Vital Farms, Inc. Segments Disclosure
23. Segment Reporting
The Company has only one reportable segment for which discrete financial information is available: Eggs and Butter. The Company derives revenue in the United States and manages and organizes its business activities on a consolidated basis. The Eggs and Butter segment derives revenues primarily from sales of its products, including eggs and butter, to customers, which include natural retailers, mainstream retailers, distributors, and foodservice customers.
The accounting policies of the Eggs and Butter segment are the same as those described in the “Summary of Significant Accounting Policies” in Note 2 above. The Company’s chief operating decision maker (“CODM”) as defined by ASU 2023-07, currently the Company’s , assesses performance for the segment and decides how to allocate resources based on net income that also is reported on the consolidated statements of income as consolidated net income. The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets.
The CODM uses net income to evaluate income generated from net revenue in deciding whether to reinvest profits into the Eggs and Butter segment or for other valid corporate purposes. Net income is also used to monitor the Company’s forecasted budget versus actual results. The CODM also uses net income in competitive analysis by benchmarking to the Company’s competitors.
The following table presents the significant segment expenses and other segment items regularly reviewed by the Company’s CODM:
|
Eggs and Butter Segment |
|
|||||||||
|
Fiscal Year Ended |
|
|||||||||
|
December 28, 2025 |
|
|
December 29, 2024 |
|
|
December 31, 2023 |
|
|||
Net revenue |
$ |
759,444 |
|
|
$ |
606,307 |
|
|
$ |
471,857 |
|
Less: |
|
|
|
|
|
|
|
|
|||
Cost of goods sold(1) |
|
460,673 |
|
|
|
364,097 |
|
|
|
300,127 |
|
Shipping and distribution |
|
37,883 |
|
|
|
32,435 |
|
|
|
27,344 |
|
Marketing |
|
41,330 |
|
|
|
32,138 |
|
|
|
23,625 |
|
Other selling, general & administrative(1) |
|
117,341 |
|
|
|
100,992 |
|
|
|
77,017 |
|
Interest income |
|
(5,013 |
) |
|
|
(5,246 |
) |
|
|
(2,542 |
) |
Interest expense |
|
874 |
|
|
|
1,010 |
|
|
|
782 |
|
Depreciation and amortization |
|
13,844 |
|
|
|
13,093 |
|
|
|
10,490 |
|
Income tax provision |
|
24,982 |
|
|
|
14,150 |
|
|
|
6,635 |
|
Other segment expenses(2) |
|
1,248 |
|
|
|
250 |
|
|
|
2,813 |
|
Segment net income |
$ |
66,282 |
|
|
$ |
53,388 |
|
|
$ |
25,566 |
|
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.