Vital Farms posts Q1 net loss, to exit butter business

Vital Farms

07/05/2026 12:25

Overview

U.S. pasture-raised egg producer's Q1 revenue rose 15.4%, beating analyst expectations

Company posted Q1 net loss and adjusted EBITDA fell sharply on higher costs, unfavorable sales mix

Vital Farms to wind down butter business, shifts focus to core egg categories

Outlook

Vital Farms sees 2026 net revenue of $775 mln to $800 mln, up at least 5% yr/yr

Company expects 2026 adjusted EBITDA of $0 mln to $10 mln

Vital Farms cuts 2026 capital expenditures outlook to $70 mln-$75 mln from $140 mln-$150 mln

Result Drivers

VOLUME GROWTH - Revenue rose on higher volumes from increased demand, expanded item offerings and broader store distribution

HIGHER COSTS & SALES MIX - Profitability declined due to higher input and production costs and an unfavorable sales mix from oversupply of eggs

Company press release: ID:nBw6xdN3ga

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$187.16 mln
$183.51 mln (11 Analysts)
Q1 Net Income
-$1.52 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

Wall Street's median 12-month price target for Vital Farms Inc is $20.00, about 66.7% above its May 6 closing price of $12.00

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 17 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)