分组1 - Vita Coco Company reported quarterly earnings of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, and up from $0.32 per share a year ago, representing an earnings surprise of +5.56% [1] - The company achieved revenues of $168.76 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.81%, compared to $144.12 million in the same quarter last year [2] - Over the last four quarters, the company has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] 分组2 - The stock has underperformed the market with a loss of about 0.4% since the beginning of the year, while the S&P 500 has gained 8.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $155.49 million, and for the current fiscal year, it is $1.14 on revenues of $580.38 million [7] - The Beverages - Soft drinks industry is currently in the top 10% of the Zacks industries, indicating a favorable outlook for the sector [8]

[Forward-Looking Statements](index=4&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section highlights the nature of forward-looking statements, which are subject to various known and unknown risks and uncertainties - This report contains forward-looking statements covered by safe harbor provisions, including those related to future results, financial position, industry trends, business strategy, and market growth[10](index=10&type=chunk) - Forward-looking statements are predictions based on current expectations and projections, subject to known and unknown risks, uncertainties, and other important factors, including those discussed in the 'Risk Factors' section of the Annual Report on Form 10-K[11](index=11&type=chunk) PART I - FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, operations, equity, and cash flows, with detailed notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific dates Condensed Consolidated Balance Sheet Highlights (Amounts in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------------------------------------------------------- | :------------ | :------------------ | | Cash and cash equivalents | $167,042 | $164,669 | | Accounts receivable, net | $102,551 | $63,450 | | Inventory | $84,110 | $83,600 | | Total current assets | $386,744 | $341,291 | | Total assets | $421,077 | $362,381 | | Total current liabilities | $110,043 | $103,266 | | Total liabilities | $124,138 | $103,564 | | Total stockholders' equity | $296,939 | $258,817 | [Condensed Consolidated Statements of Operations & Other Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20%26%20Other%20Comprehensive%20Income%20(Loss)) This section presents the company's financial performance over specific periods, including net sales, gross profit, operating income, and net income Condensed Consolidated Statements of Operations Highlights (Amounts in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $168,759 | $144,116 | $299,680 | $255,814 | | Gross profit | $61,265 | $58,737 | $109,350 | $105,914 | | Income from operations | $25,122 | $29,981 | $44,415 | $48,940 | | Net income | $22,908 | $19,093 | $41,790 | $33,331 | | Basic EPS | $0.40 | $0.34 | $0.73 | $0.59 | | Diluted EPS | $0.38 | $0.32 | $0.70 | $0.57 | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in the company's stockholders' equity, reflecting net income, share repurchases, and stock-based compensation Stockholders' Equity Changes (Six Months Ended June 30, 2025, Amounts in thousands) | Item | Amount | | :--------------------------------- | :----- | | Balance at December 31, 2024 | $258,817 | | Net income | $41,790 | | Purchase of treasury stock | $(10,053) | | Stock-based compensation | $5,148 | | Exercise of stock awards | $(449) | | Foreign currency translation adjustment | $1,686 | | Balance at June 30, 2025 | $296,939 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities over specific periods Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, Amounts in thousands) | Cash Flow Activity | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Net cash provided by operating activities | $12,010 | $26,652 | | Net cash used in investing activities | $(1,508) | $(414) | | Net cash used in financing activities | $(9,081) | $(8,562) | | Effects of exchange rate changes on cash | $961 | $(106) | | Net increase in cash and cash equivalents | $2,382 | $17,570 | | Cash, cash equivalents at end of period | $168,315 | $150,437 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the condensed consolidated financial statements, clarifying accounting policies and specific line items [Note 1. Nature of Business and Basis of Presentation](index=9&type=section&id=Note%201.%20NATURE%20OF%20BUSINESS%20AND%20BASIS%20OF%20PRESENTATION) This note describes the company's core business, its public benefit corporation status, and its operational structure including subsidiaries and joint ventures - The Vita Coco Company develops, markets, and distributes coconut water products (Vita Coco brand and private label) and other beverages like Ever & Ever water and PWR LIFT protein drinks[23](index=23&type=chunk) - The company operates as a **public benefit corporation** under Delaware law[24](index=24&type=chunk) - The company has ten wholly-owned subsidiaries and a **60% joint venture interest** in Coco Ventures Limited for the China market[25](index=25&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=9&type=section&id=Note%202.