Vital Farms (NASDAQ:VITL) surged more than 8.8% in premarket trading Tuesday after the company delivered record third-quarter results that topped expectations and prompted management to raise its full-year forecast, fueled by strong volume growth and operational efficiencies.
The ethically sourced food producer reported adjusted earnings of $0.36 per share, well above analysts’ expectations of $0.29, while revenue hit an all-time high of $198.9 million, up 37.2% year over year and beating the $191.32 million consensus estimate. The company attributed the strong results to higher sales volumes and favorable pricing trends.
“Our third quarter results demonstrate the power of disciplined execution across our business,” said Russell Diez-Canseco, President and CEO of Vital Farms. “This values-aligned approach is fueling strong growth as we build momentum heading into Q4 and lay the foundation for long-term success.”
Following the strong performance, Vital Farms raised its full-year 2025 outlook, now expecting revenue of at least $775 million, up from its prior guidance of $770 million and above the $772.6 million analyst consensus. The company also boosted its adjusted EBITDA target to at least $115 million, compared with the previous goal of $110 million.
Gross margin expanded to 37.7% from 36.9% a year earlier, driven by improved pricing, lower commodity costs, and increased operating scale. During the quarter, Vital Farms added about 75 new family farms, expanding its network to 575 farms nationwide.
The company reaffirmed confidence in reaching its $1 billion revenue milestone by 2027, supported by a solid balance sheet with $145.1 million in cash and no outstanding debt. Management also noted operational achievements, including the implementation of a new ERP system and the launch of a third production line at its Egg Central Station facility.