[Special Note Regarding Forward-Looking Statements](index=3&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section provides a cautionary note regarding forward-looking statements, highlighting inherent risks and uncertainties [Forward-Looking Statements Disclosure](index=3&type=section&id=Forward-Looking%20Statements%20Disclosure) This section discloses that the report contains forward-looking statements subject to risks and uncertainties, advising against undue reliance - The report contains **forward-looking statements** regarding future operations, **financial condition**, **business strategy**, and management objectives, which are subject to substantial **risks and uncertainties**[8](index=8&type=chunk) - Investors should not rely on **forward-looking statements** as predictions of future events, as actual results may differ materially due to **risks** outlined in the "**Risk Factors**" section[9](index=9&type=chunk) - The company does not undertake to update any **forward-looking statements** to reflect events or circumstances after the report date, except as required by law[11](index=11&type=chunk) [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section provides the unaudited condensed consolidated financial statements for Vital Farms, Inc., including the balance sheets, statements of income, comprehensive income, stockholders' equity, and cash flows, along with accompanying notes. These statements are prepared in accordance with U.S. GAAP and SEC rules for interim financial reporting [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity at specific reporting dates Table: Metric | Metric | June 29, 2025 (in thousands) | December 29, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :--------- | | Total assets | $430,752 | $359,332 | $71,420 | 19.88% | | Total liabilities | $120,974 | $90,030 | $30,944 | 34.37% | | Total stockholders' equity | $309,778 | $269,302 | $40,476 | 15.03% | | Cash and cash equivalents | $108,224 | $150,601 | $(42,377) | -28.14% | | Investment securities, available-for-sale | $46,773 | $9,692 | $37,081 | 382.59% | | Inventories | $42,710 | $23,666 | $19,044 | 80.47% | | Property, plant and equipment, net | $111,155 | $84,521 | $26,634 | 31.51% | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section outlines the company's financial performance, including net revenue, gross profit, and net income over specified periods Table: Metric - 13-Weeks Ended | Metric (13-Weeks Ended) | June 29, 2025 (in thousands) | June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :---------------------- | :--------------------------- | :--------------------------- | :-------------------- | :--------- | | Net revenue | $184,767 | $147,388 | $37,379 | 25.36% | | Gross profit | $71,782 | $57,678 | $14,104 | 24.45% | | Income from operations | $23,795 | $17,139 | $6,656 | 38.84% | | Net income | $16,638 | $16,339 | $299 | 1.83% | | Basic EPS | $0.37 | $0.38 | $(0.01) | -2.63% | | Diluted EPS | $0.36 | $0.36 | $0.00 | 0.00% | Table: Metric - 26-Weeks Ended | Metric (26-Weeks Ended) | June 29, 2025 (in thousands) | June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :---------------------- | :--------------------------- | :--------------------------- | :-------------------- | :--------- | | Net revenue | $346,956 | $295,316 | $51,640 | 17.49% | | Gross profit | $134,295 | $116,574 | $17,721 | 15.20% | | Income from operations | $45,563 | $41,308 | $4,255 | 10.30% | | Net income | $33,539 | $35,362 | $(1,823) | -5.16% | | Basic EPS | $0.76 | $0.84 | $(0.08) | -9.52% | | Diluted EPS | $0.73 | $0.79 | $(0.06) | -7.59% | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section details net income and other comprehensive income components, reflecting total comprehensive income Table: Metric - 13-Weeks Ended | Metric (13-Weeks Ended) | June 29, 2025 (in thousands) | June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :---------------------- | :--------------------------- | :--------------------------- | :-------------------- | :--------- |\n| Net income | $16,638 | $16,339 | $299 | 1.83% | | Other comprehensive (loss) income, net of tax | $(16) | $101 | $(117) | -115.84% | | Comprehensive income | $16,622 | $16,440 | $182 | 1.11% | Table: Metric - 26-Weeks Ended | Metric (26-Weeks Ended) | June 29, 2025 (in thousands) | June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :---------------------- | :--------------------------- | :--------------------------- | :-------------------- | :--------- |\n| Net income | $33,539 | $35,362 | $(1,823) | -5.16% | | Other comprehensive (loss) income, net of tax | $0 | $209 | $(209) | -100.00% | | Comprehensive income | $33,539 | $35,571 | $(2,032) | -5.71% | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section tracks changes in stockholders' equity, including net income, stock-based compensation, and other adjustments - **Total stockholders' equity** increased from **$269,302 thousand** as of **December 29, 2024**, to **$309,778 thousand** as of **June 29, 2025**[20](index=20&type=chunk) - **Retained earnings** increased by **$33,539 thousand** during the **26-week** period ended **June 29, 2025**, primarily due to **net income**[20](index=20&type=chunk) - **Stock-based compensation expense** contributed **$5,887 thousand** to additional paid-in capital for the **26-week** period ended **June 29, 2025**[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section analyzes cash flows from operating, investing, and financing activities over specified periods Table: Metric - 26-Weeks Ended | Metric (26-Weeks Ended) | June 29, 2025 (in thousands) | June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :--------------------------- | :--------------------------- | :-------------------- | :--------- | | Net cash provided by operating activities | $4,513 | $40,082 | $(35,569) | -88.74% | | Net cash (used in) provided by investing activities | $(45,907) | $5,753 | $(51,660) | -897.97% | | Net cash (used in) provided by financing activities | $(983) | $3,189 | $(4,172) | -130.82% | | Net (decrease) increase in cash and cash equivalents | $(42,377) | $49,024 | $(91,401) | -186.44% | - The decrease in **net cash** from **operating activities** was primarily due to a **$40.3 million net cash** impact from changes in **operating assets and liabilities** and a **$1.8 million** decrease in **net income**[175](index=175&type=chunk) - **Investing activities** shifted from providing cash to using cash, mainly due to increased purchases of **available-for-sale U.S. Treasury Bills** and **property, plant, and equipment**[176](index=176&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements [Note 1. Nature of the Business and Basis of Presentation](index=11&type=section&id=Note%201.%20Nature%20of%20the%20Business%20and%20Basis%20of%20Presentation) This note describes the company's business operations and the accounting principles used for financial statement presentation - **Vital Farms, Inc.