Coconut water company The Vita Coco Company (NASDAQ: COCO) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 28.1% year on year to $216.2 million. The company’s full-year revenue guidance of $797.5 million at the midpoint came in 8% above analysts’ estimates. Its GAAP profit of $0.82 per share was 47.3% above analysts’ consensus estimates.
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Vita Coco (COCO) Q2 CY2026 Highlights:
- Revenue: $216.2 million vs analyst estimates of $209.9 million (28.1% year-on-year growth, 3% beat)
- EPS (GAAP): $0.82 vs analyst estimates of $0.56 (47.3% beat)
- Adjusted EBITDA: $67.23 million vs analyst estimates of $45.09 million (31.1% margin, 49.1% beat)
- The company lifted its revenue guidance for the full year to $797.5 million at the midpoint from $727.5 million, a 9.6% increase
- EBITDA guidance for the full year is $157.5 million at the midpoint, above analyst estimates of $140.8 million
- Operating Margin: 29.2%, up from 14.9% in the same quarter last year
- Free Cash Flow Margin: 37.4%, up from 12.4% in the same quarter last year
- Market Capitalization: $4.25 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.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.
With $706 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’s sales grew at a solid 14.9% compounded annual growth rate over the last three years as consumers bought more of its products.
This quarter, Vita Coco reported robust year-on-year revenue growth of 28.1%, and its $216.2 million of revenue topped Wall Street estimates by 3%.
Looking ahead, sell-side analysts expect revenue to grow 10.7% over the next 12 months, a deceleration versus the last three years. Still, this projection is noteworthy and indicates the market is baking in success for its products.
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Cash Is King
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
Vita Coco has shown robust cash profitability, driven by its attractive business model that enables it to reinvest or return capital to investors. The company’s free cash flow margin averaged 11.9% over the last two years, quite impressive for a consumer staples business.
Taking a step back, we can see that Vita Coco’s margin expanded by 12.9 percentage points over the last year. This is encouraging, and we can see it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability.
Vita Coco’s free cash flow clocked in at $80.78 million in Q2, equivalent to a 37.4% margin. This result was good as its margin was 25 percentage points higher than in the same quarter last year, building on its favorable historical trend.
Key Takeaways from Vita Coco’s Q2 Results
It was good to see Vita Coco beat analysts’ EPS expectations this quarter. We were also excited its gross margin outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock traded up 4.8% to $78 immediately following the results.
Vita Coco may have had a good quarter, but does that mean you should invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
