Core Insights - Vita Coco Company, Inc. (COCO) reported quarterly earnings of $0.4 per share, exceeding the Zacks Consensus Estimate of $0.32 per share, and showing an increase from $0.32 per share a year ago, resulting in an earnings surprise of +25.00% [1] - The company achieved revenues of $182.31 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 14.82% and increasing from $132.91 million year-over-year [2] - The stock has gained approximately 14.4% since the beginning of the year, while the S&P 500 has increased by 17.2% [3] Earnings Performance - Over the last four quarters, the company has consistently surpassed consensus EPS estimates [2] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $130.38 million, and for the current fiscal year, it is $1.15 on revenues of $585.18 million [7] Market Outlook - The company's stock is currently rated Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions prior to the earnings release [6] - The Beverages - Soft drinks industry, to which Vita Coco belongs, is ranked in the bottom 24% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Performance - Net sales for Q3 2025 reached $182.3 million, a 37.3% increase from $132.9 million in Q3 2024[117] - Gross profit for Q3 2025 was $68.7 million, compared to $51.6 million in Q3 2024, reflecting a gross margin improvement[117] - Net income for Q3 2025 was $24.0 million, up from $19.3 million in Q3 2024, representing a 24.5% year-over-year growth[117] - Total net sales increased by $49.4 million, or 37.2%, to $182.3 million for the three months ended September 30, 2025, driven primarily by a 41.8% increase in Vita Coco Coconut Water net sales[119] - Vita Coco Coconut Water net sales increased by $38.4 million, or 40.9%, to $132.4 million for the three months ended September 30, 2025, supported by a 30.3% increase in case equivalents (CE) volume[123] - International segment net sales rose by $9.9 million, or 48.1%, to $30.6 million for the three months ended September 30, 2025, with CE volume growth of 44.1%[126] - For the nine months ended September 30, 2025, consolidated net sales increased by $93.3 million, or 24.0%, to $481.993 million, with Vita Coco Coconut Water contributing a 31.1% net sales increase[119] - The Company reported an income from operations of $27.9 million for the three months ended September 30, 2025, compared to $20.6 million in the same period of 2024[117] Operating Expenses - Operating expenses increased to $40.7 million in Q3 2025 from $31.0 million in Q3 2024, driven by higher marketing and administrative costs[117] - Operating expenses for the three months ended September 30, 2025, increased by $9.8 million, or 31.6%, to $40.7 million, reflecting higher selling, general, and administrative costs[133] - SG&A expenses increased by $9.8 million, or 31.6%, for the three months ended September 30, 2025, primarily due to a $4.3 million rise in people-related expenses[134] - For the nine months ended September 30, 2025, SG&A expenses rose by $17.7 million, or 20.2%, driven by an $8.9 million increase in people-related expenses and a $5.8 million increase in marketing expenses[134] Tariffs and Supply Chain - The U.S. government implemented a 10% baseline tariff effective April 2025, with additional country-specific rates, creating uncertainty in the supply chain[105] - The company is monitoring the evolving tariff landscape and pursuing pricing adjustments and sourcing strategy modifications to mitigate impacts[105] - The company sources products from approximately 20 factories across seven countries, maintaining a fixed asset-lite supply chain model[102] Product Performance - The Private Label product category experienced a decline in net sales by 12.9% for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to the loss of service regions[119] - Other product net sales increased by $3.2 million, or 182.5%, to $4.9 million for the three months ended September 30, 2025, primarily due to the rollout of Vita Coco Treats[125] - Vita Coco Coconut Water net sales increased by $7.1 million, or 47.4%, to $21.9 million for the three months ended September 30, 2025, primarily due to strong demand in Europe[127] Cash Flow and Financing - Cash flows from operating activities increased by $15.1 million, or 41.9%, for the nine months ended September 30, 2025, compared to the same period in 2024[154] - Cash and cash equivalents as of September 30, 2025, were $203.7 million, up from $164.7 million as of December 31, 2024[147] - Cash used in investing activities was $4.9 million for the nine months ended September 30, 2025, primarily due to leasehold improvements for new offices[155] - Net cash used by financing activities decreased by $2.4 million, or 23.5%, for the nine months ended September 30, 2025, driven by lower share repurchases[156] - The company anticipates that current cash, cash equivalents, and future cash flows will be sufficient to meet cash needs for at least 12 months[148] - The company may seek additional equity or debt financing in the future to invest in complementary businesses and product development[151] Tax and Derivative Instruments - The effective tax rate for the nine months ended September 30, 2025, was 20.9%, down from 23.9% in the same period of 2024[142] - Income tax expense for the three months ended September 30, 2025, was $6.7 million, with an effective tax rate of 21.8%[141] - Unrealized gains on derivative instruments for the nine months ended September 30, 2025, were $6.3 million, compared to losses of $5.9 million for the same period in 2024[136] Debt and Credit Facilities - The outstanding balance on the Revolving Credit Facility was zero as of September 30, 2025, indicating no reliance on this credit line[160] - The company had an immaterial amount of debt outstanding related to vehicle loans as of September 30, 2025[157] - The 2020 Credit Facility was amended to extend its maturity to February 13, 2030, with committed borrowings of $60 million[158]

