# Vita Coco Company, Inc.: Form 10-Q for the period ended Sep 30, 2025

- Company: [Vita Coco Company, Inc.](/companies/coco.md) (CIK 1482981)
- Form: 10-Q
- Filed: 2025-10-29
- Accepted by EDGAR: Oct 29, 2025, 08:56 ET
- Period: 2025-09-30
- Accession: 0001628280-25-046935
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1482981/000162828025046935/coco-20250930.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1482981/000162828025046935/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-09-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-07-01 to 2025-09-30 | $182.3m | us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax |
| Revenue | 9 months, 2025-01-01 to 2025-09-30 | $482.0m | us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax |
| Cost of revenue | 3 months, 2025-07-01 to 2025-09-30 | $113.6m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 9 months, 2025-01-01 to 2025-09-30 | $304.0m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2025-07-01 to 2025-09-30 | $68.7m | us-gaap:GrossProfit |
| Gross profit | 9 months, 2025-01-01 to 2025-09-30 | $178.0m | us-gaap:GrossProfit |
| Selling, general and administrative | 3 months, 2025-07-01 to 2025-09-30 | $40.7m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 9 months, 2025-01-01 to 2025-09-30 | $105.7m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2025-07-01 to 2025-09-30 | $27.9m | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months, 2025-01-01 to 2025-09-30 | $72.3m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2025-07-01 to 2025-09-30 | $6.7m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months, 2025-01-01 to 2025-09-30 | $17.4m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-07-01 to 2025-09-30 | $24.0m | us-gaap:NetIncomeLoss |
| Net income | 9 months, 2025-01-01 to 2025-09-30 | $65.8m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-07-01 to 2025-09-30 | $0.40 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months, 2025-01-01 to 2025-09-30 | $1.10 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-07-01 to 2025-09-30 | $0.42 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months, 2025-01-01 to 2025-09-30 | $1.16 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-07-01 to 2025-09-30 | 59,878,602 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months, 2025-01-01 to 2025-09-30 | 59,832,067 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months, 2025-01-01 to 2025-09-30 | $51.1m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months, 2025-01-01 to 2025-09-30 | $4.9m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Share repurchases | 3 months, 2025-07-01 to 2025-09-30 | $151.0k | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Share repurchases | 9 months, 2025-01-01 to 2025-09-30 | $10.2m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2025-09-30 | $203.7m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-09-30 | $423.3m | us-gaap:AssetsCurrent |
| Total assets | at 2025-09-30 | $461.3m | us-gaap:Assets |
| Current liabilities | at 2025-09-30 | $123.5m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-09-30 | $137.6m | us-gaap:Liabilities |
| Shareholders' equity | at 2025-09-30 | $323.7m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 46,232 characters.

*You should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q, as well as our audited consolidated financial statements and related notes as disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and filed with the Securities and Exchange Commission ("SEC") on February 26, 2025 (the “Form 10-K”). This discussion contains forward-looking statements based upon current plans, expectations and beliefs involving risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in Part I, Item 1A, “Risk Factors” of the Form 10-K and other factors set forth in the Form 10-K and Quarterly Reports on Form 10-Q.*

### Overview

The Vita Coco Company pioneered packaged coconut water in 2004 and we have extended our business into other categories. Our mission is to deliver great tasting, natural and nutritious products that we believe are better for consumers and better for the world. We are one of the largest brands globally in the coconut and other plant waters category, and a large supplier of Private Label coconut water.

Our branded portfolio is led by our *Vita Coco* brand, which is the leader in the coconut water category in the United States, and also includes coconut oil, juice, and milk offerings. Our other brands include *Ever & Ever*, a sustainably packaged water, and *PWR LIFT*, a protein-infused fitness drink. We also previously offered *Runa*, a plant-based energy drink inspired by the guayusa plant native to Ecuador, which we ceased selling in December 2023 ("Runa"). We supply Private Label products to key retailers in both the coconut water and coconut oil categories. Additionally, we generate revenue from bulk product sales to beverage and food companies.

As of September 30, 2025, we source our products from a diversified global network of approximately 20 factories and co-packers, supported by coconut farmers across seven countries. As we do not own any of these facilities, our supply chain is a fixed asset-lite model designed to better service our customers and react to changes in the market or consumer preferences.

*Vita Coco* is available in over 35 countries, with our primary markets located in North America, the United Kingdom, and Germany. Our primary markets for Private Label are North America and Europe. Our products are distributed primarily through club, food, drug, mass, convenience, e-commerce and food service channels. Our products are also available in a variety of on-premise locations such as corporate offices, fitness clubs, airports, and educational institutions.

### Key Factors Affecting Our Performance

We believe that our performance and future success depend on a number of factors that present significant opportunities for us. There have been no material changes to such factors from those described in the Form 10-K under the heading “Key Factors Affecting our Performance” and the changes noted below. Those factors also pose risks and challenges, including those discussed in Part I, Item 1A. “Risk Factors” of the Form 10-K.

