Breaking Down The Vita Coco Company, Inc. (COCO) Financial Health: Key Insights for Investors

You're looking at The Vita Coco Company, Inc. (COCO) and wondering if the momentum is real, and honestly, the 2025 numbers show a business hitting its stride in a big way. The company just raised its full-year net sales guidance to a range between $580 million and $595 million, a clear signal of confidence driven by the coconut water category growing 22% year-to-date in the U.S.. That's not just market tailwind, but strong execution, as evidenced by their Q3 2025 revenue surging to $182.31 million, a 37.2% jump year-over-year. Plus, the balance sheet looks defintely solid: they ended Q3 with $204 million in cash and, critically, zero debt. But the real question is whether the projected 36% full-year gross margin can hold up against persistent tariff pressures and rising costs, so let's dig into the risks behind the impressive $90 million to $95 million Adjusted EBITDA guidance.

Revenue Analysis

You want to know where The Vita Coco Company, Inc. (COCO) is making its money, and the short answer is simple: it's all about the core brand and the Americas. For the full fiscal year 2025, the company expects net sales to land between $580 million and $595 million, a significant jump driven by their flagship product.

The company's revenue streams are primarily split geographically, between the Americas (U.S. and Canada) and International (Europe, Middle East, Africa, and Asia Pacific). The Americas segment is defintely the powerhouse, accounting for an estimated $515.79 million of the trailing twelve months (TTM) revenue, with the International segment contributing an estimated $93.50 million. That's a clear signal: the U.S. consumer is driving this growth story.

The year-over-year growth rate is robust. Net sales for the third quarter of 2025 hit $182.3 million, which is a massive 37% increase compared to the same quarter last year. For the first nine months of 2025 (year-to-date), net sales totaled $482 million, a solid 24% increase. Here's the quick math: the coconut water category is still seeing high-teens growth, and COCO is capturing that wave.

The breakdown of product lines shows a clear focus. The core product, Vita Coco Coconut Water, is the engine, with its net sales growing by 42% in Q3 2025 alone. This is the one to watch. The company is also seeing incremental growth from new products like Vita Coco Treats, which is part of the 'Other' category.

What this estimate hides is the strategic shift away from lower-margin business. The company is intentionally reducing its exposure to private label products, which saw a decline in sales in Q2 2025, particularly in the Americas where private label sales were down 37% to $15 million. This is a good move for long-term margin health, even if it creates a temporary drag on total top-line growth. They are prioritizing branded growth over volume at any cost. For a deeper dive into the company's long-term strategy, you should review their Mission Statement, Vision, & Core Values of The Vita Coco Company, Inc. (COCO).

• Vita Coco Coconut Water net sales grew 31% year-to-date 2025.
• Private label sales are declining due to strategic exits and region loss.
• New products like Vita Coco Treats are adding to the growth.

Your next step should be to look at the gross margin, which management expects to be approximately 36% for the full year 2025, to see how well they are converting that revenue growth into profit.

Profitability Metrics

You want to know if The Vita Coco Company, Inc. (COCO) is just growing revenue or if that growth is translating into real profit. The short answer is: they are growing both, but their profitability profile is fundamentally different from the beverage giants, and you need to understand why. The company's focus on operational efficiency is a clear near-term opportunity, but cost pressures are still a headwind.

For the first nine months of the 2025 fiscal year (Year-to-Date or YTD through Q3), The Vita Coco Company, Inc. has demonstrated strong net income growth. Net sales reached $482 million, an increase of 24% year-to-date, with a YTD Net Income of approximately $66 million.

Here's the quick math on their core profitability ratios for the year-to-date period through Q3 2025:

• Gross Profit Margin: 37% (YTD Q3 2025)
• Operating Profit Margin (EBIT): Approximately 14.9% (YTD Q3 2025)
• Net Profit Margin: Approximately 13.7% (YTD Q3 2025)

What this estimate hides is the complexity of their supply chain. The company's full-year 2025 guidance projects a Gross Margin of approximately 36%, which is a slight dip from the YTD number, reflecting continued cost-of-goods-sold (COGS) pressure. They are making money, but it's harder work than last year.

Operational Efficiency and Margin Trends

The trend over 2025 shows a clear trade-off: strong top-line sales growth is being achieved, but it's coming at the expense of margin percentage. The Gross Margin in Q3 2025 was 38%, down from 39% in the prior-year period. This decrease is not due to a lack of pricing power-they have increased pricing-but rather to higher finished goods product costs and increased tariff costs. That's a real-world supply chain problem they are actively managing.

