Third Quarter 2026
Filed Oct 22, 2026The Vita Coco Company Reports Third Quarter 2026 Financial Results and Raises Full Year Guidance
Third-quarter net sales increased 34%, organic net sales growth was 18%, net income increased to $35 million, Adjusted EBITDA increased to $53 million, and the Company raised fiscal year 2026 net sales and Adjusted EBITDA guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026GAAP | $243.8M | – | 33.7 % |
| Net sales, nine months ended September 30, 2026GAAP | $639.7M | – | 32.7 % |
| Organic net sales growth, three months ended September 30, 2026non-GAAP | 17.8 % | – | 17.8 % |
| Organic net sales growth, nine months ended September 30, 2026non-GAAP | 26.7 % | – | 26.7 % |
| Cost of goods sold, three months ended September 30, 2026GAAP | $151.1M | – | – |
| Cost of goods sold, nine months ended September 30, 2026GAAP | $369.9M | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $92.68M | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | $269.8M | – | – |
| Consolidated gross margin, three months ended September 30, 2026GAAP | 38.0 % | – | – |
| Consolidated gross margin, nine months ended September 30, 2026GAAP | 42.2 % | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $47.23M | – | – |
| Selling, general and administrative expenses, nine months ended September 30, 2026GAAP | $127.6M | – | – |
| Income from operations, three months ended September 30, 2026GAAP | $45.45M | – | – |
| Income from operations, nine months ended September 30, 2026GAAP | $142.2M | – | – |
| Net income, three months ended September 30, 2026GAAP | $35.02M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $114.9M | – | – |
| Diluted net income per common share, three months ended September 30, 2026GAAP | $0.58 | – | – |
| Diluted net income per common share, nine months ended September 30, 2026GAAP | $1.89 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $53.16M | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $159.1M | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $151.9M | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $152.0M | – | – |
| Inventory, September 30, 2026GAAP | $111.3M | – | – |
| Accounts receivable, net, September 30, 2026GAAP | $128.7M | – | – |
| Total assets, September 30, 2026GAAP | $696.1M | – | – |
| Total liabilities, September 30, 2026GAAP | $267.4M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Americas segment, three months ended September 30, 2026Vita Coco Coconut Water, Private Label and Other net sales. | $198.6M | – | – |
| International segment, three months ended September 30, 2026Vita Coco Coconut Water, Private Label and Other net sales. | $45.27M | – | – |
| Americas segment, nine months ended September 30, 2026Vita Coco Coconut Water, Private Label and Other net sales. | $519.2M | – | – |
| International segment, nine months ended September 30, 2026Vita Coco Coconut Water, Private Label and Other net sales. | $120.6M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal Year 2026 Full Year Outlook outlook
- Revenuebetween $810 million and $820 million
- Gross marginapproximately 40%
- Operating expensesExpect to deliver SG&A leverage of approximately 1.5 percentage points of net sales vs. 2025.
- NoteAdjusted EBITDA expected to be in the range of $170 million to $175 million.
- NoteFourth quarter gross margin expected to be approximately 33%.
- NoteNet sales driven by low 20s percent growth of Vita Coco Coconut Water, strong Private Label trends and the addition of Copra.
Capital returns
- During the nine months ended September 30, 2026, the Company repurchased $62 million of its common stock.
- As of September 30, 2026, the Company had repurchased approximately $86 million of its common stock under its share repurchase program and had $19 million remaining under the existing authorization.
- As of October 22, 2026, the Company has repurchased $94 million of its common stock, and had $11 million remaining of the $105 million authorized amount under the repurchase program.
What drove it
- Net sales growth was driven by case equivalent volume gains of 16% for Vita Coco Coconut Water and 77% for Private Label.
- Vita Coco Coconut Water net sales grew 15% in the third quarter and 24% year-to-date.
- Private Label net sales grew 152% in the third quarter and 85% year-to-date, with the third quarter benefiting from the contribution of Copra.
- Gross profit growth reflected higher sales volume, the addition of Copra, and minimal tariffs compared to the prior-year period.
- Third-quarter net sales growth reflected robust branded retail growth in all major markets and strong private label shipments.
- The Company cited strong growth in Europe and continued growth in America driven by increases in household penetration and average consumption per household.
Concerns
- Third-quarter gross margin was affected by higher domestic logistics costs and the dilutive impact of Copra.
- Fourth-quarter gross margin is expected to be approximately 33% due to increases in cost of goods and no offsetting price actions expected until early 2027.
- Full-year gross margin is expected to face increased ocean freight, product and other transportation costs, alongside adverse product mix primarily due to Copra's private label business and strong private label trends.
- SG&A increased due to Copra acquisition costs, amortization of acquired intangible assets, higher people-related costs, stock-based compensation and higher sales-related expenses.
- The Company identified uncertainty related to the military conflict in Iran and related impacts, tariff-rate changes, natural disasters, potential competitive pricing actions and price elasticity.
