Vital Farms (NASDAQ:VITL) executives highlighted record 2025 results, major operational milestones, and a leadership transition during the company’s fourth quarter and full-year 2025 earnings call. Management also introduced 2026 guidance that implies another year of more than 20% revenue growth, while acknowledging near-term volatility in ordering patterns and a planned return to more normalized promotional activity.
Leadership transition and governance
CEO Russell Diez-Canseco announced that founder Matt O’Hayer has retired as executive chairperson and as a member of the board after nearly 20 years with the company. Diez-Canseco said O’Hayer remains the company’s largest shareholder and will continue as an advisor. Effective February 24, the board appointed Diez-Canseco to serve as both executive chairperson and CEO, a structure he said was intended to maintain momentum and support 2026 strategic initiatives.
Record 2025 performance and operational milestones
For full-year 2025, the company reported net revenue of $759.4 million, up more than 25%, which management said was the midpoint of the revised revenue outlook shared at its December Investor Day. Adjusted EBITDA increased 31.6% to $114 million, surpassing $100 million for the first time, and net income was $66.3 million, or $1.44 per diluted share.
CFO Thilo Wrede said full-year revenue growth reflected a balanced contribution from volume and price/mix. He cited benefits from a May price increase and an ongoing shift toward the Organic portfolio, partially offset by increased promotional activity aimed at driving consumer trial.
Operationally, Diez-Canseco said the company completed several key initiatives in 2025, including:
- Adding a third production line at its ECS facility, brought online in October
- Implementing a new ERP system with “zero unplanned shipment interruptions,” returning to and then exceeding pre-implementation production levels within a month
- Transitioning to a new dedicated cold storage facility near ECS
- Rebuilding egg inventory during the year
- Remediating a previously disclosed material weakness in internal controls
Wrede said the material weakness remediation did not involve any restatement of financials. He also noted 2025 capital expenditures were $82 million, in line with the outlook shared at Investor Day.
Market share, brand awareness, and farm network expansion
Diez-Canseco said Vital Farms gained 25 basis points of volume share in 2025 within MULO+ outlets, citing Circana data, and described the company as the top share gainer in premium shell egg brands. He added that year-to-date through February 15, the company gained 35 basis points of volume share, again citing Circana.
Management also pointed to improved brand awareness, stating recent marketing campaigns increased brand awareness to 34%, up 8 percentage points in 2025. Diez-Canseco said the company is working with retail partners to convert increased awareness into purchases through expanded shelf footprint and optimized promotional cadence.
On supply, Diez-Canseco said the company’s farm network expanded to more than 600 small farms committed to its pasture-raised standards, including the addition of approximately 175 farms in 2025. He said the expansion supports growth while maintaining the company’s animal welfare approach.
2026 outlook: more than 20% revenue growth, promotional normalization, and higher CapEx
For fiscal 2026, management introduced net revenue guidance of $900 million to $920 million, representing more than 20% growth at the midpoint. Wrede said the outlook is “more measured” than the December view, reflecting the current macro environment and volatile scanner results observed in January and February, while the company prioritizes stable retail inventory and “profitable velocity” rather than chasing short-term volume.
Adjusted EBITDA guidance was set at $105 million to $115 million, which Wrede said implies a 12.0% margin at the midpoint. He linked the outlook to the company’s plan to reinvest the tailwinds from the May 2025 price increase into a return to trial and conversion programs, emphasizing that the company is not pursuing “defensive price matching.”
Wrede said the first half of 2026 could include “short-term noise” in ordering patterns due to winter weather events and retailer inventory normalization as the company moves out of supply allocation. He indicated first-quarter growth would likely be more measured than previously assumed, while later quarters benefit from lapping last year’s performance, including an “easy lapping” dynamic in the fourth quarter following a period of slower shipping around the ERP implementation.
Capital spending is expected to increase in 2026, with CapEx guidance of $140 million to $150 million. Wrede said the spending supports long-term capacity and infrastructure investments, including progress at “Vital Crossroads,” while the company continues to evaluate capital structure options, including potential use of its revolver. He reiterated that completion of the Seymour facility remains the primary capital allocation priority.
Share repurchase authorization and balance sheet
Wrede said the company ended 2025 with $113.4 million in cash, cash equivalents, and marketable securities, down $46.9 million from the end of 2024 due to capacity investments. He added that Vital Farms has no debt outstanding.
The company’s board authorized a $100 million, two-year share repurchase program. Wrede said it is the first buyback authorization since the IPO and framed it as a response to shareholder questions about balance sheet use, noting the company’s cash position, debt-free status, and available debt capacity while it funds Seymour and other expansion projects.
Management reiterated long-term targets shared at Investor Day: $2 billion in net revenue by 2030, gross margin of 35% or better, and an Adjusted EBITDA margin of 15% to 17%. Executives emphasized continued market share gains, expanded capacity, and retailer relationships as key supports for those goals, while maintaining discipline on discounting and promotional strategy.
About Vital Farms (NASDAQ:VITL)
Vital Farms, traded on the NASDAQ under the symbol VITL, is a U.S.-based food company specializing in pasture-raised egg and dairy products. The company partners with a network of family farms across the United States to produce eggs, butter and related items under a certified humane, pasture-centric farming model. Vital Farms’ supply chain emphasizes animal welfare, environmental stewardship and transparent sourcing, appealing to consumers seeking ethically produced, high-quality ingredients.
Founded in 2007 and headquartered in Austin, Texas, Vital Farms began by marketing pasture-raised eggs to health- and ethically minded shoppers.
