COCO

Vita Coco came into Q3 2026 earnings wearing a growth-stock label, backed by strong trailing profit expansion and a premium P/E versus the wider beverage group. Then the report hit and the share price slipped about 4% in Friday trading. That pullback lands just as the company printed roughly US$244 million in quarterly net sales and about US$0.61 in basic earnings per share, with adjusted EBITDA of US$53 million setting the tone. The real story is less about a blowup and more about how a strong profit engine now bumps into investor expectations already set very high. Love Vita Coco's profit engine but concerned the premium P/E leaves less room for error if expectations cool off further? Take a look at the 29 high quality undervalued stocks. - Revenue (Q3 2026 vs Q3 2025): US$243.8 million vs. US$182.3 million (up about 34%) - Net Income (Q3 2026 vs Q3 2025): US$35.0 million vs. US$24.0 million (up about 46%) - Basic EPS (Earnings Per Share) (Q3 2026 vs Q3 2025): US$0.61 vs. US$0.42 (up about 44%) - Trailing Twelve Month Net Profit Margin (Q3 2026 vs Q3 2025): 15.7% vs. 11.4% (margin higher year over year) Earnings only tell part of the story, and investors who care about what Vita Coco Company is worth usually pay close attention to the cash flowing through the business. Looking at Vita Coco Company's cash flows alone, the stock could be a clear 30% undervalued. "Continued shift of coconut water from niche to everyday hydration, supported by U.S. retail dollar growth of roughly 29% to 31% in 2026 year to date and Vita Coco Coconut Water growing at similar or higher rates, could support higher volume throughput and category pricing that flow into net sales and earnings." Vita Coco is largely doing what bulls asked for. Q3 net sales reached about US$244 million with organic growth of 18%, while branded coconut water advanced 15% on top of already strong category scans. Private label surged and Copra added roughly US$29 million, which shows volume breadth rather than a single product spike. Raised guidance to US$810 to 820 million of 2026 sales and US$170 to 175 million of adjusted EBITDA signals that category momentum and brand reach are, for now, translating into higher earnings power. "Higher packaging, energy, domestic logistics costs and ocean freight surcharges could persist or rise further. This would squeeze Vita Coco Company's gross margin and limit the ability to convert category growth into higher net earnings if pricing does not fully offset these inputs." The risk around costs is showing up. Q3 gross margin sat at 38%, roughly flat year over year, but management now guides Q4 margin to about 33% and a full year level near 40%. That gap reflects ocean freight and logistics pressure along with mix from fast growing private label. With Vita Coco deferring price increases until early 2027 and capacity running near 95%, the business is leaning on efficiency rather than pricing to offset inflation, which keeps the bearish concern alive even as profits remain solid. One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all. Vita Coco Company just showed how a strong profit story can still leave investors debating what is already priced in. The real opportunity is finding stocks that could be undervalued before the market corrects them. - Company 1 - 33% below our estimate - bets that control of the AI software stack keeps data center customers committed to its highest margin GPU platforms. - Company 2 - 34% below our estimate - converts record wins in complex regulated programs into contracts that reward precise manufacturing execution and disciplined cash management. - Company 3 - 43% below our estimate - scales newer storage and inverter offerings so recurring high margin hardware and software can offset grid connection delays on large solar projects. That is three of the list. See the full list of 29 companies trading below our fair value estimates → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include COCO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Thursday, Oct. 22, 2026 - Executive Chairman - Mike Kirban - Chief Executive Officer - Martin Roper - Chief Financial Officer - Corey Baker Operator: Hello, and welcome to The Vita Coco Company's Third Quarter 2026 Earnings conference call. My name is Michelle. I will be coordinating your call today. Following prepared remarks, we will open the call to your questions with instructions to be given at that time. I would like now to hand the call over to John Mills with ICR. Please go ahead. John Mills: Thank you, and welcome to The Vita Coco Company third quarter 2026 earnings results conference call. Today's call is being recorded. With us are Mr. Mike Kirban, Executive Chairman, Martin Roper, Chief Executive Officer, and Corey Baker, Chief Financial Officer. By now, everyone should have access to the company's third quarter earnings release issued earlier today. This information is available on the investor relations section of The Vita Coco Company's website at investors.thevitacococompany.com. Accompanying the press release is a presentation covering our commercial and financial performance results, also available on the website. Certain comments made on this call include forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and beliefs concerning future events and are subject to several risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Please refer to today's press release and other filings with the SEC for a more detailed discussion of the risk factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. During the call, we will reference certain non-GAAP financial measures as we describe our business performance. Our SEC filings, as well as the earnings press release and supplementary earnings presentation, provide reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures and are available on our website as well. With that, it is my pleasure to now turn the call over to Mike Kirban, our Co-Founder and Executive Chairman. Mike Kirban: Thanks, John. Good morning, everyone. Thank you for joining us today to discuss our third quarter financial results. We had another very strong quarter with the demand acceleration we saw in the first half continuing through the third quarter across all of our major markets. What is most encouraging is the strength we are seeing across both the coconut water category and the Vita Coco brand. Consumer demand remains strong, and our teams have done a great job executing in what continues to be a dynamic supply environment. The coconut water category remains incredibly healthy and continues to be one of the fastest-growing categories in the beverage aisle. According to our retail scan data, year to date category retail dollar sales grew 28% in the U.S. and 66% in our measured European markets. Vita Coco coconut water, excluding coconut milk-based products like Treats, also grew 27% year to date in retail dollars in the U.S. and 54% in our measured European markets. These results reinforce our belief that coconut water is still in the early stages of achieving mainstream appeal. Household penetration remains meaningfully below mainstream juices, sport drinks, and other functional beverage categories across our major markets, which we believe provides a long runway for our growth. Our strategy is straightforward: grow the coconut water category while expanding our share through strong brand performance and strategic private label relationships. We are focused on recruiting new households, increasing consumption occasions, and reinforcing coconut water's functional benefits. We believe the growth we are seeing today is evidence that this strategy is working. As we think beyond this quarter and continue to plan for what we believe will be many years of continued growth, we are very focused on enhancing and expanding our supply chain, which we believe is one of our greatest competitive advantages. We are investing in our long-term supply capabilities, adding new factory partnerships, and supporting existing partners as they expand capacity. While it is too early to provide financial guidance for 2027, based on the capacity we have today and the additional capacity we expect to bring online in the near term, we expect our supply will be able to support a continuation of current volume growth trends into next year and beyond. As we discussed in July, the Copra acquisition gives us a meaningful position in the super premium Thai Nam Hom segment of coconut water, an attractive part of the category where we previously didn't play. We estimate the super premium chilled segment represents approximately 13% of U.S. coconut water sales and is growing faster than the overall category year to date, with retail price points nearly double those of shelf-stable coconut water. The Copra business has operated smoothly since closing in late July, and our progress on integration has exceeded our expectations. I want to thank everyone involved for the work they have done to bring the two businesses together as one high-performing coconut water company. As we look to 2027, we plan to continue using innovation to create new occasions, reach new customers, and expand where and how coconut water is consumed. Over the next couple of months in the U.S., we will be launching Vita Coco in what we are calling our sports-inspired flavors, including lemon lime, blue raspberry, and fruit punch. It's the coconut water consumers already know and love from Vita Coco with flavors designed to appeal to the growing number of younger consumers looking for alternatives to traditional sport drinks. We'll also be launching Vita Coco Kids, a six-pack, 8-ounce Vita Coco pure coconut water designed specifically for younger children and families. Additionally, we're planning the introduction of a new 310 ml slim can primarily targeted toward food service accounts, giving us another format to expand into new channels and new occasions. We're continuing to build out the Vita Coco Treats lineup with a new Piña Colada flavor. Taken together, Copra and these innovations are great examples of how we're thinking about the opportunity ahead of us, playing more fully across the coconut water category, bringing new consumers into it, and creating more occasions and channels for them to enjoy our products. We've spent years building this category, our brand, and our supply chain. I believe coconut water will become a major global beverage category over time, and that Vita Coco is well-positioned to be the leading brand. I'll turn the call over to our Chief Executive Officer, Martin Roper. Martin Roper: Thanks, Mike. Good morning, everyone. I'm pleased to share details on Vita Coco's robust third quarter performance. Our net sales in the quarter were up 34%, driven by the strong growth of Vita Coco coconut water of 15% and private label growth of 152%. The coconut water category and our brand trends are very strong across all our major markets. I am particularly encouraged by the exceptional growth rates being delivered by our European teams. In the U.S., as we analyze the source of our accelerated demand, we estimate that just over half of our U.S. Vita Coco branded business growth year to date is attributable to increased household penetration, with the remaining coming from velocity growth per household, a pattern that signals strong brand momentum and potential. Our private label shipment growth for the quarter reflects the addition of the Copra private label business since late July, multiple private label distribution gains, and the underlying category growth. With respect to service levels, demand year to date for both brand and private label product continued to exceed our projections. Within the quarter, our supply chain became tighter, resulting in reduced service levels and our shipments lagged our continued strong retail scan growth. Additionally, in the most recent weeks, we have seen instances of retail out of stocks slightly depressing our scan growth. While production levels are sufficient to meet demand, container availability during the quarter was challenging, with inventory building at suppliers. In October, we made progress, and we expect our service levels to improve during the fourth quarter. We expect to see strong shipment growth through year end, rebuilding inventory throughout the system and preparing for another strong year in 2027. As we think about inflation and pricing moving forward, we are seeing higher ocean freight costs, elevated domestic transportation costs and inefficiencies, and increases in packaging costs. As we communicated last quarter, we chose to apply our tariff refunds against our cost increases rather than taking pricing this year in order to support our consumers and retail partners while we assessed which affects our long-term structural cost increases. Starting in May, we saw ocean freight spike. While our contracts provided a degree of protection in negotiations with carriers, many of the increases were positioned as fuel or demand surcharges on top of contract rates. Accompanying these cost increases were some service disruptions that impacted timely arrival of containers to the selling markets in the third quarter and delayed our ability to rebuild our inventories. To secure containers to meet our demand, we have purchased spot rate containers and paid significant surcharges over contract rates with our contract carriers. We view current ocean freight costs as unusual and likely temporary and have seen rates to Europe ease from their July peak. We expect other lanes to also normalize over time. The ocean freight cost increases, along with the other inflationary effects previously mentioned, will impact our fourth quarter gross margins and are reflected in our updated guidance. We have communicated to our distributor and retail partners our intent to implement pricing adjustments in early 2027 to compensate for the cost increases that we view as structural. While the specific price increases vary by product and market, our objective with these adjustments is to meet our branded and private label gross margin targets, assuming some easing in current ocean freight costs. I am pleased to say that the Copra integration is proceeding smoothly. I recently had the pleasure of visiting the Copra facility located in Ratchaburi Province, Thailand, an ideal location for sourcing Nam Hom coconuts. I was impressed by our local team, the capabilities they have built, and the quality of the operations. We believe that we produce the best quality product in the super premium segment due to our integrated coconut water extraction and packaging model, which we intend to preserve and