- Uncertainty in the macroeconomic environment resulting from geopolitical and economic instability (including the effects of current wars and other international conflicts) and variability in interest rates, foreign exchange rates, tariffs and other import related fees, and inflation and instability on transportation costs may affect our global supply chain. Additionally, as further discussed below, the extent and duration of tariffs imposed by the U.S. government on other countries and reciprocal tariffs placed on U.S. goods in response thereto remains uncertain and may depend on various factors, including negotiations and relationships between the U.S. and affected countries, tariff exemptions, negative sentiment toward U.S. companies and products, and availability of domestic alternatives in our supply chain. It is not currently possible to ascertain the overall impact of these macroeconomic uncertainties on our business, results of operations, financial condition or liquidity. Future events and effects related to these macroeconomic uncertainties cannot be determined with precision and actual results could significantly differ from estimates or forecasts. For a further discussion of the risks and challenges posed by these events, please see Part I, Item 1A. “Risk Factors” of the Form 10-K.
- The U.S. government implemented a 10% baseline tariff, plus country-specific rates, effective April 2, 2025, with revised reciprocal tariffs announced in early August 2025, of approximately 20% (including the baseline tariff) for Asian countries from which we source, and 50% for Brazil. We source to the U.S. primarily from the Philippines

and Brazil, with additional supply from Thailand, Vietnam, Malaysia, Sri Lanka, Canada, Mexico, and Indonesia; however, currently, our Mexico and Canada imports remain exempt under the United States-Mexico-Canada Agreement (“USMCA”). The tariffs are being challenged in the U.S. legal system and will be reviewed by the Supreme Court in November 2025. The tariffs currently remain in effect, and we are assuming for purposes of our business operations that the tariffs will be in effect indefinitely at a current blended tariff rate of approximately 23% based on end-of-quarter sourcing. It has been suggested that in individual country trade deals, waivers for tariffs may be granted for natural resources not available in the U.S. at scale to meet U.S. demand. We believe this classification could be applicable to coconut water and we are lobbying to encourage that coconut water is included in any trade agreements with our sourcing countries. The uncertainty around the long-term tariff rates presents significant challenges to our operations and supply chain, and may result in future results being significantly different than any outlook given. The uncertainty could also cause disturbances in ocean shipping capacity and create inflationary effects on our costs. We are monitoring the evolving tariff landscape and pursuing pricing adjustments, sourcing strategy modifications, and other cost-mitigation measures. However, there can be no assurance that we will be able to fully mitigate the impacts of such tariffs or that the imposition of tariffs, and the resulting economic impact on the U.S. market and consumer, will not materially affect our financial results. The overall impact on our business related to tariffs depends on multiple factors, including the timing, duration and size of any tariffs, future changes to tariff rates, scope, or enforcement of such tariffs, reciprocal measures by impacted trade partners, inflationary effects, changes to consumer purchasing behavior, and the effectiveness of our responses in managing these challenges. The tariffs, any retaliatory measures, or other trade restrictions, could materially and adversely affect our business.

- Our sales to one of our major customers include branded and Private Label product. As discussed in the Form 10-K, the Private Label coconut oil business with this customer discontinued in early 2024 and we expect Private Label coconut water net sales in 2025 with this customer to be impacted by the loss of some regions, which started primarily in the second quarter of 2025. During the third quarter of 2025, we were requested to restart supply for one of these lost regions in early 2026.

### Components of Our Results of Operations

### Net Sales

We generate revenue through the sale of our *Vita Coco* branded coconut water, Private Label, and Other products in the Americas and International segments. Our sales are predominantly made to distributors or to retailers for final sale to consumers through retail channels, which includes sales to traditional brick and mortar retailers, who may also resell our products through their own online platforms. Our revenue is recognized net of allowances for returns, discounts, credits, and any taxes collected from consumers.

We provide trade promotions and sales discounts to its customers and distributors. Since these sales promotions and sales discounts do not meet the criteria for a distinct good or service, they are primarily accounted for as a reduction of revenue and include payments to customers and distributors for performing activities on our behalf, such as payments for in-store displays, payments to gain distribution of new products, payments for shelf space and discounts to promote lower retail prices. The accompanying condensed consolidated financial statements include accruals for these promotions and discounts. The accruals are made for invoices that have not yet been received as of the end of the reporting period and are recorded as a reduction of sales, and are based on contract terms and our historical experience with similar programs and require management judgment with respect to estimating customer and consumer participation and performance levels.

### Cost of Goods Sold

Cost of goods sold includes the costs of the products sold to customers, inbound and outbound shipping and handling costs, freight, duties and tariffs, shipping and packaging supplies, and warehouse fulfillment costs.

### Gross Profit and Gross Margin

Gross profit is net sales less cost of goods sold, and gross margin is gross profit as a percentage of net sales. Gross profit has been, and will continue to be, affected by various factors, including the mix of products we sell, the channels through which we sell our products, the promotional environment in the marketplace, manufacturing costs, commodity prices, warehouse costs, tariffs, and transportation rates. We expect that our gross margin will fluctuate from period to period depending on the interplay of these variables.

Management believes gross margin provides investors with useful information related to the profitability of our business prior to considering the operating costs incurred. Management uses gross profit and gross margin as key measures in making financial, operating, and planning decisions and in evaluating our performance.

### Operating Expenses

### Selling, General and Administrative Expenses

Selling, general and administrative expenses ("SG&A") include marketing expenses, promotional expenses, and general and administrative expenses. Marketing and promotional expenses consist primarily of costs incurred promoting and marketing our products and are primarily driven by investments to grow our business and retain customers. General and administrative expenses include payroll, employee benefits, stock-based compensation, broker commissions and other headcount-related expenses associated with supply chain & operations, finance, information technology, human resources and other administrative-related personnel, as well as general overhead costs of the business, including research and development for new innovations, rent and related facilities and maintenance costs, depreciation and amortization, and legal, accounting, and professional fees.

### Other Income (Expense), Net

### Unrealized Gain/(Loss) on Derivative Instruments

We are subject to foreign currency risks as a result of our inventory purchases and intercompany transactions. In order to mitigate the foreign currency risks, we and our subsidiaries enter into foreign currency exchange contracts which are recorded at fair value. Unrealized gain/(loss) on derivative instruments consists of gains or losses on such foreign currency exchange contracts which are unsettled as of period end. See Part I, Item 3 “Quantitative and Qualitative Disclosures about Market Risk—Foreign Currency Exchange Risk” for further information.

