Vital Farms announced that its long‑term revenue outlook has been raised to $2 billion by 2030, with an adjusted EBITDA margin target of 15‑17% for the same year. The company also revised its fiscal‑year 2025 revenue guidance downward to a range of $755 million to $765 million, citing a temporary disruption caused by an enterprise‑resource‑planning system transition.
Prior to this update, Vital Farms had set a $1 billion net‑revenue goal for 2027 and maintained a 12‑14% EBITDA margin outlook for 2030. The new $2 billion target represents a 100% acceleration of the 2030 revenue trajectory, while the margin range has been lifted from 12‑14% to 15‑17% to reflect expected scale benefits and pricing power as the company expands its farm network and processing capacity.
The guidance cut for 2025 was driven by a short‑term operational hiccup: the ERP transition temporarily slowed order processing and invoicing, leading to a modest revenue shortfall. Management emphasized that the disruption is expected to resolve quickly and that the company’s underlying demand remains strong, with no change to the 2030 revenue or margin outlook.
Investors reacted negatively to the near‑term guidance revision, but many analysts maintained a positive long‑term view, noting that the ERP issue is temporary and that the company’s strategic investments should support the ambitious 2030 targets.
Vital Farms is expanding its farm network by adding new farms across the Midwest and building the Vital Crossroads processing facility in Seymour, Indiana, slated to be operational by 2027. The facility is projected to increase processing capacity by 30% and unlock additional margin through improved operational leverage.
In Q3 2025, the company reported revenue of $198.9 million, up 37.2% from the prior quarter, and an adjusted EBITDA margin of 13.8%, a 1.5‑percentage‑point improvement over the same period last year. The revenue growth was driven by a 25% increase in U.S. commercial sales and a 15% rise in retail channel volume, while the margin expansion was largely attributable to disciplined cost management and a favorable mix shift toward higher‑margin premium egg products.
CEO Russell Diez‑Canseco said, “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. As we continue to drive increased brand awareness, expand household penetration and brand loyalty, deepen distribution, and continue scaling our supply chain, we believe Vital Farms is well‑positioned to deliver durable, profitable growth.”
The company faces a temporary headwind from the ERP transition, but benefits from a robust specialty egg market that is expanding due to consumer demand for ethically produced, sustainable products. Vital Farms’ status as a Certified B Corporation and a Public Benefit Corporation reinforces its brand appeal and supports long‑term growth prospects.
Overall, while the short‑term guidance cut signals a temporary operational challenge, the company’s strategic investments, strong demand, and ambitious long‑term targets suggest a resilient growth trajectory that should continue to attract investor interest over the medium to long term.
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