How does The Vita Coco Company make money?

The Vita Coco Company generates $610M in annual revenue (FY2025 net sales · +18% vs. prior year · lines below sum to consolidated net sales in Exhibit 99.1 (Feb 18, 2026)).

What is COCO's XVARY composite score?

The Vita Coco Company (COCO) has an XVARY composite score of 55/100, rated below average. This combines growth, value, risk, and momentum factors.

COCO — The Vita Coco Company stock analysis

Start here if you're new

what it is

Vita Coco sells coconut water and a small bench of wellness drinks through a brand you already know from the grocery aisle.

how it gets paid

FY2025 net sales $610M (+18% vs. prior year). Vita Coco Coconut Water net sales were ~$496M (~81% of net sales per supplemental tables); Private Label ~$89M; Other ~$25M.

why it's growing
Net income $71M ($1.19 diluted EPS) vs $56M ($0.94) prior year. Adjusted EBITDA $98M vs $84M — tariffs pressured gross margin (37% vs 39% prior year).

what just happened

Q4 2025 net sales ~$128M (+0.4% vs. prior year); diluted EPS $0.09 vs $0.06 prior-year quarter — some sell-side estimates were nearer $0.11.

At a glance

No debt · ~$197M cash (12/31/25) — balance sheet is a strength

~46× trailing diluted EPS ($1.19 FY25) — multiple is the debate

~21% ROE FY25 — earnings on modest equity

xvary composite: 55/100 — below average

FY2026 guide: $680M–$700M sales · adj. EBITDA $122M–$128M

What they do

Vita Coco sells coconut water and a small bench of wellness drinks through a brand you already know from the grocery aisle.

The flagship brand wins shelf and fridge placement in the Americas (~83% of FY2025 net sales per segment tables). ROE stayed around 21% on FY2025 net income — the model is brand-led distribution, not asset-heavy manufacturing.

consumer mid-cap branded-beverages health-drinks growth-stock

How they make money

$610M FY2025 net sales · +18% vs. prior year · lines below sum to consolidated net sales in Exhibit 99.1 (Feb 18, 2026)

Vita Coco Coconut Water

$496M

+26%

Private Label

$89M

down

Other

$25M

up

Americas + International product lines; FY2025 totals ~$609.8M in tables rounds to $610M in headline.

The products that matter

flagship beverage line

Vita Coco Coconut Water

~81% of net sales · +26% FY25

Vita Coco Coconut Water net sales grew 10% in Q4 and 26% for the full year — the brand is the majority of the revenue base.

core growth engine

adjacent drink portfolio

Other Beverages

Private label + other · mix shift

Private label net sales declined FY25 (retailer mix); “Other” grew with items like Vita Coco Treats rollout — diversification is still smaller than the flagship line.

mix matters

Key numbers

$1.40

street FY26 EPS est.

Not company guidance — verify against your data feed.

$925M

long-range rev est.

Illustrative forward revenue — not from the Feb 18, 2026 release.

~46×

trailing p/e

~$54.52 ÷ $1.19 FY2025 diluted EPS.

37%

gross margin (FY25)

Down from 39% prior year (tariffs + input costs); Q4 2025 was 35%.

Financial health

B+

strength

balance sheet grade B+ — solid but not elite
risk rank 3 — safer than 50% of stocks
price stability 15 / 100
net profit margin ~11.6% net margin FY25 ($71M net income / $610M net sales)
return on equity 21% — $0.21 profit for every $1 investors have put in

B+ — functional but not a standout on the balance sheet.

Total return vs. market

Return history isn't available for COCO right now.

same standard. no invented return math.

source: institutional data · return history unavailable

What just happened

mixed vs street

Q4 net sales ~$128M (+0.4% vs. prior year); diluted EPS $0.09 vs $0.06 prior-year Q4.

Gross margin 35% vs 32% prior Q4; non-GAAP adjusted EBITDA $14M vs $8M. Some estimates clustered near $0.11 EPS, so the quarter can read as a modest profit miss despite vs. prior year EPS improvement.

$128M

Q4 net sales

$0.09

diluted EPS

35%

Q4 gross margin

the number that mattered

FY2026 outlook: $680M–$700M net sales, ~38% gross margin, adjusted EBITDA $122M–$128M — that frame replaces Q4 noise for the next twelve months.

Cash ~$197M and no debt at 12/31/25; $11.3M of buybacks in FY25 with ~$40.9M remaining authorization.
FY2026 guidance: net sales $680M–$700M; gross margin ~38%; adjusted EBITDA $122M–$128M; SG&A up mid-to-high single digits vs 2025.
Management cites tariffs, private-label softness in Q4 (offset partly by Vita Coco Treats), and expected private-label improvements in 2026.
Vita Coco Coconut Water CE volume grew ~21% FY25 with pricing tailwinds — called out in the full-year discussion.

source: Form 8-K Exhibit 99.1, Feb 18, 2026 (Q4 & FY2025)

What could go wrong

The #1 risk is input costs and tariffs squeezing gross margin — FY2025 was 37% GAAP; the 2026 guide assumes ~38%.

!

high

Coconut input cost inflation

The core product is coconut water, so raw material volatility hits the center of the model, not the edges.

If costs rise faster than pricing, both the ~38% gross margin guide and ~12% net margins get pressured.

∘

med

Single-category concentration

Roughly four-fifths of net sales are Vita Coco Coconut Water; private label and other lines are smaller and can move the opposite direction (FY25 private label declined).

If flagship demand cools, hitting the $680M–$700M sales guide gets harder even with private-label recovery baked in.

∘

med

Sourcing concentration

Geographic concentration in coconut sourcing creates a supply chain weak spot. Weather and regional disruption do not need a lot of warning.

A supply shock would pressure availability first and margins second — the two places a premium multiple hates most.

Because Vita Coco Coconut Water is ~four-fifths of net sales, tariff, pricing, and mix shocks hit the same line that carries the 2026 guide.

source: institutional data · regulatory filings · risk analysis

Pay attention to

guidance

Can 2026 still land at $680M–$700M

That range implies ~11.5%–14.8% growth off $610M FY25. At ~46× trailing earnings, missing the low end stings.

calendar

Q1 2026 earnings report

Confirm the next earnings date on IR — after a nearly flat Q4 net sales print, you want FY26 run-rate evidence, not one headline quarter.

margin

Gross margin around 38%

Gross margin is the first place coconut costs show up. If it slips while the stock stays expensive, the market will do the math for you.

mix

Private label + other mix

FY25 private-label net sales shrank while “Other” grew (e.g., Treats). 2026 guidance assumes better private-label trends — track whether that actually shows up.

Analyst rankings

short-term outlook

average

Momentum score 3 — in human-speak, analysts see a normal setup, not a strong short-term edge.

risk profile

average

Stability score 3 means middle-of-the-pack risk. You're not buying a bunker stock, and you're not buying a collapse story either.

chart momentum

average

Technical score 3 says the chart is not sending a special signal. The thesis has to come from the business, not pattern-reading.

source: institutional data

Institutional activity

institutions have been net buying for 2 consecutive quarters — 128 buyers vs. 98 sellers in 3q2025. total institutional holdings: 48.2M shares. net buying for 2 quarters.

source: institutional data · 1q2025-3q2025

source: institutional data

Price targets

3-5 year target range

$39 $94

$54.52 current price

$67 target midpoint · +23% from current · 3-5yr high: $65 (+20% · 5% ann'l return)

source: institutional data · analyst targets

The deep dive

COCO

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