5 Insightful Analyst Questions From Vital Farms’s Q2 Earnings Call

August 14, 2025 at 01:34 AM EDT

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Vital Farms delivered a strong performance in Q2, with results that surpassed Wall Street expectations. Management pointed to robust volume growth, successful price increases, and a resilient supply chain as key drivers. CEO Russell Diez-Canseco highlighted progress in expanding the network of family farms, stating, "We've been able to start rebuilding our inventory, and we are seeing continued strength in consumer demand and brand loyalty even as we implemented our recent price increases." The company also emphasized improved operational efficiency and the ability to meet rising demand thanks to investments in infrastructure and logistics.

Is now the time to buy VITL? Find out in our full research report (it’s free).

Vital Farms (VITL) Q2 CY2025 Highlights:

Revenue: $184.8 million vs analyst estimates of $171 million (25.4% year-on-year growth, 8% beat)
Adjusted EPS: $0.36 vs analyst estimates of $0.27 (31.7% beat)
Adjusted EBITDA: $29.92 million vs analyst estimates of $22.85 million (16.2% margin, 30.9% beat)
The company lifted its revenue guidance for the full year to $770 million at the midpoint from $740 million, a 4.1% increase
EBITDA guidance for the full year is $110 million at the midpoint, above analyst estimates of $102.4 million
Operating Margin: 12.9%, up from 11.6% in the same quarter last year
Market Capitalization: $2.13 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Vital Farms’s Q2 Earnings Call

Megan Clapp (Morgan Stanley) asked about the relative contributions of volume versus price in the updated outlook. CFO Thilo Wrede explained that volume growth is the primary driver, with pricing as an added benefit.
Jon Anderson (William Blair) questioned the rationale for accelerating the Seymour facility’s expansion. CEO Russell Diez-Canseco stated this move allows the company to catch up with demand and maintain self-funding from strong cash flow.
Robert Moskow (TD Cowen) asked about price gaps versus competitors and the impact of tariffs on promotional strategies. Diez-Canseco said the brand’s value proposition supports current pricing, while Wrede clarified that promotional flexibility depends on tariff outcomes.
Matt Smith (Stifel) inquired whether future distribution gains will come from new retailers or expanded shelf space. Diez-Canseco emphasized the priority is growing both product assortment and shelf presence within existing high-performing stores.
Scott Marks (Jefferies) asked about inventory rebuilding and the effect of supply normalization in the mainstream egg market. Wrede said increased inventory improves operational efficiency, and Diez-Canseco noted that commodity egg pricing trends have limited impact on Vital Farms’ demand.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be watching (1) the pace at which new family farms are onboarded and integrated into the supply chain, (2) the operational ramp-up and cost efficiencies from the Seymour facility expansion and cold storage improvements, and (3) the effectiveness of promotional and marketing investments in driving household penetration and consumer loyalty. Tracking margin stability amid tariff and promotional pressures will be equally important.

Vital Farms currently trades at $46.90, up from $37.32 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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5 Insightful Analyst Questions From Vital Farms’s Q2 Earnings Call

Vital Farms (VITL) Q2 CY2025 Highlights:

Our Top 5 Analyst Questions From Vital Farms’s Q2 Earnings Call

Catalysts in Upcoming Quarters

The Best Stocks for High-Quality Investors

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