Vital Farms (Nasdaq: VITL) reported fourth‑quarter 2025 revenue of $213.6 million, up 25.3% from $166.0 million in Q4 2024, and net income of $16.3 million, translating to earnings per diluted share of $0.35. Adjusted EBITDA for the quarter was $29.2 million, giving a margin of 13.7%—a modest improvement over the 11.5% margin recorded in the same period a year earlier.
For the full fiscal year 2025, the company generated $759.4 million in revenue, a 25.3% increase over the $606.3 million reported in 2024. Net income rose to $66.3 million, and diluted earnings per share reached $1.44. Adjusted EBITDA for the year totaled $114.0 million, reflecting a 15.0% margin that, while slightly compressed from the 15.9% margin in 2024, still demonstrates operational leverage as the business scales.
Management guided 2026 net revenue to $900 million–$920 million, a 19%–22% increase from 2025, and adjusted EBITDA to $105 million–$115 million. The company also announced a $100 million two‑year stock repurchase program and confirmed remediation of a previously disclosed material weakness in financial controls, underscoring a commitment to governance and shareholder value.
CEO Russell Diez‑Canseco highlighted that 2025 was a year of supply‑chain scaling, with the expansion of Egg Central Station and the growth of a farmer network to over 600 small farms, which helped alleviate prior capacity constraints. He noted that 2026 will focus on market expansion, aiming to increase household penetration and buy rate as the company moves toward a $2 billion net‑revenue target by 2030. Diez‑Canseco also cited macroeconomic volatility and recent weather impacts as factors influencing the more cautious 2026 guidance.
The results reveal a mix of strengths and headwinds. Revenue growth was driven by robust demand for pasture‑raised eggs, but higher labor and overhead costs, coupled with inflationary pressures and increased promotional spending, compressed gross and EBITDA margins. The EPS miss—$0.35 versus the consensus estimate of $0.38—was largely attributable to the margin compression and the impact of higher operating costs, despite the company’s ability to maintain a healthy adjusted EBITDA margin. The guidance deceleration signals management’s concern about near‑term macro conditions, yet the company remains confident in sustaining profitability through disciplined cost management and continued supply‑chain efficiencies.
Investors reacted negatively to the earnings release, citing the EPS miss and the more conservative 2026 outlook as key concerns. The market’s response reflects apprehension about the company’s ability to sustain its rapid growth trajectory amid rising costs and macroeconomic uncertainty.
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