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the critical accounting estimates and policies, including recent and upcoming accounting pronouncement adoptions and their potential impacts - Management makes significant estimates for share-based compensation, inventory valuation, accounts receivable reserves, goodwill impairment, trade promotions, and deferred income taxes[31](index=31&type=chunk) - The company adopted ASU 2023-07 (Segment Reporting) for the year ended December 31, 2024, with **no material impact**[34](index=34&type=chunk) - The company is evaluating the impact of ASU 2024-03 (Expense Disaggregation) and ASU 2023-09 (Income Tax Disclosures), effective for fiscal years beginning after December 15, 2026, and December 15, 2024, respectively[35](index=35&type=chunk)[37](index=37&type=chunk) - Two major customers accounted for **45%** and **49% of total net sales** for the six months ended June 30, 2025 and 2024, respectively[33](index=33&type=chunk) [Note 3. Revenue Recognition](index=11&type=section&id=Note%203.%20REVENUE%20RECOGNITION) This note details the company's revenue recognition policies and disaggregates net revenue by product type and geographical segment - Revenue is disaggregated into Vita Coco Coconut Water, Private Label, and Other product categories[40](index=40&type=chunk) - Trade promotions and sales discounts are accounted for as a reduction of revenue[39](index=39&type=chunk) Net Revenue by Product Type and Segment (Three Months Ended June 30, 2025, Amounts in thousands) | Product Category | Americas | International | Consolidated | | :----------------------- | :------- | :------------ | :----------- | | Vita Coco Coconut Water | $120,450 | $19,882 | $140,332 | | Private Label | $14,685 | $6,222 | $20,907 | | Other | $6,826 | $694 | $7,520 | | **Total** | **$141,961** | **$26,798** | **$168,759** | Net Revenue by Product Type and Segment (Six Months Ended June 30, 2025, Amounts in thousands) | Product Category | Americas | International | Consolidated | | :----------------------- | :------- | :------------ | :----------- | | Vita Coco Coconut Water | $206,568 | $33,059 | $239,627 | | Private Label | $35,882 | $10,981 | $46,863 | | Other | $12,111 | $1,079 | $13,190 | | **Total** | **$254,561** | **$45,119** | **$299,680** | [Note 4. Inventory](index=12&type=section&id=Note%204.%20INVENTORY) This note provides a breakdown of the company's inventory, distinguishing between raw materials, packaging, and finished goods Inventory (Amounts in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :------------------ | | Raw materials and packaging | $4,737 | $3,536 | | Finished goods | $79,373 | $80,064 | | **Total Inventory** | **$84,110** | **$83,600** | [Note 5. Goodwill](index=12&type=section&id=Note%205.%20GOODWILL) This note describes the goodwill recognized from a past acquisition, its allocation to the Americas segment, and the absence of impairment - Goodwill of **$7.8 million** is associated with a June 2018 acquisition and allocated to the Americas reporting unit[43](index=43&type=chunk) - No impairment has been recognized since the acquisition[43](index=43&type=chunk) [Note 6. Debt](index=13&type=section&id=Note%206.%20DEBT) This note details the company's debt structure, including vehicle loans and the amended revolving credit facility, and compliance with covenants Notes Payable (Amounts in thousands) | Category | June 30, 2025 | December 31, 2024 | | :--------------- | :------------ | :------------------ | | Vehicle loans | $8 | $13 | | Current | $8 | $10 | | Non-current | $— | $3 | - The 2020 Credit Facility (revolving line of credit of **$60.0 million**) was amended on February 14, 2025, extending its maturity to February 13, 2030[45](index=45&type=chunk) - As of June 30, 2025, the company had **no outstanding balance** and **$60.0 million undrawn** and available under its amended 2020 Credit Facility[47](index=47&type=chunk) - The company was in compliance with all financial covenants of the 2020 Credit Facility as of June 30, 2025[49](index=49&type=chunk) [Note 7. Commitments and Contingencies](index=14&type=section&id=Note%207.%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the company's exposure to business risks from international sourcing and concentrations of major customers and suppliers - The company imports finished goods predominantly from manufacturers in South American and Southeast Asian countries, exposing it to business risks[52](index=52&type=chunk) Major Customers (Six Months Ended June 30, 2025) | Customer | Net Sales % | Accounts Receivable % | | :--------- | :---------- | :-------------------- | | Customer A | 20 % | 23 % | | Customer B | 25 % | 21 % | Major Suppliers (Six Months Ended June 30, 2025) | Supplier | Purchases % | | :--------- | :---------- | | Supplier A | 15 % | | Supplier B | 14 % | | Supplier C | 13 % | [Note 8. Derivative Instruments](index=14&type=section&id=Note%208.