Vital Farms, Inc. (Nasdaq: VITL), a Certified B Corporation known for its commitment to ethical food production and sustainability, announced its financial results for the third quarter ended September 28, 2025. The company delivered another period of strong top- and bottom-line growth, reflecting robust consumer demand, efficient execution, and the success of its ongoing expansion initiatives.
Strong Financial Performance and Sustained Growth
For the third quarter of 2025, Vital Farms reported net revenue of $198.9 million, marking a 37.2% increase from $145.0 million during the same quarter of 2024. This performance was fueled by both volume gains and favorable pricing. According to the company, volume-related revenue growth contributed $27.5 million, while price and mix improvements added $26.4 million to total revenue.
The company attributed this growth to sustained consumer enthusiasm for its products, expanded shelf presence with existing retail partners, and the introduction of new items across its portfolio. The strong performance underscores Vital Farms’ ability to capture increasing market share within the rapidly growing category of ethically sourced and pasture-raised food products.
Gross profit for the quarter climbed to $75.0 million, or 37.7% of net revenue, compared to $53.5 million, or 36.9%, in the same period last year. The improvement in gross profit margin was primarily due to favorable price and product mix, lower commodity input costs, and the benefits of operational scale. These gains were slightly offset by increased overhead costs tied to the company’s growth investments.
Earnings More Than Double Year-Over-Year
Income from operations surged to $21.4 million, more than doubling the $9.2 million reported in the third quarter of 2024. This improvement reflects the strong revenue growth and higher gross margins, partially offset by increased employee-related expenses, marketing investments, and higher shipping and distribution costs associated with the company’s expanded footprint.
Net income also demonstrated significant growth, reaching $16.4 million compared to $7.4 million in the same period last year. Earnings per diluted share rose to $0.36, up from $0.16 a year earlier. The increase was primarily driven by stronger operating results, partially offset by higher income tax expenses related to a reduction in tax benefits from stock option exercises and restricted stock units.
Adjusted EBITDA Growth Reflects Operating Strength
Adjusted EBITDA, a key non-GAAP financial measure, reached $27.4 million, representing 13.8% of net revenue, compared to $15.2 million, or 10.5%, in the third quarter of 2024. The improvement was primarily driven by higher sales volume, improved pricing, and better cost management.
Vital Farms emphasized that its Adjusted EBITDA results reflect ongoing strategic investments in its workforce and operations to support sustainable long-term growth. The company continues to prioritize responsible scaling and disciplined cost control while maintaining its values-based approach to business.
CEO Highlights Momentum and Strategic Achievements
Russell Diez-Canseco, President and Chief Executive Officer of Vital Farms, said the company’s third-quarter performance exemplified the strength of its strategy and disciplined execution.
“Our third quarter results demonstrate the power of disciplined execution across our business,” Diez-Canseco stated. “This values-aligned approach is fueling strong growth as we build momentum heading into Q4 and lay the foundation for long-term success in 2026 and beyond.”
He added that Vital Farms had achieved multiple strategic milestones that enhance its ability to scale efficiently and meet rising consumer demand. These include the successful implementation of a new enterprise resource planning (ERP) system, the addition of a third production line at the company’s flagship Egg Central Station in Springfield, and the expansion of its family farm network to 575 farms nationwide.
“We delivered on the supply expansion plans we laid out last year, rebuilt inventory to healthy levels, and drove another quarter of sequential volume growth acceleration,” Diez-Canseco continued. “Every investment we make and every partnership we forge is aligned with our mission to become America’s most trusted food company — and the progress we’ve made to date in 2025 represents a meaningful step toward that goal.”
Balance Sheet Strength and Operational Investments
Vital Farms continues to maintain a strong balance sheet with ample liquidity to support future growth. As of September 28, 2025, the company reported $145.1 million in cash, cash equivalents, and marketable securities, with no outstanding debt.
Net cash provided by operating activities totaled $27.9 million for the 39-week period ended September 28, 2025, compared to $50.0 million in the same period of 2024. The year-over-year difference was primarily due to timing of working capital investments and higher capital expenditures to support the company’s operational expansion.
Capital expenditures rose significantly to $44.0 million in the first 39 weeks of 2025, compared to $10.5 million in the same period of 2024. The increased spending reflects continued investments in infrastructure, production capacity, and technology — including facility upgrades and system enhancements designed to improve supply chain efficiency and scalability.
Strategic Outlook and Long-Term Vision
Looking ahead, Vital Farms remains optimistic about its trajectory as it enters the final quarter of 2025 and plans for 2026. The company expects continued revenue growth driven by expanding distribution, strong consumer loyalty, and the ongoing success of its pasture-raised egg and butter products.
The company also sees considerable potential in expanding its product portfolio and exploring adjacent categories that align with its brand values of ethical sourcing, environmental stewardship, and transparency. Vital Farms’ leadership believes that the combination of operational discipline, consumer trust, and sustainable practices provides a durable competitive advantage in the evolving food landscape.
Commitment to Purpose and Values
As a Certified B Corporation, Vital Farms continues to emphasize its mission of bringing ethical food to the table while improving the livelihoods of farmers and maintaining high animal welfare standards. The company’s business model — built on transparency, shared value, and community engagement — remains central to its growth strategy.
“We believe we remain structurally advantaged with significant long-term tailwinds,” said Diez-Canseco. “Our continued focus on mission-driven growth ensures that we can deliver value for all stakeholders — our consumers, farmers, crew members, and shareholders alike.”
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