Vital Farms (VITL) Q3 2026 earnings summary

Executive summary

• Q3 net revenue was $182.2M, down 8.4% YoY but up 9.7% sequentially; Adjusted EBITDA recovered to $1.5M from a $26.6M Q2 loss.

• Q3 net loss was $6.5M versus net income of $16.4M; gross margin was 23.1%, up more than 16 percentage points QoQ.

• FY 2026 revenue guidance was reduced to ~$730M and Adjusted EBITDA guidance to a ~$15M loss; FY2030 financial targets were withdrawn.

Financial highlights

• Q3 revenue fell $16.8M YoY: $14.3M from lower price/mix, $2.2M from lower volume excluding breaker and wholesale, and $0.3M from breaker and wholesale sales.

• Gross profit was $42.1M, down $32.8M YoY; lower-priced breaker and wholesale sales reduced gross profit by $7.9M.

• Operating loss was $7.7M versus operating income of $21.4M; diluted EPS was $(0.15) versus $0.36.

• SG&A declined $6.3M YoY to $38.1M; shipping and distribution costs rose 27% YoY, reflecting higher fuel and unfavorable linehaul rates.

• Nine-month revenue was $535.3M versus $545.9M; net loss was $39.0M versus net income of $50.0M, and Adjusted EBITDA was a $20.1M loss versus $84.8M income.

Outlook and guidance

• FY 2026 net revenue guidance was reduced from $775M–$800M to ~$730M; Adjusted EBITDA guidance shifted from $0–$10M income to a ~$15M loss. Capex guidance remains $70M–$75M.

• Q4 outlook assumes no seasonal lift in demand or conventional egg pricing; revenue and Adjusted EBITDA are expected to improve sequentially.

• Later-than-planned distribution placements shift expected revenue contribution and velocity build later in Q4; annualized SG&A run-rate reductions of $6M–$7M were completed.

• Supply-control measures are expected to continue through 2026, with related costs estimated at $35M–$45M over the next 12 months; butter wind-down is expected to be substantially complete by year-end.

• Expected next-12-month capex includes $40M–$55M for Vital Crossroads and $1M–$4M to complete accelerator-farm development; Vital Crossroads construction is set to halt by year-end 2026.