Core Viewpoint - Vital Farms reported quarterly earnings of $0.37 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, but down from $0.43 per share a year ago, indicating a 13.95% year-over-year decline in earnings [1] - The company has consistently surpassed consensus EPS estimates over the last four quarters, with a notable earnings surprise of 42.31% this quarter [2][1] Financial Performance - Vital Farms posted revenues of $162.19 million for the quarter ended March 2025, which was a 9.63% increase from $147.93 million year-over-year, but missed the Zacks Consensus Estimate by 0.27% [2] - The company has topped consensus revenue estimates three times in the last four quarters [2] Stock Performance - Vital Farms shares have declined approximately 4.7% year-to-date, compared to a 4.3% decline in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.28, with projected revenues of $170.93 million, and for the current fiscal year, the estimate is $1.23 on revenues of $740.79 million [7] - The trend of earnings estimate revisions is mixed, which could change following the recent earnings report [6] Industry Context - The Food - Miscellaneous industry, to which Vital Farms belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Net revenue for Q1 2025 was $162 million, an increase of 10% year-over-year, marking the twentieth consecutive quarter of growth since the IPO in 2020 [6][18] - Gross profit rose to $62.5 million, representing 38.5% of net revenue, down from 39.8% the previous year due to increased investments and less efficient operations [19][20] - Net income decreased by 11.2% to $16.9 million, or $0.37 per diluted share, compared to $19 million, or $0.43 per diluted share in Q1 2024 [21] - Adjusted EBITDA for Q1 2025 was $27.5 million, or 16.9% of net revenue, down from 19.7% in the prior year [21] Business Line Data and Key Metrics Changes - The Butter business saw robust growth with net revenue up 41% year-over-year [7] - Egg product demand remains strong, but supply constraints have limited volume growth [8][16] - The company added approximately 25 new family farms in Q1 2025, increasing its network to over 450 farms [13] Market Data and Key Metrics Changes - Brand awareness reached 31% by the end of Q1 2025, a five-point increase since the beginning of the year [9] - The company is currently in 11.3% of U.S. households, indicating significant room for growth [11] Company Strategy and Development Direction - The company aims to achieve $1 billion in net revenue by 2027, with a gross margin target of about 35% and an adjusted EBITDA margin of 12% to 14% [14][28] - Investments in supply chain infrastructure and farm expansion initiatives are expected to support sustained growth [14][29] - The company plans to implement a modest price increase for shell egg products to offset anticipated cost impacts from tariffs [15][26] Management's Comments on Operating Environment and Future Outlook - Management expects volume growth headwinds to ease in Q2 2025, leading to reaccelerated net revenue growth [16] - The company remains confident in its ability to navigate macroeconomic uncertainties and consumer behavior changes due to its strong brand loyalty [84] - Management reiterated its full-year guidance for net revenue of at least $740 million, representing at least 22% growth compared to 2024 [24][25] Other Important Information - The company is on track with its digital transformation initiative, with the launch of a new ERP system updated to early fall 2025 [27] - The company is addressing a material weakness in internal controls related to revenue recognition, with no revenue inconsistencies found [23] Q&A Session Summary Question: Impact of price increase on retailer pricing - Management indicated that pricing is primarily aimed at protecting gross margins and maintaining strong relationships with retail partners [39] Question: Current egg supply and retailer orders - Management noted that while the category is improving, supply constraints still exist, and elevated orders from retailers reflect ongoing demand [41] Question: Volume growth expectations for the year - Management expects volume growth to accelerate as new farms come online, with Q2 serving as a transition point [48] Question: Impact of tariffs on pricing and costs - Management confirmed that while tariffs could impact costs, the price increase is expected to cover these impacts [62] Question: Retail distribution increase clarification - The increase in reported distribution from 24,000 to 26,000 stores was due to a change in data providers rather than a significant increase in new retailers [67] Question: Consumer behavior amidst macro uncertainty - Management observed that brand loyalty remains strong, with consumers less likely to trade down even in challenging economic conditions [84]

• May 2025 Corporate Presentation (Nasdaq: VITL) Vital Farms, Inc. Reporting Disclaimer This presentation contains, in addition to historical information, certain "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), that are based on our current assumptions, expectations and projections about future performance and events and relate to, among other matters, our future financial performa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number: 001-39411 Vital Farms, Inc. (Exact name of registrant as specified in its charter) Delaware 27-049698 ...

