Vital Farms(VITL) - 2025 Q2 - Quarterly Report

Special Note Regarding Forward-Looking Statements This section provides a cautionary note regarding forward-looking statements, highlighting inherent risks and uncertainties Forward-Looking Statements Disclosure 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] - 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] - 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] PART I. FINANCIAL INFORMATION This part presents the unaudited condensed consolidated financial statements and management's discussion and analysis Item 1. Financial Statements (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 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 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 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 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] - Retained earnings increased by $33,539 thousand during the 26-week period ended June 29, 2025, primarily due to net income[20] - Stock-based compensation expense contributed $5,887 thousand to additional paid-in capital for the 26-week period ended June 29, 2025[20] Condensed Consolidated Statements of Cash Flows 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] - 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] Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements Note 1. Nature of the Business and Basis of Presentation 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] - The company's fiscal year ends on the last Sunday in December and typically consists of 52 weeks, with quarters having 13 weeks[28] Note 2. Summary of Significant Accounting Policies 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] - 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] - 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] Note 3. Investment Securities 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] - 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] Note 4. Derivative Financial Instruments 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] 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] Note 5. Fair Value Measurements 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] 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] Note 6. Revenue Recognition 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 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][50] - 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] Note 8. Inventories 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] Note 9. Property, Plant and Equipment 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] - Depreciation of property, plant and equipment for the 26-week period ended June 29, 2025, was approximately $4,620 thousand[52] Note 10. Leases 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] Note 11. Goodwill and Other Assets 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] Note 12. Accrued Liabilities 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 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] - 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][62] - 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][65] Note 14. Common Stock 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] - No cash dividends were declared or paid during the periods presented[68] 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 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] 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 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] Restricted Stock Unit Activity 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] Performance Stock Unit Activity 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] Note 16. Income Taxes 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] - Uncertain tax positions increased from $0.6 million as of December 29, 2024, to $2.3 million as of June 29, 2025[80] Note 17. Net Income Per Share 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] Note 18. Accumulated Other Comprehensive Income 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] Note 19. Commitments and Contingencies 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] - As of June 29, 2025, the company has not incurred any material costs as a result of such indemnification agreements[86] - 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] Note 20. Related Party Transactions 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] - Amounts owed to Sandpebble were $197 thousand as of June 29, 2025, included in accounts payable and accrued liabilities[89] Note 21. Segment Reporting 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] 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 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 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] - 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] - 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][105] 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%