Q3 2025 Performance Highlights - Net sales increased by 37% to $182 million compared to Q3 2024[11] - Gross margin was 38%[11] - Net income was $24 million, or $040 per share[11] - Adjusted EBITDA was $32 million, representing a 178% margin[11] - Cash-on-hand remained strong at $204 million with $0 debt[11] YTD 2025 Performance Highlights - Net sales grew by 24% to $482 million compared to 2024 YTD[14] - Gross margin was 37%[14] - Net income reached $66 million, or $110 per share[14] - Adjusted EBITDA was $84 million, with a 175% margin[14] - The company maintained a strong cash position of $204 million with no debt[14] Updated 2025 Full Year Guidance - Net sales are projected to be between $580 million and $595 million[41] - Adjusted EBITDA is expected to be between $90 million and $95 million[41] - The company anticipates a gross margin of approximately 36%[41] - Branded net sales growth is targeted in the mid-teens[41] - Adjusted EBITDA margin is projected in the high teens[41]

Financial Performance - Net sales increased 37% to $182 million in Q3 2025, driven by a 42% growth in Vita Coco Coconut Water[1][4] - Net income rose to $24 million in Q3 2025, compared to $19 million in the prior year, with net income per diluted share at $0.40[1][8] - Non-GAAP Adjusted EBITDA increased to $32 million in Q3 2025, up from $23 million in the prior year[1][9] - Year-to-date net sales reached $482 million, a 24% increase, with Vita Coco Coconut Water net sales growing 31%[1][4] - The company raised its full year 2025 net sales guidance to between $580 million and $595 million, driven by high teens growth in Vita Coco Coconut Water[1][14] - Net sales for Q3 2025 reached $182.3 million, a 37.3% increase from $132.9 million in Q3 2024[27] - Net income for the nine months ended September 30, 2025, was $65.8 million, compared to $52.6 million for the same period in 2024, reflecting a 25.1% increase[29] - Adjusted EBITDA for Q3 2025 was $32.4 million, a 41.2% increase from $22.9 million in Q3 2024[30] - The Americas segment net sales for Q3 2025 were $151.7 million, a 35.1% increase from $112.2 million in Q3 2024[33] - Vita Coco Coconut Water sales in the Americas segment increased by 30.3% in Q3 2025 compared to Q3 2024[33] Profitability and Margins - Gross profit for Q3 2025 was $69 million, an increase of $17 million, with a gross margin of 38%[1][4][6] - Gross profit for Q3 2025 was $68.7 million, up 33.2% from $51.6 million in Q3 2024, resulting in a gross margin of 37.7%[27] - Future gross margin is expected to be approximately 36%, impacted by increased finished goods costs and current tariffs[1][14] Expenses and Cash Flow - SG&A expenses increased to $41 million in Q3 2025, up from $31 million in the prior year, primarily due to higher marketing investments[1][7] - Operating expenses for Q3 2025 were $40.7 million, compared to $31.0 million in Q3 2024, reflecting a 31.5% increase[27] - Cash and cash equivalents as of September 30, 2025, were $204 million, up from $165 million at the start of the year[1][9] - Cash and cash equivalents at the end of Q3 2025 totaled $204.98 million, up from $157.96 million at the end of Q3 2024[29] Shareholder Returns - The company has approximately $42 million remaining on its share repurchase program as of September 30, 2025[1][10] Foreign Currency Impact - The company reported a foreign currency loss of $1.4 million in Q3 2025, compared to a gain of $0.6 million in Q3 2024[27] Share Information - The weighted-average number of diluted shares outstanding increased to 59.9 million in Q3 2025 from 59.3 million in Q3 2024[27]