scale. As we look to the remainder of 2026, we are raising our full year guidance to reflect the continued momentum of our core business and the early performance of the Copra acquisition. We expect that our capacity utilization will remain high early in 2027 before expected new capacity starts to provide relief. Further out, we are pleased that our work on capacity additions appears on track to support a continuation of current volume trends and should allow us to operate under our preferred 85% utilization model in 2028 based on our current assumptions of growth trends and capacity timing. To summarize, our category is very healthy. Our brands are performing well, and our team is executing at a high level. We are confident in our team's ability to finish 2026 strong and are enthusiastic about the plans we have in place for 2027. Our confidence in the category and Vita Coco brand trends remains very high. With that, I will turn the call over to Corey Baker, our Chief Financial Officer. Corey Baker: Thanks, Martin, and good morning, everyone. I will now provide you with some additional details on the third quarter 2026 financial results and our outlook for the full year. For the quarter, net sales increased $62 million, or 34% year-over-year to $244 million, driven by strong Vita Coco coconut water net sales growth of 15% and private label growth of 152%. Organic growth for the quarter was 18%, with Copra contributing $29 million in the Americas. We are reporting Copra's private label business in our private label category, and Copra's branded and commodity business reported in our other product category. On a segment basis within the Americas, net sales grew 31% to $199 million, led by Vita Coco coconut water that grew net sales by 8% to $143 million. This was driven by a 9% volume increase and a slight net price mix decline. Private label increased net sales 224% to $46 million, driven by 110% increase in volume and a price mix increase of 54%, reflecting the benefits of approximately 10 weeks of Copra volume and the benefit of Copra's premium price point. Throughout the year, the accelerated retail growth in Europe and in the U.S. for both branded and private label SKUs tightened our available inventory, and in the U.S., reduced inventory at our distributors. This has resulted in intermittent service issues across most of our markets on some SKUs. The potential lost shipments from reduced inventory this quarter, combined with strong U.S. shipments in Q3 of last year, which built distributor inventory for the Q4 Walmart reset, resulted in our U.S. Q3 Vita Coco shipment growth lagging another strong quarter of U.S. retail scan performance of 23%. We expect to see U.S. shipment growth exceed scan growth over the coming months as we rebuild system inventory and are better able to meet demand. The expectation is embedded in our updated guidance. Our international segment net sales were up 48%, where we continue to see exceptional net sales growth across branded and private label coconut water. Vita Coco coconut water net sales grew 57%, and private label increased 27%. For the quarter, consolidated gross profit was $93 million, an increase of $24 million versus the prior year. Gross margins finished at 38% for the quarter, broadly in line with last year. Gross margins benefited from minimal tariffs this year as compared to last year, which is mostly offset by higher domestic logistics costs and the mix impact of Copra. Moving on to operating expenses. SG&A increased $6 million to $47 million, driven by acquisition-related costs, increased investments in personnel supporting our growth, the inclusion of Copra, as well as higher sales-related expenses. Net income attributable to shareholders for the quarter was $35 million, or $0.58 per diluted share, compared to $24 million or $0.40 per diluted share in the prior year. The $11 million increase in net income was primarily driven by the increase in gross profit from our strong core business growth, plus the benefits of Copra, partially offset by higher SG&A investment, increased income tax expenses, and unrealized derivative losses this year versus gains last year. Our effective tax rate for Q3 was 20% versus 22% last year. This brings the effective tax rate to 21% on a year-to-date basis, in line with our expectations for the year. Q3 adjusted EBITDA was $53 million, or 22% of net sales, up from $32 million or 18% of net sales in Q3 2025. The increase was primarily due to the increased gross profit, partially offset by higher year-on-year SG&A expenses. Turning to our balance sheet and cash flow. As of September 30, 2026, our balance sheet remained very strong, with total cash on hand of $152 million and no debt under our revolving credit facility. Year to date, through September, we reduced our net cash by $45 million, driven by the net investment of $139 million to acquire Copra and a return of cash to shareholders through our share repurchases of $62 million. Our underlying cash generation remained very healthy, driven by $115 million of net income and a $33 million reduction in inventory, partially offset by a net working capital outflow of $4 million, reflecting a higher accounts receivable, partially offset by an increase in accounts payable. During the quarter, we repurchased approximately $42 million of our shares under our current $105 million authorization. Since the end of the quarter, we have purchased an additional $8 million for a cumulative year-to-date purchase of $70 million, leaving us with $11 million remaining under the total $105 million authorized. As it relates to guidance, we have continued to experience exceptional category trends in our major markets and have very strong confidence in our team and our Vita Coco brand. As a result, we are raising our full year expectations for both net sales and adjusted EBITDA. We now expect net sales between $810 million and $820 million, with expected gross margins for the full year of approximately 40%, delivering adjusted EBITDA of $170 million to $175 million. Our expectations for the strong net sales growth is built on our assumptions for the U.S. category growing in the mid-20s on a percentage basis, and our international business led by the U.K. and Germany maintaining very healthy growth rates. We now expect consolidated Vita Coco coconut water net sales growth of approximately low 20%, with our U.S. Vita Coco net sales growing in the high teens. Due to the strong U.S. category growth, increased distribution, and the inclusion of Copra, we now expect full year private label net sales growth of 110%-120% in the U.S. Full year gross margin expectations remain unchanged at approximately 40%. While some of the inflationary cost of good effects were visible in this quarter's results, the full impact of increases in early summer will primarily hit in Q4. As a result of our mix shift and these higher cost of goods factors, we expect gross margins in Q4 to be approximately 33%. As we indicated previously, we deferred raising prices this year until we understood the permanence of the cost increases. To return our gross margins to our targeted range, we have communicated to retailers pricing increases to take effect in Q1 of 2027. While we may experience gross margin variability in the short term due to ocean freight rates and product mix, our long term gross margin aspirations remain unchanged in the high 30s, approaching 40%. From an SG&A perspective, we continue to invest in our brand and supply chain in a disciplined way to support long-term growth related to integrating Copra with less spend to date than expected. We expect to deliver SG&A leverage of approximately 1.5 points as a percentage of sales for 2026. As we exit 2026, we are excited about the momentum going into 2027 of the category and our brand. We remain excited about the opportunity to grow both our branded and private label business next year. With that, I'd like to turn the call back to Martin for his closing remarks. Martin Roper: Thank you, Corey. To close, I'd like to reiterate our confidence in the long-term potential of The Vita Coco Company, our ability to build a better beverage platform, and the strength of our Vita Coco brand, uniqueness of our supply chain that now includes Copra's super-premium capabilities, and in the growth potential of the coconut water category. We have strong brands and a solid balance sheet and believe that we are well positioned to drive category and brand growth, both domestically and internationally. We are confident in our ability and are excited about our key initiatives to drive long-term growth. Thank you for joining us today, and thank you for your interest in The Vita Coco Company. That concludes our third quarter 2026 prepared remarks, and we will now take your questions. Operator: Thank you. To ask a question, please press star, one, one on your telephone and wait for your name to be announced. To withdraw your question, please press star, one, one again. Our first question comes from Bonnie Herzog with Goldman Sachs. Your line's open. Ethan Huntley: Hi. Good morning. This is Ethan Huntley on for Bonnie. Thanks for taking our questions. I guess my first one here is on margin and sort of your margin trajectory from here, which I know remains sort of a big area of focus. Obviously, you have some margin pressures in Q4 and there's a lot to unpack there, but could you maybe just talk about your margin trajectory beyond this year? Are there any levers you can pull beyond pricing to help offset any of these pressures? So maybe just a high-level question here on your margin profile heading into next year, recognizing your confidence in the high 30% range over time. Martin Roper: Yeah. Thanks, Ethan. The current margin pressures are primarily being driven by transportation, ocean freight, domestic logistics type issues. There is some underlying inflation at the factories and in packaging, which is more permanent. Our goal in the pricing that we have and are communicating to retailers and partners to take effect in early 2027 is to cover the costs that we think are pretty permanent, but it will not fully cover the current transportation peak that we are in. We have sort of reconciled ourselves to the belief that, one, that is a peak that will subside, and two, if it does not subside, we would need to take further pricing in order to meet our gross margin goals. So next year's gross margin could be a pretty wide range based on what happens to ocean freight. But in the long term, we are very comfortable taking pricing if we need to, if these costs are permanent. Ethan Huntley: Very helpful. Then maybe just a quick follow-up here on sort of your international strength. Obviously impressive volumes. I think they are up 42% in the quarter. I know international has been an area of focus for you recently, so if you could maybe just outline some of the key drivers of this strength, how sustainable this strength is over the next couple of quarters and into next year. So maybe just sort of a high level question here on international, the key growth drivers and the sustainability of growth into next year. Thank you. Martin Roper: Sure. Well, I think you know we have had a very nice U.K. business for quite a while now, and it has reached the point where we break it out in our 10-K. But our European team, which is based in London, has done a really nice job getting some other markets moving. I think the primary one we have called out is Germany. That is moving very strongly, showing growth rates over 100%, and that is obviously pulling the total international volume along very strongly. That said, I think the U.K. growth was in the 30s on a scan basis. I hope I have that right. So it is very, very healthy. When we saw the acceleration of demand that we have referred to in the U.S. that happened earlier this year, very late last year, it also impacted our international business, and that has accelerated beyond our expectations, too. Looking to the future, the per capita consumption rates in the U.K. are still order of magnitude, a third of the U.S. In Germany, it's a sixth of the U.S. And the U.S. is like 66% of Australia. There's a lot of upside in the U.S. still, but in Europe, there's still a lot of upside if we can get those markets to current U.S. penetration. That's how we think about it. We certainly expect next year for the international growth to continue on a very solid base. Obviously, it won't compound at the high, I think you said 80, but it won't compound at those rates because the base is getting bigger. But the business is very healthy, and we're very positive. Ethan Huntley: I appreciate the color. I'll pass it along. Thank you. Operator: Thank you. The next question will come from Christian Junquera, Bank of America. Your line's open. Christian Junquera: Good morning, everyone. You have Christian on for Pete. Thanks for taking our question. Can you help quantify the impact of out of stocks during the quarter? Presumably, if you had more inventory available, sales would have been higher this quarter. Am I right in thinking that? As you're rebuilding inventories using containers at spot rates, should we think about that as primarily a 4Q gross margin headwind, or does that potentially leak into the first quarter of next year also? Thank you. Martin Roper: Very difficult to quantify completely lost sales, right? Until maybe you have moved past the event and can go look at it in totality. Our supply constraints started to tighten during the quarter and were quite tight at the end of the quarter, and there is no doubt that we haven't shipped from our warehouses what our customers fully wanted in the quarter. So there is definitely deferred sales. How much of that is lost is open. I think the scan data was still very strong. Some signs the last couple of weeks that maybe a little bit of weakness that we would ascribe to potential inventory issues, which might be lost consumer consumption, but that is sort of been in the last couple of weeks. And currently, we are not happy with our service. It is complicated in that we have been able to get containers, but the containers have been taking longer to get to us. There has been some port congestion, particularly in the transshipment ports in China, that has delayed containers. So this has been very hard to predict. We are pretty comfortable that in the last couple of weeks, we have started to see more containers being offered to us at very high rates. But the availability is significantly improving at our shipping ports, and that inventory should arrive as those containers are supplied to us. It is sort of in the December