%20DERIVATIVE%20INSTRUMENTS) This note explains the company's use of foreign currency exchange contracts to manage currency risk and their fair value recognition - The company uses foreign currency exchange contracts to mitigate currency risk on inventory purchases (Brazilian real, Malaysian ringgit, Thai baht) and intercompany transactions (British pounds, Canadian dollars)[55](index=55&type=chunk)[56](index=56&type=chunk) - These derivative instruments are not designated as hedging instruments and are recognized at fair value[54](index=54&type=chunk) Unrealized Gain/(Loss) on Derivative Instruments (Amounts in thousands) | Period | 2025 | 2024 | | :------------------------------------ | :----- | :----- | | Three Months Ended June 30, Unrealized gain/(loss) | $1,067 | $(5,963) | | Six Months Ended June 30, Unrealized gain/(loss) | $3,884 | $(8,488) | [Note 9. Fair Value Measurements](index=16&type=section&id=Note%209.%20FAIR%20VALUE%20MEASUREMENTS) This note describes the fair value measurement of derivative instruments, specifically forward currency swaps, classified as Level 2 - The company's forward currency swap contracts are classified as **Level 2** in the fair value hierarchy, using observable inputs[60](index=60&type=chunk)[61](index=61&type=chunk) Fair Value of Forward Currency Swaps (Amounts in thousands) | Date | Fair Value | | :---------------- | :--------- | | June 30, 2025 | $(1,628) | | December 31, 2024 | $(5,513) | [Note 10. Stockholders' Equity](index=16&type=section&id=Note%2010.%20STOCKHOLDERS'%20EQUITY) This note details changes in the share repurchase program, including increased authorization and shares repurchased during the period - The Board approved an additional **$25.0 million** to the share repurchase program on April 28, 2025, increasing the total authorization to **$65.0 million**[64](index=64&type=chunk) - The company repurchased **284,728 shares** for **$8.6 million** during the three months ended June 30, 2025[64](index=64&type=chunk) - As of June 30, 2025, **$42.1 million** remained under the repurchase program[64](index=64&type=chunk) [Note 11. Stock-Based Compensation](index=17&type=section&id=Note%2011.%20STOCK-BASED%20COMPENSATION) This note presents the total stock compensation expense and details the grants of service-based stock options, RSUs, and PSUs Total Stock Compensation Expense (Amounts in thousands) | Period | 2025 | 2024 | | :------------------------------------ | :----- | :----- | | Three Months Ended June 30, Total expense | $2,962 | $2,399 | | Six Months Ended June 30, Total expense | $5,148 | $4,508 | - During the six months ended June 30, 2025, the company granted **201,100 service-based stock options**[69](index=69&type=chunk) - During the six months ended June 30, 2025, the company granted **206,506 RSUs** and **71,140 PSUs**[72](index=72&type=chunk) [Note 12. Income Taxes](index=19&type=section&id=Note%2012.%20INCOME%20TAXES) This note provides details on income tax expense, effective tax rates, and the evaluation of recently enacted tax reform legislation Income Tax Expense (Amounts in thousands) | Period | 2025 | 2024 | | :------------------------------------ | :----- | :----- | | Three Months Ended June 30, Income tax expense | $5,263 | $6,416 | | Six Months Ended June 30, Income tax expense | $10,744 | $10,193 | Effective Tax Rate | Period | 2025 | 2024 | | :------------------------------------ | :----- | :----- | | Six Months Ended June 30, Tax rate | 20.5 % | 23.4 % | - The U.S. enacted tax reform legislation on July 4, 2025, which the company is evaluating for impact on its financial statements[76](index=76&type=chunk) [Note 13. Earnings Per Share](index=20&type=section&id=Note%2013.%20EARNINGS%20PER%20SHARE) This note presents the basic and diluted earnings per share for various periods Earnings Per Share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic EPS | $0.40 | $0.34 | $0.73 | $0.59 | | Diluted EPS | $0.38 | $0.32 | $0.70 | $0.57 | [Note 14. Segment Reporting](index=20&type=section&id=Note%2014.%20SEGMENT%20REPORTING) This note disaggregates financial information by the company's two reportable segments: Americas and International, and by country - The company operates in two reportable segments: **Americas** (U.S. and Canada) and **International** (Europe, Middle East, Asia Pacific)[80](index=80&type=chunk) Segment Net Sales (Three Months Ended June 30, Amounts in thousands) | Segment | 2025 | 2024 | | :------------ | :----- | :----- | | Americas | $141,961 | $124,502 | | International | $26,798 | $19,614 | | **Total** | **$168,759** | **$144,116** | Segment Gross Profit (Three Months Ended June 30, Amounts in thousands) | Segment | 2025 | 2024 | | :------------ | :----- | :----- | | Americas | $51,046 | $52,208 | | International | $10,219 | $6,529 | | **Total** | **$61,265** | **$58,737** | Net Sales by Country (Six Months Ended June 30, Amounts in thousands) | Country | 2025 | 2024 | | :-------------- | :------- | :------- | | United States | $235,813 | $205,561 | | United Kingdom | $31,403 | $25,862 | | All other countries | $32,464 | $24,391 | | **Total** | **$299,680** | **$255,814** | [Note 15. Related Party Transactions](index=22&type=section&id=Note%2015.