Reaffirms Fiscal Year 2025 Outlook of $740 Million in Net Revenue and $100 Million in Adjusted EBITDA On Track to Reach $1 Billion Net Revenue Target in 2027 Vital Farms Reports First Quarter 2025 Financial Results Record First Quarter Net Revenue of $162.2 Million, Up 9.6% Versus Prior Year Period "We delivered first quarter results that were in-line with our overall expectations and made good progress on our key 2025 strategic initiatives, said Russell Diez-Canseco, Vital Farms' President and Chief Execut ...

Core Insights - Vital Farms reported a record first quarter net revenue of $162.2 million, representing a 9.6% increase compared to the prior year period [1][3][6] - The company reaffirmed its fiscal year 2025 outlook, targeting $740 million in net revenue and $100 million in adjusted EBITDA, while remaining on track to achieve a $1 billion net revenue target by 2027 [1][12][15] Financial Performance - Net revenue for the first quarter increased to $162.2 million from $147.9 million, driven by price/mix benefits of $12.4 million and volume-related growth of $1.9 million [3][6] - Gross profit was $62.5 million, or 38.5% of net revenue, compared to $58.9 million, or 39.8% of net revenue in the prior year [4][6] - Income from operations decreased to $21.8 million from $24.2 million, attributed to higher crew member investments [5][6] - Net income was $16.9 million, down from $19.0 million, with net income per diluted share at $0.37 compared to $0.43 in the prior year [7][6] - Adjusted EBITDA was $27.5 million, or 16.9% of net revenue, down from $29.1 million, or 19.7% of net revenue in the prior year [8][6] Operational Highlights - The company has maintained 20 consecutive quarters of year-over-year volume and net revenue growth since its IPO in 2020, with a three-year net revenue CAGR of 28% [2][12] - Vital Farms expanded its network to over 450 family farmers and is on track with internal capacity expansion plans, including a new egg washing and packing line in Missouri [2][12] - The butter business saw a significant growth of 41% in net sales compared to the prior year, benefiting from increased consumer awareness [2][12] Capital Expenditures and Cash Flow - Capital expenditures for the first quarter totaled $3.1 million, up from $1.3 million in the prior year [11] - Cash, cash equivalents, and marketable securities were $161.3 million as of March 30, 2025, with no outstanding debt [10][12] Fiscal Year 2025 Outlook - The company expects net revenue of at least $740 million, representing a minimum of 22% growth versus fiscal year 2024, and adjusted EBITDA of at least $100 million, reflecting at least 15% growth [15][12] - Capital expenditures are projected to be in the range of $50 million to $60 million, focusing on new facilities and digital transformation projects [15][12]

Core Viewpoint - Vital Farms (VITL) has shown a strong performance recently, with shares returning +8.3% over the past month, contrasting with the S&P 500's -0.5% and the Zacks Food - Miscellaneous industry's -4.2% [1] Earnings Estimates Revisions - Vital Farms is expected to post earnings of $0.26 per share for the current quarter, reflecting a year-over-year decline of -39.5% [4] - The consensus earnings estimate for the current fiscal year is $1.23, indicating a +4.2% change from the previous year [4] - For the next fiscal year, the consensus estimate of $1.50 suggests a +22.3% increase compared to the prior year [5] - The Zacks Consensus Estimate has seen a slight decrease of -0.9% for the current quarter and -0.2% for the current fiscal year over the last 30 days [4][5] Revenue Growth Projections - The consensus sales estimate for the current quarter is $162.62 million, representing a year-over-year increase of +9.9% [10] - For the current fiscal year, the revenue estimate is $740.79 million, indicating a +22.2% change, while the next fiscal year's estimate of $877.65 million reflects an +18.5% change [10] Last Reported Results and Surprise History - In the last reported quarter, Vital Farms achieved revenues of $165.99 million, a +22.2% increase year-over-year, and an EPS of $0.23 compared to $0.17 a year ago [11] - The company exceeded the Zacks Consensus Estimate for revenues by +3.6% and for EPS by +53.33% [11] - Vital Farms has consistently beaten consensus EPS and revenue estimates in the last four quarters [12] Valuation - Vital Farms has a Zacks Value Style Score of D, indicating it is trading at a premium compared to its peers [16] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [14][16] Conclusion - The Zacks Rank of 3 suggests that Vital Farms may perform in line with the broader market in the near term [17]

