Vital Farms Reports Strong Fourth Quarter and Fiscal Year 2025 Results
Vital Farms (Nasdaq: VITL), a Certified B Corporation known for its ethically produced foods, reported robust financial results for the fourth quarter and fiscal year ended December 28, 2025. The company delivered strong top-line growth, improved profitability, and announced a new $100 million stock repurchase program, underscoring confidence in its long-term growth strategy.
For the fourth quarter of 2025, net revenue increased 28.7% to $213.6 million, compared to $166.0 million in the fourth quarter of 2024. This growth was driven by $27.2 million in volume-related revenue gains and $20.4 million from favorable price and mix benefits. Increased demand for existing products and expanded item offerings at current retail partners contributed significantly to the performance.
Gross profit rose to $76.4 million, representing 35.8% of net revenue, compared to $59.9 million, or 36.1% of net revenue, in the prior-year quarter. While gross profit increased in absolute terms due to higher sales and favorable pricing, margin declined slightly as the company continued investing in scaling operations and expanding capacity.
Income from operations climbed to $21.4 million in the fourth quarter, up from $13.0 million a year earlier. Net income increased to $16.3 million, compared to $10.6 million in the fourth quarter of 2024. Net income per diluted share improved to $0.35 from $0.23 in the prior-year period. Adjusted EBITDA reached $29.2 million, or 13.7% of net revenue, compared to $19.1 million, or 11.5%, in the previous year, primarily driven by higher sales volumes.
For the full fiscal year 2025, net revenue grew 25.3% to $759.4 million, up from $606.3 million in fiscal 2024. Volume growth contributed $78.3 million, while price and mix improvements added $74.9 million. Accelerated consumer demand and expanded distribution within existing customer accounts supported this performance.
Gross profit for fiscal 2025 increased to $285.7 million, or 37.6% of net revenue, compared to $229.9 million, or 37.9%, in fiscal 2024. Operating income rose to $88.4 million from $63.6 million in the prior year. Net income reached $66.3 million, up from $53.4 million, while diluted earnings per share increased to $1.44 from $1.18. Adjusted EBITDA totaled $114.0 million, or 15.0% of net revenue, surpassing $100 million for the first time in company history.
Leadership Commentary and Strategic Direction
Russell Diez-Canseco, President and CEO of Vital Farms, stated that 2025 marked a pivotal year for scaling the company’s supply chain to meet rising consumer demand. The expansion of Egg Central Station and growth of the farmer network to more than 600 small farms significantly reduced prior supply constraints that had limited growth.
As the company enters 2026, management indicated a strategic shift from infrastructure expansion toward market growth. The focus will now center on expanding the customer base, increasing household penetration, and driving higher buy rates. Vital Farms continues progressing toward its long-term goal of reaching $2 billion in revenue by 2030, while maintaining its purpose-driven mission of improving the lives of people, animals, and the planet through food.
Chief Financial Officer Thilo Wrede highlighted the company’s record financial performance in 2025, particularly surpassing $100 million in Adjusted EBITDA. He emphasized that 2026 represents a transition from building operational capacity to unlocking latent brand demand, supported by disciplined capital allocation and a strong balance sheet.
Remediation of Material Weakness in Financial Controls
Vital Farms also announced the successful remediation of a previously disclosed material weakness in internal control over financial reporting. The company strengthened its control environment through the implementation of a new enterprise resource planning (ERP) system and enhanced oversight procedures. Importantly, no restatements of financial results were required as part of this remediation process.
Balance Sheet and Cash Flow Position
As of December 28, 2025, Vital Farms held $113.4 million in cash, cash equivalents, and marketable securities, with no outstanding debt. Net cash provided by operating activities totaled $33.7 million for fiscal 2025, compared to $64.8 million in fiscal 2024.
Capital expenditures increased significantly to $82.0 million in fiscal 2025, compared to $28.6 million in the prior year. The higher investment reflects continued expansion efforts and infrastructure development to support long-term growth.
$100 Million Stock Repurchase Program
The company’s Board of Directors authorized a two-year stock repurchase program of up to $100 million of common stock. Management intends to repurchase shares opportunistically, particularly when the public market price does not fully reflect the company’s intrinsic value. The repurchase initiative will be funded through existing cash reserves, future operating cash flows, and available debt capacity, allowing Vital Farms to return capital to shareholders while preserving flexibility to execute its 2030 strategic plan.
Fiscal 2026 Outlook
For fiscal year 2026, Vital Farms expects net revenue between $900 million and $920 million, representing growth of 19% to 22% compared to fiscal 2025. The outlook is slightly below the initial projection shared at the company’s Investor Day in December, reflecting macroeconomic uncertainty and volatility in order patterns observed early in the year. Management believes these fluctuations are temporary and continues to see healthy consumer demand supported by panel data.
Adjusted EBITDA is projected in the range of $105 million to $115 million, reflecting normalized promotional spending aimed at converting growing brand awareness into increased household penetration. Capital expenditures are expected to range from $140 million to $150 million, largely driven by the construction of Vital Crossroads, the company’s planned facility in Seymour, Indiana. This new facility is designed to provide substantial long-term capacity to support the company’s goal of reaching $2 billion in net revenue by 2030.
Management noted that guidance assumes no significant supply chain disruptions or major adverse macroeconomic impacts. Due to variability in items such as income taxes and stock-based compensation, the company cannot reasonably reconcile forecasted Adjusted EBITDA to net income without unreasonable effort.
Overall, Vital Farms concluded 2025 with record financial performance, strengthened operational capacity, and a clear strategic path focused on disciplined growth, infrastructure expansion, and shareholder value creation as it moves into 2026.
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