What to watch
- Fourth-quarter gross margin expected to be approximately 33%.
- Low 20s percent growth of Vita Coco Coconut Water anticipated in fiscal year 2026 guidance.
- Private Label trends and the contribution of Copra to fiscal year 2026 net sales.
- The timing of price actions, which are not expected until early 2027.
- SG&A leverage of approximately 1.5 percentage points of net sales versus 2025.
Balance sheet and cash flow
- Cash and cash equivalents were $151,995 as of September 30, 2026, compared to $196,873 as of December 31, 2025.
- The Company reported no debt and $152 million in cash and cash equivalents as of September 30, 2026.
- Net cash provided by operating activities was $151,942 for the nine months ended September 30, 2026, compared to $51,069 for the nine months ended September 30, 2025.
- Acquisition of Copra Inc., net of $8,340 cash acquired, was $139,253 for the nine months ended September 30, 2026.
- Net cash used in investing activities was $140,056 for the nine months ended September 30, 2026.
- Cash paid to acquire treasury stock was $62,410 for the nine months ended September 30, 2026.
- Net cash used in financing activities was $56,282 for the nine months ended September 30, 2026.
- Inventory was $111,296 as of September 30, 2026, compared to $111,468 as of December 31, 2025.
- Accounts receivable, net was $128,724 as of September 30, 2026, compared to $81,514 as of December 31, 2025.
Analysis
Vita Coco reported a strong third quarter, with GAAP net sales of $243,825 versus $182,313 in the prior-year period and non-GAAP organic net sales growth of 17.8 %. The reported net sales growth rate was 33.7 %, while the Copra acquisition contributed a 16.0 % impact to net sales growth. Management attributed the result to case equivalent volume gains of 16% for Vita Coco Coconut Water and 77% for Private Label, alongside robust branded retail growth and private label shipments.
Gross profit reached $92,677 from $68,668, while consolidated gross margin was 38.0 % versus 37.7 %. Minimal tariffs relative to the prior-year period supported profitability, but higher domestic logistics costs and the dilutive impact of Copra offset that benefit. SG&A rose to $47,226 from $40,745, reflecting Copra acquisition costs, acquired-intangible amortization, higher headcount and stock-based compensation, and higher sales-related expenses. Even with this spending, income from operations rose to $45,451 from $27,923 and net income rose to $35,017 from $24,003.
Profit growth exceeded the increase in operating expense. Diluted GAAP EPS was $0.58 compared with $0.40, and non-GAAP Adjusted EBITDA was $53,156 compared with $32,390. Year to date, net sales were $639,744, gross margin was 42.2 % versus 36.9 %, net income was $114,942, and Adjusted EBITDA was $159,066. The year-to-date gross-margin result included a 240 basis point benefit from tariff refunds, according to the release.
The Copra acquisition was the principal balance-sheet and cash-flow event. Cash and cash equivalents were $151,995 at September 30, 2026, versus $196,873 at December 31, 2025. Net cash provided by operating activities was $151,942 for the nine-month period, while the acquisition of Copra Inc., net of acquired cash, was $139,253 and cash paid to acquire treasury stock was $62,410. The Company also reported no debt and continued repurchases under its $105 million authorization.
Management raised fiscal year 2026 net sales guidance to between $810 million and $820 million and Adjusted EBITDA guidance to between $170 million and $175 million. Full-year gross margin is still expected to be approximately 40%, but fourth-quarter gross margin is expected to be approximately 33% because of increases in cost of goods and no offsetting price actions expected until early 2027. The key reported tension is that strong consumer demand, branded growth, private label trends and Copra support the higher sales outlook, while transportation costs and the Copra-driven mix effect pressure near-term margins.
Management, verbatim
The growth of the coconut water category maintained through the fall, and remains one of the fastest growing beverage categories in our major markets.
Michael Kirban, Co-Founder and Executive Chairman
Our strong third quarter net sales growth was driven by robust branded retail growth in all our major markets, and by strong growth in private label shipments, reflecting healthy category growth and the addition of Copra's super premium products.
Martin Roper, Chief Executive Officer
Consumer demand is very healthy, and we are therefore raising our full year Net Sales and Adjusted EBITDA guidance.
Martin Roper, Chief Executive Officer
Not in the filing
stated, not guessed- Free cash flow was not reported.
- A quarterly operating cash flow figure was not reported.
- A quarterly free cash flow figure was not reported.
- Dividend declarations or payments were not reported.
- GAAP net income guidance was not provided.
- Fiscal year 2026 tax-rate guidance was not provided.
- Prior-quarter figures for the reported income-statement metrics were not provided.
- Year-over-year percentage changes for gross profit, SG&A, income from operations, net income, EPS, Adjusted EBITDA and cash flow were not printed on their respective rows.
- Year-over-year revenue growth for the Americas and International segments was not printed on the segment subtotal rows.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.