Vital Farms, Inc.

Previous wording

Our purpose is to improve the lives of people, animals and the planet through food. We are committed to Conscious Capitalism, which prioritizes positive, long-term outcomes with all of our stakeholders – farmers and suppliers, customers and consumers, communities and the environment, employees, who we refer to as crew members, and stockholders. We make decisions based on what is sustainable for all our stakeholders. For us, it is not about short-term outcomes or a trade-off between purpose and profit. We are fierce business competitors who believe that prioritizing the long-term viability of all stakeholders will produce stronger outcomes for everyone over time. These principles guide our day-to-day operations and, we believe, help us deliver a more sustainable and successful business. Our approach has been validated by our financial performance and our impact on the food industry. We are incorporated as a Delaware public benefit corporation and are also recognized as a Certified B Corporation, a designation reserved by B Lab, an independent non-profit organization, for businesses that balance profit and purpose to meet the highest verified standards of social and environmental performance, public transparency and legal accountability.

Current wording

Our purpose is to improve the lives of people, animals and the planet through food. We are committed to Conscious Capitalism, which prioritizes positive, long-term outcomes with all of our stakeholders – farmers and suppliers, customers and consumers, communities and the environment, employees, who we refer to as crew members, and stockholders. We make decisions based on what is sustainable for all our stakeholders. For us, it is not about short-term outcomes or a trade-off between purpose and profit. We are fierce business competitors who believe that prioritizing the long-term viability of all stakeholders will produce stronger outcomes for everyone over time. These principles guide our day-to-day operations and, we believe, help us deliver a more sustainable and successful business. Our approach has been validated by our financial performance and our impact on the food industry. We are incorporated as a Delaware public benefit corporation and are a Certified B Corporation, a designation reserved by B Lab, an independent non-profit organization, for businesses that balance profit and purpose to meet the highest verified standards of social and environmental performance, public transparency and legal accountability.

Previous wording

We source our eggs from a network of over 500 family farms. The cream for our butter is sourced from a network of family farms contracted by our butter supplier. We have strategically designed our supply chain to ensure high production standards and optimal year-round operation. We are motivated by the positive impact we have on rural communities and enjoy a strong relationship and reputation with our network of farmers.

Current wording

We source our eggs from a network of 575 contracted family farms, along with a small number of company-owned “accelerator farms.” The cream for our butter is sourced from a network of family farms contracted by our butter supplier. We have strategically designed our supply chain to ensure high production standards and optimal year-round operation. We are motivated by the positive impact we have on rural communities and enjoy a strong relationship and reputation with our network of farmers.

Previous wording

We primarily work with our farms pursuant to buy-sell contracts. Under these arrangements, the farmer is responsible for all of the working capital and investments required to produce the eggs and manage the farm, including purchasing the birds and feed supply. As a result of ongoing elevated construction costs associated with our new farms, we incurred incremental farm recruitment costs in 2024, which have continued into 2025, and we expect to incur additional costs in connection with renewal incentives for certain existing farmers in 2025. These costs are expected to be recognized over the term of the related buy-sell contracts with the new farms, which are generally four to six years in length. We believe the impact to our working capital resulting from these costs could range from $30.0 million to $40.0 million in fiscal 2025. We are contractually obligated to purchase all of the eggs produced by the farmer during the term of the contract at an agreed-upon price that depends upon pallet weight and is adjusted quarterly for changes in feed cost.

Current wording

We primarily work with our contracted family farms pursuant to buy-sell contracts. Under these arrangements, the farmer is responsible for all of the working capital and investments required to produce the eggs and manage the farm, including purchasing the birds and feed supply. As a result of ongoing elevated construction costs associated with our new farms, we incurred incremental farm recruitment costs in 2024, which have continued into 2025, and we expect to incur additional costs in connection with renewal incentives for certain existing farmers in 2025. These costs are expected to be recognized over the term of the related buy-sell contracts with the new farms, which are generally four to six years in length. We believe the impact to our working capital resulting from these costs could range from $30.0 million to $40.0 million in fiscal 2025. We are obligated to purchase all of the eggs produced by our contracted family farms during the term of the contract at an agreed-upon price that depends upon pallet weight and is adjusted quarterly for changes in feed cost.

Previous wording

To help support continued supply and further growth, we announced in 2024 that we plan to locate a second egg washing and packing facility in Seymour, Indiana, which we anticipate will be fully operational in 2027. We intend to build upon the foundational key learnings and successes from our Egg Central Station facility in Missouri with this second facility and further expand our already resilient supply chain. To help meet the continued demand for our shell eggs, we announced in January 2025 that we plan to install an additional Moba egg grading system, the primary automation technology used in washing, sorting and packing shell eggs, at Egg Central Station in Missouri. Installation of this new system began in the first quarter of 2025 and it is expected to be fully operational by the end of fiscal 2025.

