Coconut water growth - Net sales growth was driven by a 21% increase in Vita Coco Coconut Water sales, supported by higher household penetration and average consumption, per co-founder Michael Kirban.
Private label shipments - Robust private label shipment growth, mainly from distribution gains, contributed to sales performance.
Gross margin improvement - Gross margin rose to 49% from 36%, primarily due to tariff refunds, higher net pricing, and lower ocean freight and finished goods costs, partially offset by higher domestic logistics costs.
Updated full-year outlook
Vita Coco raises 2026 net sales guidance to $790 mln-$805 mln.
Company expects 2026 adjusted EBITDA of $154 mln-$161 mln.
Vita Coco sees 2026 gross margin at about 40%.
Analyst coverage and valuation
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the non-alcoholic beverages peer group is "buy".
Wall Street's median 12-month price target for Vita Coco Company Inc is $78.00, about 4.8% above its July 22 closing price of $74.45.
The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 30 three months ago.
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