On the operational side, Selling, General, and Administrative (SG&A) expenses are up, hitting $41 million in Q3 2025 compared to $31 million in the prior year. This increase is primarily due to higher people-related expenses and a deliberate increase in marketing investment. This is a strategic choice: you spend money to get more shelf space and market share now, hoping to lock in higher sales volumes later. The YTD Operating Margin of nearly 15% shows they are still highly efficient at turning gross profit into operating income, even with the increased spend.

Comparison with Major Peers

When you compare The Vita Coco Company, Inc.'s margins to major non-alcoholic beverage peers, you see the clear difference between a brand-owner/bottler model and a pure brand-owner/concentrate model (like Coca-Cola). The Vita Coco Company, Inc.'s margins are lower, but they are still highly competitive for a company that manages a more complex, global supply chain for a natural product.

The gap is defintely noticeable. Coca-Cola's Gross Margin is nearly double The Vita Coco Company, Inc.'s, simply because they sell a highly profitable concentrate and let bottlers handle the heavy lifting. The Vita Coco Company, Inc.'s margins, however, are quite healthy when compared to the broader food processing industry, which saw a Gross Profit Margin of around 21.59% in Q1 2025. The company's focus on a premium, high-growth category like coconut water is what supports their superior margins relative to a typical packaged food company.

To be fair, the company's strong brand equity (its economic moat) is what allows it to maintain a 36% Gross Margin despite significant cost headwinds from tariffs and freight. This brand strength is the key to their long-term profitability, and it's why they are spending heavily on marketing now. You can dive deeper into the strategic context of these numbers in our full analysis: Breaking Down The Vita Coco Company, Inc. (COCO) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

The Vita Coco Company, Inc. (COCO) has a capital structure that is defintely not reliant on borrowed money, which is a significant point for investors to grasp. Simply put, this company is a financial fortress, choosing to fund its rapid growth almost entirely through internally generated capital and equity rather than debt.

As of the end of the third quarter of 2025, the company's balance sheet shows a remarkably clean slate: no debt under its revolving credit facility. This conservative approach means the company's financial leverage (the use of borrowed money to amplify returns) is essentially non-existent, giving it maximum operational flexibility.

Here's the quick math on their financial position as of September 30, 2025:

• Total Cash and Cash Equivalents: Approximately $204 million.
• Total Debt (Long-term and Short-term): Effectively $0 under the credit facility.
• Total Shareholder Equity: Around $323.7 million.

The company's total assets amount to an impressive $461.3 million, showing substantial resources backing its operations.

Debt-to-Equity Ratio: A Near-Zero Figure

The debt-to-equity (D/E) ratio is a core measure of financial leverage, showing how much debt a company uses to finance its assets relative to the value of its shareholders' equity. For The Vita Coco Company, Inc. (COCO), this ratio is a standout feature.

The company's D/E ratio is effectively 0% (or a negligible 0.04 to 0.05, depending on the exact calculation of minor liabilities), which is an extremely low figure. To be fair, this is a major outlier in the consumer beverage space. The median D/E ratio for the Beverages industry in 2024 was around 1.30. That means the typical competitor uses $1.30 of debt for every dollar of equity, while Vita Coco uses none.

This low leverage translates directly into low financial risk. The company is not burdened by interest payments, which is a huge advantage, especially when economic conditions get choppy. It's a simple, powerful story: they pay their own way.

Financing Strategy: Equity and Internal Capital

The Vita Coco Company, Inc. (COCO)'s strategy is clearly focused on organic growth funded by its own profits and equity, not debt. There have been no significant debt issuances or refinancing activities in 2025 because they simply don't need the capital. They have a strong current ratio of 3.4, meaning they can cover their short-term obligations more than three times over.

Instead of borrowing, the company is returning capital to shareholders. The Board approved an increase to the share repurchase program in April 2025, bringing the total authorization to $65.0 million. As of September 30, 2025, they had already repurchased $10.2 million worth of common stock this year. This move signals management's confidence in the stock's value and their ability to generate enough cash flow to both invest in the business and reward shareholders. This is a company that is using its internal strength to drive value. For more on the long-term view, you can review the Mission Statement, Vision, & Core Values of The Vita Coco Company, Inc. (COCO).

Liquidity and Solvency

When you look at The Vita Coco Company, Inc. (COCO), the first thing that jumps out is a fortress balance sheet. Honestly, their liquidity position is defintely a major strength, which gives them a huge operational cushion in a volatile market.

For the financially-literate, the key indicators-the current and quick ratios-tell the story immediately. As of the Q3 2025 reporting, The Vita Coco Company, Inc. boasts a Current Ratio of approximately 3.43, meaning they have over three dollars in current assets (cash, receivables, inventory) for every dollar of current liabilities. Even more telling is the Quick Ratio (acid-test ratio), which strips out inventory, sitting at a robust 2.75. You want to see both of these comfortably above 1.0, and The Vita Coco Company, Inc. is crushing it.

