Free cash flow has deteriorated to a negative 21.0% margin in 2026Q1, exacerbated by a $28.8 million outflow in working capital and $20.0 million in share repurchases despite the lack of positive operating cash flow.
| Cash from Operations | 9.89M | 33.72M | 64.41M | 50.91M | -8.1M | 17.68M | 11.7M | -5.35M | 11.42M |
| Operating CF Margin % | - | 4.44% | 10.62% | 10.79% | -2.24% | 6.78% | 5.46% | -3.8% | 10.71% |
| Operating CF Growth % | -482.42% | -47.66% | 26.53% | 728.62% | -145.8% | 51.1% | 318.65% | -146.85% | - |
| Net Income | 47.86M | 66.28M | 53.39M | 25.57M | 1.23M | 2.38M | 8.88M | 3.31M | 5.63M |
| Depreciation & Amortization | 17.78M | 13.84M | 17.28M | 7.92M | 7.28M | 3.54M | 2.55M | 1.92M | 1.44M |
| Stock-Based Compensation | 15.53M | 12.39M | 0 | 7.42M | 6.04M | 4.44M | 2.51M | 1.03M | 600K |
| Deferred Taxes | 2.09M | 689K | -1.86M | -179K | 632K | -2.54M | 1.78M | 52K | 703K |
| Other Non-Cash Items | -4.59M | 16.82M | 11.82M | 7.68M | 895K | 1.64M | -131K | 572K | 363K |
| Working Capital Changes | -85.2M | -76.31M | -16.22M | 2.49M | -24.18M | 8.21M | -3.89M | -12.24M | 2.69M |
| Change in Receivables | 0 | -14.91M | -14.79M | -862K | -13.72M | -4.72M | -4.72M | -6.18M | -3.58M |
| Change in Inventory | 0 | -47.79M | 8.93M | -6.44M | -15.57M | 1.73M | 29K | -9.27M | -1.04M |
| Change in Payables | 0 | 16.93M | 5.81M | 6.67M | 2.35M | 6.8M | 1.81M | 3.19M | 4.95M |
| Cash from Investing | -106.58M | -134.25M | -7.03M | 22.38M | -10.04M | -18.44M | -77.84M | -5.62M | -1.91M |
| Capital Expenditures | -133.61M | -81.95M | -28.65M | -11.54M | -10.56M | -16.71M | -10.3M | -4.8M | -1.94M |
| CapEx % of Revenue | 17.03% | 10.79% | 4.72% | 2.45% | 2.92% | 6.41% | 4.81% | 3.41% | 1.82% |
| Acquisitions | 978K | 0 | 0 | 0 | -108K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 39.03M | 1.6M | 1K | -257K | 100K | 0 | 846K | -824K | 29K |
| Cash from Financing | -22.99M | -1.23M | 9.07M | -2.05M | 83K | 2.18M | 94.41M | 434K | -1.51M |
| Debt Issued (Net) | -4.86M | -4.48M | -3.52M | -2.25M | -554K | -471K | -5.57M | 813K | -1.08M |
| Equity Issued (Net) | -16.3M | 6.41M | 14.1M | 988K | 675K | 2.8M | 100.17M | 30K | 40K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -20M | 0 | 0 | 0 | 0 | 0 | 0 | -15.19M | 0 |
| Other Financing | -1.83M | -3.16M | -1.51M | -796K | -38K | -152K | -192K | -409K | -469K |
| Net Change in Cash | -119.68M | -101.77M | 66.45M | 71.23M | -18.05M | 1.42M | 28.27M | -10.54M | 11.81M |
| Free Cash Flow | -89.69M | -48.23M | 35.76M | 39.37M | -18.66M | 971K | 1.4M | -10.15M | 9.48M |
| FCF Margin % | -11.43% | -6.35% | 5.9% | 8.34% | -5.15% | 0.37% | 0.65% | -7.21% | 8.89% |
| FCF Growth % | -5155.98% | -234.87% | -9.15% | 311.03% | -2021.22% | -30.74% | 113.81% | -207.03% | - |
| FCF per Share | -2.01 | -1.05 | 0.79 | 0.91 | -0.43 | 0.02 | 0.04 | -0.27 | 0.26 |
| FCF Conversion (FCF/Net Income) | -1.87x | 0.51x | 1.21x | 1.99x | -6.47x | 7.28x | 1.33x | -2.24x | 1.97x |
| Interest Paid | 389K | 0 | 950K | 775K | 114K | 43K | 414K | 0 | - |
| Taxes Paid | 24.17M | 0 | 16.58M | 6M | 99K | 102K | 2.21M | 0 | - |
Capital expenditure intensity risk
As reported in recent financial statements, Vital Farms' operating cash flow has frequently decoupled from net income, with the 2026Q1 period showing a net loss of $1.5 million alongside a substantial $18.6 million cash outflow, suggesting significant pressure on the company's underlying cash-generating efficiency.
The persistent gap between accounting profits and cash realization indicates that earnings are increasingly reliant on non-cash adjustments or working capital swings. Investors should monitor whether this divergence reflects a structural shift in the business model or merely temporary timing differences in operational cash cycles.
Based on the provided quarterly data, Vital Farms has seen its free cash flow margin collapse from a positive 15.7% in 2023Q4 to a negative 21.0% in 2026Q1, highlighting a concerning trend where capital requirements are consistently outpacing the company's ability to generate internal liquidity.
This negative trajectory suggests that the company is currently in a high-burn phase, likely driven by aggressive infrastructure investment. The inability to sustain positive free cash flow may necessitate future external financing if the current operational cash flow does not stabilize.
According to recent SEC filings, Vital Farms' capital expenditure reached a peak of $72.0 million in 2025Q4, representing 33.7% of revenue, which underscores a period of heavy investment in production capacity that significantly weighs on the company's short-term cash position and overall liquidity profile.
The high capital intensity relative to revenue suggests that the company is prioritizing long-term scale over immediate cash preservation. Analysts should evaluate whether these investments in processing facilities will yield sufficient returns to justify the current depletion of cash reserves.
As indicated by the financial data, working capital changes have been a consistent drag on cash flow, with a $28.8 million outflow in 2026Q1 alone, suggesting that the company is struggling to manage its cash conversion cycle effectively amidst its current growth and operational expansion phase.
The recurring negative working capital adjustments may imply that the company is carrying excessive inventory or facing extended collection periods from retail partners. This trend warrants further investigation into whether these pressures are structural or a byproduct of seasonal inventory build-ups.
Based on reported figures, Vital Farms utilized $20.0 million for share repurchases in 2026Q1 despite generating negative operating cash flow, a decision that appears to prioritize shareholder returns over the preservation of cash during a period of significant operational and capital expenditure-related stress.
This capital allocation strategy may be viewed as aggressive given the current cash burn and the volatility in operating performance. Investors should consider whether such buybacks are sustainable if the company continues to face headwinds in its core cash-generating activities.
Quick answers to the most common questions about buying VITL stock.
Vital Farms, Inc. (VITL) generated $33.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Vital Farms, Inc. (VITL) reported negative free cash flow of $48.2M in 2025, indicating capital requirements exceeded cash from operations.
Vital Farms, Inc. (VITL) spent $82.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.