Key Takeaways:
- Vital Farm’s net revenue rose 25.4% year-over-year to $184.8 million
- Net income reached $16.6 million, flat on a per-share basis at $0.36
- Adjusted EBITDA increased 28% to $29.9 million
- Supply chain expansion included 50 new farms, 9 million hens, and continued facility buildouts
- Fiscal 2025 revenue guidance raised to at least $770 million
Vital Farms Delivers Double-Digit Revenue Growth in Second Quarter
Higher Volume and Pricing Drive Top-Line Expansion
Vital Farms (Nasdaq: VITL) reported second-quarter 2025 financial results that reflect continued growth in demand and successful execution of its expansion strategy. Net revenue increased by 25.4% to $184.8 million, compared to $147.4 million in the same period last year. The increase was driven by $15.7 million in price and mix gains and $21.7 million from volume growth.
Gross profit rose to $71.8 million, with a gross margin of 38.9%, slightly below the 39.1% margin recorded in Q2 2024. Margin compression was primarily attributed to higher labor and overhead costs, partially offset by favorable pricing and product mix.
Operational Growth and Strategic Investments Continue
Vital Farms’ Supply Chain Expansion Supports Long-Term Capacity
The company continues to scale its operations, adding 50 new family farms in Q2, bringing its total to over 500 farms and 9 million hens under contract. Production capacity is being expanded with the redesign and groundbreaking of the Seymour facility, set to go online in 2027, and installation of a third production line in Springfield, expected to be completed in Q4 2025.
Vital Farms also placed birds on its first accelerator farm, a milestone in its broader expansion plan. These initiatives are expected to support growing consumer demand and drive operational efficiency.
Financial Results Reflect Solid Execution
Stable Profitability and EBITDA Growth
Income from operations rose to $23.8 million, up from $17.1 million in the prior-year quarter. Net income totaled $16.6 million, slightly higher than the $16.3 million recorded a year earlier. Net income per diluted share remained consistent at $0.36.
Adjusted EBITDA came in at $29.9 million, representing 16.2% of net revenue, up from $23.3 million and 15.8% in the prior year. The increase was driven by higher revenue and gross margin, with modest offsets from increased investments in staffing and operations.
Vital Farms Full-Year 2025 Outlook Raised
Increased Guidance Reflects Strength of Core Business
Based on continued consumer demand and supply expansion, Vital Farms raised its full-year 2025 guidance:
- Net revenue is now expected to be at least $770 million, up from prior guidance of $740 million
- Adjusted EBITDA is projected to be at least $110 million, up from $100 million
- Capital expenditures are now estimated between $90 million and $110 million, reflecting a strategic decision to accelerate construction at the Seymour facility and invest in infrastructure, including cold storage and digital systems
Chief Financial Officer Thilo Wrede acknowledged margin pressure in the second half from tariffs and promotional activity but confirmed these impacts are factored into current guidance.
Strong Balance Sheet Supports Future Investment
Vital Farms’ Cash Position and No Debt Provide Flexibility
As of June 29, 2025, Vital Farms held $155 million in cash, cash equivalents, and marketable securities, with no outstanding debt. Operating cash flow for the first half of 2025 was $4.5 million, compared to $40.1 million in the same period last year. Capital expenditures for the first half totaled $10 million.
Vital Farms continues to focus on capital allocation that supports growth initiatives, with plans to invest in facility development, digital infrastructure, and expanding farm partnerships.
With its updated guidance and continued emphasis on ethical production, Vital Farms remains on track to achieve its $1 billion revenue goal by 2027, barring major disruptions to supply chains or consumer demand.
