Vital Farms (Nasdaq: VITL), a leading Certified B Corporation known for its ethically produced, pasture-raised food products, has updated its long-term financial objectives and outlined a clear roadmap for sustained growth through the end of the decade. The company plans to provide deeper insight into these strategic priorities during its Investor Day presentation scheduled for later today, offering investors a comprehensive view of how Vital Farms intends to scale its business while maintaining its core values.
The updated outlook underscores management’s confidence in the brand’s momentum, operational foundation, and long-term growth opportunities across its current product categories. With increasing household penetration, expanding retail distribution, and continued investment in supply chain infrastructure, Vital Farms believes it is well positioned to deliver durable, profitable growth over the coming years.
Clear Path to $2 Billion in Revenue by 2030
At the center of Vital Farms’ updated strategy is a new long-term planning horizon extending through 2030. Management now expects the company to reach $2 billion in annual net revenue by 2030, driven by continued strength in its existing categories, including pasture-raised eggs and butter, as well as growing brand loyalty among consumers seeking ethically produced food options.
“We see a clear multi-year path toward $2 billion in net revenue by 2030 and adjusted EBITDA margins of 15% to 17% by the end of the decade,” said Russell Diez-Canseco, President and Chief Executive Officer of Vital Farms. “As we continue to drive increased brand awareness, expand household penetration and brand loyalty, deepen distribution, and scale our supply chain, we believe Vital Farms is well positioned to deliver durable, profitable growth.”
In addition to top-line growth, the company expects to achieve gross margins of more than 35% between 2025 and 2030, reflecting improved operating leverage, greater supply chain efficiency, and disciplined cost management as the business scales.
Diez-Canseco emphasized that the past year has been foundational for the company, with progress across every major function. “Over the past year, we’ve strengthened every part of our business—from supply and production to brand awareness and retail execution—laying the groundwork for sustainable, long-term growth,” he said.
Updated Fiscal 2025 Outlook Reflects Temporary Disruption
Alongside its long-term targets, Vital Farms provided an update on its outlook for fiscal year 2025. The company now expects net revenue of $755 million to $765 million for the full year, reflecting a modest revision tied to a temporary disruption following the implementation of a new enterprise resource planning (ERP) system.
The ERP transition, which occurred at the beginning of the fourth quarter of fiscal 2025, temporarily impacted the company’s ability to return to regular order patterns. Management noted that while the transition created short-term operational challenges, it was a necessary step to support the company’s long-term growth ambitions.
Despite the revenue impact, Vital Farms reaffirmed its commitment to profitability and cost discipline. Management continues to expect adjusted EBITDA of more than $115 million for fiscal 2025, highlighting the resilience of the business model and the effectiveness of expense management initiatives.
The company also refined its capital spending expectations for the year, narrowing projected capital expenditures to a range of $80 million to $90 million. These investments primarily support capacity expansion, supply chain optimization, and technology upgrades that will enable future growth.
Strong Initial Outlook for 2026
Looking ahead, Vital Farms shared its initial outlook for fiscal 2026, projecting net revenue between $930 million and $950 million. At the midpoint, this represents approximately 24% year-over-year growth compared with the revised 2025 guidance, signaling a return to a higher growth trajectory as operational challenges related to the ERP transition subside.
Management indicated that formal guidance for fiscal 2026 will be provided in conjunction with the company’s fourth-quarter 2025 earnings release, scheduled for February 2026. The early outlook, however, reflects confidence in demand trends, expanded distribution, and improved operational efficiency.
ERP Transition Returns to Normal Operations
Vital Farms also provided an update on the status of its ERP transition, a major internal initiative designed to modernize the company’s technology infrastructure and support long-term scalability. As of December 5, the company has officially exited the “hypercare” phase of the project.
This milestone marks a return to normal operations under the new system and allows the organization to fully leverage enhanced IT capabilities. Management noted that the ERP platform is expected to improve visibility across the supply chain, strengthen customer service, and support more sophisticated planning as the business continues to grow.
Vital Crossroads Facility to Unlock Next Phase of Growth
A key component of Vital Farms’ long-term growth strategy is the expansion of its processing capabilities. During the update, the company formally introduced the name of its previously announced new processing facility in Seymour, Indiana: Vital Crossroads (VXR).
The name reflects Indiana’s state motto, the “Crossroads of America,” and underscores the facility’s strategic importance within Vital Farms’ national supply chain. Once operational, VXR is expected to significantly enhance the company’s capacity and efficiency, serving as a critical enabler of its long-term financial targets.
The facility is slated to become operational in 2027, and management described it as a “critical unlock” that will support higher volumes, improved logistics, and greater flexibility as the company continues to scale. Investments in VXR align with Vital Farms’ commitment to maintaining high animal welfare standards while meeting growing consumer demand.
Investor Day Webcast Details
Vital Farms will host a webcast beginning at 9:30 a.m. Eastern Time, featuring members of the company’s senior leadership team. The presentation will provide a detailed overview of the company’s strategy, operational priorities, and updated financial targets, along with insights into how management plans to execute against its long-term vision.
Participants can register in advance to access the webcast or tune in live through the Investor Relations section of the Vital Farms website. The company expects the event to offer valuable context around its growth strategy, capital investments, and commitment to balancing profitability with purpose.
Positioning for Long-Term, Purpose-Driven Growth
As Vital Farms looks toward the end of the decade, its updated outlook reflects a company seeking to scale responsibly while staying true to its mission-driven roots. With a clear revenue target, improving margins, and significant infrastructure investments underway, management believes the business is well positioned to capitalize on consumer demand for ethically produced food.
By strengthening its operational backbone, investing in technology and capacity, and maintaining disciplined financial management, Vital Farms aims to deliver consistent value to shareholders while continuing to support farmers, animals, and the environment. The company’s Investor Day presentation is expected to further reinforce this vision and outline the steps needed to achieve its ambitious 2030 goals.
Source Link:https://www.businesswire.com/