%20RELATED%20PARTY%20TRANSACTIONS) This note discusses the termination of a director nominee agreement and the waiver of legal fees by a significant stockholder - A director nominee agreement with Verlinvest Beverages SA, a significant stockholder, terminated on **June 3, 2025**[84](index=84&type=chunk) - Verlinvest waived its right to reimbursement of legal fees for its counsel in the amount of **$0.1 million** (Q4 2023) and **$0.3 million** (April 2024) related to secondary share offerings[85](index=85&type=chunk) [Note 16. Investment in Unconsolidated Joint Venture](index=23&type=section&id=Note%2016.%20INVESTMENT%20IN%20UNCONSOLIDATED%20JOINT%20VENTURE) This note details the company's acquisition and initial capital contribution to its unconsolidated joint venture in China - The company acquired a **60% joint venture interest** in Coco Ventures Limited (China) on August 2, 2024, for **$0.6 million**[88](index=88&type=chunk) - Coco Ventures Limited commenced operations in February 2025, and the company contributed **$0.1 million** as initial capital funding in the six months ended June 30, 2025[88](index=88&type=chunk) [Note 17. Leases](index=23&type=section&id=Note%2017.%20LEASES) This note describes new office lease agreements and presents key operating lease information, including right-of-use assets and liabilities - The company signed new office lease agreements in New York (commenced Jan 2025), London (commenced Jan 2025), and Singapore (commenced April 2025)[89](index=89&type=chunk) Operating Lease Information (Amounts in thousands) | Line Item | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :------------------ | | Operating lease right-of-use assets | $12,222 | $385 | | Non-current portion of operating lease liabilities | $13,996 | $— | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the company's financial condition and results, covering business overview, key performance factors, and operational outcomes [Overview](index=24&type=section&id=Overview) This section provides a high-level description of the company's global leadership in plant-based beverages, asset-lite supply chain, and distribution network - The Vita Coco Company is a global leader in the coconut and other plant waters category, with its Vita Coco brand leading the U.S. coconut water market[93](index=93&type=chunk)[94](index=94&type=chunk) - The company operates an **asset-lite supply chain**, sourcing coconut water from **16 factories across six countries**[95](index=95&type=chunk) - Products are distributed in over **35 countries**, with primary markets in North America, the United Kingdom, and Germany[96](index=96&type=chunk) [Key Factors Affecting Our Performance](index=24&type=section&id=Key%20Factors%20Affecting%20Our%20Performance) This section discusses macroeconomic uncertainties, new tariffs, and changes in private label business as significant influences on the company's performance - Macroeconomic uncertainties, including geopolitical instability, interest rates, foreign exchange rates, and tariffs, significantly affect the global supply chain and costs[97](index=97&type=chunk) - A new U.S. universal baseline tariff of **10%** is currently being applied, increasing the company's cost of goods sold, with a proposed **50% tariff** for Brazil adding further uncertainty[98](index=98&type=chunk) - The private label coconut oil business with a major customer discontinued in early 2024, and private label coconut water net sales are expected to be impacted by the loss of some service regions in 2025[98](index=98&type=chunk) [Components of Our Results of Operations](index=25&type=section&id=Components%20of%20Our%20Results%20of%20Operations) This section defines the key components of the company's financial results, including net sales, cost of goods sold, operating expenses, and other income/expense - Net Sales are recognized net of allowances for returns, discounts, credits, and taxes, including trade promotions and sales discounts[99](index=99&type=chunk)[100](index=100&type=chunk) - Cost of Goods Sold includes product costs, inbound/outbound shipping, freight, duties, and warehouse fulfillment costs[101](index=101&type=chunk) - Operating Expenses include Selling, General and Administrative (SG&A) expenses, which cover marketing, personnel, R&D, rent, and professional fees[104](index=104&type=chunk) - Other Income (Expense), Net, includes unrealized gains/losses on derivative instruments, foreign currency gains/losses, and interest income[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's financial performance across key metrics like net sales, gross profit, and operating expenses [Net Sales](index=28&type=section&id=Net%20Sales) This section analyzes consolidated net sales, highlighting