time period, and whether that will impact Q4 in the inventory recovery in the system or Q1 is certainly debatable, and we could see either occur, depending on how things flow. Very difficult to do, but certainly our shipments and reported net revenue was a little depressed in the quarter because we were not able to fulfill demand across branded and private label SKUs. Q4 recovery should be good, but how good is, again, difficult to predict given exactly how those containers would flow. Christian Junquera: Perfect. A quick follow-up. Very helpful, the comment on the latest scan data, like showing this development. Going to the scan data, is there anything in the year ago period that we should be cognizant of? Like any sort of promotion that retailers you did or anything? Just if I remember correctly, the scan data in September, October was very strong in the year ago period. That will be it for me. Thanks, guys. Martin Roper: Do you want to Corey Baker: Yeah. Nothing particular in the scan data this year. I think last year you were cycling the out of stocks in 2024 and the addition of an MVM back into the cycle. But this year-on-year, it's pretty stable. There's always items moving around, but nothing that we would call out as a huge driver. Martin Roper: Not promotional related, so not directly answering your question, but in mid, late November last year, the Walmart resets took place, and that quickly became visible in a slight jump in the scan trends. So we're going to roll that. And while we expect to roll it pretty positively, how positively? Obviously, we don't have the data on to see how that rolls. Christian Junquera: Perfect. Thanks, guys. Operator: Thank you. The next question is going to come from Eric Serotta with Morgan Stanley. Your line's open. Eric Serotta: Great. Thanks so much. Couple of follow-up questions here. One, in terms of the scan data and your guide, looks like both the recent growth of your branded in-scan and your branded guide versus the category shows some market share losses. Could you help us unpack that? Do you think that these supply issues are impacting you guys more than competitors for some reason, maybe relating to sourcing countries? Or is this really another dynamic going on? Then on the Copra side, the sales came in a bit better than I think we in the market had expected in the quarter. I know you didn't have a ton of visibility going back to July when you announced the deal, but you mentioned Copra costs or integration is coming in better. Is the top line and your guidance for Copra top line coming in higher than expected? I think you were talking something like $80 million for the balance of the year, or for the second half when you announced the deal. Thank you. Corey Baker: So Eric, there's a few things in there. Let me talk about Copra. We are just getting to know the business and the shipment timing. The quarter was a bit stronger. We account for private label based on orders and inventory, so it's a bit of movement there. We had indicated approximately $40 million for the ownership time we had within the year. I would say overall, Copra is an element of a really strong category, and so it is overall, we're seeing the category remain quite strong and Copra is benefiting from that and gaining share. Martin Roper: But Copra's also operating at capacity. Right now the upside is a little limited. I think we could probably sell more if we had it, but we don't and we won't probably till mid next year when our capacity additions potentially give us some ability to sell more. I'd say we're very happy with the integration. We're very happy with the team. Yeah, net revenue may be slightly ahead, but to Corey's point, some of that might be accounting or just timing. It's still too early for us to significantly change expectations, which are currently constrained by capacity anyway. Eric Serotta: Great. Then the branded market share trends or growth that you're seeing and expecting versus the category, how is the supply issues playing into that? Can you unpack that more broadly? Do you think your supply situation is different from competitors? Martin Roper: I'd start off by saying the brand growth is very healthy. It might be lagging the category a little bit in the most recent data, which is certainly partially due to supply constraints. But within the category, certainly private label is performing pretty strongly. That's taking a little bit of share from everybody. I don't think that's particularly a long-term issue, but I think we mentioned that a major retailer was adding a private label and that's why it's a short-term issue when that sort of happens. Then as it relates to what we see on the shelf relative to others, I'd say the demand for the category is very healthy. I think everybody has similar issues. Everyone's issues are a little different. Most of our competitors source from Vietnam and Thailand, which have direct shipping available, so they don't have to deal with the transshipping issues that we have coming out of the Philippines and some of our other countries that go through China or Singapore, depending on the routing. So they have different issues. They're still exposed to the same ocean freight peaks, et cetera. Even those countries I think have reported increased exports. So the demand on the shipping is probably pretty similar to what we're seeing. That being said, we do have some private label customers where they are sourcing some of the business from a competitor, and as far as we can see, we are performing better than those. Eric Serotta: Got it. Thanks so much. Operator: Thank you. The next question is going to come from Michael Lavery with Piper Sandler. Your line's open. Michael Lavery: Thank you. Good morning. Just wanted to come back to the capacity color that you had mentioned. Within that, for next year, could you give any sense of if there's considerations we should keep in mind between private label and branded, or is there flexibility between the two? How does the capacity trickle down, just in those buckets? Martin Roper: I think you're asking about how do we think about supplying brand and private label and prioritization. I think that's what you're asking. One, we have great private label relationships and we ask them for projections and then we commit to trying to meet those projections, right? Similarly, on our brand team, we ask them for projections and we try to meet those projections. I think it's fair to say that our brand team is a little more optimistic in their projections than maybe our private label customers are in theirs, so that creates a little bit of a challenge when it comes to fulfilling if the demand remains very strong. The demand has been very strong. We have exceeded our commitments to our private labels and customers this year. We've allocated inventory, we think very fairly. These are long-term relationships. We view it as long-term important to us to maintain them in the business. I think we have talked about this, that we try to invest in the category and grow the category and benefit from our share of the brand and then our share from private label. What we ask is for good forecasts and then we commit to do everything we can to try and meet those. If demand exceeds those, there is certainly some allocation, but we try to meet it fairly. Some of it is difficult, like not all of our factories produce all SKUs. Maybe we have not ordered enough packaging material for that private label customer. There are other factors that go into this. What we really need is great forecasts, and then we commit to trying to deliver them, and I think we have done a really good job of doing that. Michael Lavery: Okay, that is helpful. Just on the innovation for next year, the sports drinks flavors, can you just elaborate on some of the consumer insights or research there, and maybe what some of your incrementality expectations are for that? Mike Kirban: Yeah. I think we have been talking about a year and a half now about leaning harder into sports hydration. From a communication standpoint, we have been doing that, and it has been working really well. I think quite a bit of the demand increases that we have seen are related to that communication, related to bringing in consumers for that occasion. As we think about that, we still see that one of the barriers to adoption in the category is taste or perception of taste. We have done a lot of work on this, and we think as we continue to communicate that Vita Coco coconut water has 3.5x the electrolytes of a sport drink and comes from nature and it comes from a tree, adding flavors that are more recognizable, especially to young consumers who drink sport drinks, whether they be blue, green, or red, we think is going to give us the ability to bring in more young consumers whose families are looking for healthier hydration. Michael Lavery: Okay, great. Thanks. I will pass it on. Operator: Thank you. The next question will come from Eric Des Lauriers with Craig-Hallum. Your line is open. Eric Des Lauriers: Great. Thank you for taking my questions. My first one here is actually a bit of a follow-up on that last question. Younger consumers seem to be an increasingly significant portion of your demand growth. I think Treats were an initial attempt to appeal to younger consumers. We obviously have another Treats product announced here, Vita Coco Kids, and obviously the sports-inspired flavors that you just mentioned. Can you just kind of talk about your positioning with the younger demographic compared to competitors, what you are seeing from that demographic, and how much we should be looking at these new products broadly as incremental opportunities versus perhaps some cannibalization risk? I just want to get a better sense of how you are viewing that younger demographic. Mike Kirban: Yeah. When you think about it is pretty impressive. A 20-something-year-old brand that continues to age down has been, I think something that has helped us a lot. We have been really successful with it. We continue to be. Treats has really worked from that perspective. We have brought in quite a few new consumers to the brand that have never drank the brand before. That has worked really well, and we think part of not only driving Treats, but driving the success of the brand and of the category in general. We think this can do the same. We have talked about our partnerships in youth soccer and youth sports and going deeper into that. To go deeper into that with not only the messaging around 3.5x the electrolytes of a sport drink, but now flavors that are more recognizable to these consumers, these young consumers, we think will add a lot of benefit and bring in a lot of new consumption, new consumers, new households. Eric Des Lauriers: That's great to hear. My other question, you've discussed some of your supply chain investments. Do you expect these investments that you're making now to be able to maintain volume growth? Obviously, it's been quite robust, so that's certainly very encouraging to hear. Just curious if any of these investments or plans that you're making can also potentially address any of the supply chain disruption risks that we've seen here and there over the last several years. Maybe just help shed some light on what, if anything, else is going on at the supply chain level beyond capacity increases. Thanks. Martin Roper: Sure. We're always endeavoring to diversify our supplier base, both for geographic reasons that could deal with political or environmental factors. I think we sort of indicated that the Philippines is our largest supply country. Brazil is second, and Brazil and the Philippines supply the majority of our product, but we have reasonable share elsewhere. When we're looking for new partnerships, we're always balancing those issues. Unfortunately, everywhere we source coconuts from requires ocean freight. So we haven't yet been able to create a meaningful way to sort of dilute our reliance on that beyond some of our sort of more mixed products do use concentrate, and we are able to produce them a little more locally. But that currently it's not insignificant in our product portfolio, but since most of our product portfolio is Vita Coco branded, it's not a significant effect, but we have made progress in that area to try and de-risk those things. Eric Des Lauriers: That is helpful. Thank you for taking my questions. Congrats again. Martin Roper: Thanks. Operator: Thank you. The next question will come from Jim Salera with Stephens. Your line is open. Jim Salera: Hey, guys. Good morning. Thanks for taking our question. Martin, I wanted to expand on something you just said in answer to that last question. If I look at your deck, it looks like the new sports-inspired flavors are from concentrate. I wonder if we see success there, which I anticipate given the consumer engagement with that occasion, is that much easier to scale than the traditional not from concentrate blue bottle product? Mike Kirban: That is part of Sorry, I am just going to. Sorry about that. On that topic, that is part of the objective, right? Sport is from concentrate, so are quite a few of the flavors now. That gives us not only the ability to potentially scale, but also the ability to potentially produce in different places, produce in-country. That is clearly a benefit of the formulation. Martin Roper: Producing from concentrate gives us some flexibility, particularly to avoid ocean freight. But if these products do scale, we might still choose to produce them in the tropics because the production cost of doing so, if ocean freight is at normal historical levels, remains very attractive and we can fill out capacity that our suppliers have put in with catch lines, et cetera, to do it. I think the benefit of being from concentrate, particularly on new items, is it allows us to produce much closer to the market and respond to demand quicker on the innovation side. But the economics long term could be much better if ocean freight returns to historical levels by producing in the tropics. So it is very dependent on where ocean freight is. Jim Salera: If you are able to give any context, is the initial run of the sports-inspired flavor going to be produced domestically or near domestically. And can you give us a sense for the margin of that product relative to the core lineup. Martin Roper: Most of our innovation that uses concentrate, we try to produce in locations that do not involve ocean freight, but maybe not domestic, but maybe across the border. And margins on that tend to be lower than our long-term goals, like you would expect in innovation, right. But in the innovation, when