** packages, markets, and distributes shell eggs, butter, and other products primarily under the **Vital Farms** name to retail and foodservice channels in the **United States**[25](index=25&type=chunk) - The company's **fiscal year** ends on the last Sunday in December and typically consists of **52 weeks**, with quarters having **13 weeks**[28](index=28&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=11&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting policies applied, including recent and upcoming accounting pronouncements - **No material changes to significant accounting policies** occurred during the **26-week** period ended **June 29, 2025**, beyond those described in the Annual Report[29](index=29&type=chunk) - The company expects to adopt **ASU 2023-09** (Improvements to Income Tax Disclosures) for the **fiscal year** beginning **December 30, 2024**, and is currently evaluating its impact[31](index=31&type=chunk) - The company is evaluating the impact of **ASU 2024-03** (Disaggregation of Income Statement Expenses), effective for annual periods beginning after **December 15, 2026**[32](index=32&type=chunk) [Note 3. Investment Securities](index=13&type=section&id=Note%203.%20Investment%20Securities) This note details the company's investment securities, including fair value measurements and changes in portfolio composition Table: Note 3. Investment Securities | Investment Securities (Fair Value, in thousands) | June 29, 2025 | December 29, 2024 | Change | % Change | | :----------------------------------------------- | :------------ | :---------------- | :----- | :------- | | U.S. corporate bonds and U.S. dollar denominated foreign bonds | $1,369 | $9,692 | $(8,323) | -85.87% | | U.S. Treasury Bills | $45,404 | $0 | $45,404 | N/A | | Total | $46,773 | $9,692 | $37,081 | 382.59% | - As of **June 29, 2025**, all **available-for-sale securities** (**$46,773 thousand**) are due within **one year**[34](index=34&type=chunk) - The company does not believe there has been any significant decline in the creditworthiness of issuers and has not recorded an allowance for credit losses on **investment securities**[36](index=36&type=chunk) [Note 4. Derivative Financial Instruments](index=15&type=section&id=Note%204.%20Derivative%20Financial%20Instruments) This note describes the company's use of derivative instruments to manage commodity price volatility and their financial impact - The company uses **derivative instruments**, primarily call options on commodity price contracts for corn and soybean meal, to mitigate commodity price volatility[38](index=38&type=chunk) Table: Commodity Notional Amounts | Commodity Notional Amounts | June 29, 2025 | December 29, 2024 | Change | % Change | | :------------------------- | :------------ | :---------------- | :----- | :------- | | Corn (Bushels in thousands) | 1,215 | 3,593 | (2,378) | -66.18% | | Soybean Meal (Tons) | 13 | 37 | (24) | -64.86% | - **Pre-tax commodity contract derivative losses** recognized in **other expense, net**, increased to **$822 thousand** for the **26-week** period ended **June 29, 2025**, from **$387 thousand** in the prior year[39](index=39&type=chunk) [Note 5. Fair Value Measurements](index=15&type=section&id=Note%205.%20Fair%20Value%20Measurements) This note provides information on assets measured at fair value, categorized by input levels used in valuation techniques - **Fair value measurements** are categorized into **Level 1** (quoted prices in active markets), **Level 2** (observable inputs other than **Level 1**), and **Level 3** (unobservable inputs)[41](index=41&type=chunk) Table: Assets Measured at Fair Value (June 29, 2025, in thousands) | Assets Measured at Fair Value (June 29, 2025, in thousands) | Level 1 | Level 2 | Level 3 | Total | | :------------------------------------------------ | :------ | :------ | :------ | :---- | | Money market | $19,990 | $0 | $0 | $19,990 | | U.S. Treasury Bills | $0 | $15,886 | $0 | $15,886 | | Investment securities, available-for-sale (U.S. corporate bonds and U.S. dollar denominated foreign bonds) | $0 | $1,369 | $0 | $1,369 | | Investment securities, available-for-sale (U.S. Treasury Bills) | $0 | $45,404 | $0 | $45,404 | | Derivative financial instruments | $0 | $59 | $0 | $59 | | Total assets measured at fair value | $19,990 | $62,718 | $0 | $82,708 | - There were **no transfers** between **fair value measurement levels** during the **26-week** period ended **June 29, 2025**[43](index=43&type=chunk) [Note 6. Revenue Recognition](index=18&type=section&id=Note%206.%20Revenue%20Recognition) This note explains the company's revenue recognition policies and disaggregates net revenue by product categories and significant customers Table: Net Revenue by Product - 13-Weeks Ended | Net Revenue by Product (13-Weeks Ended, in thousands) | June 29, 2025 | June 30, 2024 | Change | % Change | | :------------------------------------ | :------------ | :------------ | :----- | :------- | | Eggs and egg-related products | $178,418 | $142,941 | $35,477 | 24.82% | | Butter and butter-related products | $6,349 | $4,447 | $1,902 | 42.77% | | Total Net Revenue | $184,767 | $147,388 | $37,379 | 25.36% | Table: Net Revenue by Product - 26-Weeks Ended | Net Revenue by Product (26-Weeks Ended, in thousands) | June 29, 2025 | June 30, 2024 | Change | % Change | | :------------------------------------ | :------------ | :------------ | :----- | :------- | | Eggs and egg-related products | $334,723 | $286,701 | $48,022 | 16.75% | | Butter and butter-related products | $12,233 | $8,615 | $3,618 | 42.00% | | Total Net Revenue | $346,956 | $295,316 | $51,640 | 17.49% | Table: Significant Customer Net Revenue | Significant Customer Net Revenue | 13-Weeks Ended June 29, 2025 | 13-Weeks Ended June 30, 2024 | 26-Weeks Ended June 29, 2025 | 26-Weeks Ended June 30, 2024 | | :------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Customer A | 21% | 23% | 22% | 24% | [Note 7. Allowance for Credit Losses](index=18&type=section&id=Note%207.%20Allowance%20for%20Credit%20Losses) This note details the allowance for credit losses, reflecting changes in expected credit losses on financial assets - The **total allowance for credit losses** increased by **$448 thousand**, from **$931 thousand** as of **December 29, 2024**, to **$1,379 thousand** as of **June 29, 2025**[48](index=48&type=chunk)[50](index=50&type=chunk) - Provisions charged to operating results for credit losses were **$76 thousand** in the first quarter of **2025**, followed by reductions of **$541 thousand** in the second quarter[50](index=50&type=chunk) [Note 8. Inventories](index=20&type=section&id=Note%208.%20Inventories) This note provides a breakdown of inventory components and the company's policy for inventory obsolescence reserves Table: Inventory (in thousands) | Inventory (in thousands) | June 29, 2025 | December 29, 2024 | Change | % Change | | :----------------------- | :------------ | :---------------- | :----- | :------- | | Eggs and egg-related products | $12,601 | $7,384 | $5,217 | 70.65% | | Butter and butter-related products | $16,223 | $8,691 | $7,532 | 86.66% | | Packaging | $9,048 | $4,296 | $4,752 | 110.62% | | Pullets | $3,508 | $1,657 | $1,851 | 111.71% | | Other | $2,095 | $1,860 | $235 | 12.63% | | Reserve for inventory obsolescence | $(765) | $(222) | $(543) | 244.59% | | Total Inventories | $42,710 | $23,666 | $19,044 | 80.47% | - The company periodically compares **inventory** on hand with forecasted requirements to determine charges for excess or obsolete **inventory** reserves[51](index=51&type=chunk) [Note 9. Property, Plant and Equipment](index=20&type=section&id=Note%209.