This is a company that can meet its near-term obligations without breaking a sweat.

The working capital trends reflect strong sales momentum, but you need to watch the composition. Cash and cash equivalents climbed significantly to $204 million as of September 30, 2025, up from $165 million at the start of the year. Still, the increase in net sales has pushed Accounts Receivable up to $103 million, a notable jump from $63 million at the end of 2024. This increase in receivables is what partially offset the $39 million in cash generated year-to-date, showing that while sales are great, managing that cash conversion cycle is an ongoing focus.

Here's a quick snapshot of their TTM (Trailing Twelve Months) cash flow, which shows where the money is actually moving:

The Operating Cash Flow of nearly $58 million TTM is a clear sign of financial health. The small negative Investing Cash Flow, just $5.05 million used for capital expenditures, shows this is not a capital-intensive business, which is a huge plus for free cash flow. Plus, the Financing Cash Flow is clean because The Vita Coco Company, Inc. has essentially no debt on the balance sheet, which is a major solvency strength-their debt-to-equity ratio is near zero. This conservative capital structure is what gives them an Altman-Z score of 15.04, signaling very low bankruptcy risk.

The clear action here is to monitor the Accounts Receivable growth relative to sales, but overall, the liquidity is excellent. For a comprehensive look at the full picture, check out Breaking Down The Vita Coco Company, Inc. (COCO) Financial Health: Key Insights for Investors.

Valuation Analysis

You're looking at The Vita Coco Company, Inc. (COCO) and wondering if the market has gotten ahead of itself, which is a fair question for a high-growth consumer staples company. The short answer is that the stock is priced like a growth engine, not a slow-moving utility. Based on the latest metrics in November 2025, the market is placing a premium on its future earnings and brand strength, suggesting it's priced for perfection-or at least, for continued high-teens to 20%+ growth.

The valuation multiples tell a clear story of a growth stock. The Trailing Twelve Months (TTM) Price-to-Earnings (P/E) ratio is sitting around 38. To be fair, that's high compared to the broader beverage sector, but it reflects the market's enthusiasm following the strong third-quarter 2025 earnings beat. This is defintely a growth multiple, not a value multiple.

Here's the quick math on the key valuation ratios:

• Price-to-Earnings (P/E) TTM: ~38
• Price-to-Book (P/B) TTM: ~7.71
• Enterprise Value-to-EBITDA (EV/EBITDA) FY2025 Fwd: ~23.9x

The forward Enterprise Value-to-EBITDA (EV/EBITDA) for fiscal year 2025 is estimated at 23.9x, based on an Enterprise Value of approximately $2.268 billion and a Forward EBITDA of $94.851 million. This multiple is also elevated, signaling that investors expect a high rate of return on the company's core operating profit (EBITDA). The Price-to-Book (P/B) ratio of roughly 7.71 also confirms this; you are paying nearly eight times the book value for the company's net assets, which is a clear bet on the intangible value of the brand, distribution network, and future growth, not just the physical assets.

Stock Performance and Analyst Sentiment

The stock price trend over the last 12 months maps directly to this growth narrative. The Vita Coco Company, Inc. (COCO) has traded in a wide range, from a 52-week low of $25.79 to a 52-week high of $50.50. As of mid-November 2025, the stock is trading near the high end of that range, around $46.59, having delivered a strong 27.5% return over the past six months. This surge follows positive news, including a recent tariff exemption and strong Q3 2025 results.

The analyst community is largely bullish, which is fueling some of this momentum. The consensus rating is a solid 'Buy' or 'Moderate Buy' / 'Outperform,' with very few, if any, sell recommendations. The average 12-month price target ranges from approximately $49.14 to $52.11, with the highest target set at $61.00. This suggests an expected upside of about 5% to 12% from the current price, but what this estimate hides is the potential for volatility if growth slows. A high multiple cuts both ways.

A note on shareholder return: The Vita Coco Company, Inc. (COCO) is a growth company focused on reinvestment, so it does not currently pay a dividend. The TTM dividend payout is $0.00, resulting in a 0.00% dividend yield and payout ratio. Your return here is purely dependent on capital appreciation, not income. For a deeper dive into the company's long-term strategic direction, you can review their Mission Statement, Vision, & Core Values of The Vita Coco Company, Inc. (COCO).

Risk Factors

You're looking at The Vita Coco Company, Inc. (COCO)'s strong top-line growth-Net Sales are projected to hit between $580 million and $595 million for the full 2025 fiscal year-and you have to ask: what could derail this momentum? The primary risks for COCO right now are a mix of external cost volatility and the ever-present threat of market competition.

