Vital Farms, Inc. reported financial results for the third quarter of fiscal 2026, which ended September 27, 2026. The company reported net revenue of $182.2 million for the quarter, a decrease of 8.4% compared to the same period in the prior year. However, the company noted that this figure represents a sequential increase of 9.7% from the second quarter of fiscal 2026.
Despite the sequential growth, the company reported a net loss of $6.5 million for the quarter, or $0.15 per diluted share. This compares to a net income of $16.4 million, or $0.36 per diluted share, in the prior-year quarter. The company also reported an Adjusted EBITDA of $1.5 million for the quarter, a significant improvement from the $27.4 million reported in the prior-year period but a sequential increase from the second quarter of 2026.
The company attributed the year-over-year revenue decline to a price/mix decline of $14.3 million and a volume-driven decline of $2.2 million. It also noted that sales to breaker and wholesale channels contributed to the decline, as a large volume increase was almost entirely offset by a price decline. The company also reported a gross margin of 23.1% for the quarter, down from 37.7% in the prior year.
In terms of balance sheet and cash flow, Vital Farms reported cash and cash equivalents of $84.0 million as of September 27, 2026. The company had $117.6 million of outstanding debt. Net cash used in operating activities was $54.4 million for the 39-week period ended September 27, 2026.
Vital Farms has updated its fiscal year 2026 outlook. The company now expects net revenue of around $730 million, down from its previous outlook of $775 million to $800 million. The company also expects an Adjusted EBITDA loss of around $(15) million, down from its previous outlook of a gain between $0 and $10 million. The company reaffirmed its capital expenditure outlook of $70 million to $75 million for fiscal 2026.
Additionally, Vital Farms announced that it is withdrawing its previously announced long-term targets for fiscal 2030. The company stated that it expects to revisit these targets once it has made more progress expanding margins and improving profitability.
