Revenue growth decelerated to 15.4% in 2026Q1 while gross margins contracted to 28.3%, down from the 39.8% peak observed in 2024Q1.
| Sales/Revenue | 784.41M | 759.44M | 606.31M | 471.86M | 362.05M | 260.9M | 214.28M | 140.73M | 106.71M |
| Revenue Growth % | 22.72% | 25.26% | 28.49% | 30.33% | 38.77% | 21.76% | 52.26% | 31.88% | - |
| Cost of Goods Sold | 508.23M | 473.76M | 376.38M | 309.53M | 252.61M | 178M | 139.75M | 97.86M | 71.89M |
| COGS % of Revenue | - | 62.38% | 62.08% | 65.6% | 69.77% | 68.23% | 65.22% | 69.53% | 67.37% |
| Gross Profit | 276.18M | 285.68M | 229.93M | 162.33M | 109.44M | 82.9M | 74.53M | 42.88M | 34.82M |
| Gross Margin % | 35.21% | 37.62% | 37.92% | 34.4% | 30.23% | 31.77% | 34.78% | 30.47% | 32.63% |
| Gross Profit Growth % | - | 24.25% | 41.64% | 48.32% | 32.02% | 11.23% | 73.82% | 23.14% | - |
| Operating Expenses | 211.91M | 197.31M | 166.37M | 129.07M | 107.34M | 82.85M | 62.3M | 39.53M | 28.05M |
| OpEx % of Revenue | - | 25.98% | 27.44% | 27.35% | 29.65% | 31.75% | 29.07% | 28.09% | 26.29% |
| Selling, General & Admin | 211.91M | 197.31M | 166.37M | 129.07M | 107.34M | 82.85M | 62.3M | 39.53M | 28.05M |
| SG&A % of Revenue | - | 25.98% | 27.44% | 27.35% | 29.65% | 31.75% | 29.07% | 28.09% | 26.29% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 64.27M | 88.37M | 63.55M | 33.25M | 2.1M | 52K | 12.23M | 3.35M | 6.77M |
| Operating Margin % | 8.19% | 11.64% | 10.48% | 7.05% | 0.58% | 0.02% | 5.71% | 2.38% | 6.34% |
| Operating Income Growth % | - | 39.06% | 91.11% | 1480.51% | 3946.15% | -99.57% | 265.01% | -50.5% | - |
| EBITDA | 85.46M | 102.89M | 76.64M | 41.18M | 7.54M | 3.59M | 14.78M | 5.27M | 8.2M |
| EBITDA Margin % | 10.89% | 13.55% | 12.64% | 8.73% | 2.08% | 1.38% | 6.9% | 3.75% | 7.69% |
| EBITDA Growth % | 17.05% | 34.24% | 86.13% | 445.78% | 110.05% | -75.69% | 180.36% | -35.75% | - |
| D&A (Non-Cash Add-back) | 21.19M | 14.51M | 13.09M | 7.92M | 5.44M | 3.54M | 2.55M | 1.92M | 1.44M |
| EBIT | 68.56M | 92.14M | 68.55M | 32.98M | 2.94M | 406K | 12.14M | 4.77M | 6.78M |
| Net Interest Income | 2.41M | 4.14M | 4.24M | 1.76M | 878K | 329K | -391K | -349K | -424K |
| Interest Income | 4.57M | 5.01M | 5.25M | 2.54M | 992K | 381K | 97K | 0 | 0 |
| Interest Expense | 2.16M | 874K | 1.01M | 782K | 114K | 52K | 488K | 349K | 424K |
| Other Income/Expense | 2.79M | 2.89M | 3.99M | -1.05M | 727K | 302K | -574K | 1.07M | -415K |
| Pretax Income | 67.06M | 91.26M | 67.54M | 32.2M | 2.83M | 354K | 11.65M | 4.42M | 6.35M |
| Pretax Margin % | 8.55% | 12.02% | 11.14% | 6.82% | 0.78% | 0.14% | 5.44% | 3.14% | 5.95% |
| Income Tax | 19.2M | 24.98M | 14.15M | 6.63M | 1.6M | -2.03M | 2.77M | 1.11M | 723K |
| Effective Tax Rate % | 28.64% | 27.37% | 20.95% | 20.6% | 56.55% | -572.88% | 23.77% | 25.03% | 11.38% |
| Net Income | 47.86M | 66.28M | 53.39M | 25.57M | 1.25M | 2.43M | 8.8M | 2.38M | 5.8M |
| Net Margin % | 6.1% | 8.73% | 8.81% | 5.42% | 0.35% | 0.93% | 4.11% | 1.69% | 5.43% |
| Net Income Growth % | 5.17% | 24.15% | 108.82% | 1943.65% | -48.5% | -72.4% | 268.97% | -58.86% | - |
| Net Income (Continuing) | 47.86M | 66.28M | 53.39M | 25.57M | 1.23M | 2.38M | 8.88M | 3.31M | 5.63M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 290K | 338K | 23.29M | 22.36M |
| EPS (Diluted) | 1.07 | 1.44 | 1.18 | 0.59 | 0.03 | 0.06 | 0.27 | 0.06 | 0.16 |
| EPS Growth % | 4.64% | 22.03% | 100% | 1948.61% | -48.66% | -79.22% | 319.91% | -59.81% | - |
| EPS (Basic) | - | 1.49 | 1.25 | 0.62 | 0.03 | 0.06 | 0.31 | 0.07 | 0.17 |
| Diluted Shares Outstanding | 44.59M | 46.02M | 45.13M | 43.31M | 43.47M | 43.32M | 32.91M | 37.12M | 37.12M |
| Basic Shares Outstanding | 44.59M | 44.59M | 42.85M | 41.19M | 40.65M | 40.03M | 28.67M | 34.14M | 34.14M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Margin volatility from input costs
