Vital Farms Reports Third Quarter 2025 Financial Results
Third Quarter Net Revenue was a record
Raising Fiscal Year 2025 Net Revenue Outlook to At Least
Added ~75 Family Farms During the Quarter – Network Now 575 Family Farms
Remains On Track to Reach
Financial highlights for the third quarter ended September 28, 2025, compared to the third quarter ended September 29, 2024, include:
-
Net Revenue increased
37.2% to$198.9 million $145.0 million -
Gross Margin of
37.7% , compared to36.9% -
Net Income of
$16.4 million $7.4 million -
Net Income per Diluted Share of
$0.36 $0.16 -
Adjusted EBITDA of
$27.4 million $15.2 million
"Our third quarter results demonstrate the power of disciplined execution across our business,” said Russell Diez-Canseco, Vital Farms’ President and Chief Executive Officer. “This values-aligned approach is fueling strong growth as we build momentum heading into Q4 and lay the foundation for long-term success in 2026 and beyond.
“We delivered on the supply expansion plans we laid out last year, rebuilt inventory to healthy levels and drove another quarter of sequential volume growth acceleration.
“We also achieved several critical milestones that enhance our ability to scale efficiently: the go-live of our new ERP system, the addition of a third production line at Egg Central Station in
“We believe we remain structurally advantaged with significant long-term tailwinds. Every investment we make and every partnership we forge is aligned with our mission to become America’s most trusted food company — and the progress we’ve made to date in 2025 represents a meaningful step toward that goal.”
1Adjusted EBITDA is a non-GAAP financial measure defined in the section titled “Non-GAAP Financial Measures” below and is reconciled to net income, its closest comparable GAAP measure, at the end of this release.
For the 13 Weeks Ended September 28, 2025
Net revenue increased
Gross profit was
Income from operations was
Net income was
Net income per diluted share was
Adjusted EBITDA was
Adjusted EBITDA excludes certain non-cash items. Adjusted EBITDA is a non-GAAP financial measure defined in the section titled “Non-GAAP Financial Measures” below and is reconciled to net income, its closest comparable GAAP measure, at the end of this release.
Balance Sheet and Cash Flow Highlights
Cash, cash equivalents and marketable securities were
Capital expenditures totaled
Fiscal 2025 Outlook
Thilo Wrede, Vital Farms’ Chief Financial Officer, commented: “Following a strong third quarter performance with a new quarterly record in net revenue, we are raising our full-year 2025 net revenue guidance to at least
“The acceleration in our volume growth demonstrates that our brand is continuing to gain traction with consumers. Construction of our
For fiscal year 2025, we expect:
-
Net revenue of at least
$775 million 28% growth versus fiscal year 2024, an increase from previous guidance of at least$770 million -
Adjusted EBITDA of at least
$115 million 33% growth versus fiscal year 2024, an increase from previous guidance of at least$110 million -
Capital expenditures in the range of
$80 million $100 million $10 million Seymour, Indiana facility, the completed investments in a new production line at Egg Central Station inSpringfield, Missouri , ongoing investments in accelerator farms, and go-live of our new ERP system, all in support of future growth for the company
Vital Farms’ guidance assumes that there are no significant disruptions to the supply chain or its customers or consumers, including any issues from adverse macroeconomic factors. Vital Farms cannot provide a reconciliation between its forecasted Adjusted EBITDA and net income and Adjusted EBITDA Margin and net income margin, their most directly comparable GAAP measures, without unreasonable effort due to the unavailability of reliable estimates for income taxes and stock-based compensation, among other items. These items are not within our control and may vary greatly between periods and could significantly impact future financial results.
Conference Call and Webcast Details
Vital Farms will host a conference call and webcast at 8:30 a.m. ET today to discuss the results. To participate on the live call, listeners in
In addition, Vital Farms will publish its November 2025 Corporate Presentation as supporting materials to the webcast on the Vital Farms Investor Relations website at https://investors.vitalfarms.com under “Events & Presentations.”