%20Property,%20Plant%20and%20Equipment) This note details the composition of property, plant, and equipment, including additions, disposals, and depreciation Table: Property, Plant and Equipment (in thousands) | Property, Plant and Equipment (in thousands) | June 29, 2025 | December 29, 2024 | Change | % Change | | :----------------------------------------- | :------------ | :---------------- | :----- | :------- | | Land | $10,011 | $11,200 | $(1,189) | -10.62% | | Buildings and improvements | $30,607 | $30,607 | $0 | 0.00% | | Machinery and equipment | $60,535 | $58,847 | $1,688 | 2.87% | | Construction in progress | $46,482 | $14,456 | $32,026 | 221.54% | | Total Property, Plant and Equipment, net | $111,155 | $84,521 | $26,634 | 31.51% | - The company elected to sell approximately **408 acres** of land in Indiana, previously intended for "**accelerator farms**," with a carrying amount of **$2.7 million** classified as assets held for sale as of **June 29, 2025**[53](index=53&type=chunk) - **Depreciation of property, plant and equipment** for the **26-week** period ended **June 29, 2025**, was approximately **$4,620 thousand**[52](index=52&type=chunk) [Note 10. Leases](index=22&type=section&id=Note%2010.%20Leases) This note outlines the company's lease arrangements, including lease costs and right-of-use assets Table: Lease Cost - 13-Weeks Ended | Lease Cost (13-Weeks Ended, in thousands) | June 29, 2025 | June 30, 2024 | Change | % Change | | :-------------------------------------- | :------------ | :------------ | :----- | :------- | | Operating lease cost | $2,082 | $1,062 | $1,020 | 96.05% | | Variable lease cost | $4,531 | $2,595 | $1,936 | 74.61% | | Variable lease cost – long-term supply contracts | $61,176 | $54,429 | $6,747 | 12.39% | | Total lease cost | $69,473 | $59,299 | $10,174 | 17.16% | Table: Lease Cost - 26-Weeks Ended | Lease Cost (26-Weeks Ended, in thousands) | June 29, 2025 | June 30, 2024 | Change | % Change | | :-------------------------------------- | :------------ | :------------ | :----- | :------- | | Operating lease cost | $3,890 | $1,984 | $1,906 | 96.07% | | Variable lease cost | $8,020 | $5,102 | $2,918 | 57.19% | | Variable lease cost – long-term supply contracts | $116,244 | $110,432 | $5,812 | 5.26% | | Total lease cost | $131,128 | $119,924 | $11,204 | 9.34% | - **ROU assets obtained in exchange for new operating lease obligations** were **$15,965 thousand** for the **26-week** period ended **June 29, 2025**, a significant increase from **$5,228 thousand** in the prior year[54](index=54&type=chunk) [Note 11. Goodwill and Other Assets](index=22&type=section&id=Note%2011.%20Goodwill%20and%20Other%20Assets) This note provides information on goodwill and other non-current assets, including cloud computing implementation costs Table: Goodwill and Other Assets (in thousands) | Goodwill and Other Assets (in thousands) | June 29, 2025 | December 29, 2024 | Change | % Change | | :------------------------------------- | :------------ | :---------------- | :----- | :------- | | Goodwill | $3,858 | $3,858 | $0 | 0.00% | | Cloud computing implementation costs | $7,837 | $3,834 | $4,003 | 104.40% | | Deferred tax asset | $1,437 | $1,399 | $38 | 2.72% | | Other non-current assets | $62 | $62 | $0 | 0.00% | | Total Goodwill and other assets | $13,194 | $9,153 | $4,041 | 44.15% | - **Capitalized cloud computing arrangement implementation costs** increased from **$3,834 thousand** to **$9,299 thousand** (including current and non-current portions) during the **26-week** period ended **June 29, 2025**[56](index=56&type=chunk) [Note 12. Accrued Liabilities](index=24&type=section&id=Note%2012.%20Accrued%20Liabilities) This note details the components of accrued liabilities, including employee-related costs and taxes Table: Accrued Liabilities (in thousands) | Accrued Liabilities (in thousands) | June 29, 2025 | December 29, 2024 | Change | % Change | | :------------------------------- | :------------ | :---------------- | :----- | :------- | | Employee-related costs | $8,229 | $15,074 | $(6,845) | -45.41% | | Trade promotions and chargebacks | $9,419 | $8,204 | $1,215 | 14.81% | | Property, plant and equipment | $4,220 | $380 | $3,840 | 1010.53% | | Taxes | $2,859 | $31 | $2,828 | 9122.58% | | Total Accrued Liabilities | $34,037 | $31,328 | $2,709 | 8.65% | [Note 13. Long-Term Debt](index=24&type=section&id=Note%2013.%20Long-Term%20Debt) This note describes the company's long-term debt arrangements, including credit facilities and compliance with covenants - The **PNC Credit Facility** was terminated on **April 9, 2024**, and replaced by the **JPMorgan Credit Facility**[58](index=58&type=chunk) - The **JPMorgan Credit Facility** provides a **five-year**, **$60.0 million** revolving credit facility with a **$5.0 million** letter of credit sub-limit and an accordion option for additional capacity[61](index=61&type=chunk)[62](index=62&type=chunk) - As of **June 29, 2025**, there were **no outstanding amounts** under the **JPMorgan Credit Facility**, and the company was in compliance with all covenants[66](index=66&type=chunk)[65](index=65&type=chunk) [Note 14. Common Stock](index=26&type=section&id=Note%2014.%20Common%20Stock) This note provides information on common stock, including issued shares, dividends, and shares reserved for equity plans - As of **June 29, 2025**, **44,661,608 shares** of **common stock** were issued and outstanding[67](index=67&type=chunk) - **No cash dividends** were declared or paid during the periods presented[68](index=68&type=chunk) Table: Reserved Shares of Common Stock | Reserved Shares of Common Stock | June 29, 2025 | December 29, 2024 | Change | % Change | | :------------------------------ | :------------ | :---------------- | :----- | :------- | | Options to purchase common stock | 1,282,400 | 1,703,287 | (420,887) | -24.71% | | Restricted stock units ("RSUs") | 627,073 | 644,141 | (17,068) | -2.65% | | Performance stock units ("PSUs") | 361,816 | 238,764 | 123,052 | 51.54% | | Shares available for grant under 2020 Incentive Plan and 2020 ESPP | 16,782,529 | 14,887,764 | 1,894,765 | 12.73% | | Total | 19,053,818 | 17,473,956 | 1,579,862 | 9.04% | [Note 15. Stock-Based Compensation](index=26&type=section&id=Note%2015.