0001482981-26-000120
SEC filingStrong revenue growth of 37.3% driven by Vita Coco volume and pricing, with gross margin expanding 320 bps to 39.9%.
For the three months ended March 31, 2026, The Vita Coco Company delivered exceptional results with net sales increasing 37.3% to $179.8 million from $130.9 million in the prior year period. The growth was broad-based, driven by a 32.0% increase in case equivalent volume for Vita Coco Coconut Water, supported by strong consumer demand, the timing shift of a major retailer promotion into Q1, and improved net pricing. Gross profit rose 49.3% to $71.8 million, outpacing revenue growth, as gross margin expanded 320 basis points to 39.9%. The margin improvement was primarily due to higher pricing and lower ocean freight costs, partially offset by higher finished goods and domestic logistics costs as well as legacy tariff impacts on inventory sold. Operating expenses increased 32.8% to $38.2 million, driven by higher people-related costs (including stock-based compensation) and increased marketing spend, but operating leverage improved as operating income grew to $33.6 million (18.7% margin) from $19.3 million (14.7% margin). Net income rose 61.4% to $30.5 million, reflecting strong top-line growth and margin expansion.
The Americas segment, contributing 82.4% of total revenue, grew 31.6% to $148.2 million. Vita Coco Coconut Water sales increased 37.1% on volume growth of 29.4% and pricing benefits. Private Label sales rose 15.1% due to regained regions partially offsetting prior losses. The International segment surged 72.5% to $31.6 million, driven by 50.2% volume growth across all categories, particularly in Germany and the UK, with Private Label more than doubling. International gross margins improved 290 bps to 34.4%, benefiting from favorable mix and pricing.
Management highlighted ongoing tariff uncertainty: a $15.6 million refund claim has been filed for 2025 tariffs, but no recovery has been recognized. The company expects to pursue pricing adjustments and sourcing modifications to mitigate future tariff impacts. With a strong cash position of $201.9 million and no borrowings under its $60 million credit facility, the company believes it has sufficient liquidity for at least 12 months. Key growth drivers include continued momentum in Vita Coco Coconut Water, expansion in international markets, and product innovation (e.g., Vita Coco Treats). However, risks remain from geopolitical instability and potential new tariffs.
As of March 31, 2026, Vita Coco had a strong liquidity position with $201.9M in cash and equivalents, no outstanding debt, and $60M undrawn credit facility. Inventory decreased to $86.4M from $111.5M at year-end 2025, driven by a reduction in finished goods. Total assets grew to $488.3M, with stockholders' equity increasing to $352.2M.
The Notes do not disclose any material purchase commitments or long-term contractual obligations. The company has standard operating lease liabilities of $14.4M (current and long-term) for office space in New York, London, and Singapore.
During Q1 2026, the company repurchased 225,273 shares for $11.5M under its $65M authorized buyback program, leaving $29.4M remaining as of March 31, 2026. No dividends were declared. Capital expenditures were minimal at $0.5M (0.3% of sales). The company maintains a debt-free capital structure with a $60M revolving credit facility undrawn.
Vita Coco operates two reportable segments: Americas and International. For Q1 2026, Americas generated $148.2M (82.4% of total net sales) with gross profit of $60.9M (41.1% margin), while International contributed $31.6M (17.6%) with gross profit of $10.9M (34.4% margin). Both segments saw strong year-over-year growth: Americas revenue up 31.6% and International up 72.5%. Geographically, the U.S. accounted for $136.0M (75.6% of total sales), the U.K. for $19.2M (10.7%), and all other countries for $24.6M (13.7%).