About Vital Farms
Vital Farms (Nasdaq: VITL) is a Certified B Corporation that offers a range of ethically produced foods nationwide. Started on a single farm in
Forward-Looking Statements
This press release and the earnings call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Vital Farms’ market opportunity, brand strength, anticipated growth, expectations regarding tailwinds and headwinds facing Vital Farms’ industry, the effect of prior or future expansions of Vital Farms’ processing facilities on its future revenue, and future financial performance, including management’s outlook for fiscal year 2025 and management’s long-term outlook, such as Vital Farms’ ability to achieve its
The risks and uncertainties referred to above include, but are not limited to: Vital Farms’ expectations regarding its revenue, expenses, and other operating results; Vital Farms’ ability to attract new customers, to successfully retain existing customers, to attract and retain its suppliers, distributors, and co-manufacturers, and to maintain its relationships with members of its existing farm network and further expand its farm network and development and operation of its accelerator farms and the impact of Vital Farms’ current and planned accelerator farms on its operations; Vital Farms’ ability to sustain or increase its profitability; Vital Farms’ expectations regarding its future growth in the foodservice channel; Vital Farms’ ability to procure sufficient high-quality eggs, cream for its butter, and other raw materials; real or perceived quality or food safety issues with Vital Farms’ products or other issues that adversely affect Vital Farms’ brand and reputation; changes in the tastes and preferences of consumers; the financial condition of, and Vital Farms’ relationships with, its farmers, suppliers, co-manufacturers, distributors, retailers, and foodservice customers, as well as the health of the foodservice industry generally; the effects of outbreaks of agricultural diseases, including avian influenza and egg drop syndrome, the perception that outbreaks may occur or regulatory or market responses to such outbreaks generally; the ability of Vital Farms, its farmers, suppliers, and its co-manufacturers to comply with food safety, environmental or other laws or regulations; the effects of a public health pandemic or contagious disease, or fear of such outbreaks, on Vital Farms’ supply chain, the demand for its products, and on overall economic conditions, consumer confidence and spending levels; specifications and timing regarding Vital Farms’ planned egg washing and packing facility in
These risks and uncertainties are more fully described in Vital Farms’ filings with the Securities and Exchange Commission (SEC), including in the sections entitled “Risk Factors” in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 28, 2025, which Vital Farms anticipates filing on November 4, 2025, and other filings and reports that Vital Farms may file from time to time with the SEC. Moreover, Vital Farms operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for management to predict all risks, nor can Vital Farms assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements Vital Farms may make. In light of these risks, uncertainties, and assumptions, Vital Farms cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent management’s beliefs and assumptions only as of the date of this press release. Vital Farms disclaims any obligation to update forward-looking statements except as required by law.