%20Stock-Based%20Compensation) This note details the company's stock-based compensation plans, including expense recognition and activity for options, RSUs, and PSUs - **Stock-based compensation expense** is recognized on a straight-line basis over the vesting period, with forfeitures recognized as they occur[70](index=70&type=chunk) Table: Stock-Based Compensation Expense (in thousands) | Stock-Based Compensation Expense (in thousands) | 13-Weeks Ended June 29, 2025 | 13-Weeks Ended June 30, 2024 | 26-Weeks Ended June 29, 2025 | 26-Weeks Ended June 30, 2024 | | :-------------------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Cost of goods sold | $173 | $107 | $280 | $154 | | Selling, general and administrative expense | $2,861 | $2,809 | $5,607 | $4,744 | | Total | $3,034 | $2,916 | $5,887 | $4,898 | [Stock Option Activity](index=27&type=section&id=Stock%20Option%20Activity) This section summarizes the activity and outstanding balances of stock options Table: Stock Option Activity | Stock Option Activity | Outstanding as of Dec 29, 2024 | Exercised | Cancelled/Forfeited | Outstanding as of Jun 29, 2025 | | :-------------------- | :----------------------------- | :-------- | :------------------ | :----------------------------- | | Number of Options | 1,703,287 | (397,173) | (23,714) | 1,282,400 | | Weighted Average Exercise Price | $14.30 | $9.19 | $15.60 | $15.85 | - **Total unrecognized stock-based compensation expense** related to unvested stock options was **$543 thousand** as of **June 29, 2025**, with a weighted-average recognition period of **0.72 years**[72](index=72&type=chunk) [Restricted Stock Unit Activity](index=27&type=section&id=Restricted%20Stock%20Unit%20Activity) This section summarizes the activity and outstanding balances of restricted stock units Table: RSU Activity | RSU Activity | Unvested as of Dec 29, 2024 | Granted | Vested | Forfeited | Unvested as of Jun 29, 2025 | | :----------- | :-------------------------- | :------ | :----- | :-------- | :-------------------------- | | Number of RSUs | 644,141 | 311,077 | (305,463) | (22,682) | 627,073 | | Weighted Average Grant Date Fair Value | $19.28 | $31.59 | $18.02 | $25.78 | $25.77 | - **Total unrecognized stock-based compensation expense** related to unvested **RSUs** was **$13,909 thousand** as of **June 29, 2025**, with a weighted-average recognition period of **2.17 years**[75](index=75&type=chunk) [Performance Stock Unit Activity](index=29&type=section&id=Performance%20Stock%20Unit%20Activity) This section summarizes the activity and outstanding balances of performance stock units Table: PSU Activity | PSU Activity | Unvested as of Dec 29, 2024 | Granted | Forfeited | Unvested as of Jun 29, 2025 | | :----------- | :-------------------------- | :------ | :-------- | :-------------------------- | | Number of PSUs | 238,764 | 128,934 | (5,882) | 361,816 | | Weighted Average Grant Date Fair Value | $21.82 | $31.55 | $25.99 | $25.22 | - **Total unrecognized stock-based compensation expense** related to unvested **PSUs** was **$9,487 thousand** as of **June 29, 2025**, with a weighted-average recognition period of **2.09 years**[77](index=77&type=chunk) [Note 16. Income Taxes](index=29&type=section&id=Note%2016.%20Income%20Taxes) This note provides information on income tax provision, effective tax rates, and uncertain tax positions Table: Effective Tax Rate | Effective Tax Rate | 13-Weeks Ended June 29, 2025 | 13-Weeks Ended June 30, 2024 | 26-Weeks Ended June 29, 2025 | 26-Weeks Ended June 30, 2024 | | :----------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Effective Tax Rate | 32% | 10% | 28% | 17% | - The increase in the **effective tax rate** for the **2025** periods was impacted by a discrete tax item primarily associated with an **uncertain tax position** related to state **income taxes**[80](index=80&type=chunk) - **Uncertain tax positions** increased from **$0.6 million** as of **December 29, 2024**, to **$2.3 million** as of **June 29, 2025**[80](index=80&type=chunk) [Note 17. Net Income Per Share](index=31&type=section&id=Note%2017.%20Net%20Income%20Per%20Share) This note details the calculation of basic and diluted net income per share Table: Net Income Per Share - 13-Weeks Ended | Net Income Per Share (13-Weeks Ended) | June 29, 2025 | June 30, 2024 | Change | | :------------------------------------ | :------------ | :------------ | :----- | | Basic EPS | $0.37 | $0.38 | $(0.01) | | Diluted EPS | $0.36 | $0.36 | $0.00 | Table: Net Income Per Share - 26-Weeks Ended | Net Income Per Share (26-Weeks Ended) | June 29, 2025 | June 30, 2024 | Change | | :------------------------------------ | :------------ | :------------ | :----- | | Basic EPS | $0.76 | $0.84 | $(0.08) | | Diluted EPS | $0.73 | $0.79 | $(0.06) | - Certain shares of **common stock** were excluded from diluted **EPS** computation due to their anti-dilutive effect, including **1,281 options** for the **13-week** period ended **June 29, 2025**[83](index=83&type=chunk) [Note 18. Accumulated Other Comprehensive Income](index=31&type=section&id=Note%2018.%20Accumulated%20Other%20Comprehensive%20Income) This note provides a breakdown of accumulated other comprehensive income components and reclassifications to earnings Table: AOCI Component - 26-Weeks Ended | AOCI Component (26-Weeks Ended, in thousands) | June 29, 2025 (Before Tax) | June 29, 2025 (After Tax) | June 30, 2024 (Before Tax) | June 30, 2024 (After Tax) | | :-------------------------------------------- | :------------------------- | :------------------------ | :------------------------- | :------------------------ | | Unrealized net holding (loss) gain | $(26) | $(13) | $278 | $210 | | Amounts reclassified for realized losses to earnings | $13 | $13 | $(1) | $(1) | | Total other comprehensive (loss) income | $(13) | $0 | $277 | $209 | - **Realized gains** on **available-for-sale securities** reclassified from **AOCI** to earnings were **$13 thousand** for the **26-week** period ended **June 29, 2025**[85](index=85&type=chunk) [Note 19. Commitments and Contingencies](index=33&type=section&id=Note%2019.%20Commitments%20and%20Contingencies) This note describes the company's commitments, indemnification agreements, and potential litigation - The company provides indemnification of varying scope and terms to vendors, lessors, business partners, directors, and executive officers, with maximum potential future payments often unlimited[86](index=86&type=chunk) - As of **June 29, 2025**, the company has not incurred any material costs as a result of such indemnification agreements[86](index=86&type=chunk) - The company is subject to ordinary and routine litigation incidental to its business and assesses the likelihood and amount of potential losses to establish reserves as appropriate[87](index=87&type=chunk) [Note 20. Related Party Transactions](index=34&type=section&id=Note%2020.%20Related%20Party%20Transactions) This note discloses transactions with related parties, including services rendered and amounts owed - The company paid **Sandpebble $1,283 thousand** for project management and related services during the **26-week** period ended **June 29, 2025**, an increase from **$540 thousand** in the prior year[89](index=89&type=chunk) - Amounts owed to **Sandpebble** were **$197 thousand** as of **June 29, 2025**, included in accounts payable and accrued liabilities[89](index=89&type=chunk) [Note 21. Segment Reporting](index=34&type=section&id=Note%2021.%20Segment%20Reporting) This note provides financial information for the company's reportable segment, "Eggs and Butter" - **Vital Farms, Inc.