Operating cash flow was negative in the two most recent quarters, with free cash flow margin reaching -26.5% in 2026Q2 and buybacks of $15.2M to $20.0M executed despite cash burn, raising questions about funding sustainability.
Vital Farms, Inc. (VITL) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Cash from Operations | -48.66M | 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 % | -4144% | -47.66% | 26.53% | 728.62% | -145.8% | 51.1% | 318.65% | -146.85% | - |
| Net Income | -22.72M | 66.28M | 53.39M | 25.57M | 1.23M | 2.38M | 8.88M | 3.31M | 5.63M |
| Depreciation & Amortization | 20.72M | 13.84M | 13.09M | 7.92M | 7.28M | 3.54M | 2.55M | 1.92M | 1.44M |
| Stock-Based Compensation | 11M | 12.39M | 0 | 7.42M | 6.04M | 4.44M | 2.51M | 1.03M | 600K |
| Deferred Taxes | -12.54M | 689K | -1.86M | -179K | 632K | -2.54M | 1.78M | 52K | 703K |
| Other Non-Cash Items | 1.77M | 16.82M | 16.01M | 7.68M | 895K | 1.64M | -131K | 572K | 363K |
| Working Capital Changes | -63.31M | -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 | -37.13M | -134.25M | -7.03M | 22.38M | -10.04M | -18.44M | -77.84M | -5.62M | -1.91M |
| Capital Expenditures | -123.68M | -81.95M | -28.65M | -11.54M | -10.56M | -16.71M | -10.3M | -4.8M | -1.94M |
| CapEx % of Revenue | 16.52% | 10.79% | 4.72% | 2.45% | 2.92% | 6.41% | 4.81% | 3.41% | 1.82% |
| Acquisitions | 0 | 0 | 0 | 0 | -108K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 38.67M | 1.6M | 1K | -257K | 100K | 0 | 846K | -824K | 29K |
| Cash from Financing | 75.94M | -1.23M | 9.07M | -2.05M | 83K | 2.18M | 94.41M | 434K | -1.51M |
| Debt Issued (Net) | 113.61M | -4.48M | -3.52M | -2.25M | -554K | -471K | -5.57M | 813K | -1.08M |
| Equity Issued (Net) | -32.67M | 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 | -35.15M | 0 | 0 | 0 | 0 | 0 | 0 | -15.19M | 0 |
| Other Financing | -5M | -3.16M | -1.51M | -796K | -38K | -152K | -192K | -409K | -469K |
| Net Change in Cash | -9.84M | -101.77M | 66.45M | 71.23M | -18.05M | 1.42M | 28.27M | -10.54M | 11.81M |
| Free Cash Flow | -138.31M | -48.23M | 35.76M | 39.37M | -18.66M | 971K | 1.4M | -10.15M | 9.48M |
| FCF Margin % | -18.47% | -6.35% | 5.9% | 8.34% | -5.15% | 0.37% | 0.65% | -7.21% | 8.89% |
| FCF Growth % | -610.31% | -234.87% | -9.15% | 311.03% | -2021.22% | -30.74% | 113.81% | -207.03% | - |
| FCF per Share | -3.22 | -1.05 | 0.79 | 0.91 | -0.43 | 0.02 | 0.04 | -0.27 | 0.26 |
| FCF Conversion (FCF/Net Income) | 6.09x | 0.51x | 1.21x | 1.99x | -6.47x | 7.28x | 1.33x | -2.24x | 1.97x |
| Interest Paid | 403K | 782K | 950K | 775K | 114K | 43K | 414K | 0 | - |
| Taxes Paid | 6.97M | 24.17M | 16.58M | 6M | 99K | 102K | 2.21M | 0 | - |
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.
Key Metrics
Top Statement Risk
Persistent operating cash burn
Metrics are mathematically derived from official filings.
Earnings Losing Cash Conversion Power
Based on reported quarterly figures, VITL's operating cash flow to net income ratio swung from 12.19x in 2026Q1 to 0.88x in 2026Q2, while operating cash flow turned negative in the two most recent quarters, suggesting earnings are not translating reliably into cash.
The ratio of operating cash flow to net income appears unstable rather than structurally high, which may indicate that apparent earnings in some quarters are driven by working capital timing rather than durable cash generation. With operating cash flow of -$8.5M in 2026Q3 and -$27.4M in 2026Q2, losses in those periods are compounded by cash outflows, a pattern that warrants further investigation into working capital absorption. Investors should monitor whether the ratio stabilizes once operating results recover.
Free Cash Flow Deeply Negative Recently
As reported in financial statements, VITL's free cash flow margin deteriorated from positive 6.9% in 2024Q2 to negative 26.5% in 2026Q2, with free cash flow of -$22.8M in 2026Q3 indicating sustained cash consumption across the recent period.
The trajectory points to a sharp reversal from modest cash generation in 2024 and early 2025 to consistent burn through 2026, which may reflect both lower profitability and heavier reinvestment. A free cash flow margin of -12.5% in the latest quarter suggests capital spending and working capital needs are outpacing internally generated cash. Investors should monitor whether the burn narrows as operating losses moderate.
Capital Spending Spike Strains Liquidity
According to recent SEC filings, VITL's capital expenditures reached $72.0M in 2025Q4, equal to 33.7% of quarterly revenue, a level sharply above the 1.9% to 11.1% range seen in most other quarters and substantially increasing reinvestment pressure.
The spike in capital intensity in late 2025 suggests a major expansion or facility-related program rather than routine maintenance, given that D&A ran at only $8.8M in the same quarter. The gap between capital outlays and depreciation implies growth-oriented spending whose returns have yet to show up in cash flow, which may explain part of the subsequent free cash flow deterioration. Whether this investment proves productive remains a key question for analysts to track.
Working Capital Drag Persists Across Quarters
Based on EDBL's reported figures, VITL's working capital outflows were substantial, including -$28.8M in 2026Q1 and -$23.0M in 2025Q4, indicating that receivables, inventory, or payables movements are absorbing meaningful cash in multiple recent periods.
Repeated large working capital outflows suggest the company is tying up cash in operating assets faster than it collects from customers or pays suppliers, which may point to inventory build-up or slower collections. This pattern is consistent with negative operating cash flow in the latest quarters and appears to be a material contributor to cash burn rather than a one-time item. The specific composition of these movements is not available in the supplied data and warrants further investigation.
Buybacks Continue Despite Cash Burn
As reported in financial statements, VITL executed share repurchases of $20.0M in 2026Q1 and $15.2M in 2026Q2 while free cash flow was negative in both quarters, raising questions about the funding source for shareholder returns.
Repurchasing shares during periods of negative free cash flow suggests capital is being returned from balance sheet resources rather than generated internally, which may draw down liquidity over time. Dividends remained at zero across the period, so buybacks represent the sole shareholder return channel and their sustainability depends on available cash. Investors should monitor whether repurchases are paused or continued as cash burn persists.
What Could Invalidate the Burn Thesis
Based on reported figures, VITL's cash burn in 2026 coincides with a 2025Q4 capital spike and heavy working capital outflows, which may be timing-driven rather than a permanent deterioration in cash generation capacity.
If the 2025Q4 capital program and working capital build reverse in coming quarters, operating cash flow could recover sharply, as evidenced by the positive $23.4M operating cash flow in 2025Q3. The supplied data does not disclose the composition of working capital movements or the expected return on the capital program, so the analysis cannot confirm whether the drag is temporary. Investors should monitor subsequent quarters for evidence that working capital and capital intensity normalize.