Vital Farms (VITL) Q4 2025 earnings summary

Executive summary

• Founder Matt O'Hayer retired as executive chairperson; Russell Diez-Canseco appointed Executive Chairperson and CEO, unifying leadership to drive 2026 initiatives and long-term targets.

• Achieved strong volume-led growth in Q4 and FY 2025, with continued brand strength and broad-based retail performance.

• Major operational milestones included adding a third production line, implementing a new ERP system, and expanding the farm network to over 600 small farms.

• Consumer engagement metrics, including brand awareness and household penetration, continued to rise, with brand awareness up 8 percentage points to 34%.

• A $100 million two-year stock repurchase program was authorized, reflecting confidence in long-term growth.

Financial highlights

• FY 2025 net revenue rose 25.3% year-over-year to $759.4 million; Q4 net revenue was $213.6 million.

• Adjusted EBITDA for FY 2025 was $114 million (15.0% margin), up 31.6%; Q4 Adjusted EBITDA was $29.2 million (13.7% margin), up 53.2%.

• Net income for 2025 was $66.3 million, or $1.44 per diluted share, up 24% year-over-year.

• Gross profit was $285.7 million (37.6% of net revenue), with a slight margin contraction due to higher labor and overhead.

• SG&A expenses were $159.4 million (21% of net revenue), showing operating leverage and increased marketing investment.

• Ended 2025 with $113.4 million in cash and equivalents, down $46.9 million due to capacity investments; no debt outstanding.

Outlook and guidance

• 2026 net revenue guidance is $900–$920 million, representing up to 22% growth, mainly volume-driven.

• Adjusted EBITDA guidance for 2026 is $105–$115 million, with a margin of 12% at the midpoint.

• CapEx expected at $140–$150 million in 2026, focused on capacity and infrastructure expansion.

• Long-term targets reaffirmed: $2 billion net revenue by 2030, gross margin ≥35%, EBITDA margin 15–17%.

• Guidance assumes no major supply chain or macroeconomic disruptions.