Key Points
Vita Coco beat on the top line but came up short on the bottom line.
However, the company forecast strong growth and margin expansion in 2026.
Still, the stock pulled back after a near-80% rally over the past six months.
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Shares of Vita Coco (NASDAQ: COCO) were falling in Wednesday trading, down 9.4% as of 2:40 p.m. EDT.
Vita Coco is the leading coconut water brand in the U.S. and also provides coconut water to third-party private-label brands.
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Today, the company held its fourth quarter earnings report, which delivered a top-line beat but a bottom-line miss. And while forward guidance for 2026 was solid, it apparently wasn't enough to satisfy shareholders who had bid the stock up to lofty levels.
Vita Coco completes a year of high-teens growth
In the fourth quarter, Vita Coco delivered 0.5% revenue growth to $128 million, which beat expectations, while earnings per share of $0.09 missed expectations by $0.04.
Some might look at that meager growth number and scratch their head; however, the decline was due to a 52% drop in U.S. private-label sales. But private-label sales are lower-margin and can be highly volatile due to demand from a single large customer, according to the company. Outside of that, every other segment grew steadily, including the branded Vita Coco water, the new Vita Coco treats product, and even international private label sales.
For the full year, sales grew 18% to $610 million, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 32% to $98 million. For 2026, management forecasts revenue between $680 million and $700 million and adjusted EBITDA between $122 million and $128 million. That would mark 13.1% revenue growth and 27.6% EBITDA growth, at the respective midpoints.
Image source: Getty Images.
Valuation is likely the reason for the pullback
It may be odd that Vita Coco's stock pulled back on these numbers, given that the forward guidance beat out current sell-side revenue expectations of $683.6 million in 2026.
Therefore, the sell-off could likely be attributed to Vita Coco's valuation. Vita Coco's stock had rallied nearly 80% over the past six months and was trading at a lofty 49 times earnings heading into today's report.
Vita Coco remains the largest coconut water brand by far, accounting for 41% to 42% of the U.S. industry in 2025. Meanwhile, coconut water sales surged 21.8% in the U.S. last year -- the highest growth rate of all shelf-stable beverage categories.
Overall, it looks like Vita Coco's long-term growth story remains intact, but the stock might have gotten ahead of itself in the near term.
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Billy Dubersteinand/or his clients have positions in Vita Coco. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