### Foreign Currency Gain/(Loss)

Our reporting currency is the U.S. dollar. We maintain the financial statements of each entity within the group in its local currency, which is also the entity’s functional currency. Foreign currency gain/(loss) represents the transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency. See “—Quantitative and Qualitative Disclosures about Market Risk—Foreign Currency Exchange Risk” for further information.

### Interest Income

Interest income consists of interest income earned on our cash and cash equivalents, and money market funds.

### Income Tax Expense

We are subject to federal and state income taxes in the United States and taxes in foreign jurisdictions in which we operate. We recognize deferred tax assets and liabilities based on temporary differences between the financial reporting and income tax bases of assets and liabilities using statutory rates. We regularly assess the need to record a valuation allowance against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

### Operating Segments

We operate in two reporting segments:

- ***Americas—***The Americas segment is comprised of our operations in the Americas region, primarily in the United States and Canada.
- ***International—***The International segment is comprised of our operations primarily in Europe, the Middle East, and the Asia Pacific regions, which includes the Company’s procurement arm.

Each segment derives its revenues from the following product categories:

- ***Vita Coco Coconut Water—***This product category consists of all branded coconut water product offerings under the *Vita Coco* labels, where the majority ingredient is coconut water. For these products, control is transferred upon customer receipt, at which point the Company recognizes the transaction price for the product as revenue.
- ***Private Label —***This product category consists of all Private Label product offerings, which includes coconut water and coconut oil. The Company determined the production and distribution of Private Label products represents a distinct performance obligation. Since there is no alternative use for these products and the Company has the right to payment for performance completed to date, the Company recognizes the revenue for the production of these Private Label products over time as the production for open purchase orders occurs, which may be prior to any shipment.
- ***Other—***This product category consists of all other products, which includes *Vita Coco* product extensions beyond coconut water, consisting of coconut milk products, including *Vita Coco* Treats; *Ever & Ever* and *PWR LIFT* product offerings; *Vita Coco* coconut oil sold internationally; and other revenue transactions (e.g., bulk product sales). For these products, control is transferred upon customer receipt, at which point the Company recognizes the transaction price for the product as revenue.

### Results of Operations

### Comparison of the Three and Nine Months Ended September 30, 2025 and 2024

The following table summarizes our results of operations for the three and nine months ended September 30, 2025 and 2024, respectively:

*(in thousands)*

| 2025 | Three Months Ended September 30, 2024 | 2025 | Nine Months Ended September 30, 2024 |  |
| --- | ---: | ---: | ---: | ---: |
| Net sales | $182,313 | $132,906 | $481,993 | $388,720 |
| Cost of goods sold | 113,645 | 81,344 | 303,975 | 231,244 |
| Gross profit | 68,668 | 51,562 | 178,018 | 157,476 |
| Operating expenses |  |  |  |  |
| Selling, general, and administrative | 40,745 | 30,967 | 105,680 | 87,941 |
| Income from operations | 27,923 | 20,595 | 72,338 | 69,535 |
| Other income (expense) |  |  |  |  |
| Unrealized gain/(loss) on derivative instrument | 2,391 | 2,592 | 6,275 | (5,896) |
| Foreign currency gain/(loss) | (1,411) | 550 | (349) | 472 |
| Interest income | 1,776 | 1,876 | 4,794 | 5,026 |
| Other income | — | — | 155 | — |
| Total other income (expense) | 2,756 | 5,018 | 10,875 | (398) |
| Income before income taxes | 30,679 | 25,613 | 83,213 | 69,137 |
| Income tax expense | 6,676 | 6,362 | 17,420 | 16,555 |
| Net income | $24,003 | $19,251 | $65,793 | $52,582 |

26

### Net Sales

The following table provides a comparative summary of net sales by operating segment and product category:

*(in thousands)*

| 2025 Americas segment | Three Months Ended September 30, 2024 | Amount | Change Percentage | 2025 | Nine Months Ended September 30, 2024 | Amount | Change Percentage |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Vita Coco Coconut Water | $132,438 | $94,013 | $38,425 | 40.9% | $339,006 | $262,029 | $76,977 | 29.4% |
| Private Label | 14,360 | 16,489 | (2,129) | (12.9)% | 50,242 | 63,897 | (13,655) | (21.4)% |
| Other | 4,926 | 1,744 | 3,182 | 182.5% | 17,037 | 6,913 | 10,124 | 146.4% |
| Subtotal | $151,724 | $112,246 | $39,478 | 35.2% | $406,285 | $332,839 | $73,446 | 22.1% |
| **International segment** |  |  |  |  |  |  |  |  |
| Vita Coco Coconut Water | $21,939 | $14,883 | $7,056 | 47.4% | 54,998 | 38,500 | $16,498 | 42.9% |
| Private Label | 8,137 | 4,800 | 3,337 | 69.5% | 19,118 | 14,768 | 4,350 | 29.5% |
| Other | 513 | 977 | (464) | (47.5)% | 1,592 | 2,613 | (1,021) | (39.1)% |
| Subtotal | $30,589 | $20,660 | $9,929 | 48.1% | $75,708 | $55,881 | $19,827 | 35.5% |
| Total net sales | $182,313 | $132,906 | $49,407 | 37.2% | $481,993 | $388,720 | $93,273 | 24.0% |

For the three months ended September 30, 2025, the primary driver of the consolidated net sales increase of 37.2% was strong *Vita Coco* Coconut Water volume growth. *Vita Coco* Coconut Water net sales increased 41.8%, underpinned by a case equivalents ("CE") volume increase of 31.2%. Other category growth of 99.9% was driven by the continued U.S. rollout of *Vita Coco* Treats. Private Label net sales increased 5.7% driven by growth in the International segment. For the nine months ended September 30, 2025, the consolidated net sales increase of 24.0% was driven by *Vita Coco* Coconut Water, which had a 31.1% net sales increase, with a case equivalents CE volume increase of 25.8%. Other category growth of 95.6% was driven by the continued U.S. rollout of *Vita Coco* Treats. This was partially offset by Private Label net sales decline of 11.8% resulting from the loss of Private Label coconut water service regions for multiple customers in the U.S. in addition to the transition out of Private Label coconut oil sales to a major customer that began in the first quarter of 2024.