Current wording

To help support continued supply and further growth, we announced in 2024 that we plan to locate a second egg washing and packing facility in Seymour, Indiana, which we anticipate will be fully operational in early 2027. We intend to build upon the foundational key learnings and successes from our Egg Central Station facility in Missouri with this second facility and further expand our already resilient supply chain. To help meet the continued demand for our shell eggs, we announced in January 2025 that we plan to install an additional Moba egg grading system, the primary automation technology used in washing, sorting and packing shell eggs, at Egg Central Station in Missouri. Installation of this new system began in the first quarter of 2025, and it is expected to be fully operational by the end of fiscal 2025.

Previous wording

In fiscal 2024, we purchased parcels of farmland totaling approximately 1,040 acres of farmland in Indiana for a total cost of approximately $7.5 million. Our intent is to develop this farmland (along with other potential parcels to be purchased in the future) and utilize it for “accelerator farms” to provide learning and development opportunities within our farm network and to help ensure adequate supply for our future egg washing and packing facility in Seymour, Indiana, while preserving the ability in the future to sell turnkey farms to interested farmers. In the first quarter of fiscal 2025, we elected to sell certain of these parcels, totaling approximately 408 acres. One parcel of approximately 80 acres was sold during the 13-week period ended June 29, 2025, and we expect the sale of the remaining parcels to occur by the end of fiscal 2025.

Current wording

In fiscal 2024, we purchased parcels of farmland totaling approximately 1,040 acres of farmland in Indiana for a total cost of approximately $7.5 million. We have developed and plan to continue to develop this farmland (along with other potential parcels to be purchased in the future) and utilize it for accelerator farms to provide learning and development opportunities within our farm network and to help ensure adequate supply for our future egg washing and packing facility in Seymour, Indiana, while preserving the ability in the future to sell turnkey farms to interested farmers. In fiscal 2025, we elected to sell certain undeveloped parcels of owned farmland in Indiana, totaling approximately 516 acres. Two parcels totaling approximately 145 acres were sold during the 39-week period ended September 28, 2025.

Previous wording

We have experienced consistent sales growth. We had net revenue of $184.8 million and $147.4 million, net income of $16.6 million and $16.3 million, and Adjusted EBITDA of $29.9 million and $23.3 million in the 13-week periods ended June 29, 2025 and June 30, 2024, respectively. We had net revenue of $347.0 million and $295.3 million, net income of $33.5 million and $35.4 million, and Adjusted EBITDA of $57.4 million and $52.3 million in the 26-week periods ended June 29, 2025 and June 30, 2024, respectively. Adjusted EBITDA is a non-GAAP financial measure. See the section titled “—Non-GAAP Financial Measure—Adjusted EBITDA” below for the definition of Adjusted EBITDA, as well as a reconciliation of Adjusted EBITDA to net income, the most directly comparable financial measure stated in accordance with GAAP.

Current wording

We have experienced consistent sales growth. We had net revenue of $198.9 million and $145.0 million, net income of $16.4 million and $7.4 million, and Adjusted EBITDA of $27.4 million and $15.2 million in the 13-week periods ended September 28, 2025 and September 29, 2024, respectively. We had net revenue of $545.9 million and $440.3 million, net income of $50.0 million and $42.8 million, and Adjusted EBITDA of $84.8 million and $67.6 million in the 39-week periods ended September 28, 2025 and September 29, 2024, respectively. Adjusted EBITDA is a non-GAAP financial measure. See the section titled “—Non-GAAP Financial Measure—Adjusted EBITDA” below for the definition of Adjusted EBITDA, as well as a reconciliation of Adjusted EBITDA to net income, the most directly comparable financial measure stated in accordance with GAAP.

Previous wording

In fiscal 2024, we were made aware of an outbreak of a virus called Egg Drop Syndrome, or EDS, in the Midwest. Nine of our farms experienced outbreaks of EDS in fiscal 2024 and eight of our farms have experienced outbreaks of EDS to date in fiscal 2025. EDS is characterized by the production of pale, thin-shelled, soft-shelled, or shell-less eggs by seemingly healthy laying hens.

Current wording

In fiscal 2024, we were made aware of an outbreak of a virus called Egg Drop Syndrome, or EDS, in the Midwest. Nine of our farms experienced outbreaks of EDS in fiscal 2024 and 11 of our farms have experienced outbreaks of EDS to date in fiscal 2025. EDS is characterized by the production of pale, thin-shelled, soft-shelled, or shell-less eggs by seemingly healthy laying hens.

