Overview

* Vital Farms ( VITL ) Q2 revenue rises 25.4% yr/yr, beating analyst expectations

* Adjusted EBITDA for Q2 beats estimates, reflecting strategic pricing actions

* Co raises FY 2025 revenue outlook to at least $770 mln, up 27% from 2024

Outlook

* Vital Farms ( VITL ) raises fiscal 2025 net revenue outlook to at least $770 mln

* Company expects fiscal 2025 adjusted EBITDA of at least $110 mln

* Vital Farms ( VITL ) increases capital expenditure outlook to $90-110 mln

* Company anticipates margin pressure from tariffs and promotions in H2 2025

Result Drivers

* STRATEGIC PRICING - Price/mix benefits contributed $15.7 mln to revenue growth, per CEO Russell Diez-Canseco

* SUPPLY CHAIN EXPANSION - Expansion to 500 family farms and new production facilities supports increased revenue

* CONSUMER DEMAND - Accelerated demand for existing products and new offerings drove volume-related revenue growth of $21.7 mln

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $184.77 $170.50

Revenue mln mln (10

Analysts

)

Q2 EPS $0.36

Q2 Net $16.64

Income mln

Q2 Beat $29.90 $22.70

Adjusted mln mln (9

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the food retail & distribution peer group is "buy"

* Wall Street's median 12-month price target for Vital Farms Inc ( VITL ) is $45.50, about 18% above its August 6 closing price of $37.30

* The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)