Vital Farms Sets New Revenue Record and Raises Guidance—Strong Execution Fuels Path to $1 Billion Goal

Third Quarter Revenue Surges 37.2%, Operational Expansion Accelerates Growth

Vital Farms (NASDAQ: VITL) just posted its highest-ever quarterly revenue, reporting $198.94 million for the third quarter of 2025—a leap of 37.2% over the prior year period. This growth came on the back of increased volume, expanded customer offerings, and robust consumer demand. The company also delivered on key operational initiatives, adding about 75 family farms to its supply network for a total of 575, implementing a new ERP system, and launching an additional production line at its flagship Egg Central Station facility.

With its growth momentum and structural investments, Vital Farms has revised its full-year 2025 net revenue guidance upward to at least $775 million (28% year-over-year growth), while raising its adjusted EBITDA forecast to at least $115 million, demonstrating significant operating leverage. The company remains committed to its $1 billion net revenue target by 2027.

Profit Margins Expand Alongside Record Sales

Strong revenue gains translated into improved profitability across key metrics. Third quarter gross profit climbed to $74.96 million (up from $53.48 million a year ago), pushing the gross margin to 37.7%. Income from operations more than doubled to $21.40 million, while net income increased to $16.42 million versus $7.45 million last year. On a per share basis, diluted net income rose to $0.36, marking solid gains for shareholders.

Adjusted EBITDA, which strips out certain non-cash and one-time expenses, reached $27.39 million for the quarter, or 13.8% of net revenue—up from 10.5% a year ago. These gains underscore Vital Farms’ ability to scale its business efficiently, absorb investments in supply and production, and benefit from favorable price/mix and commodity trends.

Balance Sheet Remains Strong, Investment in Growth Continues

Vital Farms finished the quarter with $145.05 million in cash, cash equivalents, and marketable securities and carried zero debt—providing a solid cushion for ongoing expansion. The company deployed $44 million in capital expenditures over the past 39 weeks to support its infrastructure, compared to $10.5 million in the prior year period, with projects including the construction of its Seymour facility and investments in new production lines and ERP technology.

Guidance for 2025 Signals Confidence in Long-Term Strategy

Vital Farms has raised its full-year 2025 net revenue forecast to at least $775 million and adjusted EBITDA to at least $115 million, both above previous estimates. The capital expenditures range has been lowered by $10 million to $80-100 million, reflecting efficiency in recent construction projects. Leadership cites accelerating volume growth and a growing consumer brand footprint as key factors, and confirms that its Seymour, Indiana, expansion is progressing on track.

With a strong balance sheet, an expanding farm network, and investments in operational efficiency, Vital Farms is positioning itself to reach $1 billion in annual revenue by 2027—highlighting a strategic blend of mission-driven growth and financial discipline.

Takeaway: Discipline and Expansion Power the Next Leg of Growth

Vital Farms’ latest results highlight how a values-based approach—rooted in supply expansion, operational excellence, and financial prudence—can deliver outsize gains. Investors will want to watch for updates on new product rollouts, ongoing margin trends, and execution on capital investments as the company navigates the final quarter of 2025 and looks ahead to its billion-dollar ambition. The absence of debt and healthy cash reserves bolster confidence that Vital Farms has the tools—and discipline—to continue scaling both responsibly and profitably.

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