growth drivers like Vita Coco Coconut Water volume and offsets from private label declines Consolidated Net Sales (Amounts in thousands) | Period | 2025 | 2024 | Change Amount | Change Percentage | | :------------------------------------ | :------- | :------- | :------------ | :---------------- | | Three Months Ended June 30, Net sales | $168,759 | $144,116 | $24,643 | 17.1 % | | Six Months Ended June 30, Net sales | $299,680 | $255,814 | $43,866 | 17.1 % | - Consolidated net sales increase was primarily driven by strong Vita Coco Coconut Water volume growth (**20.9% CE volume** for 3 months, **22.7%** for 6 months)[112](index=112&type=chunk)[113](index=113&type=chunk) - This growth was partially offset by a **25.2% decrease** in private label net sales for the three months and an **18.3% decrease** for the six months, due to lost service regions and the discontinuation of private label coconut oil sales[112](index=112&type=chunk) - Net sales from 'Other' products increased significantly (**137.6%** for 3 months, **134.3%** for 6 months) due to the national rollout of Vita Coco Treats in the U.S[118](index=118&type=chunk) [Gross Profit](index=30&type=section&id=Gross%20Profit) This section examines changes in consolidated gross profit and margin, attributing shifts to volume, costs, tariffs, and product mix Consolidated Gross Profit and Margin (Amounts in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Gross profit | $61,265 | $58,737 | $109,350 | $105,914 | | Gross margin | 36.3 % | 40.8 % | 36.5 % | 41.4 % | - Consolidated gross profit increased primarily due to higher CE volume[124](index=124&type=chunk) - Consolidated gross margin declined due to increased rates for finished goods and transportation costs, and the initial impact of baseline tariffs, partially offset by branded coconut water pricing and favorable product mix[124](index=124&type=chunk) [Operating Expenses](index=30&type=section&id=Operating%20Expenses) This section details the increase in selling, general, and administrative expenses, driven by marketing, personnel, bad debt, and dual rent Selling, General and Administrative Expenses (Amounts in thousands) | Period | 2025 | 2024 | Change Amount | Change Percentage | | :------------------------------------ | :------- | :------- | :------------ | :---------------- | | Three Months Ended June 30, SG&A | $36,143 | $28,756 | $7,387 | 25.7 % | | Six Months Ended June 30, SG&A | $64,935 | $56,974 | $7,961 | 14.0 % | - The increase in SG&A was primarily driven by higher marketing expenses for new product awareness campaigns (Vita Coco Treats), increased personnel-related expenses, and higher reserves for bad debt[126](index=126&type=chunk) - Dual rent expense for the new New York office also contributed to the increase in SG&A[126](index=126&type=chunk) [Other Income (Expense), Net](index=31&type=section&id=Other%20Income%20(Expense),%20Net) This section explains the significant improvement in other income (expense), net, primarily due to unrealized gains on derivative instruments and foreign currency Total Other Income (Expense), Net (Amounts in thousands) | Period | 2025 | 2024 | Change Amount | | :------------------------------------ | :------- | :------- | :------------ | | Three Months Ended June 30, Total other income (expense) | $3,049 | $(4,472) | $7,521 | | Six Months Ended June 30, Total other income (expense) | $8,119 | $(5,416) | $13,535 | - The significant improvement was primarily due to unrealized gains on derivative instruments (hedging BRL and THB) and foreign currency gains[129](index=129&type=chunk)[130](index=130&type=chunk) - Interest income slightly decreased due to lower interest rates in 2025 compared to 2024[131](index=131&type=chunk) [Income Tax Expense](index=31&type=section&id=Income%20Tax%20Expense) This section presents the income tax expense and effective tax rates, noting the impact of discrete items and jurisdictional profit mix Income Tax Expense and Rate (Amounts in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax expense | $5,263 | $6,416 | $10,744 | $10,193 | | Tax rate | 18.7 % | 25.2 % | 20.5 % | 23.4 % | - The effective tax rate for the six months ended June 30, 2025, was lower than the U.S. statutory rate primarily due to discrete items and the jurisdictional mix of pre-tax profits[134](index=134&type=chunk) [Non-GAAP Financial Measures](index=32&type=section&id=Non-GAAP%20Financial%20Measures) This section provides EBITDA and Adjusted EBITDA as supplemental non-GAAP measures to assess core operating performance, excluding specific items - EBITDA and Adjusted EBITDA are presented as supplemental non-GAAP financial measures to assess core operating performance, excluding certain non-cash and other non-recurring items[135](index=135&type=chunk)[137](index=137&type=chunk) Adjusted EBITDA (Amounts in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Adjusted EBITDA | $29,242 | $32,238 | $51,747 | $53,468 | - Adjustments include stock-based compensation, unrealized gains/losses on derivative instruments, foreign