Group 1 - Vital Farms (VITL) closed at $33.83, with a +0.56% change, lagging behind the S&P 500's daily gain of 0.58% [1] - Over the past month, shares of Vital Farms gained 10.4%, outperforming the Consumer Staples sector's loss of 0.35% and the S&P 500's loss of 0.84% [1] Group 2 - The upcoming earnings report for Vital Farms is expected on May 8, 2025, with projected earnings per share (EPS) of $0.26, reflecting a 39.53% decrease from the same quarter last year [2] - Revenue is anticipated to be $162.62 million, indicating a 9.93% increase from the same quarter last year [2] Group 3 - For the full year, analysts expect earnings of $1.23 per share and revenue of $740.79 million, marking changes of +4.24% and +22.18% respectively from last year [3] Group 4 - Recent changes in analyst estimates for Vital Farms are important as they indicate shifts in near-term business trends, with positive revisions suggesting analyst optimism regarding the company's profitability [4] Group 5 - The Zacks Rank system, which evaluates estimate changes, indicates that Vital Farms currently holds a Zacks Rank of 3 (Hold), with a consensus EPS projection moving 0.16% lower in the past 30 days [6] Group 6 - Vital Farms has a Forward P/E ratio of 27.39, which is higher than the industry average of 15.47, suggesting that the company is trading at a premium [7] - The Food - Miscellaneous industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 83, placing it in the top 34% of over 250 industries [7]

Core Insights - Vital Farms (VITL) stock closed at $33.64, reflecting a +0.78% change from the previous session, outperforming the S&P 500's daily gain of 0.06% [1] - The company experienced a significant gain of 12.31% over the past month, surpassing the Consumer Staples sector's gain of 2.15% and the S&P 500's loss of 4.29% [1] Earnings Expectations - Vital Farms is set to release its earnings report on May 8, 2025, with analysts expecting earnings of $0.26 per share, indicating a year-over-year decline of 39.53% [2] - The consensus estimate for revenue is $162.62 million, representing a 9.93% increase from the prior-year quarter [2] Full Year Projections - For the full year, analysts anticipate earnings of $1.23 per share and revenue of $740.79 million, reflecting changes of +4.24% and +22.18% respectively from the previous year [3] Analyst Estimate Revisions - Recent adjustments to analyst estimates for Vital Farms are crucial as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [4] - The Zacks Rank system, which evaluates these estimate changes, suggests that stocks with positive revisions tend to perform better [5] Zacks Rank and Valuation - Vital Farms currently holds a Zacks Rank of 3 (Hold), with a recent 0.16% decrease in the consensus EPS estimate over the last 30 days [6] - The company has a Forward P/E ratio of 27.18, which is higher than the industry average of 15.63, indicating that it is trading at a premium [7] Industry Context - The Food - Miscellaneous industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 154, placing it in the bottom 38% of over 250 industries [7] - The Zacks Industry Rank assesses the strength of industry groups, showing that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Overview - Vital Farms is a Certified B Corporation that offers a range of ethically produced foods nationwide [3] - The company started in 2007 on a single farm in Austin, Texas, and has grown to work with over 425 family farms [3] - Vital Farms is the leading U.S. brand of pasture-raised eggs by retail dollar sales [3] - The company emphasizes humane treatment of farm animals and sustainable farming practices [3] - Vital Farms' products include shell eggs, butter, hard-boiled eggs, and liquid whole eggs, sold in approximately 24,000 stores nationwide [3] Upcoming Financial Results - Vital Farms will report financial results for the first quarter ended March 30, 2025, on May 8, 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 [2] - Participants can access the live call via specific phone numbers or through the Vital Farms Investor Relations website [2]