Vital Farms Reports Strong Q2 2025 Growth

Vital Farms, Inc. ( (VITL) ) has released its Q2 earnings. Here is a breakdown of the information Vital Farms, Inc. presented to its investors.

Vital Farms, Inc., a Certified B Corporation, is a leading U.S. brand in the ethically produced food sector, specializing in pasture-raised eggs and other products, with a strong commitment to sustainable farming practices. In its latest earnings report, Vital Farms announced a significant increase in net revenue for the second quarter of 2025, reaching $184.8 million, a 25.4% rise from the previous year. The company also raised its fiscal year 2025 net revenue outlook to at least $770 million, reflecting a 27% increase from 2024, driven by robust consumer demand and strategic pricing actions.

Key financial highlights include a gross margin of 38.9% and a net income of $16.6 million, with net income per diluted share remaining steady at $0.36. Adjusted EBITDA rose to $29.9 million, marking a notable improvement from the previous year. Vital Farms attributes its growth to successful supply chain expansion, including the addition of 50 farms, and ongoing production capacity enhancements.

The company is on track to achieve its ambitious $1 billion net revenue target by 2027, supported by its expanding network of over 500 family farms and strategic investments in facilities. Vital Farms plans to increase capital expenditures to accelerate the buildout of its Seymour facility and enhance production capabilities, despite anticipating some margin pressure in the latter half of the year due to tariffs and promotional activities.

Looking ahead, Vital Farms remains confident in its growth trajectory, bolstered by a strong balance sheet and operational capabilities. The company continues to prioritize ethical food production and sustainable growth, positioning itself as a trusted brand in the food industry.