Yahoo Finance

Coconut water company The Vita Coco Company (NASDAQ:COCO) reported Q1 CY2025 results topping the market’s revenue expectations , with sales up 17.2% year on year to $130.9 million. On the other hand, the company’s full-year revenue guidance of $562.5 million at the midpoint came in 1.2% below analysts’ estimates. Its GAAP profit of $0.31 per share was 61.9% above analysts’ consensus estimates.

Is now the time to buy Vita Coco? Find out in our full research report.

Vita Coco (COCO) Q1 CY2025 Highlights:

• Revenue: $130.9 million vs analyst estimates of $125.8 million (17.2% year-on-year growth, 4% beat)

• EPS (GAAP): $0.31 vs analyst estimates of $0.19 (61.9% beat)

• Adjusted EBITDA: $22.51 million vs analyst estimates of $16.78 million (17.2% margin, 34.1% beat)

• The company reconfirmed its revenue guidance for the full year of $562.5 million at the midpoint

• EBITDA guidance for the full year is $89 million at the midpoint, in line with analyst expectations

• Operating Margin: 14.7%, down from 17% in the same quarter last year

• Free Cash Flow was -$10.36 million compared to -$391,000 in the same quarter last year

• Sales Volumes rose 20.5% year on year (-0.5% in the same quarter last year)

• Market Capitalization: $1.80 billion

Company Overview

Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ:COCO) offers coconut water products that are a natural way to quench thirst.

Sales Growth

A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.

With $535.2 million in revenue over the past 12 months, Vita Coco is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. On the bright side, it can grow faster because it has a longer list of untapped store chains to sell into.

As you can see below, Vita Coco grew its sales at a decent 10.1% compounded annual growth rate over the last three years as consumers bought more of its products.

This quarter, Vita Coco reported year-on-year revenue growth of 17.2%, and its $130.9 million of revenue exceeded Wall Street’s estimates by 4%.

Looking ahead, sell-side analysts expect revenue to grow 8.8% over the next 12 months, similar to its three-year rate. Despite the slowdown, this projection is commendable and implies the market is baking in success for its products.

Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.