#### Volume in Case Equivalents

The following table provides a comparative summary of the percentage change in our volume in CE for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024, by operating segment and product category:

|  | Percentage Change - Three Months Ended September 30, 2025 vs. 2024 Americas | International | Total |
| --- | ---: | ---: | ---: |
| Vita Coco Coconut Water | 30.3% | 35.9% | 31.2% |
| Private Label | (11.7)% | 71.1% | 8.3% |
| Other | 236.6% | (73.5)% | 195.8% |
| Total volume (CE) | 25.4% | 44.1% | 28.8% |
|  | **Percentage Change - Nine Months Ended September 30, 2025 vs. 2024** |  |  |
|  | **Americas** | **International** | **Total** |
| Vita Coco Coconut Water | 24.8% | 30.8% | 25.8% |
| Private Label | (16.6)% | 37.1% | (5.3)% |
| Other | 211.6% | (16.1)% | 191.2% |
| Total volume (CE) | 18.7% | 32.2% | 21.0% |

*Note: A CE is a standard volume measure used by management, which is defined as a case of 12 bottles of 330ml liquid beverages or the same liter volume of oil. We may have immaterial sales of raw materials at times that are treated as zero CEs for the purposes of these calculations.*

#### Americas Segment

Net sales in the Americas segment increased $39.5 million, or 35.2%, to $151.7 million for the three months ended September 30, 2025 from $112.2 million for the three months ended September 30, 2024. The increase was primarily driven by CE volume growth of 30.3% of *Vita Coco* Coconut Water, partially offset by a decrease in volume due to the loss of Private Label coconut water service regions for several customers beginning in the first half of 2025. For the nine months ended September 30, 2025, Americas net sales increased $73.4 million, or 22.1%, to $406.3 million from $332.8 million for the nine months ended September 30, 2024. The increase was primarily driven by CE volume growth of 24.8% of *Vita Coco* Coconut Water, partially offset by the Private Label decline.

*Vita Coco* Coconut Water net sales increased $38.4 million, or 40.9%, to $132.4 million for the three months ended September 30, 2025, from $94.0 million for the three months ended September 30, 2024. The increase was the result of CE volume growth of 30.3% due to increased demand coupled with pricing benefits from higher front line price increases implemented in the quarter. *Vita Coco* Coconut Water net sales increased $77.0 million, or 29.4%, to $339.0 million for the nine months ended September 30, 2025, from $262.0 million for the nine months ended September 30, 2024. The increase was the result of CE volume growth of 24.8% due to strong consumer demand coupled with the impact of the aforementioned price increases.

Private Label net sales decreased $2.1 million, or 12.9%, to $14.4 million for the three months ended September 30, 2025, from $16.5 million for the three months ended September 30, 2024, due to a decrease in the Private Label business as outlined above, resulting in a CE volume decrease of 11.7%. Private Label net sales decreased $13.7 million, or 21.4%, to $50.2 million for the nine months ended September 30, 2025, from $63.9 million for the nine months ended September 30, 2024. The decrease was the result of CE volume decline of 16.6% due to the aforementioned losses of Private Label coconut oil and coconut water business.

Net sales from Other products increased by $3.2 million, or 182.5%, to $4.9 million for the three months ended September 30, 2025 from $1.7 million for the three months ended September 30, 2024, primarily due to the continued national rollout of *Vita Coco* Treats in the U.S. Net sales from Other products increased by $10.1 million, or 146.4%, to $17.0 million for the nine months ended September 30, 2025 from $6.9 million for the nine months ended September 30, 2024, driven by CE volume increase of 211.6%, driven by the continued rollout of *Vita Coco* Treats.

#### International Segment

International net sales increased by $9.9 million, or 48.1%, to $30.6 million for the three months ended September 30, 2025, from $20.7 million for the three months ended September 30, 2024. The growth was primarily driven by a 44.1% increase in CE volume, reflecting strong performance in Germany and the United Kingdom, partially offset by softness in China. For the nine months ended September 30, 2025, International net sales increased by $19.8 million, or 35.5%, to $75.7 million, up from $55.9 million for the nine months ended September 30, 2024. The increase was largely attributable to CE volume growth of 32.2%, led by Germany and the United Kingdom, partially offset by softness in China.

*Vita Coco* Coconut Water net sales increased by $7.1 million, or 47.4%, to $21.9 million, for the three months ended September 30, 2025, from $14.9 million, for the three months ended September 30, 2024. The increase was primarily driven by higher volume in Europe due to strong demand for our products, along with some favorable pricing and foreign exchange rate benefits. *Vita Coco* Coconut Water net sales increased by $16.5 million, or 42.9%, to $55.0 million for the nine months ended September 30, 2025, from $38.5 million, for the nine months ended September 30, 2024. The increase was primarily driven by strong CE volume growth in Europe coupled with pricing benefits.

Private Label net sales increased $3.3 million, or 69.5%, to $8.1 million for the three months ended September 30, 2025 from $4.8 million for the three months ended September 30, 2024. The increase was driven primarily by Private Label coconut water CE volume growth in Europe. Private Label net sales increased $4.4 million, or 29.5%, to $19.1 million for the nine months ended September 30, 2025 from $14.8 million for the nine months ended September 30, 2024. The increase was driven primarily by CE volume growth in Europe Private Label coconut water sales.