VITAL FARMS, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||
(Amounts in thousands, except share amounts) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
13-Weeks Ended |
|
|
39-Weeks Ended |
|
||||||||||
|
|
September
|
|
|
September
|
|
|
September
|
|
|
September
|
|
||||
Net revenue |
|
$ |
198,936 |
|
|
$ |
145,002 |
|
|
$ |
545,892 |
|
|
$ |
440,318 |
|
Cost of goods sold |
|
|
123,974 |
|
|
|
91,526 |
|
|
|
336,635 |
|
|
|
270,268 |
|
Gross profit |
|
|
74,962 |
|
|
|
53,476 |
|
|
|
209,257 |
|
|
|
170,050 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative |
|
|
44,394 |
|
|
|
36,102 |
|
|
|
115,290 |
|
|
|
96,569 |
|
Shipping and distribution |
|
|
9,169 |
|
|
|
8,134 |
|
|
|
27,004 |
|
|
|
22,933 |
|
Total operating expenses |
|
|
53,563 |
|
|
|
44,236 |
|
|
|
142,294 |
|
|
|
119,502 |
|
Income from operations |
|
|
21,399 |
|
|
|
9,240 |
|
|
|
66,963 |
|
|
|
50,548 |
|
Other income (expense), net: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(213 |
) |
|
|
(259 |
) |
|
|
(666 |
) |
|
|
(771 |
) |
Interest income |
|
|
1,270 |
|
|
|
1,407 |
|
|
|
3,814 |
|
|
|
3,811 |
|
Other expense, net |
|
|
(487 |
) |
|
|
(6 |
) |
|
|
(1,268 |
) |
|
|
(370 |
) |
Total other income (expense), net |
|
|
570 |
|
|
|
1,142 |
|
|
|
1,880 |
|
|
|
2,670 |
|
Net income before income taxes |
|
|
21,969 |
|
|
|
10,382 |
|
|
|
68,843 |
|
|
|
53,218 |
|
Income tax provision |
|
|
5,550 |
|
|
|
2,936 |
|
|
|
18,885 |
|
|
|
10,410 |
|
Net income |
|
$ |
16,419 |
|
|
$ |
7,446 |
|
|
$ |
49,958 |
|
|
$ |
42,808 |
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic: |
|
$ |
0.37 |
|
|
$ |
0.17 |
|
|
$ |
1.12 |
|
|
$ |
1.01 |
|
Diluted: |
|
$ |
0.36 |
|
|
$ |
0.16 |
|
|
$ |
1.09 |
|
|
$ |
0.95 |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic: |
|
|
44,721,206 |
|
|
|
43,249,234 |
|
|
|
44,521,146 |
|
|
|
42,517,088 |
|
Diluted: |
|
|
46,205,737 |
|
|
|
45,463,862 |
|
|
|
45,965,987 |
|
|
|
44,923,684 |
|
VITAL FARMS, INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Amounts in thousands, except share amounts) |
||||||||
|
|
September 28,
|
|
|
December 29,
|
|
||
|
|
(Unaudited) |
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
93,796 |
|
|
$ |
150,601 |
|
Investment securities, available-for-sale |
|
|
51,257 |
|
|
|
9,692 |
|
Accounts receivable, net of allowance for credit losses of |
|
|
58,252 |
|
|
|
54,342 |
|
Inventories |
|
|
51,813 |
|
|
|
23,666 |
|
Prepaid expenses and other current assets, net of allowance for credit losses of |
|
|
12,055 |
|
|
|
7,740 |
|
Income taxes receivable |
|
|
1,914 |
|
|
|
— |
|
Assets held for sale |
|
|
2,883 |
|
|
|
— |
|
Total current assets |
|
|
271,970 |
|
|
|
246,041 |
|
Property, plant and equipment, net |
|
|
121,078 |
|
|
|
84,521 |
|
Operating lease right-of-use assets |
|
|
75,166 |
|
|
|
19,617 |
|
Goodwill and other assets |
|
|
13,290 |
|
|
|
9,153 |
|
Total assets |
|
$ |
481,504 |
|
|
$ |
359,332 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
35,444 |
|
|
$ |
38,582 |
|
Accrued liabilities |
|
|
54,971 |
|
|
|
31,328 |
|
Operating lease liabilities, current |
|
|
7,028 |
|
|
|
3,849 |
|
Finance lease liabilities, current |
|
|
5,151 |
|
|
|
3,932 |
|
Income taxes payable |
|
|
— |
|
|
|
838 |
|
Total current liabilities |
|
|
102,594 |
|
|
|
78,529 |
|
Operating lease liabilities, non-current |
|
|
38,027 |
|
|
|
2,918 |
|
Finance lease liabilities, non-current |
|
|
6,075 |
|
|
|
8,011 |
|
Other liabilities |
|
|
3,592 |
|
|
|
572 |
|
