10-Q · May 7, 2026
Vital Farms reported Q1 2026 revenues of $187.2 million, an increase of 15% from $162.2 million in the same quarter previous year, but suffered a net loss of $1.5 million, indicating significant margin pressure. The…
Earnings analysis · 10-Q
VITL earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
Vital Farms’ Q3 results improved sequentially, with revenue rising to $182.2 million and Adjusted EBITDA increasing by $28.1 million to $1.5 million, but profitability remained materially below the prior year: gross…
Read full summary
Vital Farms’ Q3 results improved sequentially, with revenue rising to $182.2 million and Adjusted EBITDA increasing by $28.1 million to $1.5 million, but profitability remained materially below the prior year: gross margin declined to 23.1% from 37.7% and diluted EPS was a $0.15 loss. Management lowered fiscal 2026 revenue and Adjusted EBITDA expectations to around $730 million and a $15 million loss, respectively, and withdrew its fiscal 2030 targets. The company also carries a fully drawn $125.0 million term loan at an effective rate of approximately 14.73%, increasing liquidity and interest-rate sensitivity.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.15
- Gross margin
- 23.1%
What stood out
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Revenue Rebounded Sequentially
Q3 revenue was $182.2 million, up approximately 9.8% sequentially from $166 million in Q2 but down approximately 8.4% from $199 million in Q3 2025.
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Gross Margin Improved Sequentially
Gross margin was 23.1%, down 14.6 percentage points from 37.7% in Q3 2025, although it improved 16.5 percentage points from 6.6% in Q2 2026.
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Sharp Sequential EBITDA Recovery
Adjusted EBITDA improved by $28.1 million sequentially to $1.5 million, indicating a meaningful recovery from the prior quarter’s profitability pressure.
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Liquidity Expected Through Next 12 Months
Management stated that existing cash, operating cash flow and available borrowings under the JPMorgan ABL Credit Facility are expected to fund planned operating expenses and capital expenditures through at least the next 12 months.
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Controls Remained Effective
Disclosure controls and procedures were concluded effective at a reasonable assurance level as of September 27, 2026, with no material changes to internal control over financial reporting during the quarter.
What to watch
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Full-Year Outlook Was Cut
Fiscal 2026 revenue outlook was reduced to around $730 million from $775-$800 million, while Adjusted EBITDA outlook was reduced to a loss of around $15 million from breakeven to positive $10 million.
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EPS Miss and Margin Compression
The company reported a diluted EPS loss of $0.15, missing the $0.11 loss consensus estimate, while Q3 gross margin fell to 23.1% from 37.7% year over year.
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High-Cost Variable-Rate Debt
The company has drawn the full $125.0 million Silver Point Term Loan; its effective interest rate was approximately 14.73%, and a 1% increase in applicable rates would increase annualized expense by approximately $1.25 million.
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Debt Covenants Constrain Flexibility
The JPMorgan ABL Credit Facility provides a $60.0 million revolving facility but requires minimum revolving availability of $15.0 million for the first 12 months and a fixed-charge coverage ratio of at least 1.10 to 1.00 thereafter.
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New Securities Litigation
A putative securities class action was filed on March 27, 2026, against the company and certain executive officers, and a related derivative stockholder action was also filed.
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Workforce Reduction Execution Risk
During 2026, workforce reductions affected approximately 12% of remote crew members, creating potential execution, morale, productivity, severance and litigation risks.
Management's outlook
Fiscal 2026 net revenue outlook was lowered to around $730 million from $775-$800 million, and Adjusted EBITDA outlook was lowered to a loss of around $15 million from breakeven to positive $10 million. Capital expenditure guidance was reaffirmed at $70-$75 million. Fiscal 2030 targets were withdrawn.
Earlier filings 4
10-Q · November 7, 2024
Vital Farms reported quarterly revenue of $145.0M (13-weeks ended September 29, 2024), up 31.3% year-over-year from $110.4M but down modestly versus the prior quarter ($147.0M). Gross margin improved YoY to 36.9% from…
10-Q · May 9, 2024
Vital Farms reported a strong quarter with net revenue of $147,929,000 (up $28,757,000 or 24.1% vs $119,172,000 a year ago), materially higher gross profit of $58,897,000 and net income of $19,023,000 (diluted EPS $0.43…
10-K · March 7, 2024
Vital Farms reports strong multi-year top-line growth, with net revenue of $471.9 million in fiscal 2023 (up from $140.8 million in fiscal 2019) representing a 35.3% CAGR since 2019. The company emphasizes a…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.