Vital Farms Q2 2025 Earnings Call Transcript: Key Takeaways and Insights

Vital Farms reported Q2 2025 earnings with Russell Diez-Canseco, CEO, and Thilo Wrede, CFO, discussing the results. The company's revenue increased 23% YoY to $63.6 million, with net income of $3.2 million, compared to a net loss of $5.7 million in Q2 2024. Vital Farms' CEO attributed the growth to strong demand for its products and successful expansion into new markets.

Vital Farms (Nasdaq: VITL), a Certified B Corporation known for its ethically produced foods, reported its second-quarter 2025 financial results, showcasing significant growth and positive financial performance. The company's net revenue increased by 25.4% to $184.8 million compared to the same period in 2024, driven by strong consumer demand and successful strategic pricing actions [1].

Russell Diez-Canseco, Vital Farms' President and Chief Executive Officer, commented on the results, stating, "We delivered second quarter results that exceeded our initial expectations, demonstrating the overall strength of our business model and expanding year-over-year consumer awareness of our strong brand." The company's gross margin remained robust at 38.9%, while net income rose to $16.6 million, up from $16.3 million in the prior year quarter [1].

Key highlights of the quarter include an increase of 50 farms to over 500 family farms with 9 million hens under contract, and the redesign and groundbreaking of the Seymour facility to bring additional production capacity online in 2027. Additionally, the company is continuing the installation of a third production line in Springfield, scheduled for completion by the end of 2025, and placed birds on its first accelerator farm [1].

Thilo Wrede, Vital Farms’ Chief Financial Officer, commented on the company's outlook for fiscal 2025, stating, "We are raising our net revenue and Adjusted EBITDA guidance for fiscal 2025, reflecting the strong performance of our core business and successful implementation of strategic pricing actions." The company now expects net revenue of at least $770 million, representing at least 27% growth versus fiscal year 2024 results, and Adjusted EBITDA of at least $110 million [1].

The company's capital expenditure plan has been increased to $90 million to $110 million for fiscal 2025, reflecting the strategic decision to construct both production lines at the Seymour, Indiana facility simultaneously and add onsite cold storage. Vital Farms anticipates some margin pressure in the second half of the year from tariff impacts and planned promotional activities, but these factors are fully incorporated into their guidance [1].

Vital Farms' financial results underscore the company's commitment to ethical food production and sustainable growth, positioning it well to achieve its $1 billion net revenue target by 2027. The company's strong balance sheet, growing operational capabilities, and proven ability to execute remain key strengths.

References:
[1] https://investors.vitalfarms.com/news/news-details/2025/Vital-Farms-Reports-Second-Quarter-2025-Financial-Results/default.aspx