Vita Coco Company, Inc.COCO
Vita Coco Company, Inc. Income Taxes Disclosure
INCOME TAXES
The domestic and foreign components of the Company’s income before income taxes are as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Domestic | $ | 51,898 | $ | 42,131 | $ | 31,614 | |||||||||||
| Foreign | 41,073 | 28,657 | 26,306 | ||||||||||||||
| Income before income taxes | $ | 92,971 | $ | 70,788 | $ | 57,920 | |||||||||||
The income tax expense for the years ended December 31, 2025, 2024, and 2023 consist of the following:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Current | |||||||||||||||||
| Federal | $ | 10,057 | $ | 6,055 | $ | 6,926 | |||||||||||
| State and local | 3,927 | 3,050 | 1,911 | ||||||||||||||
| Foreign | 8,031 | 5,088 | 4,940 | ||||||||||||||
| 22,015 | 14,193 | 13,777 | |||||||||||||||
| Deferred | |||||||||||||||||
| Federal | $ | (233) | $ | 166 | $ | (2,044) | |||||||||||
| State and local | (214) | 192 | (629) | ||||||||||||||
| Foreign | 83 | 285 | 187 | ||||||||||||||
| (364) | 643 | (2,486) | |||||||||||||||
| Total | $ | 21,651 | $ | 14,836 | $ | 11,291 | |||||||||||
The reconciliation of the U.S. federal statutory rate to the Company’s effective rate is as follows:
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||
| Amount | Percentage | Amount | Percentage | Amount | Percentage | |||||||||||||||||||||
U.S. Federal Statutory Rate | $ | 19,524 | 21.0 | % | $ | 14,865 | 21.0 | % | $ | 12,163 | 21.0 | % | ||||||||||||||
State and Local Income Taxes, Net of Federal Income Tax Effect | 2,945 | 3.2 | % | 2,723 | 3.8 | % | 1,048 | 1.8 | % | |||||||||||||||||
Foreign Tax Effects | ||||||||||||||||||||||||||
Singapore | ||||||||||||||||||||||||||
| Statutory tax rate difference between Singapore and United States | (1,210) | (1.3 | %) | (943) | (1.3 | %) | (840) | (1.5 | %) | |||||||||||||||||
| Other | 331 | 0.4 | % | (104) | (0.1 | %) | 443 | 0.8 | % | |||||||||||||||||
| Other foreign jurisdictions | 366 | 0.4 | % | 401 | 0.6 | % | — | — | % | |||||||||||||||||
Effect of Cross-Border Tax Laws | — | % | ||||||||||||||||||||||||
| Global intangible low-taxed income | 4,804 | 5.2 | % | 3,615 | 5.1 | % | 2,953 | 5.1 | % | |||||||||||||||||
| Foreign-derived intangible income | (730) | (0.8 | %) | (727) | (1.0 | %) | (188) | (0.3 | %) | |||||||||||||||||
Tax Credits | ||||||||||||||||||||||||||
Federal foreign tax credit | (4,804) | (5.2 | %) | (3,927) | (5.5 | %) | (2,951) | (5.1 | %) | |||||||||||||||||
Nontaxable or Nondeductible Items | ||||||||||||||||||||||||||
| Stock option exercise windfall | (2,892) | (3.1 | %) | (1,383) | (2.0 | %) | (1,932) | (3.3 | %) | |||||||||||||||||
| 162(m) limitation | 2,445 | 2.6 | % | 872 | 1.2 | % | 660 | 1.1 | % | |||||||||||||||||
Other nontaxable or nondeductible items | 97 | 0.1 | % | 105 | 0.1 | % | 104 | 0.2 | % | |||||||||||||||||
| Other Adjustments | 775 | 0.8 | % | (661) | (0.9 | %) | (169) | (0.3 | %) | |||||||||||||||||
Effective Tax Rate | $ | 21,651 | 23.3 | % | $ | 14,836 | 21.0 | % | $ | 11,291 | 19.5 | % | ||||||||||||||
1 State taxes in CA, NY, NJ and IL made up the majority (greater than 50 percent) of the tax effect in this category
Deferred tax assets and liabilities at December 31, 2025 and 2024, consist of the following:
| 2025 | 2024 | ||||||||||
Deferred Tax Assets | |||||||||||
| Inventory reserves | $ | 472 | $ | 601 | |||||||
| Reserves and accruals | 1,556 | 1,150 | |||||||||
| Stock based compensation | 7,046 | 6,268 | |||||||||
| Net operating loss carryforwards | 3,639 | 3,577 | |||||||||
| Lease liability | 3,129 | 291 | |||||||||
| Subtotal | 15,842 | 11,887 | |||||||||
| Valuation allowance | (3,651) | (3,587) | |||||||||
| Total deferred tax assets | 12,191 | 8,300 | |||||||||
Deferred Tax Liabilities | |||||||||||
| Prepaid insurance | (61) | (273) | |||||||||