Total liabilities |
|
$ |
150,288 |
|
|
$ |
90,030 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
|
198,104 |
|
|
|
186,182 |
|
Retained earnings |
|
|
133,071 |
|
|
|
83,113 |
|
Accumulated other comprehensive income |
|
|
37 |
|
|
|
3 |
|
Total stockholders’ equity |
|
$ |
331,216 |
|
|
$ |
269,302 |
|
Total liabilities and stockholders’ equity |
|
$ |
481,504 |
|
|
$ |
359,332 |
|
VITAL FARMS, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Amounts in thousands) |
||||||||
(Unaudited) |
||||||||
|
|
39-Weeks Ended |
|
|||||
|
|
September
|
|
|
September
|
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
49,958 |
|
|
$ |
42,808 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
9,963 |
|
|
|
9,829 |
|
Reduction in the carrying amount of right-of-use assets |
|
|
6,018 |
|
|
|
2,793 |
|
Amortization and accretion of available-for-sale debt securities |
|
|
(720 |
) |
|
|
96 |
|
Amortization of debt issuance costs |
|
|
64 |
|
|
|
39 |
|
Stock-based compensation expense |
|
|
9,126 |
|
|
|
7,572 |
|
Deferred taxes |
|
|
28 |
|
|
|
(267 |
) |
Uncertain tax positions |
|
|
1,580 |
|
|
|
— |
|
Net realized losses on derivative instruments |
|
|
1,325 |
|
|
|
394 |
|
Other |
|
|
3,878 |
|
|
|
926 |
|
Net change in operating assets and liabilities |
|
|
(53,285 |
) |
|
|
(14,147 |
) |
Net cash provided by operating activities |
|
$ |
27,935 |
|
|
$ |
50,043 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of property, plant and equipment |
|
|
(44,024 |
) |
|
|
(10,482 |
) |
Purchases and settlements of derivative instruments |
|
|
(551 |
) |
|
|
(669 |
) |
Purchases of available-for-sale securities |
|
|
(70,431 |
) |
|
|
— |
|
Maturities and call redemptions of available-for-sale debt securities |
|
|
29,240 |
|
|
|
19,505 |
|
Proceeds from the sale of available-for-sale debt securities |
|
|
404 |
|
|
|
— |
|
Proceeds from the sale of property, plant and equipment |
|
|
1,026 |
|
|
|
1 |
|
Net cash (used in) provided by investing activities |
|
$ |
(84,336 |
) |
|
$ |
8,355 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from exercise of stock options |
|
|
5,512 |
|
|
|
11,305 |
|
Proceeds from issuance of common stock under employee stock purchase plan |
|
|
379 |
|
|
|
178 |
|
Payment of tax withholding obligation on vested restricted stock unit shares |
|
|
(3,095 |
) |
|
|
(1,493 |
) |
Principal payments under finance lease obligations |
|
|
(3,200 |
) |
|
|
(2,589 |
) |
Payment of financing costs |
|
|
— |
|
|
|
(414 |
) |
Net cash (used in) provided by financing activities |
|
$ |
(404 |
) |
|
$ |
6,987 |
|
Net (decrease) increase in cash and cash equivalents |
|
|
(56,805 |
) |
|
|
65,385 |
|
Cash and cash equivalents at beginning of the period |
|
|
150,601 |
|
|
|
84,149 |
|
Cash and cash equivalents at end of the period |
|
$ |
93,796 |
|
|
$ |
149,534 |
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
||
Cash paid for interest |
|
$ |
601 |
|
|
$ |
732 |
|
Cash paid for income taxes |
|
|
17,230 |
|
|
|
12,873 |
|
Supplemental disclosure of non-cash investing and financing activities: |
|
|
|
|
|
|
||
Purchases of property, plant and equipment included in accounts payable and accrued liabilities |
|
$ |
4,671 |
|
|
$ |
433 |
|
Non-GAAP Financial Measures
We report our financial results in accordance with GAAP. However, management believes that Adjusted EBITDA and Adjusted EBITDA Margin, non-GAAP financial measures, provide investors with additional useful information in evaluating our performance.
