Vital Farms, Inc. Q3 2026 Earnings Recap

Vital Farms rose 9.2% after earnings, with third-quarter revenue up 10% sequentially and adjusted EBITDA returning to a $1.5 million profit from a $26.6 million loss in Q2. But the company cut its full-year sales outlook to about $730 million, citing a weaker-than-expected holiday build, later distribution gains and no assumed recovery in conventional egg prices.

Key Takeaways

• Q3 net revenue was $182.2 million, up 10% from Q2; gross margin was 23%, more than 16 points higher sequentially.
• Farmer contract amendments helped reduce volume sent to breaker and wholesale channels by 59% versus Q2, which management identified as the biggest driver of margin recovery.
• Vital Farms reported record Circana MULO+ shell-egg dollar share of 7.2% and volume share of 2.3% at quarter-end; its latest weekly distribution reading was 176 TDPs.
• Management said the return of conventional egg supply and lower store-brand prices contributed to reduced purchasing by incremental households attracted during the 2024–25 price-gap compression.
• Full-year capital spending is now expected at $70 million–$75 million, versus the $140 million–$150 million planned in February; the Vital Crossroads project is on track to pause once the building is enclosed.