| Intangibles | (1,562) | (1,509) | |||||||||
| Right-of-use assets | (2,352) | (252) | |||||||||
| Fixed assets | (1,764) | (329) | |||||||||
Other, net | 11 | 163 | |||||||||
| Total deferred tax liabilities | (5,728) | (2,200) | |||||||||
| Net deferred tax assets (liability) | $ | 6,463 | $ | 6,100 | |||||||
A valuation allowance of $3,651 and $3,587 was recorded against the non-U.S. deferred tax asset balance as of December 31, 2025 and 2024, respectively. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. As of December 31, 2025 and 2024, management determined that there is sufficient positive evidence to conclude that it is more likely than not that the U.S. deferred taxes are realizable. A valuation allowance has been established against the net operating loss carryforwards which have been generated by the Company's foreign jurisdictions.
As of December 31, 2025 and 2024, the Company had no U.S. state and federal net operating loss carryforwards. As of December 31, 2025 and 2024, the Company had net operating loss carryforwards related to foreign operations of $17,572 and $18,309, respectively. These net operating loss carryforwards have various lives remaining ranging from 10 years to indefinite carryforward periods.
A reconciliation of the beginning and ending amount of income tax uncertainties is as follows:
| 2025 | |||||
| Beginning balance as of January 1, 2025 | $ | 106 | |||
| Reductions based on tax positions related to prior years | (17) | ||||
| Additions based on tax positions related to current year | — | ||||
| Ending balance as of December 31, 2025 | $ | 89 | |||
As of December 31, 2025 and 2024, there were $89 and $106 liabilities for income tax uncertainties recorded in the Company’s consolidated balance sheets. The Company recognized interest and penalties related to income tax uncertainties of $31 and $37 in its consolidated statements of operations for years ended December 31, 2025 and 2024, respectively. The Company is subject to income tax examinations by the IRS and various state and local jurisdictions for the open tax years between December 31, 2022 and December 31, 2025.
Cash paid for income taxes (net of refunds) is as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Federal | $ | 5,048 | $ | 5,337 | $ | 6,200 | |||||||||||
| State and local | 2,433 | 2,571 | 2,326 | ||||||||||||||
| Foreign | 5,639 | 5,073 | 1,379 | ||||||||||||||
Total income taxes paid (net of refunds) | $ | 13,120 | $ | 12,981 | $ | 9,905 | |||||||||||
| Income Taxes Paid (net of refunds) exceeded 5 percent of total income taxes paid (net of refunds) in the following jurisdictions: | |||||||||||||||||
State | |||||||||||||||||
California | * | * | $ | 689 | |||||||||||||
New Jersey | * | * | $ | 477 | |||||||||||||
| Foreign | |||||||||||||||||
Singapore | $ | 4,010 | $ | 3,679 | $ | 1,378 | |||||||||||
United Kingdom | $ | 1,214 | $ | 1,395 | * | ||||||||||||
*Jurisdiction below the threshold for period presented. | |||||||||||||||||
As of December 31, 2025 and 2024, income taxes on undistributed earnings of the Company’s foreign subsidiaries have not been provided for as the Company plans to indefinitely reinvest these amounts. The cumulative undistributed foreign earnings were not material as of December 31, 2025 and 2024.
On July 4, 2025, the United States enacted tax reform legislation through the passage of H.R.1, One Big Beautiful Bill Act, which changes existing U.S. tax laws, including extending or making permanent certain provisions of the 2017 Tax Cuts and Jobs Act, and repealing certain clean energy initiatives, in addition to other changes. The impact of these changes was not material as of December 31, 2025Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Mar 14, 2022 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.