Vita Coco (NASDAQ:COCO) executives told investors the company delivered a “record year” in 2025 and entered 2026 with strong category momentum, improving U.S. distribution, and plans to increase investment behind marketing and international expansion. Management also issued 2026 financial guidance calling for higher sales, improved gross margin, and increased Adjusted EBITDA.
Category momentum and brand growth underpin 2025 results
Executive Chairman Mike Kirban said coconut water remained one of the fastest-growing categories in the beverage aisle in 2025, citing retail data showing the category grew 22% in the U.S., 32% in the U.K., and over 100% in Germany. Kirban added that Vita Coco Coconut Water (excluding coconut milk products) grew 21% in U.S. retail dollars, 32% in the U.K., and over 200% in Germany.
U.S. distribution gains at Walmart and early 2026 scan strength
Roper highlighted improvements at Walmart following a mid-November reset, saying the company “recovered most of the distribution loss at the end of 2024” and improved total distribution and space allocation from 2024 levels. Management noted the set is now in what it believes is a higher-traffic aisle, and referenced photos in the investor deck showing the new shelf presence.
Entering 2026, Roper said scan data through Feb. 8, 2026 showed 24% growth for both the U.S. coconut water category and Vita Coco Coconut Water. He attributed part of the strength to favorable timing of promotional activity and the improved Walmart distribution, which the company estimated was adding roughly 6% to year-to-date brand trends.
In Q&A, management said it was too early to provide demographic detail on Walmart shoppers because the new set was only a few months old. However, they described the new shelf layouts as significant improvements in SKU count, shelf space, and visibility, and said Walmart was adding about 5% to 6% to current scan growth. Management also suggested other retailers may follow Walmart’s lead on space allocation.
Tariffs, freight, and supply chain positioning for 2026
Roper said the company expects 2026 cost of goods to benefit from tariff exemptions for most coconut water products and from lower full-year average ocean freight costs. He said those benefits are expected to be partially offset by increased finished goods costs tied to inflationary pressures, some U.S. dollar weakness, and higher domestic logistics costs.
While ocean freight softened through the fourth quarter, Roper said rates remained slightly elevated relative to historical levels and the company operated primarily on spot rates. He added that Vita Coco began exploring medium-term fixed price commitments late in the quarter, and had made commitments covering about 25% of expected 2026 ocean shipping requirements to reduce volatility.
Roper also said the company had secured capacity to support expected growth and was well positioned with inventory and supply capability. He noted the company would not see “long-term” cost of goods reflective of the ongoing business until the second quarter due to residual 2025 tariff impacts embedded in inventory.
Detailed 2025 financial results: sales up 18%, margins pressured by tariffs
CFO Corey Baker said 2025 net sales increased $94 million, or 18%, to $610 million. Growth was driven by Vita Coco coconut water net sales up 26%, partially offset by private label declines of 19%.
- Americas: Net sales grew 15% to $509 million. Vita Coco coconut water rose 24% to $424 million, while private label declined 30% to $63 million.
- Vita Coco coconut water (Americas): Volume increased 19% with a 4% net price/mix benefit.
- Private label (Americas): Volume decreased 26% with a 5% price/mix decline; management attributed weakness to lost regions at key retailers starting early in Q2.
- International: Net sales increased 37%, with Vita Coco Coconut Water up 43% and private label up 34%.
Baker said fourth-quarter shipments benefited from stronger-than-expected year-end shipments that resulted in higher distributor inventory than anticipated, estimating it inflated Q4 net sales by about $7 million.
Gross profit rose to $223 million, up $24 million year-over-year, with gross margin finishing at 37% for the year, down about 200 basis points from 39% in 2024. Baker attributed the margin decline to higher product costs and tariffs, partially offset by branded coconut water pricing and favorable mix. He said the company expensed $14 million of the $16 million in tariffs paid in 2025, representing about two points of gross margin impact, with the remaining $2 million in inventory expected to flow through early 2026.
SG&A increased to $140 million, driven by investments in headcount to support growth and supply capacity, as well as increased marketing spend. Net income attributable to shareholders was $71 million, or $1.19 per diluted share, compared with $56 million, or $0.94 per diluted share, in 2024. Baker said the increase was driven by higher gross profit and a gain on fair value adjustments to FX derivatives versus a loss in the prior year, partially offset by higher SG&A and income taxes.
Adjusted EBITDA was $98 million, or 16% of net sales, up from $84 million, or 16%, in 2024.
Balance sheet strength and 2026 outlook
As of Dec. 31, 2025, Baker said Vita Coco had $197 million in cash and no debt under its revolving credit facility. The company generated $32 million of cash in 2025, driven by net income and partially offset by increased working capital, including a $27 million inventory investment to support service levels and expected 2026 growth. Baker also noted $11 million in share repurchases and $8 million in capital investments, primarily related to new office spaces, which he said was significantly above normal CapEx levels.
For 2026, Baker guided to net sales of $680 million to $700 million, gross margin of about 38%, and adjusted EBITDA of $122 million to $128 million. The outlook assumes U.S. category growth in the mid-teens and continued healthy international growth led by the U.K. and Germany.
Baker said the company expects consolidated Vita Coco Coconut Water growth of low to mid-teens. He added that U.S. Vita Coco net sales are expected to slightly lag category growth due to the impact of the stronger year-end 2025 shipments to DSD partners, distributor incentive investments, and the anticipated impact of a private label launch at a large U.S. retailer.
Private label is expected to return to growth, with Baker calling for 20% to 25% U.S. private label net sales growth as the company regains geographic regions at multiple retailers and launches a new program. In Q&A, management said private label comparisons would be difficult in Q1, with growth beginning in Q2 and ramping into the back half of the year.
On spending, Baker said SG&A is expected to increase mid- to high-single digits (as a percentage of net sales) as the company invests in marketing and key personnel, partially offset by a planned reduction in incentive compensation, with a goal of about one point of SG&A leverage versus 2025.
Management also discussed marketing and positioning in “active hydration,” emphasizing the product’s electrolyte content and plans to expand into sport and recovery messaging, including youth sports activations and athlete partnerships. In response to a question about cash usage, the company reiterated that M&A remains a potential long-term lever but said it has remained disciplined on valuation, while also using share repurchases to return capital.
About Vita Coco (NASDAQ:COCO)
Vita Coco, Inc (NASDAQ: COCO) is a global beverage company specializing in coconut-based products. Founded in 2004 by Michael Kirban and Ira Liran, the company pioneered the introduction of refrigerated coconut water to U.S. consumers. Headquartered in New York City, Vita Coco sources coconuts from growers in tropical regions such as the Philippines, Indonesia and Brazil, partnering with local farmers to promote sustainable agriculture and community development.
The company’s flagship offering, Vita Coco Original Coconut Water, is available in multiple pack sizes and a variety of flavors.
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