** has one reportable segment, "**Eggs and Butter**," which generates revenue primarily from sales of eggs and butter products in the **United States**[90](index=90&type=chunk) Table: Segment Net Income - 13-Weeks Ended | Segment Net Income (13-Weeks Ended, in thousands) | June 29, 2025 | June 30, 2024 | Change | % Change | | :---------------------------------------------- | :------------ | :------------ | :----- | :------- | | Net revenue | $184,767 | $147,388 | $37,379 | 25.36% | | Segment net income | $16,638 | $16,339 | $299 | 1.83% | Table: Segment Net Income - 26-Weeks Ended | Segment Net Income (26-Weeks Ended, in thousands) | June 29, 2025 | June 30, 2024 | Change | % Change | | :---------------------------------------------- | :------------ | :------------ | :----- | :------- | | Net revenue | $346,956 | $295,316 | $51,640 | 17.49% | | Segment net income | $33,539 | $35,362 | $(1,823) | -5.16% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition, discussing key factors affecting the business, results of operations for the current and prior periods, liquidity, capital resources, and non-GAAP financial measures. It also highlights known trends, events, and uncertainties [Overview](index=36&type=section&id=Overview) This section provides a general overview of Vital Farms' mission, business model, and key financial highlights - **Vital Farms' mission** is to bring **ethical food** to the table, focusing on animal welfare and sustainable farming practices, making it a leading U.S. brand of pasture-raised eggs[99](index=99&type=chunk) - The company is a **Certified B Corporation** and a **Delaware public benefit corporation**, committed to **Conscious Capitalism** by balancing profit with positive long-term outcomes for all stakeholders[100](index=100&type=chunk) - The company sources eggs from over **500 family farms** and cream for butter from a network of farms, with plans to open a second egg washing and packing facility in Seymour, Indiana by **2027** and install an additional egg grading system at Egg Central Station by end of **fiscal 2025**[101](index=101&type=chunk)[105](index=105&type=chunk) Table: Financial Metric - 13-Weeks Ended | Financial Metric (13-Weeks Ended, in millions) | June 29, 2025 | June 30, 2024 | Change | % Change | | :--------------------------------------------- | :------------ | :------------ | :----- | :------- | | Net revenue | $184.8 | $147.4 | $37.4 | 25.37% | | Net income | $16.6 | $16.3 | $0.3 | 1.84% | | Adjusted EBITDA | $29.9 | $23.3 | $6.6 | 28.33% | Table: Financial Metric - 26-Weeks Ended | Financial Metric (26-Weeks Ended, in millions) | June 29, 2025 | June 30, 2024 | Change | % Change | | :--------------------------------------------- | :------------ | :------------ | :----- | :------- | | Net revenue | $347.0 | $295.3 | $51.7 | 17.51% | | Net income | $33.5 | $35.4 | $(1.9) | -5.37% | | Adjusted EBITDA | $57.4 | $52.3 | $5.1 | 9.75% | [Known Trends, Events and Uncertainties](index=38&type=section&id=Known%

[Second Quarter 2025 Financial Highlights and Business Update](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights%20and%20Business%20Update) [2.1. Key Financial Highlights (Q2 2025 vs Q2 2024)](index=1&type=section&id=2.1.%20Key%20Financial%20Highlights%20(Q2%202025%20vs%20Q2%202024)) Vital Farms delivered strong Q2 2025 results with significant growth in net revenue and Adjusted EBITDA **Key Financial Data for Q2 2025 (vs Q2 2024):** | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Revenue | $184.8 million | $147.4 million | +25.4% | | Gross Margin | 38.9% | 39.1% | -0.2% | | Net Income | $16.6 million | $16.3 million | +1.8% | | Diluted Net Income Per Share | $0.36 | $0.36 | 0% | | Adjusted EBITDA | $29.9 million | $23.3 million | +28.3% | [2.2. CEO Commentary and Operational Achievements](index=1&type=section&id=2.2.%20CEO%20Commentary%20and%20Operational%20Achievements) The CEO highlighted the strong business model, brand growth, and key milestones in supply chain expansion - The company's business model is robust, with consumer brand awareness increasing annually[2](index=2&type=chunk) - Key milestones were achieved in supply chain expansion, including adding **50 new farms** this quarter, bringing the total to over **500 family farms** with **9 million contracted laying hens**[2](index=2&type=chunk) - The Seymour facility was redesigned with groundbreaking for additional capacity planned to come online in 2027; installation of a third production line at Springfield continues, expected to complete in Q4 this year; the first accelerator farm is now operational[2](index=2&type=chunk) - Successful implementation of strategic pricing measures, combined with strong brand loyalty, led the company to raise its full-year revenue guidance[2](index=2&type=chunk) - The company is committed to ethical food production and sustainable growth, and is on track to achieve its **$1 billion revenue target by 2027**[2](index=2&type=chunk) [Detailed Second Quarter 2025 Financial Performance](index=1&type=section&id=Detailed%20Second%20Quarter%202025%20Financial%20Performance) [3.1. Income Statement Analysis](index=1&type=section&id=3.1.%20Income%20Statement%20Analysis) Net revenue growth was driven by price/mix and volume, while investments in scale slightly impacted gross margin - Q2 2025 net revenue increased **25.4% to $184.8 million**, driven by **$15.7 million in price/mix benefits** and **$21.7 million in volume-related growth**[3](index=3&type=chunk) - Gross profit grew to **$71.8 million**, but gross margin slightly decreased from 39.1% to **38.9%** due to investments in scaling the business (increased labor and overhead), partially offset by favorable price/mix benefits[4](index=4&type=chunk) - Income from operations increased to **$23.8 million**, driven by higher revenue and gross profit, partially offset by increased marketing, shipping, distribution, and employee-related costs[6](index=6&type=chunk) - Net income increased to **$16.6 million**, with diluted net income per share flat at **$0.36**, driven by revenue and operating income growth but partially offset by higher taxes due to fewer tax benefits from non-qualified stock option exercises and restricted stock unit vestings[7](index=7&type=chunk) - Adjusted EBITDA increased to **$29.9 million**, representing **16.2% of net revenue**, primarily due to higher sales and gross margin, partially offset by increased employee investments[8](index=8&type=chunk) [3.2. Balance Sheet and Cash Flow Overview](index=2&type=section&id=3.2.%20Balance%20Sheet%20and%20Cash%20Flow%20Overview) The company maintained a strong cash position with no debt, though operating cash flow decreased while capital expenditures rose - As of June 29, 2025, cash, cash equivalents, and marketable securities totaled **$155 million**, and the company had no outstanding debt[10](index=10&type=chunk) **Cash Flow Overview (26 Weeks Ended June 29, 2025 vs 26 Weeks Ended June 30, 2024):** | Metric | 26 Weeks 2025 | 26 Weeks 2024 | Change | | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $4.5 million | $40.1 million | -88.8% | | Capital Expenditures | $10.0 million | $6.9 million | +44.9% | [Fiscal Year 2025 Outlook and Strategic Initiatives](index=2&type=section&id=Fiscal%20Year%202025%20Outlook%20and%20Strategic%20Initiatives) [4.1. Updated Financial Guidance](index=2&type=section&id=4.1.%20Updated%20Financial%20Guidance) The company raised its FY2025 guidance for net revenue and Adjusted EBITDA, reflecting strong business performance **Updated FY2025 Guidance (vs FY2024):** | Metric | New Guidance | Growth Rate (vs FY2024) | Old Guidance | | :--- | :--- | :--- | :--- | | Net Revenue | At least $770 million | At least 27% | At least $740 million | | Adjusted EBITDA | At least $110 million | At least 26% | At least $100 million | - The raised guidance is attributed to strong performance in the core business, successful implementation of strategic pricing, robust consumer demand, and improved supply from an expanded family farm network[12](index=12&type=chunk) - Profit pressure from tariff impacts and planned promotional activities is expected in the second half of the year, but these factors are fully incorporated into the guidance[12](index=12&type=chunk) - The company is confident in achieving its **$1 billion net revenue target by 2027**[12](index=12&type=chunk) [4.2. Capital Expenditure and Growth Strategy](index=2&type=section&id=4.2.