currency gains/losses, secondary offering costs, and other adjustments like a one-time incentive program and dual rent expense[140](index=140&type=chunk)[141](index=141&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, cash flow activities, and debt structure, highlighting sources and uses of capital [Cash Flows](index=33&type=section&id=Cash%20Flows) This section analyzes changes in cash flows from operating, investing, and financing activities, detailing the drivers of these movements - Cash and cash equivalents were **$167.0 million** as of June 30, 2025, and **$164.7 million** as of December 31, 2024[142](index=142&type=chunk) Cash Flows Summary (Six Months Ended June 30, Amounts in thousands) | Cash Flow Activity | 2025 | 2024 | Change Amount | Change Percentage | | :------------------------------------------ | :----- | :----- | :------------ | :---------------- | | Operating activities | $12,010 | $26,652 | $(14,642) | (54.9%) | | Investing activities | $(1,508) | $(414) | $(1,094) | n/m | | Financing activities | $(9,081) | $(8,562) | $(519) | 6.1% | - The decrease in operating cash flows was driven by timing differences in accounts receivable collection and higher inventory purchases, partially offset by increased net income[147](index=147&type=chunk) - Increased cash used in investing activities was primarily due to capital expenditures for new offices in New York, London, and Singapore[148](index=148&type=chunk) - Increased cash used in financing activities was primarily driven by higher volume of share repurchases[149](index=149&type=chunk) [Debt](index=34&type=section&id=Debt) This section outlines the company's minimal debt, the extended credit facility, and its compliance with financial covenants - The company had an **immaterial amount of debt** outstanding as of June 30, 2025, related to vehicle loans[150](index=150&type=chunk)[154](index=154&type=chunk) - The **$60 million** 2020 Credit Facility's maturity was extended to February 13, 2030, and had **no outstanding balance** as of June 30, 2025[151](index=151&type=chunk)[153](index=153&type=chunk) - The company was compliant with all financial covenants of the Revolving Facility as of June 30, 2025[153](index=153&type=chunk) [Critical Accounting Policies and Significant Judgments and Estimates](index=34&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Judgments%20and%20Estimates) This section confirms no material changes to critical accounting policies or significant judgments and estimates during the period - No material changes to critical accounting policies were made during the six months ended June 30, 2025, from those discussed in the Form 10-K[158](index=158&type=chunk) [Recent Accounting Pronouncements](index=35&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to Note 2 for disclosures regarding recently adopted and issued accounting pronouncements - A description of recently adopted and issued accounting pronouncements is disclosed in Note 2 to the condensed consolidated financial statements[159](index=159&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, including interest rate, foreign currency, tariff, inflation, and credit risks [Interest Rate Risk](index=35&type=section&id=Interest%20Rate%20Risk) This section discusses the company's minimal interest rate risk due to no outstanding balance on its variable-rate credit facility - The company's 2020 Credit Facility incurs interest at variable rates, but there was **no outstanding balance** as of June 30, 2025, minimizing current interest rate risk exposure[161](index=161&type=chunk) [Foreign Currency Exchange Risk](index=35&type=section&id=Foreign%20Currency%20Exchange%20Risk) This section describes the company's use of derivative instruments to mitigate foreign currency fluctuations and their impact on financial results - The company uses derivative financial instruments (forward exchange contracts) to reduce foreign currency fluctuations from global transactions[162](index=162&type=chunk) - Total notional values of forward exchange contracts were **$89.2 million** as of June 30, 2025[163](index=163&type=chunk) - Derivatives resulted in an unrealized gain of **$3.9 million** for the six months ended June 30, 2025[163](index=163&type=chunk) [Tariff and Inflation Risks](index=35&type=section&id=Tariff%20and%20Inflation%20Risks) This section addresses the impact of inflation and new U.S. tariffs on the company's cost of goods sold and potential supply chain disturbances - Inflation generally increases transportation, labor, and manufacturing costs[165](index=165&type=chunk) - A new U.S. universal baseline tariff of **10%** is increasing the company's cost of goods sold[165](index=165&type=chunk)[166](index=166&type=chunk) - Uncertainty of future tariffs could cause disturbances in ocean shipping capacity and create additional inflationary effects[166](index=166&type=chunk) [Credit Risk](index=36&type=section&id=Credit%20Risk) This section highlights the company's concentration of credit risk with two major customers, noting no experienced