Net sales from Other products decreased 47.5% and 39.1% for the three and nine months ended September 30, 2025, respectively, compared to the same periods in the prior year, primarily driven by the decrease in sales of *Vita Coco* coconut oil.

### Gross Profit

*($ in thousands)*

| 2025 Cost of goods sold | Three Months Ended September 30, 2024 | Amount | Change Percentage | 2025 | Nine Months Ended September 30, 2024 | Amount | Change Percentage |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Americas segment | $93,859 | $68,681 | $25,178 | 36.7% | $255,062 | $196,195 | $58,867 | 30.0% |
| International segment | 19,786 | 12,663 | 7,123 | 56.3% | 48,913 | 35,049 | 13,864 | 39.6% |
| Total cost of goods sold | $113,645 | $81,344 | $32,301 | 39.7% | $303,975 | $231,244 | $72,731 | 31.5% |
| **Gross profit** |  |  |  |  |  |  |  |  |
| Americas segment | $57,866 | $43,563 | $14,303 | 32.8% | $151,224 | $136,643 | $14,581 | 10.7% |
| International segment | 10,802 | 7,999 | 2,803 | 35.0% | 26,794 | 20,833 | 5,961 | 28.6% |
| Total gross profit | $68,668 | $51,562 | $17,106 | 33.2% | $178,018 | $157,476 | $20,542 | 13.0% |
| **Gross margin** |  |  |  |  |  |  |  |  |
| Americas segment | 38.1% | 38.8% |  | (70) bps | 37.2% | 41.1% |  | (390) bps |
| International segment | 35.3% | 38.7% |  | (340) bps | 35.4% | 37.3% |  | (190) bps |
| Consolidated | 37.7% | 38.8% |  | (110) bps | 36.9% | 40.5% |  | (360) bps |

On a consolidated basis, cost of goods sold increased $32.3 million, or 39.7%, to $113.6 million for the three months ended September 30, 2025, from $81.3 million for the three months ended September 30, 2024. On a consolidated and segment basis, the increase was primarily driven by higher CE volume, higher rates for finished goods, and tariffs, partially offset by lower year on year ocean freight. Cost of goods sold increased by $72.7 million, or 31.5%, to $304.0 million for the nine months ended September 30, 2025, from $231.2 million for the nine months ended September 30, 2024. On a consolidated basis, the increase was primarily related to increased CE volume, higher finished goods and the impact of tariffs.

For the three months ended September 30, 2025, consolidated gross profit increased $17.1 million, or 33.2%, to $68.7 million, from $51.6 million for the three months ended September 30, 2024, primarily driven by higher CE volume and increased pricing. The increase was partially offset by increased rates for finished goods and tariff costs which altogether resulted in gross margin decline. For the nine months ended September 30, 2025, consolidated gross profit increased $20.5 million, or 13.0%, to $178.0 million, from $157.5 million for the nine months ended September 30, 2024, also primarily driven by higher CE volume and increased pricing, partially offset by increased rates for finished goods and transportation costs and the impact of tariffs. Gross margin decline for the nine months as compared to prior year resulted from higher finished goods and ocean freight costs in addition to the impact of tariffs, which were partially offset by branded coconut water pricing and favorable product mix.

### Operating Expenses

*($ in thousands)*

| 2025 | Three Months Ended September 30, 2024 | Amount | Change Percentage | 2025 | Nine Months Ended September 30, 2024 | Amount | Change Percentage |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Selling, general, and administrative | $40,745 | $30,967 | $9,778 | 31.6% | 105,680 | 87,941 | 17,739 | 20.2% |

#### Selling, General and Administrative Expenses

For the three months ended September 30, 2025, SG&A increased $9.8 million, or 31.6%, versus the three months ended September 30, 2024. This was primarily driven by an increase of $4.3 million in people-related expenses, which includes increased headcount, bonus expenses and stock based compensation. Additionally, there was a $2.8 million increase in marketing expense primarily due to new product awareness campaigns for *Vita Coco* Treats and increased sales promotions costs, an increase of $1.2 million in higher reserves for bad debt, and $0.4 million related to an overlap of rent expense for the new New York office with the prior New York office. During the nine months ended September 30, 2025, SG&A increased $17.7 million, or 20.2%, versus the nine months ended September 30, 2024. The increase was primarily driven by an increase of $8.9 million in people-related expenses, $5.8 million in marketing expense due to new product awareness campaigns for *Vita Coco* Treats and sales promotions costs, $2.0 million of higher reserves for bad debt expenses, and $1.1 million related to the overlap of rent expense for the new New York office with the prior New York office. The increases were partially offset by a reduction of $2.5 million in sales related expenses.

#### Other Income (Expense), Net

*($ in thousands)*

| 2025 | Three Months Ended September 30, 2024 | Amount | Change Percentage | 2025 | Nine Months Ended September 30, 2024 | Amount | Change Percentage |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | --- |
| Unrealized gain/(loss) on derivative instruments | $2,391 | $2,592 | $(201) | (7.8%) | $6,275 | $(5,896) | $12,171 | n/m |
| Foreign currency gain/(loss) | (1,411) | 550 | (1,961) | n/m | (349) | 472 | (821) | n/m |
| Interest income | 1,776 | 1,876 | (100) | (5.3%) | 4,794 | 5,026 | (232) | (4.6%) |
| Other income | — | — | — | n/m | 155 | — | 155 | n/m |
|  | $2,756 | $5,018 | $(2,262) | (45.1%) | $10,875 | $(398) | $11,273 | n/m |

#### Unrealized Gain/(Loss) on Derivative Instruments

For the three months ended September 30, 2025 and 2024, we recorded gains of $2.4 million and $2.6 million, respectively, for the mark-to-market changes in fair value on the outstanding derivative instruments for forward foreign currency exchange contracts, with the largest gain for the three months ended September 30, 2025 related to the hedging contracts for the BRL and THB. For the nine months ended September 30, 2025 and 2024, we recorded gains of $6.3 million and losses of $5.9 million, respectively, for the mark-to-market changes in fair value on the outstanding derivative instruments for forward foreign currency exchange contracts, with the largest gain for the nine months ended September 30, 2025 related to the hedging contracts for the BRL and THB, partially offset by the loss on hedging contracts for the GBP and EUR.