we look at it, we try to design innovation so that if the volume comes, it meets our long-term goals. Jim Salera: Great. And if you do not mind, if I sneak just one other quick one on capacity. I just want to make sure as we think about the front half of next year, it seeming like it is going to be a little bit more capacity constrained. Is the right way to think about that, the sort of the upper bound of sales in any given quarter is sort of where the 3Q number came in that kind of $240 million-$250 million range. Or is it just we have a trickle of capacity in the first half, and then the back half of the year, we have a wider capacity coming online. Martin Roper: I think what we have indicated is the capacity that we have, we think supports continuation of current volume trends through next year. Certainly, the first half of next year, we expect to be pretty tight. There are capacity additions coming on mid and next year that help us in the back half and give us further upside and frankly, prepare us for a continuation of those trends in 2028. Planning capacity, we are having to make these decisions 12, 18, 24 months out. The capacity we have today was called for 18 months ago, when we were thinking that growth rates were in the mid-teens. It is obviously not what we are experiencing. That is why we are tight, but we see a light at the end of the tunnel, but we certainly have some constraints in the first half of next year as to what the max could be. Those constraints sort of fall away a little bit, certainly by Q4 of next year. Our business has seasonality, so the Q1 is typically not a particularly large season. I am not sure we could hit record numbers in it anyway, because that is not how we plan for it, and we want inventory for Q2 when there is a lot of summer promotional stuff. Q2 would probably be the max next year before the capacity comes in. Mike Kirban: If I could just add, I think Martin mentioned in the prepared remarks that we have the supply to meet the current demand, and we are building inventory, but it happens to be more on the water and in the production countries. It is getting the product here fast enough that has been the challenge as of late. I think that is just important to recognize is that we have the product to meet the demand, but just getting it in country has been a challenge as of late. Jim Salera: Great. I appreciate the thoughts, guys. I will pass it along. What is up, man? You doing all right? Mike Kirban: Yeah. Jim Salera: Good. Operator: Thank you. Our next question comes from Rupesh Parikh with Oppenheimer. Your line is open. Rupesh Parikh: Good morning, and thanks for taking my questions. As we look towards FY 2027, just curious if you have any early reads on distribution opportunities. Earlier in the prepared comments, you discussed a number of some of your innovation plans for next year. Just curious whether you expect the innovation for FY 2027 to maybe be more impactful than versus what you saw in FY 2026. Thank you. Martin Roper: On the innovation question, I think you can see from the investor deck where our ACV is. I think we expect to make some progress next year. Obviously, we haven't been communicated set changes yet for the April, May sort of time period. We are expecting Walmart to update their set in the next four weeks. Certainly, our expectations based on the success of what they did last year is to sort of improve the set. What that exactly means, we're not in a position to talk about right now. That's sort of the thing in the short term, and then the sets for next spring, obviously, no one's really talking about. We are presenting the innovation. We are presenting our strategic initiatives. They've been well-received. Obviously, the category is on fire. Our U.K. team refers to it as stonking. Our German team says it's bananas. In that environment, the retailers are likely to give us more space, maybe bring in multipacks and that sort of thing. We're hopeful, but until it happens, we're not really in a position to confirm or know, and we don't really know, obviously, because sometimes retailers say they do something, and then unfortunately they forget the conversation, which is understandable. They're busy people. We don't have anything to share other than we feel optimistic and we think that it's in a good place and that the innovation discussions that we've talked about and you'll see in the deck, there's a major mass retailer taking one of them this quarter, which is ahead of schedule. Call out to our supply team for being ahead of schedule. Our hope is that some of the innovations retailers will dive in on and give us early jump balls to create a differentiation in the category for them. You never know, and those calls tend to happen late. Rupesh Parikh: Great. My follow-up question, just on the Copra acquisition, so strong start so far. Just curious in the couple of months you've owned it, any surprises, positive or negative, in terms of what you're seeing there? Martin Roper: I'd say we've been pleasantly surprised. A couple of things. One, it's our first major acquisition. Two, we've been very pleased with how our team has leaned in and welcomed the Copra team and dealt with the acquisition. Particular call-out to the accounting finance team for completing the close process on time, and allowing us to do this on the planned date. As it relates to the acquisition, I think we're been pleased that what we now own is what we thought we were buying, which is a very high quality Nam Hom premium production capability with strong retailer relationships and a lot of potential. As I mentioned in our prepared remarks, I was in Thailand just about 2 weeks ago, had the opportunity to meet. The team was fantastic, and they're excited to be part of the largest Vita Coco coconut water branded business in the world and to form one great coconut water selling team. So far so good, but obviously the proof will be in the numbers as we deliver them, hopefully over the next 12 months. Rupesh Parikh: Great. Thank you, I'll pass along. Operator: Thank you. The next question is going to come from Jon Andersen with William Blair. Your line's open. Jon Andersen: Good morning. Thank you for the questions. I guess the demand side here has been covered well with the questions so far, so a couple on costs and margins. You mentioned that you're going to be taking price in the first quarter, and that's focused on recouping structural cost increases. Could you talk about what some of the structural or the cost increases you perceive now as structural, excuse me, versus those you see as temporary? Then just to follow up to that, SG&A you see more leverage now than you did a quarter ago, for 2026. Yet I would think costs are going up there too, like logistics, outbound freight. So what is giving you the stronger leverage? Is it just more top line, or are there some other things happening within that line? Thank you. Martin Roper: Sure. On the cost side, obviously there's a range from permanent to temporary, and it's a little gray. So just working along the range, underlying packaging cost increases certainly are at the much more permanent end of the range. Some inflationary factors at factories, including minimum wage type rules and other things are on the more permanent end of the range. Then as you move up, you get to some domestic transportation costs, which may be permanent, maybe temporary. Some of that's fuel, some of it's availability of drivers, related to what's going on in the U.S., it's those sorts of things. Port charges are probably a little bit more permanent if those increase. Then you get to ocean freight, which is perhaps the biggest variable. There, talking about what's permanent and what's temporary is really hard to do. If you asked me 18 months ago, I would have said that the boats going around South Africa would now be back through the Suez and they are not. So, 12 months later, what I thought was temporary is still temporary. That is really hard to predict. Our pricing is certainly designed to cover a fair number of the costs that we think we are going to have to bear next year, but not all the costs that we are currently bearing today. As we certainly think ocean freight should recede from its current peak issues. Obviously, that could be wrong and we are reserving the right to take more pricing next year if we need to. I would say our pricing is fair. The conversations have been good. We currently think we are going to be able to take it, so we are not running into some of the problems that some other CPG companies have run in because we are not at that level. But if ocean freight stayed high, we might need to revisit that sometime next year. Corey Baker: Jon, maybe to take the SG&A. First, as just a definition, our outbound logistics warehouse, et cetera, are all in gross margin. I know that can vary by company. From a leverage perspective, we are seeing better top line. The other bigger item that is delivering the leverage is coming out of last quarter when we did Copra, we were conservative on the SG&A that we might need to accomplish the integration, and that is coming in at a lower cost and more smoothly than we prepared in the previous guidance. That combination is delivering the leverage while we continue to invest in additional headcount to support the growth in marketing. It is really a function of the additional growth and a fairly smooth integration of Copra. Jon Andersen: Really helpful. Thank you. Operator: Thank you. The next question is going to come from Gerald Pascarelli with Needham & Company. Your line's open. Gerald Pascarelli: Great. Thanks very much for the question. I just have one. I wanted to follow up on gross margin and specifically the Q4 gross margin outlook of 33%. I understand it reflects rising costs, but Q4 is almost always your lowest margin quarter. I assume there's a seasonality component there. In this instance, you're also going to have negative mix shift from triple digit private label sales. I think year-over-year, your gross margin's expected to be down about 200 basis points. Just, I guess given all of the moving parts, is there a way for you to unpack how much of this impact is specifically due to rising cost of goods? I guess I'm trying to get a baseline on what the margin impact would be if the costs remain elevated, excluding any mitigating like pricing factors. Any color there would be great. Thank you. Corey Baker: I understand your question, Gerald. I think the cost, to your point, Q4 is always structurally lower. We are. It's kept quite a few moving pieces in the quarter, as with the current supply of which products come in and what our mix looks like. Pricing is such a major driver of the underlying gross margin. Once that price starts to roll in Q4, it becomes a very different equation. Martin Roper: Q1. Corey Baker: Sorry, Q1. Martin Roper: Q1. Corey Baker: Q1. Sorry. Thank you. As the price rolls into Q1, that becomes a very different equation. Today, there are mix impacts the seasonality, but the bigger driver is that cost increase. Against last year we had tariffs, right? So there is a little bit of price change from the prior year, the inflation and then some mix factors. It is hard to. We are not giving 2027 guidance to trend that out because pricing is such an important factor. Martin Roper: Just building on what Corey said, I would say that most of the gross margin impact that you are seeing, and we have indicated in Q4, relates to the ocean freight increases that started to be visible in, I do not know, July maybe, and then continued to grow into August. Given how ocean freight flows, that flows through into the P&L three to four months later. We are not taking pricing on that until next year. That is the biggest driver of the depression. Gerald Pascarelli: Got it. I understand. Thanks so much. Martin Roper: We view those as temporary, but obviously, we've been wrong before on those, but that's how we think about them. Gerald Pascarelli: Thank you. Operator: Thank you. The next question comes from Chris Carey with Wells Fargo. Your line is open. Chris Carey: Hey, guys. Martin Roper: Hey, Chris. Chris Carey: Yeah. Hey, I wanted to ask about the America's branded delivery versus the consumption data. I realize it was asked earlier. I slightly missed it. But the supply issues that you saw in Q3, just to confirm, are you expecting those to come back in Q4 such that you should be shipping ahead of your America's Vita Coco branded consumption in calendar Q4? Martin, you made a statement or a comment that you should be able to maintain current volume levels into next year. Does that imply you don't expect much growth into the front half of the year? Or you're just saying, we have an ability Corey Baker: Volume trend Chris Carey: to continue to meet demand? Yeah, volume trend. I understand. Okay. Thank you. Anyway, just those two things, then I have a follow-up. Corey Baker: Yeah, Chris, I can try because to your point, the Q3 branded growth in the U.S. and the year to date really is lagging the consumption data. There is a bit of inventory move, but we do expect to ship ahead of scans in Q4. I think Martin referenced it. The degree to which we do that is dependent on supply and timing. But we do recognize that scans remain quite healthy. The category remains quite healthy. So that will start to appear in Q4 shipments, but it's hard to quantify the exact amounts until we kind of get there. Martin Roper: Relative to sort of capacity and ability to support demand, we have the committed capacity for next year to support growth equivalent to this year's volume growth on this year's volume, right? So that's a compounded acceleration, and so we feel good about that. In the first 6 months, that capacity is just sufficient to do that, and we're running at 95% utilization. But as a result of some decisions that we made back in January, February this year, there's more capacity coming on in the back half of next year that will alleviate those constraints and put us in good shape for 2028, for a continuation of these trends. So it's growth trends, and so in absolute volume we're able to support growth next year. How that actually works, obviously, is a little bit of a function of how the whole supply chain flows, particularly on the ocean freight side. As we sort of talked about, there have been some sort of delays in the last 8-12 weeks in that area that seem to us to be being driven by demand out of Asia into the U.S. and prioritization of the transshipment ports for how that flows. But it looks like that's starting to ease. Now, if that eases, we're in great shape. If it