credit issues - The company is exposed to concentration of credit risk from two major customers, which represented approximately **45% of consolidated net sales** for the six months ended June 30, 2025[167](index=167&type=chunk) - The company has not experienced credit issues with these major customers[167](index=167&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025, and there were no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures were **effective** at the reasonable assurance level as of June 30, 2025[169](index=169&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[170](index=170&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings, pending or threatened - The company is not currently a party to any material legal proceedings[173](index=173&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Form 10-K for the fiscal year ended December 31, 2024 - No material changes to the risk factors as of June 30, 2025, from those described in the Form 10-K[174](index=174&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not sell any unregistered equity securities during the three months ended June 30, 2025. It repurchased 284,728 shares of common stock for $8.6 million in April 2025 under its expanded $65 million share repurchase program - No unregistered equity securities were sold during the three months ended June 30, 2025[175](index=175&type=chunk) - The company repurchased **284,728 shares** of common stock at a cost of **$8.6 million** in April 2025 under its share repurchase program[175](index=175&type=chunk) - As of April 30, 2025, approximately **$42.1 million** remained available under the **$65 million** repurchase program[175](index=175&type=chunk) [Item 3. Defaults Upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reported period - No defaults upon senior securities[176](index=176&type=chunk) [Item 4. Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[177](index=177&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) Verlinvest Beverages SA, a significant stockholder, completed a block sale of 3,766,762 shares of common stock on May 8, 2025, reducing its beneficial ownership to approximately 12.5%. Additionally, several officers and directors adopted Rule 10b5-1 trading plans for future stock sales - Verlinvest Beverages SA sold **3,766,762 shares** of common stock on May 8, 2025, reducing its beneficial ownership from **19.1% to approximately 12.5%**[178](index=178&type=chunk)[179](index=179&type=chunk) - Corey Baker (CFO), Michael Kirban (Co-Founder), Ira Liran (Director), and Charles Van Es (CSO) adopted Rule 10b5-1 trading plans in May-June 2025 for future stock sales[181](index=181&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, various agreements, and certifications - Exhibits include the Second Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, Registration Rights Agreement, Investor Rights Agreement, and various certifications[183](index=183&type=chunk) - The Third Amendment to the Manufacturing and Purchasing Agreement was filed herewith[183](index=183&type=chunk) [Signatures](index=41&type=section&id=SIGNATURES) This section confirms the official signing of the report by the Chief Executive Officer and Chief Financial Officer - The report was signed by Martin Roper, Chief Executive Officer and Director, and Corey Baker, Chief Financial Officer, on July 30, 2025[190](index=190&type=chunk)

Financial Performance Highlights - The Vita Coco Company's Q2 2025 net sales increased by 171% to $1688 million compared to Q2 2024[11] - The company's year-to-date net sales also grew by 171% to $300 million compared to the same period in 2024[14] - Gross margin for Q2 2025 was 363%, a decrease of 450 basis points compared to Q2 2024[11] - Adjusted EBITDA margin for Q2 2025 was 173%[11] - Net income for Q2 2025 was $23 million or $038 per share[11] - The company's cash-on-hand remains strong at $167 million with $0 debt[11] Strategic Growth and Market Position - Vita Coco's coconut water growth is outpacing other US beverage categories[21] - The company's coconut water retail scans reflect improved inventory and healthy category growth, with a 131% increase in the last 13 weeks through June 29, 2025, and a share of 445%[24] Future Outlook - The company projects full-year 2025 net sales to be between $565 million and $580 million[39] - The company anticipates an adjusted EBITDA between $86 million and $92 million[39] - The company aims for mid-teens branded net sales growth and high-teens adjusted EBITDA margin in the long term[39]

Exhibit 99.1 The Vita Coco Company Reports Second Quarter 2025 Financial Results Net Sales Increased 17% to $169 million driven by Vita Coco Coconut Water growth of 25% Net Income Increased $4 million to $23 million and Non-GAAP Adjusted EBITDA Decreased $3 million to $29 million 1 Company Raises Full Year Net Sales Guidance NEW YORK, NY – July 30, 2025 – The Vita Coco Company, Inc. (NASDAQ:COCO) ("Vita Coco" or "the Company"), a leading high-growth platform of better-for-you beverage brands, today announce ...