Adjusted EBITDA and Adjusted EBITDA Margin are financial measures that are not required by or presented in accordance with GAAP. We believe that Adjusted EBITDA and Adjusted EBITDA Margin, when taken together with our financial results presented in accordance with GAAP, provide meaningful supplemental information regarding 8 our operating performance and facilitate internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted EBITDA and Adjusted EBITDA Margin are helpful to our investors as they are measures used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes. We calculate Adjusted EBITDA as net income, adjusted to exclude: (1) depreciation and amortization; (2) stock-based compensation expense; (3) (benefit) or provision for income taxes as applicable; (4) interest expense; and (5) interest income. We calculate Adjusted EBITDA Margin as Adjusted EBITDA divided by Net Revenue.
Adjusted EBITDA and Adjusted EBITDA Margin are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA and Adjusted EBITDA Margin include that (1) they do not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA and Adjusted EBITDA Margin do not reflect these capital expenditures, (3) they do not consider the impact of stock-based compensation expense, (4) they do not reflect other non-operating expenses, including interest expense; and (5) they do not reflect tax payments that may represent a reduction in cash available to us. In addition, our use of Adjusted EBITDA and Adjusted EBITDA Margin may not be comparable to similarly titled measures of other companies because they may not calculate Adjusted EBITDA and Adjusted EBITDA Margin in the same manner, limiting the usefulness as comparative measures. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA and Adjusted EBITDA Margin alongside other financial measures, including our net income and other results stated in accordance with GAAP.
VITAL FARMS, INC. |
||||||||||||||||
ADJUSTED EBITDA RECONCILIATION |
||||||||||||||||
(Amounts in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
13-Weeks Ended |
|
|
39-Weeks Ended |
|
||||||||||
|
|
September
|
|
|
September
|
|
|
September
|
|
|
September
|
|
||||
|
|
(in thousands) |
|
|
(in thousands) |
|
||||||||||
Net income |
|
$ |
16,419 |
|
|
$ |
7,446 |
|
|
$ |
49,958 |
|
|
$ |
42,808 |
|
Depreciation and amortization1 |
|
|
3,236 |
|
|
|
3,330 |
|
|
|
9,963 |
|
|
|
9,829 |
|
Stock-based compensation expense |
|
|
3,239 |
|
|
|
2,674 |
|
|
|
9,126 |
|
|
|
7,572 |
|
Income tax provision |
|
|
5,550 |
|
|
|
2,936 |
|
|
|
18,885 |
|
|
|
10,410 |
|
Interest expense |
|
|
213 |
|
|
|
259 |
|
|
|
666 |
|
|
|
771 |
|
Interest income |
|
|
(1,270 |
) |
|
|
(1,407 |
) |
|
|
(3,814 |
) |
|
|
(3,811 |
) |
Adjusted EBITDA |
|
$ |
27,387 |
|
|
$ |
15,238 |
|
|
$ |
84,784 |
|
|
$ |
67,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net revenue |
|
$ |
198,936 |
|
|
$ |
145,002 |
|
|
$ |
545,892 |
|
|
$ |
440,318 |
|
Net income margin2 |
|
|
8.3 |
% |
|
|
5.1 |
% |
|
|
9.2 |
% |
|
|
9.7 |
% |
Adjusted EBITDA Margin3 |
|
|
13.8 |
% |
|
|
10.5 |
% |
|
|
15.5 |
% |
|
|
15.3 |
% |
(1) Amount also includes finance lease amortization. |
||||||||||||||||
(2) Net income margin is calculated by dividing net income by net revenue. |
||||||||||||||||
(3) Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by net revenue. |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20251104455043/en/
Media:
Rob Discher
Rob.Discher@vitalfarms.com
Investors:
Brian S. Shipman, CFA
Brian.Shipman@vitalfarms.com
Source: Vital Farms
