultural end-markets. Through its wholly owned subsidiary Magnes Rare Earths, Verde Agritech holds the Minas Americas Global Alliance rare earth project in Minas Gerais. While the company possesses substantial existing fertilizer resources and installed capacity, current production and sales remain far below capacity due to prevailing demand and credit conditions.