Vital Farms (VITL) Q3 2024 earnings summary

Executive summary

• Q3 2024 net revenue rose 31.3% year-over-year to $145 million, driven by strong demand, expanded distribution, and price/mix benefits.

• Gross margin expanded to 36.9%, with gross profit at $53.5 million and net income rising to $7.4 million ($0.16 per diluted share).

• Adjusted EBITDA for Q3 was $15.2 million (10.5% margin), up 64.5% year-over-year, reflecting higher sales and operational efficiencies.

• Fiscal 2024 guidance was raised, with net revenue now expected at least $600 million and Adjusted EBITDA at least $80 million.

• The company continues to invest in supply chain resilience, including a new facility in Indiana and expansion of its farm network.

Financial highlights

• Q3 2024 net revenue: $145.0 million (+31.3% YoY); gross profit: $53.5 million (36.9% margin); net income: $7.4 million ($0.16 per diluted share).

• Adjusted EBITDA: $15.2 million (10.5% margin), up from $9.3 million (8.4% margin) in Q3 2023.

• Year-to-date net revenue: $440.3 million, up 31% year-over-year.

• Cash, cash equivalents, and investment securities totaled $163 million at quarter-end, with no debt outstanding.

• Cash flow from operations for the nine months was $50.0 million, up from $27.2 million.

Outlook and guidance

• FY2024 net revenue guidance raised to at least $600 million (27% growth), up from $590 million.

• Adjusted EBITDA guidance increased to at least $80 million (65% growth), up from $75 million.

• Capital expenditures for 2024 expected at $30–40 million, with Seymour facility and Accelerator Farms included.

• Long-term targets reaffirmed: $1 billion net revenue by 2027, gross margin ~35%, EBITDA margin 12–14%.

• Guidance assumes no major supply chain or macroeconomic disruptions.