Shares of Vital Farms Inc. (NASDAQ:VITL) fell 8.1% in pre-market trading on Tuesday after the ethical food producer cut its revenue outlook for fiscal 2025, citing temporary disruptions linked to the rollout of a new ERP system.
The company now expects 2025 net revenue to range between $755 million and $765 million, reflecting short-term disruptions to ordering patterns following the implementation of its enterprise resource planning system at the start of the fourth quarter. Despite the revised sales outlook, Vital Farms left its adjusted EBITDA guidance unchanged at more than $115 million, pointing to disciplined cost control.
Alongside the update, Vital Farms issued its first revenue forecast for fiscal 2026, projecting sales of $930 million to $950 million. At the midpoint, this implies year-on-year growth of roughly 24%.
The company also outlined new long-term financial objectives, including a goal of reaching $2 billion in annual revenue by 2030 within its existing product categories. Vital Farms is targeting gross margins above 35% between 2025 and 2030, along with adjusted EBITDA margins of 15% to 17% by the end of the decade.
“We see a clear multi-year path toward $2 billion in Net Revenue by 2030 and 15% to 17% adjusted EBITDA margins by 2030, with Gross Margins of 35+% between 2025 and 2030,” said Russell Diez-Canseco, Vital Farms’ President and CEO.
The company also announced that its new processing facility in Seymour, Indiana, will be called Vital Crossroads (VXR) and is expected to come online in 2027. Management described the site as a “critical unlock” in achieving its long-term growth and profitability targets.
Vital Farms added that it completed the “hypercare” phase of its ERP transition on December 5, signaling a return to normal operations under the new IT system.