#### Foreign Currency Gain/(Loss)

For the three months ended September 30, 2025, the change in foreign currency loss was $2.0 million as compared to September 30, 2024. For the nine months ended September 30, 2025, the change in foreign currency loss was $0.8 million as compared to September 30, 2024. The change in all periods was a result of movements in various foreign currency exchange rates related to transactions denominated in currencies other than the functional currency. See "Quantitative and Qualitative Disclosures about Market Risk - *Foreign Currency Exchange Risk*" for further information.

#### Interest Income

For the three months ended September 30, 2025, interest income decreased $0.1 million compared to September 30, 2024 primarily due to lower interest rates in the 2025 period compared to the 2024 period. For the nine months ended September 30, 2025, interest income decreased $0.2 million as compared to September 30, 2024. The decrease in interest income was due to lower interest rates compared to prior year.

#### Other Income

For the nine months ended September 30, 2025, Other income of $0.2 million is due to the sale of intellectual property.

#### Income Tax Expense

*($ in thousands)*

| 2025 | Three Months Ended September 30, 2024 | Amount | Change Percentage | 2025 | Nine Months Ended September 30, 2024 | Amount | Change Percentage |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Income tax expense | 6,676 | 6,362 | $314 | 4.9% | $17,420 | $16,555 | $865 | 5.2% |
| Tax rate | 21.8% | 24.8% |  |  | 20.9% | 23.9% |  |  |

Our quarterly income tax provision is based on an estimated annual effective tax rate applied to our consolidated year-to-date pre-tax income or loss. The effective income tax rate is based upon the estimated income for the year, the composition of that income in different countries, and adjustments, if any, in the applicable quarterly periods for the potential tax consequences, benefits, resolutions of tax audits or other tax contingencies.

For the nine months ended September 30, 2025 and 2024, our effective tax rate was 20.9% and 23.9%, respectively. The effective tax rate for the current period is lower than the U.S. statutory rate of 21% primarily as a result of discrete items recorded during the period. The effective tax rate for the period ending September 30, 2024 was higher than the U.S. statutory rate of 21% primarily as a result of state income taxes for the U.S. entity. The change in effective tax rates between the periods is primarily driven by the jurisdictional mix of the Company’s pre-tax profits and the windfall benefit of stock compensation exercises.

### Non-GAAP Financial Measures

EBITDA and Adjusted EBITDA are supplemental non-GAAP financial measures that are used by management and external users of our financial statements, such as industry analysts, investors and lenders. These non-GAAP measures should not be considered as alternatives to net income as a measure of financial performance or cash flows from operations as a measure of liquidity, or any other performance measure derived in accordance with GAAP and should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

These non-GAAP measures are a key metric used by management and our Board to assess our financial performance. We present these non-GAAP measures because we believe they assist investors in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance and because we believe it is useful for investors to see the measures that management uses to evaluate the Company.

We define EBITDA as net income before interest, taxes, depreciation, and amortization. Adjusted EBITDA is defined as EBITDA with adjustments to eliminate the impact of certain items, including certain non-cash and other items, that we do not consider representative of our ongoing operating performance.

A reconciliation from net income to EBITDA and Adjusted EBITDA is set forth below:

*(in thousands)*

*(in thousands)*

|  | Three Months Ended September 30, 2025 | 2024 | Nine Months Ended September 30, 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| Net income | 24,003 | 19,251 | 65,793 | 52,582 |
| Depreciation and amortization | 228 | 196 | 636 | 540 |
| Interest income | (1,776) | (1,876) | (4,794) | (5,026) |
| Income tax expense | 6,676 | 6,362 | 17,420 | 16,555 |
| **EBITDA** | 29,131 | 23,933 | 79,055 | 64,651 |
| Stock-based compensation (a) | 2,975 | 2,141 | 8,123 | 6,649 |
| Unrealized (gain)/loss on derivative instruments (b) | (2,391) | (2,592) | (6,275) | 5,896 |
| Foreign currency (gain)/loss (b) | 1,411 | (550) | 349 | (472) |
| Secondary Offering Costs (c) | — | — | — | (324) |
| Other adjustments (d) | 1,264 | — | 2,886 | — |
| **Adjusted EBITDA** | $32,390 | $22,932 | 84,138 | $76,400 |

(a) Non-cash charges related to stock-based compensation, which vary from period to period depending on volume and vesting timing of awards and forfeitures. We adjusted for these charges to facilitate comparison from period to period.

(b) Unrealized gains or losses on derivative instruments and foreign currency gains or losses are not considered in our evaluation of our ongoing performance.

