The guidance reset is extreme: FY2026 EBITDA guide of $0-10M implies a ~50x+ EV/EBITDA multiple at current market cap (~$514M) — unsustainable. Expect aggressive sell-off. Watch for further erosion in egg pricing and competitor responses. The butter exit should be margin-accretive but near-term costs are unknown. Monitor Q2 results for volume recovery evidence.
Price Chart
Executive Summary
Vital Farms reported Q1 2026 net loss of $1.5M (EPS -$0.03 vs consensus $0.13), gross margin collapse to 28.3% from 38.5%, and slashed FY2026 guidance: revenue cut ~14% to $775-800M and Adjusted EBITDA slashed from $105-115M to $0-10M. The company also announced wind-down of its butter business, with undetermined exit costs. This represents a severe deterioration in fundamentals and a dramatic guidance reset.
Key Financial Metrics
Key Facts
- Q1 2026 net loss of $1.5M vs prior-year net income of $16.9M; diluted EPS -$0.03 vs consensus +$0.13
- Gross margin fell 10.2pp to 28.3% due to egg oversupply and unfavorable sales mix
- FY2026 revenue guidance cut to $775-800M (prior $900-920M); Adjusted EBITDA guidance slashed to $0-10M (prior $105-115M)
- Announced wind-down of butter business; exit costs not yet estimable
- Cash and securities $51.4M, no debt; repurchased $20M of stock in Q1
- Operating cash flow turned negative -$18.6M vs +$5.3M a year ago
Financial Impact
Revenue growth decelerated and profitability evaporated; guidance implies FY2026 revenue growth of ~5% (previously ~21%) and near-zero EBITDA. Net loss of $1.5M in Q1 vs consensus profit of ~$5.8M (based on $0.13 EPS x 44.6M shares).
Risk Factors
- Further gross margin compression from persistent egg oversupply and promotional investments
- Butter wind-down costs may be material; no estimate provided
- Slowed capital spending may delay capacity expansion and future growth
- High cash burn: operating cash flow negative and capex still $70-75M guided, straining liquidity
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-210294 |
| Document: vitl-20260501.htm | 0001193125-26-210294 |
| Document: 0001193125-26-210294-index-headers.html | 0001193125-26-210294 |
| Document: 0001193125-26-210294-index.html | 0001193125-26-210294 |
| Document: 0001193125-26-210294.txt | 0001193125-26-210294 |
| 8-K Data (Synthetic) | 0001193125-26-210294 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 6, 2026 11w ago | 8-K | $12.51 $11.59 | ▲ +7.35% | ▲ +8.57% | $8.89 (+28.98%) |
Jun 13, 2026 19w ago | Institutional Cluster | $10.61 $10.08 | ▲ +5.00% | ▲ +3.61% | $8.89 (+16.26%) |
May 21, 2026 22w ago | Insider Cluster | $10.13 $10.07 | ▼ −0.59% | ▼ −2.25% | $8.89 (−12.29%) |
May 19, 2026 22w ago | Insider Cluster | $9.43 $10.45 | ▲ +10.82% | ▲ +9.01% | $8.89 (−5.78%) |
May 18, 2026 23w ago | Insider Cluster | $9.17 $10.41 | ▼ −13.52% | ▼ −11.28% | $8.89 (+3.11%) |
May 7, 2026 24w ago | 8-K | $9.52 $8.33 | ▲ +12.50% | ▲ +14.00% | $8.89 (+6.67%) |
Feb 26, 2026 34w ago | 8-K | $22.11 $19.89 | ▼ −10.04% | ▼ −8.91% | $8.89 (−59.81%) |
US Market Status
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