stays tight, we're in tight shape. So that's how we think about it, and that's somewhat of an uncontrollable, but we are very comfortable we have the production. Chris Carey: Okay, great. From a market share perspective, are your competitors seeing the same supply constraints? I realize you kind of said it's tough to say how the competitive dynamic goes with just less ability to supply at the levels that you would like. So just maybe give me a sense of near term, are you at risk of losing any shelves to competitors? Is this going to be a dynamic going into the front half of the year? Or is the ability to catch up in Q4 going to overwhelm some of that relative dynamic to the peer set? Martin Roper: Given everyone has the same sort of supply chain issues, we think everyone is experiencing the same sort of things. Again, I said in an earlier answer that it's a little different for someone who sources directly from one country in Vietnam or Thailand, reliant on one route. Maybe both of those countries have direct routes to the U.S. We, on our product out of the Philippines, are transshipping in China or Singapore, for instance, so we have a slightly more complicated structure, and there are different effects. There are actually also different effects in country. When China demand on coconuts goes crazy, they come down into Thailand and then into Vietnam, and that affects those suppliers, but it doesn't affect the Philippine supply so much. Everyone's supply chain is a little sort of different. I think that talks to the diversification that we have, that we can sort of weather these issues. But we are sort of somewhat overexposed to product from the Philippines and Brazil, and if there are issues in those supply chains, then perhaps we are overexposed relative to our competitors. I think what I said earlier is, on the shelf, it's really hard to tell. The category's doing really well. You go in a store on Sunday and it's out of inventory, and you wish we had more shelf space for inventory carrying over the weekend, right? That's a conversation you have with retailers. It's hard to tell exactly who's having different issues, but we do have some anecdotal data from our private label relationships where we've been asked to cover for other suppliers' shortfalls and/or offered product opportunity in those regions that we don't serve to cover. We do know that other people are having similar issues. As it relates to retailer decisions, I think the retailers are concerned, rightly, because we aren't meeting their full demand, which frankly, was way greater than anyone forecasted. But we're having great conversations with them, and I think our relationships are good. But obviously we need to solve those issues, which is why we're increasing the investment in our supply chain teams to add capacity for 2028 and 2029 and beyond. We're telling the retailers that this is a multi-year process and we're out ahead of it, and we have the best people in the business doing it. Chris Carey: Thanks, guys. One final one, Copra. This is giving you new capacity in a very premium price point. Can this be, not a greater lever, because I'm sure you have all sorts of different scenario planning for next year, but can you lean on the Copra capacity more going into next year, the price mix premiumization of that capacity and maybe push a bit harder and quicker on a branded offering there? That is it for me. Thanks. Martin Roper: I think as we said, Copra is currently capacity constrained, and we are prioritizing existing relationships. It has a nice brand, but has a very significant private label business, some with customers that we have relationships with, some with new customers, and we are being very clear that we are going to prioritize their supply, and that we are frankly going to invest in expanding capacity to support it. When that capacity comes on board, which will be mid-late next year, we will be in a better position to invest in the brand. What we are doing right now on the brand is testing what works, what does not work. We have got a couple of markets where we are doing that, trying to learn, trying to understand what the actual demand here could be if we get it right, and how to get it right. When the capacity comes online late next year for the brand, by the time it reaches the country, we will be in a position to invest it. I think the way to think about Copra is its upside for next year is a little constrained by capacity, that it will continue to be primarily a private label business because we are going to meet those commitments because we want these relationships long-term. As you start to think about 2028 and 2029, we will try to build a super premium Nam Hom cold chain product to basically have a branded share in that segment, which is growing in line or faster than the category, is at attractive price points, and is the flagship within the coconut water category. Chris Carey: Okay. All right, great. Thanks for entertaining all that. Martin Roper: Thanks, Chris. Chris Carey: Thank you. Operator: Thank you. I show no further questions in the queue. I will now turn the call back to Martin Roper for closing remarks. Martin Roper: Great. Well, really appreciate everyone joining us for the quarter. We are going to go back to finding coconut water and getting it in the country to service the unbelievable demand that we are having. We look forward to talking to you next quarter. Thank you. Operator: This concludes today's conference call. Thank you for participating and you may now disconnect. Before you buy stock in Vita Coco, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vita Coco wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Vita Coco (COCO) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. - Net Sales: Up 34% YoY to $244 million; organic growth 18%; Copra contributed $29 million in the Americas. - Vita Coco Coconut Water Net Sales: Up 15% overall; Americas up 8% to $143 million (9% volume increase, slight net price/mix decline); International up 57%. - Private Label Net Sales: Up 152% overall; Americas up 224% to $46 million (110% volume increase, 54% price/mix increase); International up 27%. - Americas Segment Net Sales: Up 31% to $199 million. - International Segment Net Sales: Up 48%. - Gross Profit: $93 million, up $24 million YoY. - Gross Margin: 38% for the quarter, broadly in line with last year; Q4 expected at approximately 33%; full year approximately 40%. - SG&A: Up $6 million to $47 million, driven by acquisition costs, personnel investments, Copra inclusion and higher sales-related expenses. - Net Income: $35 million, or $0.58 per diluted share, vs. $24 million, or $0.40 per diluted share, prior year. - Adjusted EBITDA: $53 million, or 22% of net sales, up from $32 million, or 18% of net sales, in Q3 2025. - Effective Tax Rate: 20% for Q3 vs. 22% last year; 21% year to date. - Cash Position: $152 million cash on hand; no debt under revolving credit facility. - Cash Flow: Net cash reduced $45 million year to date, driven by $139 million Copra acquisition and $62 million share repurchases; underlying cash generation supported by $115 million net income and $33 million inventory reduction. - Share Repurchases: Approximately $42 million during the quarter; additional $8 million since quarter end; $70 million cumulative year to date; $11 million remaining under $105 million authorization. - Full Year Guidance: Net sales of $810 million$820 million; gross margin approximately 40%; adjusted EBITDA of $170 million$175 million. - Full Year Segment Outlook: Consolidated Vita Coco Coconut Water net sales growth of approximately low 20%; US Vita Coco net sales growth in the high teens; US private label net sales growth of 110%120%. - SG&A Leverage: Expected approximately 1.5 points as a percentage of sales versus 2025. - Retail Scan Growth: US coconut water category retail dollar sales up 28% year to date; Vita Coco Coconut Water up 27% in the US; measured European markets category up 66% and Vita Coco up 54%; US Vita Coco retail scan performance up 23% in Q3. - Warning! GuruFocus has detected 1 Warning Sign with COCO. - Is COCO fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Net sales increased 34% year over year to $244 million, driven by strong Vita Coco Coconut Water growth of 15% and private label growth of 152%. - The coconut water category remains healthy, with US retail dollar sales up 28% and measured European markets up 66% year to date. - The Copra acquisition is integrating smoothly, exceeding expectations, and provides a meaningful position in the fast-growing super-premium Thai Nam Hom segment. - International segment net sales grew 48%, with Vita Coco Coconut Water up 57% and private label up 27%, showing strong global momentum. - Full-year guidance was raised for both net sales ($810-$820 million) and adjusted EBITDA ($170-$175 million), reflecting confidence in continued growth. - Supply chain constraints led to reduced service levels and retail out-of-stocks, causing shipments to lag strong retail scan growth. - Higher ocean freight, domestic transportation, and packaging costs are pressuring gross margins, with Q4 gross margin expected to be approximately 33%. - The company deferred pricing to 2027, which will impact margins until then, and there is uncertainty whether cost increases are temporary or permanent. - Capacity constraints are expected to persist into early 2027, limiting the ability to fully meet demand and potentially capping sales growth. - Branded market share may be slightly lagging the category due to supply issues, and private label growth is partly taking share from branded products. Q: With Q4 gross margin expected to fall to roughly 33%, what is the margin trajectory beyond this year, and are there levers beyond pricing to offset the pressure? A: CFO Corey Baker explained that current margin pressure is driven mainly by transportation, ocean freight and domestic logistics, plus some more permanent factory and packaging inflation. The pricing taking effect in early 2027 is designed to cover the costs viewed as permanent but will not fully offset the current transportation peak. He noted next year's gross margin could span a wide range depending on ocean freight, but management is comfortable taking further pricing if elevated costs prove permanent, with long-term gross margin aspirations unchanged in the high 30s approaching 40%. Q: Can you quantify the impact of out-of-stocks in the quarter, and will the spot-rate containers used to rebuild inventory pressure Q4 gross margin or leak into Q1 2027? A: CFO Corey Baker said it is very difficult to quantify lost sales, but supply tightened through the quarter and the company clearly did not ship everything customers wanted, so there were deferred sales. Container availability is improving at shipping ports, with inventory expected to arrive in December, though whether the recovery lands in Q4 or Q1 is debatable. He confirmed shipments and reported net revenue were somewhat depressed because demand could not be fully met across branded and private label SKUs. Q: What are the key drivers of the strong international growth, and how sustainable is it into next year? A: CFO Corey Baker credited the long-established UK business plus rapid progress in newer markets, especially Germany, which is growing over 100%, while UK scan growth was in the 30s. He highlighted large headroom, noting UK per capita consumption is about a third of the US and Germany about a sixth. International growth is expected to remain very solid next year, though it will not compound at the same high rates given a larger base. Q: Are supply issues causing Vita Coco to lose branded market share versus the category, and is the company's supply situation different from competitors? A: CEO Martin Roper said brand growth remains very healthy but may be lagging the category slightly in recent data, partly due to supply constraints, while private label is performing strongly and taking some share from everyone. He noted competitors mostly source from Vietnam and Thailand with direct shipping, whereas Vita Coco's Philippines product is transshipped through China or Singapore, creating different complications. He added that private label customers have asked Vita Coco to cover for other suppliers' shortfalls, indicating competitors face similar issues. Q: How should we think about capacity constraints in the first half of 2027, and when do the capacity additions provide relief? A: CEO Martin Roper said committed capacity supports growth equivalent to this year's volume growth on this year's volume, but the first six months will be tight at roughly 95% utilization. Additional capacity coming online in the back half of next year should alleviate constraints and position the company well for 2028. CFO Corey Baker added that Q1 is seasonally small, Q2 would likely be the volume peak before new capacity arrives, and the company expects to operate under its preferred 85% utilization model in 2028. Q: What is the outlook for Copra, given sales came in ahead of expectations, and is the top-line guidance higher than originally expected? A: CFO Corey Baker said the quarter was a bit stronger, partly due to shipment timing and private label revenue recognition, against the roughly $40 million indicated for the ownership period this year. CEO Martin Roper noted Copra is operating at capacity, limiting near-term upside until capacity additions arrive around mid-next year, so expectations are not being significantly changed. He added the integration has exceeded expectations and the acquired Nam Hom production capability is what the company believed it was buying. Q: What consumer insights support the new sports-inspired flavors, and what are the incrementality expectations? A: Executive Chairman Mike Kirban said the company has leaned into sports hydration communication for about 18 months with strong results, and a key barrier to adoption remains taste perception. The new Lemon Lime, Blue Raspberry and Fruit Punch flavors are designed to appeal to younger consumers familiar with traditional sports drink flavors, while messaging emphasizes that coconut water has 3.5 times the electrolytes of a sports drink and comes from nature. The goal is to recruit new young consumers and households seeking healthier hydration. Q: How is Vita Coco positioned with younger consumers, and should new products like Vita Coco Kids and sports flavors be viewed as incremental or cannibalistic? A: CEO Martin Roper said the 20-plus-year-old brand continues to successfully age down, and Treats has already brought in many first-time consumers. He views the new