%20Capital%20Expenditure%20and%20Growth%20Strategy) The company significantly increased its FY2025 capital expenditure guidance to accelerate capacity expansion projects **FY2025 Capital Expenditure Guidance:** | Metric | New Guidance | Old Guidance | | :--- | :--- | :--- | | Capital Expenditures | $90 million to $110 million | $50 million to $60 million | - The increase in capital expenditure reflects a strategic decision to build two production lines simultaneously at the Seymour, Indiana facility and add on-site cold storage to meet future demand and optimize capital efficiency[12](index=12&type=chunk)[13](index=13&type=chunk) - The capital plan also includes investments in a new production line at Springfield Egg Central Station, accelerator farms, and a digital transformation project expected to go live in early fall 2025[13](index=13&type=chunk) [Company Profile and Important Disclosures](index=3&type=section&id=Company%20Profile%20and%20Important%20Disclosures) [5.1. About Vital Farms](index=3&type=section&id=5.1.%20About%20Vital%20Farms) Vital Farms is a certified B Corporation and public benefit corporation focused on ethically produced food - Vital Farms (Nasdaq: VITL) is a certified B Corporation that offers a range of ethically produced foods nationwide[16](index=16&type=chunk) - The company partners with over 500 family farms and is the leading U.S. brand of pasture-raised eggs by retail dollar sales[16](index=16&type=chunk) - Its ethical philosophy is demonstrated through the humane treatment of farm animals and sustainable farming practices[16](index=16&type=chunk) - As a Delaware public benefit corporation, Vital Farms prioritizes the long-term interests of all its stakeholders, including farmers, suppliers, customers, consumers, communities, the environment, employees, and stockholders[16](index=16&type=chunk) - Products include shell eggs, butter, hard-boiled eggs, and liquid whole eggs, sold in over 23,500 stores and to hundreds of foodservice operators nationwide[16](index=16&type=chunk) [5.2. Forward-Looking Statements and Risk Factors](index=3&type=section&id=5.2.%20Forward-Looking%20Statements%20and%20Risk%20Factors) The report contains forward-looking statements subject to significant risks and uncertainties detailed in SEC filings - This press release contains "forward-looking" statements concerning market opportunities, brand strength, anticipated growth, supply chain constraints, digital transformation projects, specifications and timing for the Seymour and Springfield facilities, and future revenue and financial performance[17](index=17&type=chunk) - These statements are based on Vital Farms' current assumptions, expectations, and beliefs and are subject to significant risks, uncertainties, assumptions, and changes in circumstances that may cause actual results, performance, or achievements to differ materially from those expressed in any forward-looking statement[17](index=17&type=chunk) - Risks and uncertainties include, but are not limited to, the ability to attract and retain customers and suppliers, profitability, food safety issues, changes in consumer preferences, agricultural disease outbreaks, international trade policies, economic conditions, capital expenditure requirements, and the competitive environment[18](index=18&type=chunk)[19](index=19&type=chunk) - These risks and uncertainties are described in more detail in its filings with the SEC, including the Quarterly Report on Form 10-Q for the fiscal quarter ended June 29, 2025[20](index=20&type=chunk) [5.3. Non-GAAP Financial Measures Explanation](index=8&type=section&id=5.3.%20Non-GAAP%20Financial%20Measures%20Explanation) The company uses non-GAAP measures like Adjusted EBITDA to supplement GAAP results for performance evaluation - Management believes that Adjusted EBITDA and Adjusted EBITDA margin, as non-GAAP financial measures, provide investors with useful supplemental information to evaluate the company's performance[29](index=29&type=chunk) - Adjusted EBITDA is calculated as net income, adjusted to exclude depreciation and amortization, stock-based compensation expense, income tax (benefit) or provision, interest expense, and interest income[30](index=30&type=chunk) - Limitations of these non-GAAP measures include not reflecting future capital commitments, capital expenditures, stock-based compensation expense, other non-operating expenses like interest expense, and tax payments[31](index=31&type=chunk) - These measures may not be comparable to similarly titled measures of other companies due to potential differences in calculation and should be evaluated in conjunction with GAAP financial measures[31](index=31&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [6.1. Condensed Consolidated Statements of Income](index=5&type=section&id=6.1.%20Condensed%20Consolidated%20Statements%20of%20Income) This section presents the unaudited condensed consolidated statements of income for the specified periods | | | | 13-Weeks Ended | | | | 26-Weeks Ended | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | June 29, | | | June 30, | | June 29, | | June 30, | | | 2025 | | | 2024 | | 2025 | | 2024 | | Net revenue | $ | 184,767 | $ | 147,388 | $ | 346,956 | $ | 295,316 | | Cost of goods sold | | 112,985 | | 89,710 | | 212,661 | | 178,742 | | Gross profit | | 71,782 | | 57,678 | | 134,295 | | 116,574 | | Operating expenses: | | | | | | | | | | Selling, general and administrative | | 38,987 | | 33,336 | | 70,897 | | 60,467 | | Shipping and distribution | | 9,000 | | 7,203 | | 17,835 | | 14,799 | | Total operating expenses | | 47,987 | | 40,539 | | 88,732 | | 75,266 | | Income from operations | | 23,795 | | 17,139 | | 45,563 | | 41,308 | | Other income (expense), net: | | | | | | | | | | Interest expense | | (218) | | (257) | | (453) | | (512) | | Interest income | | 1,332 | | 1,316 | | 2,544 | | 2,404 | | Other expense, net | | (378) | | (87) | | (781) | | (364) | | Total other income (expense), net | | 736 | | 972 | | 1,310 | | 1,528 | | Net income before income taxes | | 24,531 | | 18,111 | | 46,873 | | 42,836 | | Income tax provision | | 7,893 | | 1,772 | | 13,334 | | 7,474 | | Net income | $ | 16,638 | $ | 16,339 | $ | 33,539 | $ | 35,362 | | Net income per share: | | | | | | | | | | Basic: | $ | 0.37 | $ | 0.38 | $ | 0.76 | $ | 0.84 | | Diluted: | $ | 0.36 | $ | 0.36 | $ | 0.73 | $ | 0.79 | | Weighted average common shares outstanding: | | | | | | | | | | Basic: | | 44,591,484 | | 42,500,355 | | 44,421,116 | | 42,148,992 | | Diluted: | | 45,804,158 | | 45,248,792 | | 45,815,874 | | 44,600,401 | [6.2. Condensed Consolidated Balance Sheets](index=6&type=section&id=6.2.