Core Insights - The Vita Coco Company reported a 37% increase in net sales to $182 million for Q3 2025, driven by a 42% growth in Vita Coco Coconut Water [1][5][7] - Net income rose by $5 million to $24 million, with Non-GAAP Adjusted EBITDA increasing by $9 million to $32 million [1][9][10] - The company has raised its full-year net sales and Adjusted EBITDA guidance based on strong demand and operational execution [4][13] Financial Performance - Net sales for the third quarter increased by $49 million, or 37%, compared to $133 million in the prior year [5][7] - Year-to-date net sales reached $482 million, reflecting a 24% increase [7] - Gross profit for Q3 was $69 million, up from $52 million in the prior year, while gross margin decreased to 38% from 39% [6][7] Segment Performance - Vita Coco Coconut Water net sales grew 42% in Q3 and 31% year-to-date [7] - The Other category also contributed to growth, driven by the U.S. rollout of Vita Coco Treats [5] Operational Highlights - Selling, general and administrative expenses increased to $41 million from $31 million, primarily due to higher personnel costs and marketing investments [8] - The company maintained a strong balance sheet with no debt and cash and cash equivalents of $204 million as of September 30, 2025 [11] Future Outlook - The company expects full-year net sales to be between $580 million and $595 million, driven by projected high teens growth in Vita Coco Coconut Water [17] - Adjusted EBITDA is anticipated to be in the range of $90 million to $95 million, with gross margin expected to be approximately 36% [17]

Core Insights - Vita Coco Company, Inc. (COCO) stock increased by 1.59% to $41.61, outperforming the S&P 500's gain of 1.07% for the day [1] - The company's shares have risen 3.1% over the last month, contrasting with the Consumer Staples sector's decline of 1.23% and the S&P 500's increase of 1.08% [1] Earnings Expectations - The upcoming earnings report for Vita Coco is scheduled for October 29, 2025, with projected EPS of $0.32, indicating stability compared to the same quarter last year [2] - Revenue is expected to reach $158.78 million, reflecting a 19.46% increase year-over-year [2] Full-Year Estimates - Zacks Consensus Estimates forecast full-year earnings of $1.15 per share and revenue of $585.18 million, representing year-over-year growth of 7.48% and 13.4%, respectively [3] Analyst Sentiment - Recent modifications to analyst estimates indicate evolving short-term business trends, with upward revisions suggesting analysts' positive outlook on the company's operations [4] - The Zacks Rank system, which assesses these estimate changes, currently assigns Vita Coco a rank of 5 (Strong Sell), reflecting a downward shift of 0.52% in the consensus EPS estimate over the past month [6] Valuation Metrics - Vita Coco has a Forward P/E ratio of 35.62, indicating a premium compared to the industry average Forward P/E of 18.14 [7] - The company also has a PEG ratio of 2.66, slightly above the industry average PEG ratio of 2.59 [7] Industry Context - The Beverages - Soft drinks industry, part of the Consumer Staples sector, holds a Zacks Industry Rank of 208, placing it in the bottom 16% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - The Vita Coco Company will report its financial results for Q3 2025 on October 29, 2025, before market opening, and will host a conference call to discuss these 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, 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, making it a popular choice for hydration and as a mixer [3]. Upcoming Events - A live earnings call and Q&A session will be held on October 29, 2025, at 8:30 a.m. ET, with registration available online [2]. - The live audio webcast will be accessible on the company's Investor Relations website, and an archived replay will be available shortly after the event [2].