sports-inspired flavors and Kids line as incremental, supported by youth soccer and youth sports partnerships and messaging around electrolyte content. The expectation is that these launches bring in new consumption, new consumers and new households rather than cannibalizing the core. Q: Beyond capacity increases, what else is being done at the supply chain level to address disruption risk? A: Executive Chairman Mike Kirban said the company continually diversifies its supplier base for geographic, weather and environmental reasons, with the Philippines the largest supply country and Brazil second. He noted that everywhere the company sources coconuts requires ocean freight, though some mixed products use concentrate that can be produced more locally, providing a partial hedge. He acknowledged the company remains somewhat overexposed to the Philippines and Brazil but is making progress on de-risking. Q: Are the new sports-inspired flavors made from concentrate, and does that make them easier to scale than the not-from-concentrate core product? A: CEO Martin Roper confirmed the sports line is from concentrate, which allows production in different locations, including closer to market, and supports scaling. Executive Chairman Mike Kirban added that concentrate gives flexibility to avoid ocean freight and respond faster to innovation demand, though producing in the tropics could offer better long-term economics if freight returns to historical levels. CFO Corey Baker noted most concentrate-based innovation is produced in locations that avoid ocean freight, with margins initially below long-term goals but designed to reach them at scale. Q: Which cost increases are viewed as structural versus temporary, and what is driving the improved SG&A leverage outlook? A: CEO Martin Roper placed packaging and factory inflation, including minimum wage rules, at the more permanent end, with domestic transportation and port charges in the middle and ocean freight the biggest variable. Pricing is designed to For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Net Sales Increased 34%, Driven by Vita Coco Coconut Water Growth of 15%; Organic Net Sales Growth1 of 18% Net Income Increased $11 million to $35 million and Non-GAAP Adjusted EBITDA² Increased $21 million to $53 million Raises Fiscal Year 2026 Guidance for Net Sales to Between $810 Million and $820 Million and Non-GAAP Adjusted EBITDA² to between $170 million and $175 million NEW YORK, Oct. 22, 2026 (GLOBE NEWSWIRE) -- The Vita Coco Company, Inc. (NASDAQ:COCO) ("Vita Coco" or "the Company"), a leading high-growth platform of better-for-you beverage brands, today announced financial results for the third quarter ended September 30, 2026. Third Quarter and Year-to-Date 2026 Highlights Compared to Prior Year Period - Net sales were $244 million, an increase of $62 million, or 34%, in the third quarter, and $640 million year-to-date, an increase of $158 million, or 33%. - Organic net sales growth1 was 18% in the third quarter and 27% year-to-date. - 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, a leading producer of super premium Thai Nam Hom coconut water that was acquired in July 2026. - Gross profit was $93 million in the third quarter, an increase of $24 million, and $270 million year-to-date, an increase of $92 million. - Gross margin was 38% of net sales in the third quarter consistent with prior year, and was 42% of net sales year-to-date compared to 37%, with tariff refunds delivering a 240 basis point benefit to gross margin year-to-date. - Net income was $35 million in the third quarter, compared to $24 million, an increase of $11 million, and $115 million year-to-date, compared to $66 million, an increase of $49 million. - Net income per diluted share was $0.58 in the third quarter, compared to $0.40, and $1.89 per diluted share year-to-date, compared to $1.10. - Non-GAAP Adjusted EBITDA² was $53 million in the third quarter, compared to $32 million, an increase of $21 million. Non-GAAP Adjusted EBITDA2 was $159 million year-to-date, compared to $84 million, an increase of $75 million. Michael Kirban, the Company's Co-Founder and Executive Chairman, stated, "The growth of the coconut water category maintained through the fall, and remains one of the fastest growing beverage categories in our major markets. I am particularly pleased by the strong growth in Europe as we develop the category in key markets, and the continued growth in America, driven by increases in both household penetration and in average consumption per household. This quarter, we were pleased to welcome the Copra team to our family and to start executing our joint plans, which we believe will allow us to compete successfully in the super premium segment. With the investments we are making in our supply chain, and our strong brand performance, I am confident in our plans to maintain our growth into 2027, and our category leadership well into the future." Martin Roper, the Company's Chief Executive Officer, said, "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. Excluding the impact of Copra, the underlying 18% organic net sales growth of our business remained very strong, exceeding our expectations. Consumer demand is very healthy, and we are therefore raising our full year Net Sales and Adjusted EBITDA guidance." Third Quarter 2026 Consolidated Results Net sales increased $62 million, or 34%, to $244 million for the third quarter ended September 30, 2026, compared to $182 million in the prior year period. The increase in net sales was driven by case equivalent ("CE") volume gains of 16% for Vita Coco Coconut Water and 77% for Private Label. Organic net sales growth1, which is net sales growth excluding the impact of Copra, was 18% for the quarter. Copra net sales primarily impacted Private Label, with Copra branded coconut water and commodity net sales recognized in Other. Gross profit increased to $93 million, from $69 million in the prior year period driven by higher sales volume, the addition of Copra, and minimal tariffs compared to the prior year period, partially offset by higher domestic logistics costs. Gross margin was 38%, in line with the prior year period, benefitting from minimal tariffs compared to the prior year period, offset by higher domestic logistics costs, and the dilutive impact of Copra. Selling, general and administrative ("SG&A") expenses were $47 million, compared to $41 million in the prior year period. The increase was primarily driven by costs related to the acquisition of Copra, amortization expense associated with intangible assets acquired in the Copra acquisition, higher people-related costs reflecting increased headcount and stock-based compensation, as well as higher sales related expenses. Net income was $35 million, or $0.58 per diluted share, compared to net income of $24 million, or $0.40 per diluted share, in the prior year period. Net income benefited from higher gross profit, partially offset by higher SG&A spending and increased income tax expense. Non-GAAP Adjusted EBITDA2 was $53 million, compared to $32 million in the prior year due to the increased gross profit partially offset by higher SG&A expenses. Balance Sheet As of September 30, 2026, the Company's financial position remained strong with no debt and $152 million in cash and cash equivalents. Cash decreased $45 million from the beginning of the year, and $127 million from end of the second quarter due to net cash used for the acquisition of Copra of $139 million. Our inventory was $111 million, flat to December 31, 2025, with the inclusion of Copra inventory offsetting the inventory draw down from strong year-to-date shipments. Accounts receivable increased to $129 million from $82 million as of prior year end due to strong quarterly sales and the inclusion of Copra. 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. During the nine months ended September 30, 2026, the Company repurchased $62 million of its common stock. 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. Fiscal Year 2026 Full Year Outlook³ The Company is increasing its full year 2026 guidance, as follows: - Net sales expected to be between $810 million and $820 million, driven by low 20s percent growth of Vita Coco Coconut Water, strong Private Label trends and the addition of Copra. (Prior guidance was between $790 million and $805 million, which included the benefit of Copra). - Gross margin expected to be approximately 40% with benefit relative to prior year from lower tariffs, tariff refunds, and higher pricing partially offset by increased ocean freight, product and other transportation costs, alongside adverse product mix, primarily due to the impact of Copra's private label business and strong private label trends. (No change from prior guidance). Fourth quarter gross margin expected to be approximately 33% due to increases in cost of goods and no offsetting price actions expected until early 2027. - Expect to deliver SG&A leverage of approximately 1.5 percentage points of net sales vs. 2025. (Prior guidance was one percentage point). - Adjusted EBITDA² expected to be in the range of $170 million to $175 million. (Prior guidance was between $154 million and $161 million). Uncertainty and instability in the current operating environment, geopolitical landscape, and global economies, including the military conflict in Iran and related impacts, changes in tariff rates, natural disasters, associated potential competitive pricing actions, and our own price elasticity could affect this outlook and our future results. Footnotes (1) | Organic net sales growth is a supplemental measure of net sales performance that excludes the impact of net sales attributable to the Copra acquisition as set forth in the U.S. GAAP to non-GAAP reconciliation table below. (2) | Adjusted EBITDA represents earnings before interest, taxes, depreciation, and amortization as adjusted for certain items as set forth in the reconciliation table of U.S. GAAP to non-GAAP information and is a measure calculated and presented on the basis of methodologies other than in accordance with GAAP. Please refer to the Non-GAAP Financial Measures herein for further discussion and reconciliation of this measure to GAAP measures. (3) | GAAP Net income 2026 outlook is not provided due to the inherent difficulty in quantifying certain amounts due to a variety of factors including the unpredictability in the movement in foreign currency rates, as well as future charges or reversals outside of the normal course of business. Conference Call and Webcast Details To participate in the live earnings call and question and answer session, please register at https://register-conf.media-server.com/register/BIb7dfca7ed24e41c7a1cd98a3f2cfb4e0 and dial-in information will be provided directly to you. The live audio webcast will be accessible in the "Events" section of the Company's Investor Relations website at https://investors.thevitacococompany.com. An archived replay of the webcast will be available shortly after the live event has concluded. About The Vita Coco Company The Vita Coco Company is a family of brands on a mission to reimagine what's possible when brands deliver healthy, nutritious, and great tasting products that are better for consumers and better for the world. This includes its flagship coconut water brand Vita Coco, and Copra, a super-premium brand that specializes in Thai Nam Hom coconut water. The Company was co-founded in 2004 by Michael Kirban and Ira Liran and is a public benefit corporation and Certified B Corporation. Vita Coco, the principal brand within the Company's portfolio, is the leading coconut water brand in the U.S. With electrolytes and nutrients, coconut water has become a top beverage choice among consumers after a workout, in smoothies, as a cocktail mixer, after a night out and more. Contacts Investor Relations: ICR, Inc. [email protected] Non-GAAP Financial Measures In addition to disclosing results determined in accordance with U.S. GAAP, the Company also discloses certain non-GAAP results of operations, including, but not limited to, Adjusted EBITDA, and organic net sales growth, which include certain adjustments or exclude certain charges and gains that are described in the reconciliation table of U.S. GAAP to non-GAAP information provided at the end of this release. These non-GAAP measures are a key metric used by management and our board of directors to assess our financial performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance and because we believe it is useful for investors to see the measures that management uses to evaluate the Company. In addition, we believe the presentation of these measures is useful to investors for period-to-period comparisons of results as the items described below in the reconciliation tables do not reflect ongoing operating performance. These measures are not in accordance with, or an alternative to, U.S. GAAP, and may be different from non-GAAP measures used by other companies. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as a comparative measure. Investors should not rely on any single financial measure when evaluating our business. This information should be considered as supplemental in nature and is not meant as a substitute for our operating results in accordance with U.S. GAAP. We recommend investors review the U.S. GAAP financial measures included in this earnings release. When viewed in conjunction with our U.S. GAAP results and the accompanying reconciliations, we believe these non-GAAP measures provide greater transparency and a more complete understanding of factors affecting our business than U.S. GAAP measures alone. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, but not limited to, statements regarding our future financial and operating performance, including our GAAP and non-GAAP guidance, our strategy, projected costs, tariffs, prospects, expectations, plans, objectives of management, supply chain predictions, customer and supplier relationships, expected impact of acquisitions, and expected net sales and category share growth. The forward-looking statements in this release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the Company's control. These factors include, but are not limited to, those discussed under the caption "Risk Factors" in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and our other filings with the U.S. Securities and Exchange Commission ("SEC") as such factors may be updated from time to time and which are accessible on the SEC's website at www.sec.gov and the Investor Relations page of our website at https://investors.thevitacococompany.com. Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. We disclaim any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law. Website Disclosure We intend to use our websites, vitacoco.com and investors.thevitacococompany.com, as a means for disclosing material non-public information and for complying with the SEC's Regulation FD and other disclosure obligations. THE VITA COCO COMPANY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) | | | | September 30, 2026 | | December 31, 2025 Assets | | | Current assets: | | | Cash and cash equivalents | $ | 151,995 | | | $ | 196,873 | Accounts receivable, net of allowance of $3,282 at September 30, 2026, and $2,660 at December 31, 2025 | | 128,724 | | | | 81,514 | Inventory | | 111,296 | | | | 111,468 | Supplier advances, current | | 339 | | | | 693 | Derivative assets | | 1,794 | | | | 732 | Prepaid expenses and other current assets | | 39,536 | | | | 30,160 | Total current assets | | 433,684 | | | | 421,440 | Property and equipment, net | | 24,441 | | | | 9,298 | Goodwill | | 110,175 | | | | 7,791 | Intangible assets, net | | 107,116 | | | | — | Supplier advances, long-term | | 1,593 | | | | 1,860 | Deferred tax assets, net | | 6,627 | | | | 6,623 | Right-of-use assets, net | | 10,337 | | | | 11,592 | Other assets | | 2,169 | | | | 2,714 | Total assets | $ | 696,142 | | | $ | 461,318 | Liabilities and Stockholders' Equity | | | Current liabilities: | | | Accounts payable | $ | 46,389 | | | $ | 25,464 | Accrued expenses and other current liabilities | | 126,632 | | | | 89,461 | Derivative liabilities | | 2,059 | | | | 1,507 | Total current liabilities | | 175,080 | | | | 116,432 | Deferred tax liability | | 24,875 | | | | 160 | Operating lease liability, long-term | | 12,119 | | | | 13,087 | Seller's earn-out | | 55,100 | | | | — | Other long-term liabilities | | 240 | | | | 97 | Total liabilities | $ | 267,414 | | | $ | 129,776 | Stockholders' equity: | | | Common stock, $0.01 par value; 500,000,000 shares authorized; 65,396,253 and 64,186,549 shares issued at September 30, 2026 and December 31, 2025, respectively; 57,202,356 and 57,082,173 shares outstanding at September 30, 2026 and December 31, 2025, respectively. | | 654 | | | | 642 | Additional paid-in capital | | 231,578 | | | | 185,400 | Retained earnings | | 342,956 | | | | 228,014 | Accumulated other comprehensive gain (loss) | | (1,050 | ) | | | 486 | Treasury stock, 8,193,897 shares at cost as of September 30, 2026, and 7,104,376 as of December 31, 2025. | | (145,410 | ) | | | (83,000 | ) Total stockholders' equity | | 428,728 | | | | 331,542 | Total liabilities and stockholders' equity | $ | 696,142 | | | $ | 461,318 | THE VITA COCO COMPANY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except for share and per share data) | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | 2026 | | 2025 | | 2026 | | 2025 Net sales | $ | 243,825 | | | $ | 182,313 | | | $ | 639,744 | | | $ | 481,993 | Cost of goods sold | | 151,148 | | | | 113,645 | | | | 369,942 | | | | 303,975 | Gross profit | | 92,677 | | | | 68,668 | | | | 269,802 | | | | 178,018 | Operating expenses | | | | | | | Selling, general and administrative | | 47,226 | | | | 40,745 | | | | 127,629 | | | | 105,680 | Income from operations | | 45,451 | | | | 27,923 | | | | 142,173 | | | | 72,338 | Other income (expense) | | | | | | | Unrealized (loss) gain on derivative instruments | | (2,083 | ) | | | 2,391 | | | | 511 | | | | 6,275 | Foreign currency loss | | (887 | ) | | | (1,411 | ) | | | (2,432 | ) | | | (349 | ) Interest income, net | | 1,231 | | | | 1,776 | | | | 5,252 | | | | 4,794 | Other (expense) income, net | | (84 | ) | | | — | | | | (77 | ) | | | 155 | Total other (expense) income | | (1,823 | ) | | | 2,756 | | | | 3,254 | | | | 10,875 | Income before income taxes | | 43,628 | | | | 30,679 | | | | 145,427 | | | | 83,213 | Income tax expense | | 8,611 | | | | 6,676 | | | | 30,485 | | | | 17,420 | Net income | $ | 35,017 | | | $ | 24,003 | | | $ | 114,942 | | | $ | 65,793 | Net income attributable to The Vita Coco Company, Inc. per common share | | | | | | | Basic | $ | 0.61 | | | $ | 0.42 | | | $ | 2.01 | | | $ | 1.16 | Diluted | $ | 0.58 | | | $ | 0.40 | | | $ | 1.89 | | | $ | 1.10 | Weighted-average number of common shares outstanding | | | | | | | Basic | | 57,453,252 | | | | 56,850,812 | | | | 57,274,270 | | | | 56,879,627 | Diluted | | 60,831,632 | | | | 59,878,602 | | | | 60,786,462 | | | | 59,832,067 | THE VITA COCO COMPANY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) | | Nine Months Ended September 30, | 2026 | | 2025 Cash flows from operating activities: | | | Net income | $ | 114,942 | | | $ | 65,793 | Adjustments required to reconcile net income to cash flows from operating activities: | | | Depreciation and amortization | | 2,458 | | | | 636 | Amortization of debt issuance cost | | 14 | | | | 11 | Increase of provision for credit losses | | 187 | | | | 1,300 | Unrealized (gain) on derivative instruments | | (511 | ) | | | (6,275 | ) Stock-based compensation | | 11,338 | | | | 8,123 | Impairment loss on Runa assets | | — | | | | 185 | Noncash lease expense | | 1,242 | | | | 1,052 | Changes in operating assets and liabilities: | | | Accounts receivable | | (42,801 | ) | | | (39,706 | ) Inventory | | 33,259 | | | | (302 | ) Prepaid expenses, net supplier advances, and other assets | | (7,236 | ) | | | 345 | Accounts payable, accrued expenses, and other liabilities | | 39,050 | | | | 19,907 | Net cash provided by operating activities | | 151,942 | | | | 51,069 | | | | Cash flows from investing activities: | | | Cash paid for property and equipment | | (803 | ) | | | (4,921 | ) Acquisition of Copra Inc., net of $8,340 cash acquired | | (139,253 | ) | | | — | Net cash used in investing activities | | (140,056 | ) | | | (4,921 | ) | | | Cash flows from financing activities: | | | Proceeds from exercise of stock awards | | 6,131 | | | | 2,281 | Cash paid on notes payable | | (3 | ) | | | (8 | ) Cash paid to acquire treasury stock | | (62,410 | ) | | | (10,204 | ) Net cash used in financing activities | | (56,282 | ) | | | (7,931 | ) Effects of exchange rate changes on cash and cash equivalents | | (475 | ) | | | 833 | Net (decrease) increase in cash and cash equivalents | | (44,871 | ) | | | 39,050 | Cash, cash equivalents and restricted cash at beginning of the period (1) | | 198,154 | | | | 165,933 | Cash, cash equivalents and restricted cash at end of the period (1) | $ | 153,283 | | | | 204,983 | 1 Includes $1,281 and $1,264 of restricted cash as of December 31, 2025 and 2024, respectively. Includes $1,288 and $1,278 of restricted cash as of September 30, 2026 and 2025, respectively, reported in other current assets on the condensed consolidated balance sheet. During the nine months ended September 30, 2026, the Company issued common stock with a fair value of $35,000 and recognized contingent consideration with a fair value of $55,100 in connection with the acquisition of Copra. These transactions are reflected as noncash investing and financing activities. RECONCILIATION FROM GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDA | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | 2026 | | 2025 | | 2026 | | 2025 | (in thousands) | | (in thousands) Net income | | 35,017 | | | | 24,003 | | | $ | 114,942 | | | $ | 65,793 | Depreciation and amortization | | 1,493 | | | | 228 | | | | 2,458 | | | | 636 | Interest income, net | | (1,231 | ) | | | (1,776 | ) | | | (5,252 | ) | | | (4,794 | ) Income tax expense | | 8,611 | | | | 6,676 | | | | 30,485 | | | | 17,420 | EBITDA | $ | 43,890 | | | $ | 29,131 | | | $ | 142,633 | | | $ | 79,055 | Stock-based compensation (a) | | 3,122 | | | | 2,975 | | | | 11,338 | | | | 8,123 | Unrealized loss (gain) on derivative instruments (b) | | 2,083 | | | | (2,391 | ) | | | (511 | ) | | | (6,275 | ) Foreign currency loss (b) | | 887 | | | | 1,411 | | | | 2,432 | | | | 349 | Acquisition-related costs (c) | | 3,174 | | | | — | | | | 3,174 | | | | — | Other adjustments (d) | | — | | | | 1,264 | | | | — | | | | 2,886 | Adjusted EBITDA | $ | 53,156 | | | $ | 32,390 | | | $ | 159,066 | | | $ | 84,138 | (a) | Non-cash charges related to stock-based compensation, which vary from period to period depending on volume and vesting timing of awards and forfeitures. We adjusted for these charges to facilitate comparison from period to period. (b) | Unrealized gains or losses on derivative instruments and foreign currency gains or losses are not considered in our evaluation of our ongoing performance. (c) | Acquisition-related costs represent transaction, advisory, legal, accounting, valuation, and other professional fees incurred in connection with the acquisition of Copra. (d) | The three and nine months ended September 30, 2025 included $0.6 million and $1.8 million, respectively, related to a one-time incentive program established in 2023 and measured based on full-year 2025 performance, and $0.4 million and $1.1 million, respectively, of overlapping rent expense associated with our new New York City office, and $0.2 million of impairment loss related to the sale of Runa. The three months ended September 30, 2025 also includes $0.1 million of provision for credit losses related to the partially recovered prepaid inventory from a supplier recorded in the first half of 2025 (refer to the Form 10-K and the Form 10-Q for the quarterly period ended June 30, 2025 for further details). The nine month period was partially offset by $0.1 million of partial recoveries of prepaid inventory from a supplier (refer to the Form 10-K for further details) and a $0.2 million gain from a sale of intellectual property. RECONCILIATION FROM GAAP NET SALES GROWTH TO NON-GAAP ORGANIC NET SALES GROWTH | | | | Three Months Ended September 30, 2026 | | Nine Months Ended September 30, 2026 Net sales growth | 33.7 | % | | 32.7 | % Impact of Copra acquisition | 16.0 | % | | 6.0 | % Organic net sales growth | 17.8 | % | | 26.7 | % SUPPLEMENTAL INFORMATION | NET SALES | Three Months Ended September 30, | | Nine Months Ended September 30, (in thousands) | 2026 | | 2025 | | 2026 | | 2025 Americas segment | | | | | | | Vita Coco Coconut Water | $ | 143,276 | | $ | 132,438 | | $ | 399,231 | | $ | 339,006 Private Label | | 46,495 | | | 14,360 | | | 97,795 | | | 50,242 Other | | 8,786 | | | 4,926 | | | 22,162 | | | 17,037 Subtotal | $ | 198,557 | | $ | 151,724 | | $ | 519,188 | | $ | 406,285 International segment | | | | | | | Vita Coco Coconut Water | $ | 34,363 | | $ | 21,939 | | $ | 88,645 | | $ | 54,998 Private Label | | 10,297 | | | 8,137 | | | 30,462 | | | 19,118 Other | | 608 | | | 513 | | | 1,449 | | | 1,592 Subtotal | $ | 45,268 | | $ | 30,589 | | $ | 120,556 | | $ | 75,708 Total net sales | $ | 243,825 | | $ | 182,313 | | $ | 639,744 | | $ | 481,993 | COST OF GOODS SOLD & GROSS PROFIT | Three Months Ended September 30, | | Nine Months Ended September 30, (in thousands) | 2026 | | 2025 | | 2026 | | 2025 Cost of goods sold | | | | | | | Americas segment | $ | 122,824 | | | $ | 93,859 | | | $ | 293,240 | | | $ | 255,062 | International segment | | 28,324 | | | | 19,786 | | | | 76,702 | | | | 48,913 | Total cost of goods sold | $ | 151,148 | | | $ | 113,645 | | | $ | 369,942 | | | $ | 303,975 | Gross profit | | | | | | | Americas segment | $ | 75,732 | | | $ | 57,866 | | | $ | 225,948 | | | $ | 151,224 | International segment | | 16,945 | | | | 10,802 | | | | 43,854 | | | | 26,794 | Total gross profit | $ | 92,677 | | | $ | 68,668 | | | $ | 269,802 | | | $ | 178,018 | Gross margin | | | | | | | Americas segment | | 38.1 | % | | | 38.1 | % | | | 43.5 | % | | | 37.2 | % International segment | | 37.4 | % | | | 35.3 | % | | | 36.4 | % | | | 35.4 | % Consolidated | | 38.0 | % | | | 37.7 | % | | | 42.2 | % | | | 36.9 | % | VOLUME (CE) | Percentage Change - Three Months Ended September 30, 2026 vs. 2025 | Americas segment | | International segment | | Total Vita Coco Coconut Water | 8.5 | % | | 50.5 | % | | 15.8 | % Private Label | 109.9 | % | | 23.1 | % | | 76.7 | % Other | 34.9 | % | | 108.7 | % | | 35.8 | % Subtotal | 22.5 | % | | 42.1 | % | | 26.5 | % | | | | | | Percentage Change - Nine Months Ended September 30, 2026 vs. 2025 | Americas segment | | International segment | | Total Vita Coco Coconut Water | 13.2 | % | | 52.5 | % | | 19.7 | % Private Label | 63.4 | % | | 48.8 | % | | 58.9 | % Other | 16.6 | % | | (14.2 | )% | | 15.8 | % Subtotal | 21.2 | % | | 51.0 | % | | 26.8 | % Note: A CE is a standard volume measure used by management which is defined as a case of 12 bottles of 330ml liquid beverages or the same liter volume of oil. We may have immaterial sales of raw materials at times that are treated as zero CEs for the purposes of these calculations.