%20Condensed%20Consolidated%20Balance%20Sheets) This section presents the unaudited condensed consolidated balance sheets as of the specified dates | | | June 29, | | December 29, | | --- | --- | --- | --- | --- | | | | 2025 | | 2024 | | | | (Unaudited) | | | | Assets | | | | | | Current assets: | | | | | | Cash and cash equivalents | $ | 108,224 | $ | 150,601 | | Investment securities, available-for-sale | | 46,773 | | 9,692 | | Accounts receivable, net of allowance for credit losses of $857 and $691 as of June 29, | | | | | | 2025 and December 29, 2024, respectively | | 68,405 | | 54,342 | | Inventories | | 42,710 | | 23,666 | | Prepaid expenses and other current assets, net of allowance for credit losses of $522 and | | | | | | $240 as of June 29, 2025 and December 29, 2024, respectively | | 6,428 | | 7,740 | | Assets held for sale | | 2,667 | | — | | Total current assets | | 275,207 | | 246,041 | | Property, plant and equipment, net | | 111,155 | | 84,521 | | Operating lease right-of-use assets | | 31,196 | | 19,617 | | Goodwill and other assets | | 13,194 | | 9,153 | | Total assets | $ | 430,752 | $ | 359,332 | | Liabilities and Stockholders' Equity | | | | | | Current liabilities: | | | | | | Accounts payable | $ | 66,352 | $ | 38,582 | | Accrued liabilities | | 34,037 | | 31,328 | | Operating lease liabilities, current | | 5,368 | | 3,849 | | Finance lease liabilities, current | | 4,401 | | 3,932 | | Income taxes payable | | 690 | | 838 | | Total current liabilities | | 110,848 | | 78,529 | | Operating lease liabilities, non-current | | 1,361 | | 2,918 | | Finance lease liabilities, non-current | | 6,458 | | 8,011 | | Other liabilities | | 2,307 | | 572 | | Total liabilities | $ | 120,974 | $ | 90,030 | | Commitments and contingencies | | | | | | Stockholders' equity: | | | | | | Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized as of June | | | | | | 29, 2025 and December 29, 2024; no shares issued and outstanding as of June 29, 2025 | | | | | | and December 29, 2024 | | — | | — | | Common stock, $0.0001 par value per share, 310,000,000 shares authorized as of June | | | | | | 29, 2025 and December 29, 2024; 44,661,608 and 44,042,355 shares issued and | | | | | | outstanding as of June 29, 2025 and December 29, 2024, respectively | | 4 | | 4 | | Additional paid-in capital | | 193,119 | | 186,182 | | Retained earnings | | 116,652 | | 83,113 | | Accumulated other comprehensive income | | 3 | | 3 | | Total stockholders' equity | $ | 309,778 | $ | 269,302 | | Total liabilities and stockholders' equity | $ | 430,752 | $ | 359,332 | [6.3. Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=6.3.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the unaudited condensed consolidated statements of cash flows for the specified periods | | | | 26-Weeks Ended | | | --- | --- | --- | --- | --- | | | | June 29, | | June 30, | | | | 2025 | | 2024 | | Cash flows from operating activities: | | | | | | Net income | $ | 33,539 | $ | 35,362 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | Depreciation and amortization | | 6,727 | | 6,499 | | Reduction in the carrying amount of right-of-use assets | | 3,691 | | 1,658 | | Amortization and accretion of available-for-sale debt securities | | (296) | | 76 | | Amortization of debt issuance costs | | 43 | | 19 | | Stock-based compensation expense | | 5,887 | | 4,898 | | Deferred taxes | | (24) | | — | | Uncertain tax positions | | 1,735 | | — | | Net realized losses on derivative instruments | | 822 | | 346 | | Other | | 1,293 | | (132) | | Net change in operating assets and liabilities | | (48,904) | | (8,644) | | Net cash provided by operating activities | $ | 4,513 | $ | 40,082 | | Cash flows from investing activities: | | | | | | Purchases of property, plant and equipment | | (9,994) | | (6,914) | | Purchases and settlements of derivative instruments | | 264 | | (669) | | Purchases of available-for-sale securities | | (45,079) | | — | | Maturities and call redemptions of available-for-sale debt securities | | 7,890 | | 13,335 | | Proceeds from the sale of available-for-sale debt securities | | 404 | | — | | Proceeds from the sale of property, plant and equipment | | 608 | | 1 | | Net cash (used in) provided by investing activities | $ | (45,907) | $ | 5,753 | | Cash flows from financing activities: | | | | | | Proceeds from exercise of stock options | | 3,649 | | 6,448 | | Proceeds from issuance of common stock under employee stock purchase plan | | 379 | | 178 | | Payment of tax withholding obligation on vested restricted stock unit shares | | (2,978) | | (1,351) | | Principal payments under finance lease obligations | | (2,033) | | (1,672) | | Payment of financing costs | | — | | (414) | | Net cash (used in) provided by financing activities | $ | (983) | $ | 3,189 | | Net (decrease) increase in cash and cash equivalents | | (42,377) | | 49,024 | | Cash and cash equivalents at beginning of the period | | 150,601 | | 84,149 | | Cash and cash equivalents at end of the period | $ | 108,224 | $ | 133,173 | | Supplemental disclosure of cash flow information: | | | | | | Cash paid for interest | $ | 410 | $ | 512 | | Cash paid for income taxes | | 11,772 | | 11,344 | | Supplemental disclosure of non-cash investing and financing activities: | | | | | | Purchases of property, plant and equipment included in accounts payable and accrued | | | | | | liabilities | $ | 25,590 | $ | 150 | [6.4. Adjusted EBITDA Reconciliation](index=9&type=section&id=6.4.%20Adjusted%20EBITDA%20Reconciliation) This section presents the unaudited reconciliation of net income to Adjusted EBITDA for the specified periods | | 13-Weeks Ended | | | | | 26-Weeks Ended | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | June 29, | | June 30, | | June 29, | | June 30, | | | | 2025 | | 2024 | | 2025 | | 2024 | | | | (in thousands) | | | | (in thousands) | | | | | Net income | $ | 16,638 | $ | 16,339 | $ 33,539 | $ | | 35,362 | | 1 Depreciation and amortization | | 3,468 | | 3,288 | 6,727 | | | 6,499 | | Stock-based compensation expense | | 3,034 | | 2,916 | 5,887 | | | 4,898 | | Income tax provision | | 7,893 | | 1,772 | 13,334 | | | 7,474 | | Interest expense | | 218 | | 257 | 453 | | | 512 | | Interest income | | (1,332) | | (1,316) | (2,544) | | | (2,404) | | Adjusted EBITDA | $ | 29,919 | $ | 23,256 | $ 57,396 | $ | | 52,341 | | Net revenue | $ | 184,767 | $ | 147,388 | $ 346,956 | $ | | 295,316 | | 2 Net income margin | 9.0% | | | 11.1% | | 9.7% | | 12.0% | | 3 Adjusted EBITDA margin | 16.2% | | | 15.8% | | 16.5% | | 17.7% |

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Vital Farms despite higher revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Vital Farms is expected to report quarterly earnings of $0.27 per share, reflecting a 25% decrease year-over-year, while revenues are projected to be $169.36 million, an increase of 14.9% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.59% higher in the last 30 days, indicating a collective reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +15.25% for Vital Farms, suggesting analysts are optimistic about the company's earnings prospects [12]. Historical Performance - Vital Farms has consistently beaten consensus EPS estimates, achieving a surprise of +42.31% in the last reported quarter and beating estimates in all of the last four quarters [13][14]. Investment Considerations - While a potential earnings beat is a positive indicator, other factors may influence stock movement, and investors should consider the overall context beyond just earnings results [15][17].