(c) The amounts for the nine months ended September 30, 2024 relate to an expense waiver of certain costs incurred during the November 9, 2023 block trade. The Company did not receive any proceeds from the sale of the shares. For additional information regarding the expense waiver for the nine months ended September 30, 2024, see Note 15, *Related Party Transactions*, in our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

(d) The three and nine months ended September 30, 2025 includes $0.6 million and $1.8 million, respectively, related to a one-time 2023 incentive program that is measured based on full-year 2025 performance structured differently from our other ongoing employee incentive programs, $0.4 million and $1.1 million, respectively, of overlapping rent expense related to our New York City office and $0.2 million of impairment loss related to the sale of Runa. The three months ended September 30, 2025 also includes $0.1 million of provision for credit losses related to the partially recovered prepaid inventory from a supplier recorded in the first half of 2025 (refer to the Form 10-K and the Form 10-Q for the quarterly period ended June 30, 2025 for further details). In the nine months ended September 30, 2025, these amounts were offset by $0.1 million of partial recoveries of prepaid inventory from a supplier (refer to the Form 10-K for further details) and a gain of $0.2 million from a sale of intellectual property.

### Liquidity and Capital Resources

Since our inception, we have financed our operations primarily through cash generated from our business operations and proceeds on borrowings through our credit facilities and term loans. We had $203.7 million and $164.7 million of cash and cash equivalents as of September 30, 2025 and December 31, 2024, respectively. From time to time, we may supplement our liquidity needs with incremental borrowing capacity under the 2020 Credit Facility.

Considering recent market conditions and our business assumptions, we have reevaluated our operating cash flows and cash requirements and believe that current cash, cash equivalents, future cash flows from operating activities and cash available under our 2020 Credit Facility will be sufficient to meet our anticipated cash needs, including working capital needs, capital expenditures and contractual obligations for at least 12 months from the issuance date of the condensed consolidated financial statements included herein and the foreseeable future.

Our future capital requirements will depend on many factors, including our revenue growth rate, our working capital needs primarily for inventory build, our global footprint, the expansion of our marketing activities, the timing and extent of spending to support product development efforts, the introduction of new and enhanced products and the continued market consumption of our products, as well as any shareholder distribution either through equity buybacks or dividends. Our asset-lite operating model has historically provided us with a low cost, nimble, and scalable supply chain, which allows us to adapt to changes in the market or consumer preferences while also efficiently introducing new products across our platform. We may seek additional equity or debt financing in the future in order to acquire or invest in complementary businesses, products and/or new IT infrastructures. In the event that we require additional financing, we may not be able to raise such financing on terms acceptable to us or at all. If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in continued product innovation, we may not be able to compete successfully, which would harm our business, operations and financial condition.

### Cash Flows

The following tables summarize our sources and uses of cash:

*($ in thousands)*

| Cash flows provided by (used in): | Nine Months Ended September 30, 2025 | 2024 | Change Amount | Percentage |
| --- | ---: | ---: | ---: | ---: |
| Operating activities | $51,069 | $35,977 | $15,092 | 41.9% |
| Investing activities | (4,921) | (849) | (4,072) | n/m |
| Financing activities | (7,931) | (10,364) | 2,433 | (23.5%) |
| Effects of exchange rate changes on cash and cash equivalents | 833 | 333 | 500 | n/m |
| Net increase in cash and cash equivalents | $39,050 | $25,097 | $13,953 | 55.6% |

### Operating Activities

Our main source of operating cash is payments received from our customers. Our primary use of cash in operating activities are for cost of goods sold and SG&A expenses.

During the nine months ended September 30, 2025, cash provided by operating activities increased $15.1 million compared to the nine months ended September 30, 2024. The higher cash generation was driven by the increase in net income after adjusting for non-cash items and working capital improvement primarily due to higher cash spent for inventory purchases in the quarter ended September 30, 2024.

### Investing Activities

During the nine months ended September 30, 2025, cash used in investing activities was $4.9 million compared to $0.8 million for the nine months ended September 30, 2024. The increase was primarily due to leasehold improvements related to the new New York, London, and Singapore offices.

### Financing Activities

During the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, net cash used by financing activities decreased by $2.4 million, primarily driven by lower volume of share repurchases in the nine months ended September 30, 2025 compared to the prior year period offset by increased proceeds from the exercise of stock options. See Note 10, *Stockholders' Equity,* in our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, for further discussion on share repurchases.

### Debt

We had an immaterial amount of debt outstanding as of September 30, 2025 and December 31, 2024, which was related to vehicle loans.

### Revolving Credit Facility

In May 2020, the Company entered into the 2020 Credit Facility, which currently provides for committed borrowings of $60 million. On February 14, 2025, the 2020 Credit Facility was amended, extending the maturity five years to February 13, 2030.

Starting in December 2022, borrowings on the 2020 Credit Facility bear interest at rates based on either: 1) a fluctuating rate per annum determined to be the sum of Daily Simple SOFR plus the Spread; or 2) a fixed rate per annum determined to be the sum of the Term SOFR plus the Spread. The Spread ranges from 1.00% to 1.75%, which is based on the Company’s leverage ratio (as defined in the credit agreement) for the immediately preceding fiscal quarter as defined in the credit agreement. In addition, the Company was subject to unused commitment fees ranging from 0.10% and 0.20% on the unused amount of the line of credit in the year ended December 31, 2024, with the rate based on the Company’s leverage ratio (as defined in the credit agreement). As of February 14, 2025, the unused commitment fees range from 0.13% and 0.23% on the unused amount of the line of credit, with the rate being based on the Company’s leverage ratio (as defined in the credit agreement).

The outstanding balance on the Revolving Facility was zero as of September 30, 2025 and December 31, 2024, respectively. As of September 30, 2025, we were compliant with all financial covenants.

### Vehicle Loans

We periodically enter into vehicle loans. Interest rates on these vehicle loans range from 4.56% to 5.68%. The outstanding balance on the vehicle loans as of September 30, 2025 was immaterial.

For additional information, see Note 6, *Debt*, in our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

### Contractual Obligations and Commitments

There have been no material changes to our contractual obligations from those described in the Form 10-K.

