Vital Farms, Inc.

Good day and thank you for standing by. Welcome to Vital Farms third quarter 2025 earnings conference call and webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. Please be advised that today's conference is being recorded. I would now like to hand it over to your host, Brian Shipman, Vice President of Investor Relations. Please go ahead.

Good morning, and welcome to Vital Farms' third quarter 2025 earnings conference call on webcast. Joining me today are Russell Diaz Canseco, Vital Farms President and Chief Executive Officer, and Tilo Vrede, the company's Chief Financial Officer. By now, everyone should have access to the company's third quarter 2025 earnings press release issued this morning. During today's call, management may make forward-looking statements within the meaning of the federal security laws. These statements are based on management's current expectations and beliefs and do involve risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Please refer to today's press release, the company's quarterly report on Form 10-Q for the fiscal quarter ended September 28, 2025, that was filed with the SEC today. as well as the company's other SEC filings for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. Note that on today's call, management will refer to certain non-GAAP financial measures. Please refer to the appendix in today's press release presentation for a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures. That presentation and today's press release are both available on the investor relations section of our website. After our prepared remarks, we'll open the line for questions. As a reminder, please limit yourself to one question plus one follow-up so that we can hear from as many participants as possible. Now, I'll turn the call over to Russell.

Thank you, Brian, and good morning, everyone. Before we get into results, I want to officially welcome you as our new Vice President of Investor Relations. We're excited to have you on the team. For those of you joining us today, I know you will all enjoy working with Brian. I'd also like to thank the entire Vital Farms crew. Over the past three months, we've delivered a very strong quarter with record financial results, advanced our supply chain, and set the company up for continued growth in 2026 and beyond. All of these great accomplishments took every one of our crew to make happen, from the team at Egg Central Station in Springfield to our farm support and remote workforce. I just came back from an all-hands meeting with our remote crew, and the energy and commitment in that room was truly inspirational. Our crew is energized to drive strong growth into the future in service of our purpose to improve the lives of people, animals, and the planet through food. And I'm honored to have the opportunity to lead this great organization. As we entered the back half of 2025, we told you our focus would be on rebuilding supply, meeting strong retail demand, and positioning the business for sustainable growth into 2026. We've delivered on all three. Let's start with this quarter's results. Net revenue was $198.9 million, a new record for any quarter, and was up 37.2% from the prior year period on the back of the incredible ramp up in the supply of eggs our crew has been able to deliver. Gross margin came in at 37.7%, which remains above our long-term target of 35%. And adjusted EBITDA was $27.4 million and increased 81.3% compared to the prior year period, as we benefited from price mix and scale efficiencies. Next, we made meaningful progress expanding supply adding processing capacity at Egg Central Station, and completing a major systems upgrade. We added approximately 75 new family farms during the last quarter, bringing our total to 575 family farms. That's approximately 150 new farms year to date. We now have more than 10 million hens under contract, which is a reflection of the trust and partnership we've built with Farmers in the Pasture Belt. Our third production line at Egg Central Station in Springfield came online in October, expanding capacity to about $1.2 billion in annual egg revenue and positioning us to meet growing consumer demand. Our Seymour facility remains on track to open in early 2027. With two production lines, we estimate the Seymour facility will add $900 million in annual revenue capacity. Also, at the beginning of the fourth quarter, We went live with our digital transformation project, a critical milestone that enhances our operational capabilities and underpins our ability to scale efficiently. More on that from Tilo in a few minutes. Finally, we continued building our trusted brand and making progress on our long-term aspiration to grow Vital Farms into America's most trusted food company. This increases our confidence that we have positioned the business well for long-term growth. We added another two percentage points of aided brand awareness, which now stands at 33%. Brand awareness is now up eight percentage points since the third quarter of last year, demonstrating that our message is clearly winning with consumers. Through compelling, authentic work, like our Good Eggs, No Shortcuts brand campaign, and our ads that aired alongside FX's award-winning series, The Bear, our stories continue to attract strong interest from the media and the public. We also launched limited edition dog treats made with Vital Farms eggs in August. This fun brand moment was featured in top tier media outlets like Good Morning America and generated over 550 million impressions across press, paid media, and social media. In summary, this was another great quarter for Vital Farms. We're executing well in the near term while laying the foundation for long-term growth. The investments we're making will continue to set Vital Farms up for long-term success. Given the strong execution across our operations, our farm network, and our brand, we're raising full-year guidance for fiscal 2025, which Thilo will cover in detail. Thilo, over to you.