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Vital Farms, Inc. (VITL) Fundamental Analysis & AI Grade 2026

VITL Nasdaq Food and Kindred Products DE CIK: 0001579733
Updated This Month • Analysis: May 9, 2026 • SEC Data: 2026-03-29
Combined AI Grade
B
72% Confidence
N/A
B
72% Conf
Pending
Analysis scheduled

📊 VITL Key Takeaways

Revenue: $187.2M
Net Margin: -0.8%
Free Cash Flow: $-39.3M
Current Ratio: 1.77x
Debt/Equity: 0.02x
EPS: $-0.03
AI Grade: B with 72% confidence
Vital Farms, Inc. (VITL) receives a B fundamental grade with 72% confidence from our AI analysis based on SEC 10-K filings. With revenue of $187.2M, net profit margin of -0.8%, and return on equity (ROE) of -0.5%, Vital Farms, Inc. demonstrates mixed fundamentals in the Consumer sector. Below is our complete VITL stock analysis for 2026.

Is Vital Farms, Inc. (VITL) a Good Investment?

Claude

Vital Farms demonstrates strong topline growth (25.3% YoY) with healthy gross margins (28.3%), supported by a fortress balance sheet and minimal leverage. However, persistent operating losses and severe negative free cash flow (-$39.3M, -21% of revenue) create unsustainable burn dynamics that threaten long-term viability absent significant operational improvements.

Vital Farms, Inc. Key Strengths (VITL)

Claude
  • + Strong revenue growth of 25.3% YoY indicating market demand for products
  • + Healthy gross margins at 28.3% demonstrating pricing power and product quality
  • + Fortress balance sheet with minimal debt (0.02x D/E ratio) and $36.6M cash providing runway for operational improvements

VITL Stock Risks: Vital Farms, Inc. Investment Risks

Claude
  • ! Severe negative free cash flow of -$39.3M (-21% FCF margin) with limited cash runway at current burn rate
  • ! Operating unprofitability despite revenue growth signals structural cost or pricing issues that growth is not yet solving
  • ! Capital-intensive business model ($20.8M CapEx annually) combined with operational losses constrains financial flexibility and limits investment capacity

Key Metrics to Watch

Claude
  • * Operating cash flow trajectory and path to positive FCF generation
  • * Operating margin progression toward breakeven and profitability
  • * Cash burn rate and absolute cash runway remaining under current operational structure

Vital Farms, Inc. (VITL) Financial Metrics & Key Ratios

Revenue
$187.2M
Net Income
$-1.5M
EPS (Diluted)
$-0.03
Free Cash Flow
$-39.3M
Total Assets
$492.6M
Cash Position
$36.6M

💡 AI Analyst Insight

Vital Farms, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

VITL Profit Margin, ROE & Profitability Analysis

Gross Margin 28.3%
Operating Margin -1.2%
Net Margin -0.8%
ROE -0.5%
ROA -0.3%
FCF Margin -21.0%

VITL vs Consumer Sector: How Vital Farms, Inc. Compares

How Vital Farms, Inc. compares to Consumer sector averages

Net Margin
VITL -0.8%
vs
Sector Avg 8.0%
VITL Sector
ROE
VITL -0.5%
vs
Sector Avg 18.0%
VITL Sector
Current Ratio
VITL 1.8x
vs
Sector Avg 1.5x
VITL Sector
Debt/Equity
VITL 0.0x
vs
Sector Avg 0.8x
VITL Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Vital Farms, Inc. Stock Overvalued? VITL Valuation Analysis 2026

Based on fundamental analysis, Vital Farms, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.

Return on Equity
-0.5%
Sector avg: 18%
Net Profit Margin
-0.8%
Sector avg: 8%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.02x
Sector avg: 0.8x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Vital Farms, Inc. Balance Sheet: VITL Debt, Cash & Liquidity

Current Ratio
1.77x
Quick Ratio
1.00x
Debt/Equity
0.02x
Debt/Assets
32.8%
Interest Coverage
-4.55x
Long-term Debt
$6.5M

VITL Revenue & Earnings Growth: 5-Year Financial Trend

VITL 5-year financial data: Year 2021: Revenue $260.9M, Net Income $2.4M, EPS $0.07. Year 2022: Revenue $362.1M, Net Income $8.8M, EPS $0.27. Year 2023: Revenue $471.9M, Net Income $2.4M, EPS $0.06. Year 2024: Revenue $606.3M, Net Income $1.3M, EPS $0.03. Year 2025: Revenue $759.4M, Net Income $25.6M, EPS $0.59.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Vital Farms, Inc.'s revenue has grown significantly by 191% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.59 reflects profitable operations.

VITL Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-21.0%
Free cash flow / Revenue

VITL Quarterly Earnings & Performance

Quarterly financial performance data for Vital Farms, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $162.2M -$1.5M $-0.03
Q3 2025 $145.0M $7.4M $0.16
Q2 2025 $147.4M $16.3M $0.36
Q1 2025 $147.9M $16.9M $0.37
Q3 2024 $110.4M $4.5M $0.10
Q2 2024 $106.4M $6.7M $0.15
Q1 2024 $119.2M $7.2M $0.16
Q3 2023 $92.0M $199.0K $-0.02

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Vital Farms, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$18.6M
Cash generated from operations
Stock Buybacks
$20.0M
Shares repurchased (TTM)
Capital Expenditures
$20.8M
Investment in assets
Dividends
None
No dividend program

VITL SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Vital Farms, Inc. (CIK: 0001579733)

📋 Recent SEC Filings

Date Form Document Action
May 21, 2026 4 xslF345X06/ownership.xml View →
May 20, 2026 4 xslF345X06/ownership.xml View →
May 19, 2026 4 xslF345X06/ownership.xml View →
May 19, 2026 4 xslF345X06/ownership.xml View →
May 19, 2026 4 xslF345X06/ownership.xml View →

Frequently Asked Questions about VITL

What is the AI rating for VITL?

Vital Farms, Inc. (VITL) has an AI grade of B with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are VITL's key strengths?

Claude: Strong revenue growth of 25.3% YoY indicating market demand for products. Healthy gross margins at 28.3% demonstrating pricing power and product quality.

What are the risks of investing in VITL?

Claude: Severe negative free cash flow of -$39.3M (-21% FCF margin) with limited cash runway at current burn rate. Operating unprofitability despite revenue growth signals structural cost or pricing issues that growth is not yet solving.

What is VITL's revenue and growth?

Vital Farms, Inc. reported revenue of $187.2M.

Does VITL pay dividends?

Vital Farms, Inc. does not currently pay dividends.

Where can I find VITL SEC filings?

Official SEC filings for Vital Farms, Inc. (CIK: 0001579733) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is VITL's EPS?

Vital Farms, Inc. has a diluted EPS of $-0.03.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is VITL's fundamental grade?

Based on our AI fundamental analysis in June 2026, Vital Farms, Inc. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is VITL stock overvalued or undervalued?

Valuation metrics for VITL: ROE of -0.5% (sector avg: 18%), net margin of -0.8% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.

What is VITL's AI grade for 2026?

Our dual AI analysis gives Vital Farms, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is VITL's free cash flow?

Vital Farms, Inc.'s operating cash flow is $-18.6M, with capital expenditures of $20.8M. FCF margin is -21.0%.

How does VITL compare to other Consumer stocks?

Vs Consumer sector averages: Net margin -0.8% (avg: 8%), ROE -0.5% (avg: 18%), current ratio 1.77 (avg: 1.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 9, 2026 | Data as of: 2026-03-29 | Powered by Claude AI