Core Insights - The Vita Coco Company reported a net income increase of $4 million to $23 million for the second quarter of 2025, while Non-GAAP Adjusted EBITDA decreased by $3 million to $29 million [1][6][8] - The company raised its full-year net sales guidance, anticipating net sales between $565 million and $580 million, driven by high teens growth in Vita Coco Coconut Water and the rollout of Vita Coco Treats in the U.S. [12][15] Financial Performance - Net sales for the second quarter increased by $25 million, or 17%, to $169 million compared to $144 million in the prior year [5][6] - Gross profit rose to $61 million from $59 million in the prior year, but gross margin decreased to 36% from 41% due to higher ocean freight rates and costs [6][7] - Net income per diluted share was $0.38, up from $0.32 in the prior year [8][9] Segment Performance - Vita Coco Coconut Water net sales grew by 25% globally, with the Americas growing by 22% and international markets by 43% [4][5] - The Other category also contributed to growth, driven by the U.S. rollout of Vita Coco Treats, although private label sales decreased [5][6] Cost and Expenses - Selling, general, and administrative expenses increased to $36 million from $29 million, primarily due to higher marketing investments and personnel-related expenses [7][8] - The company experienced a decrease in gross margin, attributed to increased costs from freight and tariffs, partially offset by branded coconut water pricing [6][7] Balance Sheet and Cash Flow - As of June 30, 2025, the company maintained a strong financial position with no debt and cash and cash equivalents of $167 million [10] - Accounts receivable increased to $103 million from $63 million at the end of 2024, reflecting increased net sales [10] Share Repurchase Program - The Board approved a share repurchase program, increasing the authorized limit to $65 million, with $10.1 million repurchased year-to-date as of June 30, 2025 [11]

Company Overview - Vita Coco Company (COCO) is experiencing significant attention from investors due to high implied volatility in the options market, particularly for the Oct 17, 2025 $50.00 Put option [1] - The company currently holds a Zacks Rank 2 (Buy) in the Beverages - Soft drinks Industry, which ranks in the top 16% of the Zacks Industry Rank [3] Analyst Sentiment - Over the past 60 days, no analysts have increased their earnings estimates for the current quarter, while two have revised their estimates downward, leading to a decrease in the Zacks Consensus Estimate from 38 cents to 36 cents [3] Options Market Insights - The high implied volatility suggests that options traders are anticipating a significant price movement for Vita Coco Company shares, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][4] - Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Vita Coco Company, Inc. (COCO) driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $0.36 per share, reflecting a +12.5% year-over-year change, and revenues of $162.57 million, which is a +12.8% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial estimates during this period [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Vita Coco is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -16.67%, suggesting a bearish outlook from analysts [11]. Historical Performance - In the last reported quarter, Vita Coco exceeded the expected earnings of $0.22 per share by delivering $0.31, resulting in a surprise of +40.91%. The company has beaten consensus EPS estimates in the last four quarters [12][13]. Conclusion on Earnings Beat Potential - Despite a strong historical performance, the current combination of a negative Earnings ESP and a Zacks Rank of 2 makes it challenging to predict an earnings beat for Vita Coco [11][16].

Group 1 - Vita Coco is launching a new parody series titled "Mascot Love: Where Icons Catch Feelings," featuring iconic brand mascots in a summer-themed romantic setting [1][3] - The series will premiere on July 30th on TikTok and Instagram, with new episodes and behind-the-scenes content released weekly [3] - The show aims to engage with cultural trends while promoting Vita Coco's products, emphasizing their health benefits and taste [3][6] Group 2 - The Vita Coco Company is a public benefit corporation and Certified B Corporation, co-founded in 2004, focusing on delivering healthy and nutritious products [6] - Vita Coco is the leading coconut water brand in the U.S., known for its electrolytes and nutrients, making it a popular choice for hydration [6]

For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Vita Coco Company, Inc. (COCO) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.Vita Coco Company, Inc. is one of 178 companies in the Consumer Staples group. The Consumer Staples group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. T ...

Core Insights - The Vita Coco Company will report its financial results for Q2 2025 on July 30, 2025, before market open [1] - A conference call and webcast will be held at 8:30 a.m. ET on the same day to discuss the results [1] Company Overview - The Vita Coco Company is a leading platform of better-for-you beverage brands, including its flagship coconut water brand, Vita Coco, sustainably packaged water Ever & Ever, and protein-infused water PWR LIFT [3] - The company was co-founded in 2004 and operates as a public benefit corporation and Certified B Corporation [3] - Vita Coco is recognized as the leading coconut water brand in the U.S., appealing to consumers for its electrolytes, nutrients, and vitamins [3]