Vital Farms misses guidance, cuts capex, exits butter as oversupply crushes margins

Filed May 7, 2026 · Period ending March 29, 2026 · Compared to 10-Q May 8, 2025 · ~2 min read

Key Changes

• high

  Q1 2026 Adjusted EBITDA collapsed 82% to $5.0M from $27.5M prior year despite 15% revenue growth, as gross margin compressed 11 points to 28% due to industry oversupply and unfavorable sales mix.

  MD&A: Financial Results verify on EDGAR →
• high

  Company announced $35-50M in unplanned costs over next 12 months to pay farmers to cease or delay production, slowed construction on Vital Crossroads facility, and paused new accelerator farm development.

  MD&A: Supply Control & Capex verify on EDGAR →
• high

  Cash position declined 68% to $51.4M from $161.3M year-over-year; company evaluating credit facility amendment to increase borrowing capacity and may pursue alternative financing or cost reductions.

  MD&A: Liquidity verify on EDGAR →