Vita Coco Reports Record Performance Despite Q4 Earnings Miss
Vita Coco's stock fell 11.09% as it hit a 20-day low amid broader market gains, with the Nasdaq-100 up 0.41% and S&P 500 up 0.19%.
Despite a slight miss in Q4 earnings, Vita Coco reported a 0.4% increase in net sales to $128 million, exceeding expectations by $8.79 million. The company achieved a gross profit rise of 8% and an adjusted EBITDA growth of 83% year-over-year, showcasing operational efficiency. The optimistic outlook for FY26 anticipates net sales between $680 million and $700 million, reflecting strong confidence in future growth.
The company's robust performance in international markets, particularly with a 42% surge in international sales, indicates strong brand appeal and market demand, positioning Vita Coco favorably for recovery despite the recent stock dip.
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- Earnings Highlights: Vita Coco reported Q4 revenue of $128 million, reflecting a 0.5% year-over-year growth that exceeded expectations, while EPS of $0.09 missed by $0.04, indicating profit pressure amid high growth.
- Private Label Sales Decline: Despite overall revenue growth, U.S. private label sales plummeted by 52%, leading to overall growth weakness and highlighting the company's heavy reliance on demand from a single large customer.
- Strong Annual Performance: For the full year, Vita Coco achieved an 18% sales increase to $610 million, with adjusted EBITDA rising 32% to $98 million, showcasing the company's ongoing growth potential in branded and international markets.
- Outlook Forecast: Management forecasts 2026 revenue between $680 million and $700 million and adjusted EBITDA between $122 million and $128 million, but concerns over the stock's current 49 times earnings valuation have led to a pullback in share price.
- Winter Escape: Many Americans are longing for warm weather and tropical vibes during the winter months.
- Investment Opportunity: Buying shares of Vita Coco during its stock dip may be a favorable investment choice.
- Significant Revenue Growth: Vita Coco achieved net sales of $610 million for FY2025, reflecting an 18% year-over-year increase, with coconut water sales growing by 26%, indicating strong market demand and brand appeal.
- International Market Expansion: International sales rose by 37%, contributing 29% to the company's total sales growth, demonstrating significant returns on investments in European markets, particularly in the U.K. and Germany.
- Cost Control and Profit Outlook: The company expects net sales between $680 million and $700 million for FY2026, with a gross margin target of approximately 38%, as management expresses confidence in tariff exemptions and reduced logistics costs improving margins.
- Strategic Investment and Innovation: Plans to increase marketing expenditures to support brand positioning in sports and hydration are underway, with private label sales anticipated to grow by 20%-25%, further driving revenue growth.
- Sales Performance Growth: Vita Coco's Q4 net sales increased by 0.4% to $128 million, despite a 6.4% decline in the Americas, with international sales surging 42%, exceeding estimates by $9 million, showcasing the company's robust performance in global markets.
- Profitability Improvement: The company's gross profit rose by 8% to $44.6 million, while adjusted EBITDA soared 83% year-over-year to $14.1 million, beating market expectations by $4 million, reflecting successful cost control and operational efficiency.
- Optimistic Future Outlook: Vita Coco anticipates FY26 sales between $680 million and $700 million, with a midpoint of $690 million, surpassing market expectations of $684.4 million, indicating strong confidence in future growth.
- Strong Financial Position: The company remains debt-free with cash and cash equivalents of $197 million, up 19% year-over-year, while accounts receivable improved by 30% to $82 million, demonstrating robust financial management and liquidity.
- Earnings Performance: Vita Coco reported a Q4 GAAP EPS of $0.09, missing estimates by $0.04, while revenue reached $128 million, reflecting a 0.8% year-over-year increase and exceeding expectations by $8.79 million, demonstrating resilience in a competitive beverage market.
- Adjusted EBITDA Growth: The company achieved a non-GAAP adjusted EBITDA of $14 million in Q4, significantly up from $8 million year-over-year, with a full-year EBITDA of $98 million compared to $84 million, indicating improved operational efficiency.
- Fiscal Year 2026 Outlook: Vita Coco projects net sales for FY 2026 to be between $680 million and $700 million, slightly below the consensus of $683.64 million, driven by low double-digit growth in coconut water and improvements in private label trends, highlighting future growth potential.
- Gross Margin and Expense Expectations: The gross margin is expected to be around 38%, benefiting from lower tariffs and higher pricing, although impacted by adverse product mix and increased brand promotions; SG&A expenses are anticipated to rise in the mid to high single digits compared to 2025, reflecting ongoing investment in market promotion.









