Vital Farms (VITL) investor relations material

Executive summary

• Net revenue for Q2 2026 was $166.0 million, down 10.1% year-over-year due to industry-wide oversupply, sharp price declines, and lower sales volume.

• Gross margin fell to 6.6% from 38.9% year-over-year, with gross profit at $10.9 million and a net loss of $31.1 million versus net income of $16.6 million in Q2 2025.

• Adjusted EBITDA was a loss of $26.6 million, driven by higher input costs, restructuring, and unfavorable sales mix.

• Retail dollar share of the shell egg category grew by over 200 basis points despite a 35% drop in category pricing.

• Strategic actions included supply control initiatives, contract amendments, cost reductions, halting facility construction, pausing farm expansion, and winding down the butter business.

Financial highlights

• Net revenue declined 10.1% year-over-year to $166 million, driven by a $19.8 million volume decline, partially offset by a $1.1 million price mix benefit.

• Gross profit was $10.9 million (6.6% margin), down from $71.8 million (38.9% margin) due to higher input costs and unfavorable sales mix.

• SG&A was $40.4 million, including $6.3 million in restructuring, severance, and professional services costs.

• Adjusted EBITDA was a loss of $26.6 million, with $24.8 million in discrete expenses not added back.

• Net loss for Q2 2026 was $31.1 million, compared to net income of $16.6 million in Q2 2025.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: net revenue of $775–$800 million and adjusted EBITDA of $0–$10 million.

• Expects sequential improvement in net revenue and adjusted EBITDA in H2, with Q4 reflecting full benefit of distribution gains.

• Capital expenditures expected at $70–$75 million for 2026, with a slower pace of spending to align capacity with demand.

• Anticipates exiting Q4 at a gross margin run rate of approximately 30%.

• Guidance assumes no further material supply chain or macroeconomic disruptions.