Vita Coco Company, Inc. (COCO) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.4 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +13.73%. A quarter ago, it was expected that this company would post earnings of $0.56 per share when it actually produced earnings of $0.82, delivering a surprise of +46.43%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Vita Coco Company, which belongs to the Zacks Beverages - Soft drinks industry, posted revenues of $243.83 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 5.07%. This compares to year-ago revenues of $182.31 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Vita Coco Company shares have added about 19.8% since the beginning of the year versus the S&P 500's gain of 13.3%. While Vita Coco Company has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Vita Coco Company was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.18 on $172.73 million in revenues for the coming quarter and $1.96 on $800.71 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Beverages - Soft drinks is currently in the bottom 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Westrock Coffee Company (WEST), another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on November 5. This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Westrock Coffee Company's revenues are expected to be $306.5 million, down 13.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report Westrock Coffee Company (WEST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Vita Coco Company, Inc. (COCO) reported $243.83 million in revenue for the quarter ended September 2026, representing a year-over-year increase of 33.7%. EPS of $0.58 for the same period compares to $0.40 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $232.06 million, representing a surprise of +5.07%. The company delivered an EPS surprise of +13.73%, with the consensus EPS estimate being $0.51. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Vita Coco Company performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Net Sales- International: $45.27 million compared to the $41.02 million average estimate based on four analysts. The reported number represents a change of +48% year over year. - Net sales- Americas: $198.56 million versus $190.94 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +30.9% change. - Net sales- Americas- Vita Coco Coconut Water: $143.28 million versus $142.6 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8.2% change. - Net sales- Americas- Private Label: $46.5 million compared to the $39.81 million average estimate based on three analysts. The reported number represents a change of +223.8% year over year. - Net sales- Americas- Other: $8.79 million compared to the $5.81 million average estimate based on three analysts. The reported number represents a change of +78.4% year over year. - Net sales- International- Other: $0.61 million compared to the $0.51 million average estimate based on two analysts. The reported number represents a change of +18.5% year over year. - Net sales- International- Private Label: $10.3 million compared to the $12.8 million average estimate based on two analysts. The reported number represents a change of +26.6% year over year. - Net sales- International- Vita Coco Coconut Water: $34.36 million compared to the $29.55 million average estimate based on two analysts. The reported number represents a change of +56.6% year over year. View all Key Company Metrics for Vita Coco Company here>>> Shares of Vita Coco Company have returned +9.5% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Interested in Vita Coco Company, Inc.? Here are five stocks we like better. - Strong Q3 performance: Net sales rose 34% to $244 million, while adjusted EBITDA increased to $53 million. Growth was driven by 15% branded Vita Coco sales growth and a 152% surge in private-label sales, including $29 million from the Copra acquisition. - Demand remains robust but supply constraints persist: Coconut water sales continued to grow across the U.S. and Europe, though container shortages, port congestion and longer transit times limited shipments and caused retail out-of-stocks. New capacity additions are expected to ease constraints beginning in mid-2027. - Outlook raised, with near-term margin pressure: Vita Coco now expects 2026 sales of $810 million to $820 million and adjusted EBITDA of $170 million to $175 million. Elevated ocean freight and logistics costs are expected to reduce fourth-quarter gross margin to about 33%, with price increases planned for early 2027. - Sipping On Success: Vita Coco Stock Setting Up For A Fresh Rally? Vita Coco (NASDAQ:COCO) reported third-quarter 2026 net sales growth of 34% as strong demand for coconut water and an expanded private-label business lifted results. The company also raised its full-year sales and adjusted EBITDA outlook, while warning that elevated ocean freight and logistics costs are expected to weigh on fourth-quarter gross margins. Net sales increased $62 million to $244 million in the quarter. Branded Vita Coco coconut water sales rose 15%, while private-label sales climbed 152%, aided by the late-July acquisition of Copra, a producer of super-premium Thai Nam Hom coconut water. Copra contributed $29 million of sales in the Americas during the period, according to Chief Financial Officer Corey Baker. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over - Investors Are Energized, Not Scared Off, By Monster's Fast Growth Net income attributable to shareholders rose to $35 million, or $0.58 per diluted share, from $24 million, or $0.40 per diluted share, a year earlier. Adjusted EBITDA increased to $53 million, representing 22% of net sales, compared with $32 million, or 18% of sales, in the prior-year quarter. Executive Chairman Mike Kirban said the demand acceleration seen during the first half continued through the third quarter across major markets. Retail dollar sales in the U.S. coconut water category rose 28% year to date, according to the company's retail scan data, while measured European markets grew 66%. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? Vita Coco's coconut water sales, excluding coconut milk-based products such as Treats, increased 27% in U.S. retail dollars year to date and 54% in measured European markets. Kirban said household penetration remains below that of mainstream juices, sports drinks and other functional beverages, which the company believes leaves room for further adoption. In the U.S., Chief Executive Officer Martin Roper said the company estimates that more than half of year-to-date branded growth has come from increased household penetration, with the remainder stemming from greater sales velocity per household. The company's international segment posted a 48% increase in sales, including 57% growth for Vita Coco coconut water. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price Roper highlighted growth in Germany, where he said sales were increasing at rates above 100%, while U.K. scan growth was in the 30% range. He said consumption levels in both markets remain well below those in the U.S. Despite strong consumer demand, Vita Coco said supply-chain conditions constrained shipments during the quarter. Production levels were sufficient to meet demand, but container availability, port congestion and longer transit times caused inventory to build at suppliers and reduced service levels in selling markets. Roper said retail out-of-stocks in recent weeks had modestly affected scan growth, and Baker said U.S. branded shipment growth lagged retail scan growth of 23% in the third quarter. The company expects shipments to exceed scan growth in the coming months as it rebuilds inventory throughout the distribution system, although executives said the timing depends on container flows. The company expects capacity utilization to remain high early in 2027. Roper said existing capacity can support a continuation of current volume-growth trends next year, while planned additions beginning around the middle of 2027 should ease constraints later in the year and support growth into 2028. Vita Coco is also pursuing a more diversified supply network. Roper said the Philippines and Brazil remain its two largest sourcing countries, though the company continues to add factory partners and expand existing relationships. He noted that ocean freight remains necessary for most of the company's portfolio. Management said Copra has operated smoothly since the acquisition closed in late July. The business gives Vita Coco a position in the chilled, super-premium segment, which the company estimates represents about 13% of U.S. coconut water sales and carries retail prices nearly double those for shelf-stable products. Copra is currently operating at capacity, and Roper said Vita Coco is prioritizing its existing private-label relationships while testing branded-market opportunities. Additional capacity expected in mid-to-late 2027 could allow the company to invest more heavily in the Copra brand, he said. The company also outlined planned U.S. product launches for the coming months, including sports-inspired coconut water flavors in lemon lime, blue raspberry and fruit punch; a six-pack of 8-ounce Vita Coco Kids products; a 310-milliliter slim can designed primarily for food-service accounts; and a Piña Colada flavor for its Treats line. Kirban said the sports-inspired products are intended to appeal to younger consumers seeking alternatives to traditional sports drinks. He said the company's messaging around coconut water's electrolyte content and new familiar flavor profiles could help recruit new consumers and households. Third-quarter gross profit increased $24 million to $93 million, while gross margin held at 38%, broadly in line with the prior year. Lower tariff costs compared with last year were mostly offset by higher domestic logistics expenses and Copra-related mix effects. However, the company expects fourth-quarter gross margin of about 33%, as the full impact of cost increases that began in early summer moves through results. Roper said much of the anticipated pressure reflects elevated ocean freight costs, which he characterized as unusual and likely temporary, though the company is prepared to take additional pricing if they persist. Vita Coco has informed distributors and retail partners of planned price increases beginning in the first quarter of 2027. Management said the increases are designed to offset structural inflation in packaging, factory operations and certain logistics expenses, assuming some normalization in ocean freight rates. The company reiterated its long-term gross-margin goal in the high-30% range, approaching 40%. Vita Coco raised its full-year forecast and now expects net sales of $810 million to $820 million and adjusted EBITDA of $170 million to $175 million. It continues to expect full-year gross margin of approximately 40%. - Consolidated Vita Coco coconut water sales are expected to grow at a low-20% rate for the year. - U.S. branded Vita Coco sales are projected to grow in the high teens. - U.S. private-label sales are expected to rise 110% to 120%, reflecting category growth, distribution gains and Copra's contribution. As of Sept. 30, Vita Coco had $152 million of cash and no debt outstanding under its revolving credit facility. Year to date, the company invested $139 million net in the Copra acquisition and repurchased $62 million of shares. Including purchases made after the quarter ended, it had repurchased $70 million of stock year to date, leaving $11 million under its current authorization. The Vita Coco Company, Inc is a beverage company focused on hydration and wellness products. Its flagship brand, Vita Coco, offers coconut water in a variety of formats and flavors, including original, flavored and pressed coconut water products. The company also markets other beverages under brands such as Ever & Ever, a plant-based water brand, and PWR LIFT, a functional hydration beverage. Vita Coco products are sold through grocery stores, mass merchandisers, convenience stores, club retailers, e-commerce platforms and foodservice channels. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What Vita Coco (COCO) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Wall Street expects a year-over-year increase in earnings on higher revenues when Coca-Cola (KO) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 27. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This world's largest beverage maker is expected to post quarterly earnings of $0.87 per share in its upcoming report, which represents a year-over-year change of +6.1%. Revenues are expected to be $12.93 billion, up 4.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.03% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Coca-Cola, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.31%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Coca-Cola will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Coca-Cola would post earnings of $0.92 per share when it actually produced earnings of $0.97, delivering a surprise of +5.43%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Coca-Cola doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Beverages - Soft drinks industry, Vita Coco Company, Inc. (COCO), is soon expected to post earnings of $0.51 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +27.5%. Revenues for the quarter are expected to be $232.06 million, up 27.3% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Vita Coco Company has remained unchanged. Nevertheless, the company now has an Earnings ESP of -7.84%, reflecting a lower Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Vita Coco Company will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO) : Free Stock Analysis Report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Analysts on Wall Street project that Vita Coco Company, Inc. (COCO) will announce quarterly earnings of $0.51 per share in its forthcoming report, representing an increase of 27.5% year over year. Revenues are projected to reach $232.06 million, increasing 27.3% from the same quarter last year. Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock. While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective. That said, let's delve into the average estimates of some Vita Coco Company metrics that Wall Street analysts commonly model and monitor. Analysts predict that the 'Net Sales- International' will reach $41.02 million. The estimate suggests a change of +34.1% year over year. The collective assessment of analysts points to an estimated 'Net sales- Americas' of $190.94 million. The estimate indicates a change of +25.9% from the prior-year quarter. The average prediction of analysts places 'Net sales- Americas- Vita Coco Coconut Water' at $142.60 million. The estimate points to a change of +7.7% from the year-ago quarter. The consensus among analysts is that 'Net sales- Americas- Private Label' will reach $39.81 million. The estimate suggests a change of +177.2% year over year. It is projected by analysts that the 'Net sales- Americas- Other' will reach $5.81 million. The estimate points to a change of +18% from the year-ago quarter. According to the collective judgment of analysts, 'Net sales- International- Private Label' should come in at $12.80 million. The estimate indicates a year-over-year change of +57.2%. Analysts forecast 'Net sales- International- Vita Coco Coconut Water' to reach $29.55 million. The estimate indicates a change of +34.7% from the prior-year quarter. View all Key Company Metrics for Vita Coco Company here>>> Vita Coco Company shares have witnessed a change of +5.1% in the past month, in contrast to the Zacks S&P 500 composite's +1.5% move. With a Zacks Rank #3 (Hold), COCO is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Vita Coco Company, Inc. (COCO) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This company is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of +27.5%. Revenues are expected to be $232.06 million, up 27.3% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Vita Coco Company, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -7.84%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Vita Coco Company will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Vita Coco Company would post earnings of $0.56 per share when it actually produced earnings of $0.82, delivering a surprise of +46.43%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Vita Coco Company doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vita Coco Company, Inc. (COCO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research