Vital Farms (VITL) Misses Q1 EPS by 19c, Lowers Guidance

Vital Farms (NASDAQ: VITL) reported Q1 EPS of ($0.03), $0.19 worse than the analyst estimate of $0.16. Revenue for the quarter came in at $187.2 million versus the consensus estimate of $188.77 million.

GUIDANCE:

Vital Farms sees FY2026 revenue of $775-800 million, versus the consensus of $871.3 million.

hilo Wrede, Vital Farms’ Chief Financial Officer, commented: “Our updated outlook for fiscal year 2026 reflects a prudent response to the current pricing environment in the egg category. We are proactively tightening our cost structure and aligning our capital allocation to prioritize operational discipline and margin protection. This is designed to ensure we navigate near-term headwinds effectively while maintaining a strong balance sheet and positioning us for strong future growth based on our trusted brand.”

For fiscal year 2026, we expect:

• Net revenue of $775 million to $800 million, which represents at least 5% growth versus fiscal year 2025. This assumes that our investments in price and our distribution gains lead to a return to positive shell egg volume growth by the third quarter of 2026 with acceleration in the fourth quarter. It also assumes that competitive activity does not intensify further.
• Adjusted EBITDA of $0 to $10 million, reflecting higher than previously anticipated promotional spending and price investments and the negative impact of approximately $32 million from costs to manage the current oversupply of eggs.
• Capital expenditures in the range of $70 million to $75 million, compared to our previous range of $140 million to $150 million. The lower capital expenditures outlook reflects our decision to slow the pace of capital spending, particularly at VXR and new accelerator farms, to better align the timing of capacity additions with demand realization.

For earnings history and earnings-related data on Vital Farms (VITL) click here.

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