### Critical Accounting Policies and Significant Judgments and Estimates

Our consolidated financial statements are prepared in accordance with U.S. GAAP. The preparation of our consolidated financial statements and related disclosures requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, costs and expenses, and the disclosure of contingent assets and liabilities in our consolidated financial statements. We base our estimates on historical experience, known trends and events and various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. We evaluate our estimates and assumptions on an ongoing basis. Our actual results may differ from these estimates under different assumptions or conditions.

Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Significant Judgments and Estimates” in the Form 10-K and the notes to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. During the nine months ended September 30, 2025, there were no material changes to our critical accounting policies from those discussed in the Form 10-K.

### Recent Accounting Pronouncements

A description of recently adopted and issued accounting pronouncements that may potentially impact our financial position and results of operations is disclosed in Note 2, *Summary of Significant Accounting Policies*, to our condensed consolidated financial statements, included in this Quarterly Report on Form 10-Q.

## Market risk

As filed, 4,891 characters.

### Interest Rate Risk

We are exposed to market risks in the ordinary course of our business. These risks primarily include interest rate sensitivities.

As of September 30, 2025 and December 31, 2024, the outstanding amounts related to our 2020 Credit Facility incur interest fees at variable interest rates and are affected by changes in the general level of market interest rates. However, there was no outstanding balance on the 2020 Credit Facility as of September 30, 2025 and December 31, 2024.

### Foreign Currency Exchange Risk

We transact business globally in multiple currencies and hence have foreign currency risks related to our net sales, cost of goods sold and operating expenses. We use derivative financial instruments to reduce our net exposure to foreign currency fluctuations. Our objective in managing exposure to foreign currency fluctuations is to reduce the volatility caused by foreign exchange rate changes on the earnings, cash flows and financial position of our international operations. We generally target to hedge a majority of our forecasted yearly foreign currency exchange exposure through a 24-month rolling layered approach and leave a portion of our currency forecast floating at spot rate. Our currency forecast and hedge positions are reviewed quarterly. The gains and losses on the forward contracts associated with our balance sheet positions are recorded in ‘‘Other income (expense), net” in the condensed consolidated statements of operations appearing elsewhere in this Quarterly Report on Form 10-Q.

The total notional values of our forward exchange contracts were $59.3 million and $107.4 million as of September 30, 2025 and December 31, 2024, respectively. The derivatives on the forward exchange contracts resulted in an unrealized gain of $6.3 million for the nine months ended September 30, 2025, and we estimate that a 10% strengthening or weakening of the U.S. dollar would have resulted in an approximately $2.0 million gain or loss.

A portion of our cash and cash equivalents are denominated in foreign currencies. As of September 30, 2025, a 1% change in the value of the U.S. dollar compared to foreign currencies would have caused our cash and cash equivalents to decrease or increase by $0.2 million.

### Tariff and Inflation Risks

Inflation generally affects us by increasing our cost of transportation, labor and manufacturing costs. In recent years, we have seen fluctuating transportation costs caused by global supply chain disruptions or geopolitical instability and general inflation effects, which may cause pressure on our costs and margins. More specifically, we source a large amount of our finished goods from international countries, which exposes us to international supply chain inflation, particularly ocean freight, and to changes in the strength of the U.S. dollar. In the nine months ended September 30, 2025, general inflationary pressures continue to increase the other elements of our cost of goods and operating expenses. During the first quarter of 2025, various tariffs were announced on imports into the U.S. On April 2, 2025, the U.S. announced a new universal baseline tariff of 10%, plus significant additional country-specific reciprocal tariffs for select trading partners, on all U.S. imports. The reciprocal tariffs were initially paused, followed by an early August announcement of their implementation at revised increased rates of approximately 20% for our Asian sourcing countries, and 50% for Brazil (including the baseline 10% rate previously announced). The actual future tariff environment is quite uncertain, with the potential that the tariffs could be declared illegal, and discussions of individual country specific trade deals occurring, with the potential for agreed tariff waivers for natural resources not available in the U.S. at the scale to meet U.S. demand. It is possible that coconut water might be suitable for such negotiated waivers. The imposition of the tariffs has increased our costs of goods sold. The uncertainty of future tariffs could also cause disturbances in ocean shipping capacity that could effect our ability to secure ocean freight containers for our products, and create inflationary effects on our costs, in addition to the direct impact of tariffs.

### Credit Risk

We are exposed to concentration of credit risk from our major customers. In the nine months ended September 30, 2025, sales to two customers represented approximately 45% of our consolidated net sales. We have not experienced credit issues with these customers. We maintain provisions for potential credit losses and evaluate the solvency of our customers on an ongoing basis to determine if additional allowances for doubtful accounts and customer credits need to be recorded. Significant economic disruptions or a slowdown in the economy could result in significant additional charges.

## Controls and procedures

As filed, 1,528 characters.

### Limitations on effectiveness of controls and procedures

In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

### Evaluation of disclosure controls and procedures

Our management, with the participation of our Principal Executive Officer and Principal Financial Officer, evaluated, as of the end of the period covered by this Quarterly Report on Form 10-Q, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on that evaluation, our Principal Executive Officer and Principal Financial Officer concluded that, as of September 30, 2025, our disclosure controls and procedures were effective at the reasonable assurance level.

### Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

## Risk factors

As filed, 339 characters.

Please refer to Part I, Item 1A. "Risk Factors" of our Form 10-K for the fiscal year ended December 31, 2024 for a description of certain significant risks and uncertainties to which our business, financial condition and results of operations are subject. There have been no material changes to these risk factors as of September 30, 2025.

Filed Oct 29, 2025.
Source: SEC EDGAR, the filing index for accession 0001628280-25-046935. Last ingested by Listed: Oct 27, 2026, 17:29 ET. No prices; not investment advice.