Vital Farms Reports 25% Revenue Growth to $184.8 Million in Latest 10-Q Filing

Vital Farms, Inc. reported significant financial performance in its latest 10-Q filing for the 13-week and 26-week periods ending June 29, 2025. The company achieved net revenue of $184.8 million for the 13-week period, a 25% increase from $147.4 million in the same period last year. For the 26-week period, net revenue rose 17% to $347.0 million from $295.3 million. The gross profit for the 13-week period was $71.8 million, reflecting a gross margin of 39%, while net income for the same period was $16.6 million, slightly up from $16.3 million in the prior year.

The company experienced notable changes in its operational metrics compared to the previous fiscal period. The increase in revenue was primarily driven by a combination of price/mix benefits and volume-related increases, with retail channel sales contributing significantly to this growth. Vital Farms also reported an increase in selling, general, and administrative expenses, which rose 17% to $39.0 million for the 13-week period, attributed to higher marketing and employee-related costs. The company’s effective tax rate for the 13-week period was approximately 32%, up from 10% in the previous year, largely due to increased net income and changes in tax benefits related to stock options.

Strategically, Vital Farms is expanding its operations with plans for a second egg washing and packing facility in Seymour, Indiana, expected to be operational by 2027. The company is also enhancing its existing Egg Central Station facility in Missouri with an additional Moba egg grading system, which is anticipated to be fully operational by the end of fiscal 2025. These developments are part of a broader strategy to increase production capacity and meet growing consumer demand for its products.

Operationally, Vital Farms reported a customer base of over 23,500 stores selling its products, with a significant presence in major retailers such as Kroger, Target, and Whole Foods. The company’s employee headcount has also increased, reflecting its growth strategy. However, the company noted challenges related to agricultural diseases, including outbreaks of Highly Pathogenic Avian Influenza and Egg Drop Syndrome, which could impact supply and pricing in the future.

Looking ahead, Vital Farms anticipates continued growth driven by expanding its retail and foodservice channels, increasing household penetration, and innovating its product offerings. The company expects to maintain sufficient liquidity to support its growth strategy, with cash and cash equivalents totaling $108.2 million as of June 29, 2025, alongside a $60 million revolving credit facility. However, it remains cautious about potential economic uncertainties and market conditions that could affect its operations and financial performance.