Verde AgriTech (NPK) Q3 2025 earnings summary

Executive summary

• Achieved first positive EBITDA since Q2 2023, reaching $0.1 million in Q3 2025, despite ongoing sector challenges and the prolonged Brazilian agricultural crisis.

• Revenue declined 18% year-over-year to $5.9 million, with sales volume down 16% to 85,136 tons.

• Net loss narrowed to $2.1 million from $2.3 million year-over-year, aided by improved cost discipline and reduced bad debt provisions.

• Company granted a new Brazilian patent for microorganism-related fertilizer technology, now holding five patents and three pending applications.

• Discovery and rapid advancement of a significant rare earth mineralized zone, accelerating project milestones for the Minas Americas Global Alliance magnetic rare earths project.

Financial highlights

• Positive EBITDA of $0.1 million, first since Q2 2023, with EBITDA before non-cash events up from -$0.03 million in Q3 2024.

• Gross margin excluding freight remained strong at 60%; including freight, gross margin was 75%.

• Cash on hand increased to $3.6 million; short-term receivables decreased from $11.3 million to $7.9 million.

• Allowance for expected credit losses dropped nearly 80% to $163,000.

• Average production cost per ton sold decreased 6% year-over-year to $17.

Outlook and guidance

• Optimism for recovery in the agricultural sector for the next cycle, with expectations of improved year-over-year comparisons and stronger Q4 2025 and Q1 2026.

• Anticipation of further cost dilution and margin improvement as sales volumes increase.

• Strategic review and accelerated milestones for rare earths project, including drilling, resource estimate, and preliminary economic assessment by mid-2026.