Vital Farms (VITL) Q2 2026 earnings summary

Executive summary

• Net revenue for Q2 2026 was $166.0 million, down 10.1% year-over-year amid industry-wide oversupply and sharp price declines, resulting in a net loss of $31.1 million versus net income of $16.6 million in Q2 2025.

• Gross margin fell to 6.6% from 38.9% year-over-year, with gross profit at $10.9 million, impacted by higher input costs 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 and cost-saving initiatives, contract amendments, overhead reductions, halting construction on new facilities, pausing farm expansion, and winding down the butter business.

• Adjusted EBITDA was a loss of $26.6 million, driven by higher costs, increased SG&A, and restructuring and severance expenses.

Financial highlights

• Net revenue for Q2 2026 was $166.0 million, down from $184.8 million in Q2 2025, 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 expenses rose to $40.4 million, including restructuring, severance, and professional services costs.

• Adjusted EBITDA loss was $26.6 million, compared to positive $29.9 million last year.

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

Outlook and guidance

• Fiscal 2026 net revenue outlook reiterated at $775–$800 million, with adjusted EBITDA guidance of $0–$10 million, reflecting higher promotional spending and costs from egg oversupply.

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

• Distribution gains and cost actions are expected to drive revenue improvement in the second half of 2026 and into 2027.

• Supply management costs for the year are modeled in the mid $30 million range.

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