The company's recent Q3 2025 results, with GAAP EPS of $0.40, definitely show resilience, but a closer look at the financials reveals specific pressures, especially around supply chain costs. Here's the quick math: the Gross Margin for Q3 2025 was 38%, a slight dip from 39% in the prior year period, primarily due to elevated finished goods costs and tariffs. This margin pressure is the first thing to watch.

External and Operational Cost Risks

The biggest near-term financial risk is the volatility in trade policy, specifically tariffs and freight costs. The Vita Coco Company, Inc. is a global sourcing business, so geopolitical shifts hit their cost of goods sold (COGS) immediately.

• Tariff Volatility: New U.S. tariffs had pushed the blended tariff rate to an estimated 23% by the end of 2025. While a recent Executive Order in November 2025 is expected to reduce the average tariff rate on eligible shipments from 23% to approximately 6%, a significant 40% ad valorem duty on imports from Brazil still applies.
• Supply Chain Dependence: Relying heavily on coconut harvests and processing in specific regions creates a single point of failure risk from weather events, political instability, or local supply chain disruptions.

To be fair, management has been proactive. They've pursued supply chain adjustments, including diverting production to other regions, and implemented two U.S. price increases in 2025-one in mid-May and another in mid-July-to offset the higher costs. This is a smart, clear action to protect the full-year Gross Margin guidance of approximately 36%.

Market Competition and Strategic Risks

The coconut water category is growing fast-up 22% year-to-date in the U.S.-but that growth attracts giants. Competition from major beverage companies like Pepsi and Coca-Cola is a constant strategic risk, and it puts pressure on The Vita Coco Company, Inc.'s market share and pricing power.

Another area to monitor is the private label business. While strategically important, the company lost some private label regions earlier in 2025. They are expecting new private label wins to start in early 2026, but this segment is inherently less profitable and more susceptible to retailer-driven pricing pressure than the core branded product.

Here's a snapshot of the key financial and strategic risks and their mitigation:

The financial health is strong, with $204 million in cash and no debt as of September 30, 2025, which gives them a cushion to manage these cost and market risks. Still, the insider selling is a defintely a signal that you need to understand the ownership structure better. You can start by reading more on Exploring The Vita Coco Company, Inc. (COCO) Investor Profile: Who's Buying and Why?

Growth Opportunities

The Vita Coco Company, Inc. (COCO) is defintely not a stagnant brand; its growth story for 2025 is built on a simple but powerful strategy: dominate the core coconut water market while aggressively diversifying into adjacent, high-margin categories. You should expect this approach to deliver full-year 2025 Net Sales guidance between $580 million and $595 million, a significant upward revision that shows management's confidence in execution.

This top-line growth translates directly to the bottom line, with the company projecting an Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the full year in the range of $86 million to $92 million. Here's the quick math: analysts are forecasting a consensus Earnings Per Share (EPS) of about $1.16 per share for 2025, which reflects the strong sales momentum overcoming persistent supply chain cost pressures.

Key Growth Drivers: Product and Market Expansion

The near-term growth is driven by two clear engines: product innovation and international market expansion. First, the flagship Vita Coco Coconut Water is still the powerhouse, expected to grow in the high teens for the full year. But the real excitement is in new products, which are reducing reliance on the core beverage.

• Product Innovation: The national U.S. rollout of Vita Coco Treats, a coconut-based snack line, is a major initiative, driving massive growth in the 'Other' product category. The company is also pushing functional beverages like PWR LIFT, a protein-infused water, tapping into the post-workout recovery trend.
• International Expansion: The International segment is a high-growth area, with net sales surging 37% in Q2 2025, fueled by strong performance in key markets like the U.K. and Germany. They are also exploring new territories through a joint venture in China, Coco Ventures Limited.

Strategic Moats and Competitive Edge

The Vita Coco Company, Inc. has built a strong competitive moat (an enduring advantage) that positions it to capture a disproportionate share of the growing functional beverage market. It holds a dominant 44.5% market share in the U.S. coconut water category, a clear sign of its brand power and extensive distribution. This market leadership is critical, but the financial structure is just as important.

The company operates with an 'asset-light' supply chain model, using a global network of co-packers instead of owning all the factories. This gives them flexibility and responsiveness to market changes. Plus, the balance sheet is rock-solid: as of June 30, 2025, they had $167 million in cash and cash equivalents with virtually no debt, giving them the dry powder for complementary acquisitions or share repurchases. To understand the deeper purpose guiding these decisions, you can review the Mission Statement, Vision, & Core Values of The Vita Coco Company, Inc. (COCO).

Strategic partnerships, like the one with Diageo for the Captain Morgan-spiked coconut water, show an ability to diversify revenue streams into adjacent categories. Still, the biggest advantage might be their commitment to supply chain resilience, with millions invested in sustainable sourcing and long-term contracts with 87 farming cooperatives. That's how you lock in supply and mitigate climate-related risks.