Group 1 - The Vita Coco Company, Inc. (NASDAQ:COCO) is recognized as a highly profitable consumer defensive stock, with an 'Overweight' rating and a price target increase to $47, indicating a potential upside of nearly 10% from current levels [1] - The demand for coconut water remains strong, with Vita Coco achieving significant sales growth, particularly in its core coconut water business, while maintaining market leadership and expanding in Europe [2] - Management has raised FY25 net sales guidance to between $565–$580 million, reflecting low-teens full-year growth, and anticipates strong Q3 net sales performance due to inventory replenishment [3]

Core Insights - Vita Coco has maintained a strong market position in the coconut water category, holding a near-42% market share in the U.S. despite competition from major beverage companies like Coca-Cola and Pepsi [2][10] - The coconut water market in the U.S. has grown significantly from virtually nonexistent in 2004 to approximately $908 million in 2024, with projections to reach nearly $2.3 billion by 2030, reflecting a compound annual growth rate of 16.8% [11][12] - Vita Coco's strategic partnerships with suppliers in tropical countries have allowed the company to secure high-quality coconut water at low capital investment, resulting in a return on invested capital (ROIC) of over 50% [8][6] Company Overview - Founded in 2004, Vita Coco became a public company in 2021 and is currently led by CEO Martin Roper, who took over in 2022 [4] - The company reported $560 million in revenue and $64.4 million in earnings over the past 12 months, with a capital investment of about $130 million [8] - Vita Coco's lower gross margin of 36% compared to competitors like Monster, Coca-Cola, and Pepsi, which have margins in the mid-50s to low-60s, may limit competition but also presents challenges for differentiation [15][16] Market Dynamics - The coconut water category is appealing to younger consumers and is expected to grow rapidly, driven by urban and minority demographics [11] - Despite the potential for growth, there is concern about the lack of differentiation among coconut water brands, which could impact long-term market positioning [14] - The global coconut water market is currently valued at approximately $7.1 billion and is projected to grow at a compounded rate of 7.2% over the next decade, reaching $14.5 billion by 2035 [12]

Core Insights - Vita Coco is hosting a one-day event called the Supporting Farmers Market on October 11, 2025, to highlight the farmers behind its products and promote sustainable brands [1][2][3] - The event is part of Vita Coco's Seedlings for Sustainability initiative, which aims to distribute and plant up to 10 million seedlings by 2030 to combat declining coconut yields due to aging trees [2][4] - Guests at the event will learn about coconut farming, the lifecycle of coconut trees, and how the initiative empowers farmers while contributing to sustainability [3][4] Company Overview - The Vita Coco Company, co-founded in 2004, is a public benefit corporation and Certified B Corporation, known for its flagship coconut water brand, which is the leading coconut water brand in the U.S. [7] - The company focuses on delivering healthy, nutritious products that benefit both consumers and the environment, including its protein-infused water brand, PWR LIFT [7] Event Details - The Supporting Farmers Market will take place at 95 Rivington Street from 11 AM to 5 PM, featuring a curated selection of sustainable brands and products [1][10] - The event will also include a pop-up by Montauk General Store, where guests can enjoy a complimentary Coconut Water Matcha and shop for local, sustainable products [4][5] - All materials used in the event are designed with sustainability in mind, utilizing reclaimed wood and resources that will be repurposed after the event [5]