Core Viewpoint - Vital Farms is experiencing a mixed performance in the stock market, with a recent increase in stock price but a decline over the past month, while upcoming earnings are anticipated to show a decrease in EPS compared to the previous year [1][2]. Group 1: Stock Performance - Vital Farms closed at $37.04, reflecting a +2.07% change from the previous day, outperforming the S&P 500's loss of 0.3% [1] - Over the past month, shares of Vital Farms have decreased by 5.79%, while the Consumer Staples sector has lost 1.13% and the S&P 500 has gained 3.64% [1]. Group 2: Earnings Expectations - The company is expected to report earnings on August 7, 2025, with an anticipated EPS of $0.28, representing a 22.22% decline from the same quarter last year [2]. - Quarterly revenue is projected to be $168.88 million, which is a 14.58% increase from the previous year [2]. Group 3: Full Year Estimates - For the full year, analysts expect earnings of $1.27 per share and revenue of $743.1 million, indicating increases of +7.63% and +22.56% respectively from last year [3]. Group 4: Analyst Forecast Revisions - Recent revisions to analyst forecasts for Vital Farms are important as they reflect changing business trends, with positive revisions indicating a favorable business outlook [4]. Group 5: Zacks Rank and Valuation - Vital Farms currently holds a Zacks Rank of 1 (Strong Buy), with a 0.26% rise in the Zacks Consensus EPS estimate over the past month [6]. - The company is trading at a Forward P/E ratio of 28.58, which is higher than the industry average of 16.54, suggesting a premium valuation [7]. Group 6: Industry Context - The Food - Miscellaneous industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 162, placing it in the bottom 35% of over 250 industries [7]. - The Zacks Industry Rank indicates that top-rated industries outperform the bottom half by a factor of 2 to 1 [8].

Core Viewpoint - The article suggests a positive outlook for shares of Vital Farms, Inc. (VITL) in 2024, driven by long-term growth in the ethical food industry despite facing high expectations [1]. Group 1: Company Overview - Vital Farms, Inc. is positioned as a leader in the ethical food sector, which is expected to experience secular growth [1]. Group 2: Investment Opportunities - The investing group "Value In Corporate Events" offers insights into major corporate events such as IPOs, mergers & acquisitions, and earnings reports, aiming to identify the best investment opportunities [1]. - The service covers approximately 10 major events each month, focusing on actionable ideas for investors [1].

Core Insights - The article emphasizes the importance of efficiency ratios as indicators of a company's financial health and operational efficiency [1][2][3][4][5]. Efficiency Ratios - **Receivables Turnover**: This ratio measures a company's ability to extend credit and collect debts, with a higher ratio indicating better performance [2]. - **Asset Utilization**: This ratio assesses how effectively a company converts its assets into sales, with higher values suggesting greater efficiency [3]. - **Inventory Turnover**: This ratio indicates a company's ability to manage inventory relative to its cost of goods sold, with higher values reflecting better inventory management [4]. - **Operating Margin**: This ratio measures the efficiency of a company in controlling operating expenses relative to sales, with higher values indicating better expense management [5]. Screening Process - A screening process was applied using the aforementioned efficiency ratios along with a favorable Zacks Rank (Zacks Rank 1) to identify potential investment opportunities [6]. - The screening narrowed down over 7,906 stocks to 10, focusing on those with efficiency ratios above industry averages [7]. Selected Companies - **Vital Farms (VITL)**: Offers pasture-raised foods and has a four-quarter average positive earnings surprise of 45.3% [8][7]. - **Acushnet (GOLF)**: Designs and distributes golf products, also reporting a four-quarter average positive earnings surprise of 45.3% [9][8]. - **Texas Capital Bancshares (TCBI)**: Focuses on local business ties in Texas and has a four-quarter average positive earnings surprise of 30.2% [10][8]. - **Commerce Bancshares (CBSH)**: Engages in general banking services with a four-quarter average positive earnings surprise of 7.9% [11][8].

Core Viewpoint - Vital Farms (VITL) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of exceeding expectations and positive analyst sentiment [1][5]. Earnings Performance - In the last reported quarter, Vital Farms achieved earnings of $0.37 per share, surpassing the Zacks Consensus Estimate of $0.26 per share, resulting in a surprise of 42.31% [2]. - In the previous quarter, the company was expected to report earnings of $0.15 per share but delivered $0.23 per share, leading to a surprise of 53.33% [2]. Analyst Sentiment - Recent earnings estimates for Vital Farms have been revised upward, indicating growing analyst confidence in the company's near-term earnings potential [5]. - The Zacks Earnings ESP (Expected Surprise Prediction) for Vital Farms is currently +2.35%, suggesting a favorable outlook for an earnings beat [8]. Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time, indicating a strong likelihood of exceeding consensus estimates [6]. - Vital Farms holds a Zacks Rank of 1 (Strong Buy), further enhancing the probability of another earnings beat [8].

Core Viewpoint - Vital Farms, a Certified B Corporation, is set to report its financial results for Q2 2025 on August 7, 2025, before market open [1] Company Overview - Vital Farms, founded in 2007 in Austin, Texas, has grown from a single farm to a national consumer brand, collaborating with over 500 family farms [3] - The company is recognized as the leading U.S. brand of pasture-raised eggs by retail dollar sales [3] - Vital Farms emphasizes humane treatment of farm animals and sustainable farming practices, prioritizing long-term benefits for all stakeholders, including farmers, customers, and the environment [3] - Its product range includes shell eggs, butter, hard-boiled eggs, and liquid whole eggs, available in approximately 26,000 stores nationwide [3] Upcoming Events - A conference call and webcast will be held on August 7, 2025, at 8:30 a.m. ET to discuss the financial results [2] - Participants can join the call via specific North American and international phone numbers or access the live webcast on the Vital Farms Investor Relations website [2]

Vital Farms (VITL) shares ended the last trading session 5.2% higher at $39.51. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.6% gain over the past four weeks.Vital Farms is expanding its farm network, boosting production capacity, and gaining traction through growing consumer awareness and brand strength.This company is expected to post quarterly earnings of $0.28 per share in its upcoming report, which repres ...

Core Viewpoint - Vital Farms (VITL) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is a significant factor influencing stock prices [2][4]. - Rising earnings estimates are correlated with near-term stock price movements, as institutional investors adjust their valuations based on these estimates [4][5]. Company Performance - Vital Farms is expected to earn $1.27 per share for the fiscal year ending December 2025, with no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Vital Farms has increased by 3.4%, reflecting a positive trend in earnings estimates [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Vital Farms' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].