EarningsQ2 2026 Earnings Report

Vital Farms (5KH) Q2 2026 Earnings Report

6 Followers

Previous Report: Q1 2026

DE:5KH Q2 2026 EPS Results

Actual EPS-€0.42

Consensus EPS-€0.42

Beat/MissBeat by +<€0.01

One Year Ago EPS€0.32

DE:5KH Q2 2026 Revenue Results

Actual Revenue€148.16M

Expected Revenue€143.00M

Beat/MissBeat by +€5.17M

YoY Revenue Growth-10.14%

Earnings Announcement Details

QuarterQ2 2026

Date08/06/2026

TimeBefore Open

Conference CallThursday, August 6, 2026

DE:5KH Upcoming Earnings

Vital Farms's next earnings date is estimated for November 3, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

DE:5KH Q2 2026 Earnings Call

0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026

Earnings Call Date:Aug 06, 2026|

% Change Since:

Earnings Call Sentiment|Neutral

The call presents a mixed picture: Q2 financials were weak (10.1% revenue decline, gross margin compression, and a $26.6M adjusted EBITDA loss) driven by industry oversupply and breaker‑channel impacts, but management has executed a clear remediation plan—narrowing price gaps, securing distribution gains (TDP growth), implementing farmer contract amendments, cutting SG&A (~$6–$7M annualized), and strengthening liquidity with new credit facilities. Management reaffirmed full‑year guidance and expects sequential improvement through Q3 into a stronger Q4. Given the balance of meaningful operational progress and persistent near‑term financial pain, the tone is cautiously constructive.

Company Guidance

Management reaffirmed full‑year 2026 guidance of net revenue $775–$800 million and adjusted EBITDA of $0–$10 million, expecting gross margin to exit Q4 at approximately 30%; Q2 net revenue declined 10.1% to $166.0 million with gross profit of $10.9 million (6.6%) and an adjusted EBITDA loss of $26.6 million. Operationally, average price gaps narrowed from ~$2.51 in Q1 to ~$2.36 in Q2 (target $1–$2), driving a >200 bps YoY gain in retail dollar share (MULO+) and a 27% improvement in velocity and new households at a top‑10 retailer since mid‑April; shell‑egg units per store/week/item were up 12.5% since the Q1 call and hit their highest level since Feb 2026 by mid‑July. Distribution is set to expand (TDPs 150–160 average for 2026 vs 130 in 2025; 148.7 YTD through Q2 per Circana; targeted 170–175 TDPs in Q4), and the company expects sequential revenue and adjusted EBITDA improvement in Q3 and stronger leverage in Q4. Q2 included $28.1 million of supply‑management/other discrete gross‑profit impacts (including $19.5M breaker, $0.8M amortization, $7.8M butter exit) and $24.8M of discrete expenses not added back to adjusted EBITDA (including $21.8M peak breaker costs and $3.0M professional fees); full‑year supply‑management costs are now modeled in the mid‑$30 million range (vs $32M prior). SG&A was $40.4M (including $6.3M of discrete items); annualized SG&A run‑rate is expected to be reduced by ~$6–7M from May/July actions. Liquidity: quarter‑end cash $21.2M (had drawn $30M on prior revolver); post‑quarter the company drew a $125M term loan and put in place a $60M ABL (total ~$185M capacity); the board terminated the repurchase program after executing $50M of repurchases at an average $13.29/share earlier in the year; CapEx guidance was reaffirmed at $70–75M.

Distribution Expansion & TDP Growth

Average total distribution points (TDPs) expected to be 150–160 in 2026 (up from 130 in 2025); reached 148.7 TDPs YTD through Q2 and management expects 170–175 TDPs in Q4 2026, supporting volume growth into H2/2027.

Narrowing Price Gaps & Retail Share Gains

Average price gap to branded competitors narrowed from ~$2.51 in Q1 to ~$2.36 in Q2 (≈6% improvement); where gaps were reduced, velocity and new household acquisition improved ~27% since mid‑April; delivered >200 basis point year‑over‑year gain in retail dollar share of the shell egg category (MULO+) in Q2.

Improving Store Velocity

Shell egg units per store per week per item were up 12.5% since the company’s Q1 call (as of mid‑July) and reached the highest level since February 2026, indicating stronger retail performance as price gaps narrowed.

Supply Management Actions in Place

Voluntary farmer contract amendments are live, management believes oversupply peaked in Q2 and is now reducing production rather than routing expensive eggs to the low‑value breaker channel, which should reduce future breaker-related losses.

SG&A and Operational Cost Reductions

Completed organizational streamlining and staffing changes, reducing annualized SG&A run rate by approximately $6–$7 million; mid‑July optimization actions expected to improve decision speed and lower structural overhead.

Strengthened Liquidity and Financing

After quarter end, replaced prior revolver with a $125M term loan and a $60M asset‑based facility (total $185M capacity, both 3‑year tenor); the term loan was drawn in full, improving financial runway; quarter‑end cash was $21.2M.

Reaffirmed Full‑Year Guidance

Management reaffirmed 2026 guidance: net revenue $775M–$800M and adjusted EBITDA $0M–$10M, anticipating sequential improvement in Q3 and stronger Q4 due to distribution gains, price gap narrowing and lower breaker volumes.

DE:5KH Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Nov 03, 2026	2026 (Q3)	-0.10 / -	0.321	―
Aug 06, 2026	2026 (Q2)	-0.42 / -0.42	0.321	-230.56% (-0.74)
May 07, 2026	2026 (Q1)	0.05 / -0.03	0.33	-108.11% (-0.36)
Feb 26, 2026	2025 (Q4)	0.35 / 0.31	0.205	52.17% (+0.11)
Nov 04, 2025	2025 (Q3)	0.27 / 0.32	0.143	125.00% (+0.18)
Aug 07, 2025	2025 (Q2)	0.25 / 0.32	0.321	0.00% (0.00)
May 08, 2025	2025 (Q1)	0.23 / 0.33	0.384	-13.95% (-0.05)
Feb 27, 2025	2024 (Q4)	0.15 / 0.21	0.152	35.29% (+0.05)
Nov 07, 2024	2024 (Q3)	0.11 / 0.14	0.089	60.00% (+0.05)
Aug 08, 2024	2024 (Q2)	0.18 / 0.32	0.134	140.00% (+0.19)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed