"Verde has a great deal underway—both in Enhanced Rock Weathering and in our rare-earths exploration—and we look forward to updating the market on those fronts separately. Today's release is deliberately focused on Q3 financial performance. The Great Brazilian Agriculture Crisis continues to weigh on demand, with elevated insolvencies across the sector, but we have executed with discipline: cutting costs, tightening credit, and concentrating on resilient, long-cycle customers. Our agronomic trials in eucalyptus and sugarcane are progressing well and are opening channels where a small group of buyers could, together, absorb volumes beyond our current capacity. While industry conditions remain challenging, Q3 shows clear sequential improvement and the operational rigor to keep building from here," said Cristiano Veloso, Founder and Chief Executive Officer of Verde AgriTech.
Q3 2025 HIGHLIGHTS
Operational and Financial Highlights
EBITDA before non-cash events was $0.1 million in Q3 2025, compared to -$0.03 in Q3 2024, representing the first positive EBITDA since Q2 2023.
Sales volume in Q3 2025 was 85,136 tons; a 16% reduction compared to Q3 2024.
Revenue in Q3 2025 was $5.9 million, an 18% decrease from the same period last year.
Gross margin excluding freight was 60% during the quarter, in line with Q3 2024.
Net loss in Q3 2025 was $2.1 million, compared to a $2.3 million loss in Q3 2024.
Cash in Q3 2025 was $3.6 million, compared to $3.4 million in Q3 2024. Short-term receivables in the quarter were $7.9 million, compared to $11.3 million in Q3 2024.
During the period, Verde was granted a Brazilian patent for its advanced fertilizer production technology combining glauconitic siltstone and beneficial microorganisms. The Company holds five patents in Brazil with National Institute of Industrial Property (INPI) and has three patent applications pending.
Sustainability Highlights
Product sold in Q3 2025 has the potential to capture up to 10,214 tons of carbon dioxide ("CO2") from the atmosphere via Enhanced Rock Weathering ("ERW").1 The potential net amount of carbon captured is estimated at 7,106 tons of CO2. In addition to its carbon removal potential, Q3 2025 sales avoided the emissions of 4,155 tons of CO2e, by substituting potassium chloride ("KCl") fertilizers.2 Combining the potential carbon removal and carbon emissions avoided by the use of the product since the start of production in 2018, Verde's total potential impact stands at 329,933 tons of CO2.3
6,740 tons of chloride have been prevented from being applied into soils in Q3 2025, by farmers who used the Product in lieu of KCl fertilizers.4 A total of 188,742 tons of chloride has been prevented from being applied into soil by Verde's customers since the Company started production.5
Recent Events
Subsequent to quarter end, Verde announced the discovery of a continuous, clay-hosted rare earth element mineralized zone in Minas Gerais, Brazil, covering approximately 5,500 hectares across 13 mineral rights. The zone was defined through integrated geological mapping, geochemistry, and spectral or geophysical datasets, and confirmed by trench sampling (see news release dated October 6, 2025). The commencement of a three-rig drilling program, was announced shortly after this discovery, which focuses on defining initial high-quality magnet rare earths resources (see news release dated October 9, 2025).
In addition, Verde's Board has reviewed the initial trench sampling work and has decided to accelerate the project, now formally named the Minas Americas Global Alliance magnetic rare earths project (the "Project"), laying out key project milestones (see news release dated October 21, 2025), which includes: completing mobilization; confirming ionic clay mineralization with summary of ionic adsorption diagnostics together with full leachate impurity and radiological screening, completing initial drilling and additional trenching (Q4 2025), releasing results from an ANSTO recovery test (Q1 2026); publishing a maiden NI 43-101 mineral resource estimate (Q1 2026) and publishing a preliminary economic assessment (PEA) (mid-2026). Verde is fully funded to execute the initial Project work program while continuing its fertilizer operations.
More recently, Verde confirmed ionic-adsorption behaviour across multiple trenches at the Minas Americas Global Alliance Project reporting that ammonium-sulfate leach tests returned primary leach solutions ("PLS") with very strong magnet rare earth (neodymium (Nd), praseodymium (Pr), dysprosium (Dy), terbium (Tb)) grades and exceptionally low impurities (thorium/ uranium (Th/U) at, or below, detection) (see news release dated October 21, 2025).
"Despite the Great Brazilian Agricultural Crisis that began in early 2023 amidst a backdrop of tight credit and higher rates, our team delivered Verde's first positive EBITDA after eight consecutive negative quarters and we are cautiously optimistic that this momentum will continue into 2026," continued Mr. Veloso. "We have grown our sales volumes at a 6-year CAGR of 49%, and that discipline—protecting cash generation and finishing Q3 with $3.6 million—positions us well. Looking ahead, we expect Q4 2025 into Q1 2026 to be stronger than the past year, signaling a potential end to the Brazilian agricultural crisis and a return to growth."
