Key Highlights

  • VITL shares fell 6.86% pre-market to $8.55 after third-quarter results.
  • Net Revenue was $182.2 million, down 8.4% year over year.
  • 2026 net revenue outlook lowered to about $730 million; 2030 targets withdrawn.

Vital Farms (NASDAQ:VITL) shares fell 6.86% to $8.55 in pre-market today, down $0.63 from the prior close of $9.18, which followed a 5.88% gain on Monday. The company reported results for the quarter ended September 27, 2026. Net revenue was $182.2 million, down 8.4% from the prior year and up 9.7% from the second quarter. Gross Margin was 23.1%, compared with 37.7%, and the net loss was $6.5 million, or $0.15 per diluted share, compared with Net Income of $16.4 million, or $0.36.

Vital Farms is an Austin, Texas-based Certified B Corporation founded in 2007. It is the leading U.S. Brand of pasture-raised eggs by retail dollar sales, sources from more than 600 small farms and sells shell eggs, hard-boiled eggs and liquid whole eggs in more than 24,500 stores. The company reported a record dollar and Volume share of the shell egg category in the quarter.

Input Costs and Egg Oversupply Weigh on Gross Profit

The decline in net revenue was driven primarily by a price and mix decline of $14.3 million and a volume-driven decline of $2.2 million, excluding breaker and wholesale channels. Retail net revenue was $175.1 million, compared with $189.7 million. Gross Profit was $42.1 million, compared with $75.0 million, reflecting higher input and production costs and unfavorable sales mix.

An oversupply of egg inventory led to increased sales to breaker and wholesale channels at lower prices, which reduced gross profit by $7.9 million. Loss from operations was $7.7 million, compared with income of $21.4 million. Adjusted EBITDA was $1.5 million, compared with $27.4 million, and improved $28.1 million from the second quarter.

Cash and cash equivalents were $84.0 million and outstanding Debt was $117.6 million at quarter end. Net cash used in Operating Activities was $54.4 million for the 39 weeks, compared with $27.9 million provided a year earlier, and capital expenditures were $51.7 million.

Revised 2026 Outlook and Withdrawn Long-Term Targets

For fiscal 2026, Vital Farms now expects net revenue of around $730 million, compared with a prior range of $775 million to $800 million, and an Adjusted EBITDA loss of around $15 million, compared with a prior gain of $0 to $10 million. Capital expenditures of $70 million to $75 million were reaffirmed. The chief financial officer said the outlook reflects later-than-anticipated timing of certain new distribution placements, a more conservative assumption for their near-term velocity contribution, and no assumed seasonal uplift in Demand or conventional egg pricing.

The company withdrew its fiscal 2030 financial targets and expects to revisit them after making more progress expanding margins and improving profitability. It expects sequential improvement in the fourth quarter from lower breaker and supply-management costs, recent distribution gains and structural cost actions. Vital Farms is also winding down its butter business. The stock has a 52-week range of $7.95 to $38.64.

Fourth-Quarter Sequential Improvement and Distribution Velocity Are the Next Checkpoints

Vital Farms reported sequential gains in revenue and Adjusted EBITDA alongside year-over-year declines, a lower 2026 outlook and withdrawn 2030 targets. The next items to follow are the conference call today, fourth-quarter results against the revised outlook for about $730 million of full-year revenue, and velocity across the expanded distribution base.