Verde AgriTech Ltd has reported its financial and operating results for the three and six months ended 30 June 2026 (2Q26).
"2Q26 was marked by greater selectivity in fertilizer purchasing across Brazilian agriculture. The underlying need for crop nutrition remained, but fertilizer affordability, restrictive financing, and the expected return on each application increasingly shaped the timing and scope of purchasing decisions. In this environment, our focus is to understand customer priorities more precisely, direct our efforts toward the most relevant opportunities and shorten the path from technical validation to commercial adoption," stated Reberth Machado, CEO of Verde.
"Closer customer engagement is central to that approach. Since becoming CEO, my priority has been to engage directly with Verde's major clients, strategic B2B customers, and well-renowned agronomic advisers across Brazil. We are also seeking a stronger presence at major industry events, particularly in Sugarcane, where I bring extensive operating experience and longstanding relationships, and in composting-related segments, where our products have synergistic fit. These discussions are sharpening how we prioritise accounts, deploy commercial resources, and develop new business, with clarity criteria for pricing, credit and resource allocation,” Machado added.
2Q26 financial highlights
- Revenue in 2Q26 was CAN$3.4 million compared with CAN$4.8 million in 2Q25 and sales volume totalled 46 709 t in 2Q26 compared with 80 354 t in 2Q25. Excluding product delivery freight revenue, average revenue per tonne increased to CAN$40 from CAN$38.
- Unit profitability remained resilient, with average gross profit per tonne, excluding product delivery freight revenue, increasing to CAN$23 from CAN$22 in 2Q25, even in a lower-volume environment.
- Sales and marketing and general and administrative expenses decreased by 10% in 2Q26 compared with 2Q25.
- EBITDA before non-cash events was CAN$1.2 million in 2Q26 compared with US$0.2 million in 2Q25.
- Net loss was CAN$3.6 million in 2Q26 compared with a net loss of CAN$2.4 million in 2Q25.
- As of 30 June 2026, the company held CAN$4.1 million in cash and CAN$5.7 million in short-term receivables, compared with CAN$2.4 million and CAN$8.2 million, respectively, as of 30 June 2025.
2Q26 sustainability results
In 2Q26, products sold by Verde had the potential to capture up to 5605 t of CO2 through Enhanced Rock Weathering, with estimated net carbon removal of 3937 t, while also avoiding an estimated 2336 t of CO2e emissions by replacing potassium chloride fertilizers. Since production began in 2018, the combined potential net carbon removal and avoided emissions total approximately 348 790 t of CO2. Additionally, 3698 t of chloride were prevented from entering soils in 2Q26, bringing the cumulative total avoided since inception to approximately 198 132 t.
Fertilizer market conditions
Brazil's agricultural input market remained under significant financial pressure in 2Q26. The main constraint was access to credit and working capital, which led growers, distributors and cooperatives to preserve cash, reduce commitments, and defer fertilizer purchases.
The Central Bank of Brazil reduced the Selic rate to 14.25% in June and further to 14.00% after quarter-end in August. Financing costs nevertheless remained elevated throughout 2Q26, and the easing implemented during the quarter had not yet translated into a broad improvement in credit availability by quarter-end.
Sector credit quality also deteriorated. At the end of June 2026, a record 1263 Brazilian agricultural businesses were in judicial reorganisation, 66% more than at the end of June 2025. This increase reflected persistent financial stress across the sector, as growers, distributors and other participants across the agricultural value chain continued to face constrained liquidity, high financing costs and weaker cash generation.
The pressure was visible in the 2026/27 fertilizer buying cycle. By late May, Brazilian soybean growers had secured approximately 50% of expected fertilizer requirements, compared with more than 60% historically. Customers shortened buying windows and, in some cases, reducing purchases, limiting visibility over the timing and conversion of demand.
The 2026 election year added a further planning variable. As the October presidential election approached, uncertainty over the post-election fiscal and interest-rate outlook remained in focus, while El Niño forecasts increased the risk of regional changes in planting and nutrient-application windows. Together, restricted credit, elevated sector insolvencies and political and climate uncertainty kept commercial conditions difficult throughout the quarter. For Verde, these conditions required continued discipline in credit approval, pricing and account selection.
Read the full report here.