Q3 2025 IN REVIEW
Market Analysis
Agricultural and fertilizer sector
The agribusiness sector continued to face pressure during Q3 2025 as part of the Great Brazilian Agricultural Crisis, with ongoing challenges such as geopolitical tensions, extreme climate risks, high input costs, financing difficulties and trade volatility, creating uncertainties for output and market stability.6 However, Verde began to see some recovery from the agricultural downturn that started in early 2023. The Companhia Nacional de Abastecimento (Conab) September report expects Brazilian's soybean, corn and grain production to remain high, reaffirming the country's resilience in agricultural output. Brazilian farmers have begun the 2025/26 planting season, and Conab's initial outlook suggests another increase in corn and soybean acreage. The expansion reflects rising domestic biofuel demand and robust exports that continue to set shipment records.7 At the same time, global demand for potash is strengthening, supported by population growth, food security, precision farming, specialized fertilizers, and a focus on efficiency. The market is projected to reach US$34.8 billion by 2033, suggesting a 9-year CAGR of 2.66%.8 Taken together with projected 5-year and 10-year growth rates of ~2.3-2.5% per year and 2.5% per year, respectively, suggests a cautiously optimistic outlook for the sector.9
Despite this, input cost challenges, particularly high fertilizer prices, combined with relatively steady crop prices, have impacted the profitability of Brazil's soy and corn producers during the 2025/26 harvest, currently being planted.10 During the quarter, fertilizer prices, especially for potassium chloride (KCI), remained high, above US$350/metric ton. 11 This may lower the gross margins for producers even amid strong demand for grains and other agricultural products. 12
Figure 1: Average potassium chloride (KCl) prices per metric ton
Brazilian farmers relying on leased land or loans face further challenges from high interest rates and accumulated leverage. According to Experian's Agro Judicial Recovery Indicator, the sector registered 565 requests for judicial measures in Q2 2025, up 31.7% from the previous quarter.13
The government recently announced a R$12.0 billion (approximately USD 2.21 billion) rural credit and debt-relief program aimed at supporting up to 100,000 mostly small and medium farmers, affected by extreme weather. 14 While the initiative is designed to ease short-term cash flow pressures, reduce credit risk, and support input demand (including fertilizers), many farmers are finding it difficult to access the funds. Banks responsible for intermediating the operations require substantial collateral, but most farmers have already pledged their available assets to other creditors.
Like Verde, other players in the sector adopted measures to safeguard operations and improve resilience. Fertilizer producers face a combination of climate-related delays, lower technology adoption, and farmer cost containment. Many have launched debt restructuring efforts to reduce short-term liabilities, preserve liquidity, and secure more sustainable financial terms on existing debt.15 These actions reinforce a sector-wide emphasis on cost discipline, credit selectivity, and long-term stability. Verde maintained a conservative commercial strategy throughout the quarter, limiting sales exposure to higher-risk clients.
Rare earths market
The price for rare earths elements remained elevated in Q3 2025. Despite China implementing stricter export controls on rare earth elements and related technologies, citing national security concerns16, the global market continues to grow, with projections showing a 7-year CAGR of 10.2%, from US$3.74 billion in 2024 to US$8.14 billion by 2032.17 Brazil, which holds the world's second-largest, rare earths reserves at 21 million metric tons18, is taking steps to strengthen its position, offering financial guarantees and tax incentives to support domestic mining and processing of strategic minerals.19 Driven by rising global demand for strategic minerals, investments in Brazil's rare earths sector are forecast to climb 49% by 2029.20
Macroeconomic Conditions
Under a tight monetary policy, with record-high SELIC interest rates of 15%, Brazil's economy is expected to have grown by around 0.3% in the quarter,21 with a full-year growth projected by Brazilian Central Bank at 2.0%.22 While the SELIC rate remains elevated, there may be an interest rate cut if inflation continues to ease. Current forecasts indicate the rate will gradually decline to 12.25% in 2026 and further to 10% by 2028. Inflation forecasts for 2025 and 2026 stand at 4.80% and 3.60%23, respectively, suggesting a cautiously optimistic outlook that Brazil's macroeconomic environment may be on a path toward stabilization in the medium term.
Figure 2: Selic Interest Rates
The agriculture industry continues to navigate an increasingly challenging credit environment. Working capital remains tight for many farmers, and more suppliers have shifted toward post-harvest payment terms, often requiring payment nine to 12 months after the harvest. As discussed earlier, a government subsidy introduced earlier this year aims to ease short-term credit constraints. In reality, however, many farmers still struggle to access these funds, as banks are requiring collateral that they often cannot provide, and available guarantees remain limited. As a result, credit approvals and disbursements continue to lag, forcing farmers and producers to carefully manage liquidity, cash flow and credit exposure throughout the supply chain.
Global political developments involving key Brazilian trading partners, along with ongoing discussions around taxation and regulation, have introduced some uncertainty for farmers considering long-term investments. In response, many are taking a more conservative approach, prioritizing essential inputs and maintaining financial discipline. While this cautious sentiment has moderated short-term fertilizer demand, it also reflects a broader focus on operational efficiency and strategic resource allocation. As greater clarity emerges around policy and market dynamics, purchasing activity may begin to recover.24
EXTERNAL FACTORS
Revenue and costs are affected by external factors including changes in the exchange rates between the C$ and R$ along with fluctuations in potassium chloride spot CFR Brazil, agricultural commodities prices, interest rates, among other factors. For further details, please refer to the Q3 2025 Year in Review section.
RESULTS OF OPERATIONS
The following table provides information about three months ended September 30, 2025, as compared to the three months ended September 30, 2024. All amounts in CAD $'000.
3 monthsendedSep 30, 2025
