Canadian agricultural technology company Verde AgriTech Ltd has released its third quarter 2025 financial results, showing significant operational improvements despite challenging market conditions in Brazil's agricultural sector.
Financial Performance Highlights
The company reported EBITDA before non-cash events of $0.1 million for Q3 2025, marking the first positive EBITDA since Q2 2023 and improving from negative $0.03 million in the same period last year. This achievement comes amid what CEO Cristiano Veloso describes as the Great Brazilian Agriculture Crisis, which has led to elevated insolvencies across the sector.
Sales volume for the quarter reached 85,136 tons, representing a 16% reduction compared to Q3 2024. Revenue stood at $5.9 million, an 18% decrease from the same period last year. However, the company maintained a strong gross margin excluding freight of 60%, consistent with the previous year's performance.
Net loss improved to $2.1 million compared to a $2.3 million loss in Q3 2024. The company also strengthened its financial position with cash increasing to $3.6 million from $3.4 million in the same quarter last year, while short-term receivables decreased significantly to $7.9 million from $11.3 million.
Strategic Response to Market Challenges
According to Cristiano Veloso, Founder and Chief Executive Officer, the company has implemented disciplined measures to navigate the difficult agricultural environment. We have executed with discipline: cutting costs, tightening credit, and concentrating on resilient, long-cycle customers, Veloso stated in the earnings release.
The company's agronomic trials in eucalyptus and sugarcane are showing promising results, potentially opening new market channels where a small group of buyers could collectively absorb volumes beyond Verde's current production capacity.
During the quarter, Verde secured an important Brazilian patent for its advanced fertilizer production technology that combines glauconitic siltstone with beneficial microorganisms. The company now holds five patents in Brazil with the National Institute of Industrial Property (INPI) and has three additional patent applications pending.
Sustainability and Environmental Impact
Verde's sustainability initiatives showed significant progress during the quarter. The company reported that products sold in Q3 2025 have the potential to capture up to 10,214 tons of carbon dioxide from the atmosphere through Enhanced Rock Weathering (ERW) technology.
The potential net amount of carbon captured is estimated at 7,106 tons of CO2. Additionally, Q3 2025 sales avoided emissions of 4,155 tons of CO2e by substituting potassium chloride fertilizers. Since beginning production in 2018, Verde's total potential environmental impact stands at 329,933 tons of CO2 combining both carbon removal and emissions avoidance.
The company also prevented 6,740 tons of chloride from being applied to soils in Q3 2025, bringing the total chloride prevention since production began to 188,742 tons.
Rare Earth Elements Discovery and Future Plans
Following the quarter end, Verde announced significant developments in its rare earth elements exploration. The company discovered a continuous, clay-hosted rare earth element mineralized zone in Minas Gerais, Brazil, covering approximately 5,500 hectares across 13 mineral rights.
The project, now formally named the Minas Americas Global Alliance magnetic rare earths project, has been accelerated by the company's board. Key milestones include completing mobilization, confirming ionic clay mineralization, initial drilling and additional trenching in Q4 2025, with a maiden NI 43-101 mineral resource estimate expected in Q1 2026 and a preliminary economic assessment scheduled for mid-2026.
Recent testing confirmed ionic-adsorption behavior across multiple trenches, with ammonium-sulfate leach tests returning primary leach solutions containing strong magnet rare earth grades including neodymium, praseodymium, dysprosium, and terbium, with exceptionally low impurities.
Verde confirmed it is fully funded to execute the initial project work program while continuing its fertilizer operations, positioning the company for potential growth in both its traditional agricultural business and emerging rare earth elements segment.