As reported in recent financial filings, Vital Farms experienced a notable revenue deceleration in 2026Q1, with growth slowing to 15.4% compared to the 28.7% observed in 2025Q4, suggesting that the company's historical momentum may be encountering resistance within its core US retail distribution channels.
The sharp decline in top-line growth suggests that the brand's ability to capture incremental shelf space or drive higher velocity may be reaching a temporary plateau. Investors should monitor whether this deceleration reflects a broader saturation of the premium egg market or merely a cyclical adjustment following the holiday-driven demand spikes seen in previous quarters.
Based on the provided income statement data, gross margins contracted significantly to 28.3% in 2026Q1 from a peak of 39.8% in 2024Q1, indicating that the company's premium pricing power is currently being offset by rising production costs or shifts in the underlying cost of goods sold.
This margin erosion appears to challenge the narrative of a durable brand premium, as the company struggles to maintain its historical profitability levels. The contraction warrants further investigation into whether this is a result of higher feed costs, increased logistics expenses, or aggressive promotional activity required to sustain volume in a competitive retail environment.
According to the latest quarterly results, Vital Farms saw operating income swing to a loss of $2.3 million in 2026Q1, a stark reversal from the $21.4 million profit reported in 2025Q4, which highlights a lack of operating leverage during periods of revenue volatility.
The inability to scale SG&A expenses in proportion to revenue fluctuations suggests that the company's cost structure remains relatively rigid. This lack of flexibility may expose the firm to significant earnings downside if revenue growth continues to decelerate while fixed overhead costs remain elevated.
Analysis of the income statement reveals that stock-based compensation reached $2.8 million in 2026Q1, which represents a significant portion of the company's operating expenses and directly contributes to the reported net loss of $1.5 million for the same period, as indicated by recent financial disclosures.
The reliance on equity-based incentives appears to be a persistent feature of the company's compensation strategy, which may mask the true cash-based profitability of the business. Investors should carefully evaluate the impact of these non-cash charges on long-term shareholder dilution and the underlying quality of earnings.
As reported in financial statements, the recent shift to negative operating margins suggests that the company's reliance on a premium, pasture-raised positioning may be vulnerable to consumer trade-down behavior, potentially undermining the long-term sustainability of its current growth narrative in a more price-sensitive macroeconomic environment.
Short-sellers may focus on the company's inability to maintain margin stability as a sign that the brand's moat is thinner than previously assumed. If the company cannot pass through rising input costs to consumers without sacrificing volume, the current valuation may be difficult to justify based on historical performance metrics.
Quick answers to the most common questions about buying VITL stock.
For fiscal year 2025, Vital Farms, Inc. (VITL) reported total revenue of $759.4M. This represents a 611.7% increase compared to $106.7M in 2018.
Vital Farms, Inc. (VITL) is profitable, generating $66.3M in net income for the fiscal year ending 2025 with a net profit margin of 8.7%.
Vital Farms, Inc. (VITL) reported an operating income of $88.4M, resulting in an operating profit margin of 11.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Vital Farms, Inc. (VITL) generated $285.7M in gross profit for the year, representing a gross profit margin of 37.6%. This demonstrates the company's core pricing power and production efficiency.