Previous wording

Economic uncertainty and volatility may affect our business and corresponding financial position and cash flows. Inflationary factors, such as increases in the cost of materials and supplies, interest rates and overhead costs, may adversely affect our operating results. Elevated interest rates also present a challenge impacting the U.S. economy and could make it more difficult for us or our farmers to obtain traditional financing on acceptable terms, if at all, in the future. Certain of our products and elements of our supply chain, including our butter products and certain processing equipment and packaging, are imported from international markets. We expect that tariffs and restrictions on international trade, including the tariffs announced by the U.S. government effective August 2025, will impact the cost or availability of these items. However, the duration, magnitude and scope of any additional tariffs or restrictions on international trade are difficult to predict, including any related impacts to consumer demand, along with the extent (if any) to which we will be able to offset the impacts of such actions through our mitigation efforts.

Current wording

Economic uncertainty and volatility may affect our business and corresponding financial position and cash flows. Inflationary factors, such as increases in the cost of materials and supplies, interest rates and overhead costs, may adversely affect our operating results. Elevated interest rates also present a challenge impacting the U.S. economy and could make it more difficult for us or our farmers to obtain traditional financing on acceptable terms, if at all, in the future. Certain of our products and elements of our supply chain, including our butter products and certain processing equipment and packaging, are imported from international markets. We expect that tariffs and restrictions on international trade, including the tariffs implemented by the U.S. government in August 2025, will continue to impact the cost or availability of these items. However, the duration, magnitude and scope of any additional tariffs or restrictions on international trade are difficult to predict, including any related impacts to consumer demand, along with the extent (if any) to which we will be able to offset the impacts of such actions through our mitigation efforts. Additionally, the shutdown of the U.S. federal government that commenced in October 2025 may adversely impact many of our family farmers’ ability to access capital as these farmers receive funding through farm loan programs of the United States Department of Agriculture Farm Service Agency. The shutdown may also impact our ability to receive government approvals for products and labeling of new products and U.S. Food and Drug Administration inspections of our farms. The duration of the shutdown and the scope and magnitude of the shutdown on our business are difficult to predict.

Previous wording

With cash, cash equivalents and marketable securities of $155.0 million as of June 29, 2025 and $60.0 million available under our syndicated revolving credit facility agreement with JPMorgan Chase Bank, N.A. and the others lenders party thereto, or the JPMorgan Credit Facility, we anticipate having sufficient liquidity to make investments in our business to support our long-term growth strategy. We expect that our cash, cash equivalents and marketable securities as of June 29, 2025, together with cash provided by our operating activities and availability of borrowings under our JPMorgan Credit Facility, will be sufficient to fund our operating expenses for at least the next 12 months and to make investments in our business in support of our long-term growth strategy. For additional information regarding our JPMorgan Credit Facility, see “Long-Term Debt—JPMorgan Credit Facility” at Note 13 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report.

Current wording

With cash, cash equivalents and marketable securities of $145.1 million as of September 28, 2025 and $60.0 million available under our syndicated revolving credit facility agreement with JPMorgan Chase Bank, N.A. and the other lenders party thereto, or the JPMorgan Credit Facility, we anticipate having sufficient liquidity to make investments in our business to support our long-term growth strategy. We expect that our cash, cash equivalents and marketable securities as of September 28, 2025, together with cash provided by our operating activities and availability of borrowings under our JPMorgan Credit Facility, will be sufficient to fund our operating expenses for at least the next 12 months and to make investments in our business in support of our long-term growth strategy. For additional information regarding our JPMorgan Credit Facility, see “Long-Term Debt—JPMorgan Credit Facility” at Note 14 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report.

Previous wording

We have positioned our brand to capitalize on growing consumer interest in natural, clean-label, traceable, ethical, great-tasting and nutritious foods. We believe there is substantial opportunity to grow our consumer base and increase the velocity at which households purchase our products. U.S. household penetration for the shell egg category is approximately 97.5%, while the household penetration for our shell eggs is approximately 10.5%. We intend to increase household penetration by continuing to invest significantly in sales and marketing to educate consumers about our brand, our values and the premium quality of our products. We believe these efforts have helped and will continue to help educate consumers on the attractive attributes of our products, generate further demand for our products and ultimately expand our consumer base. Our ability to continue to attract new consumers will depend, among other things, on the perceived value and quality of our products, the offerings of our competitors and the effectiveness of our marketing efforts. Our performance depends significantly on factors that may affect the level and pattern of consumer spending in the U.S. natural food market in which we operate. Such factors include consumer preference, consumer confidence, consumer income, consumer perception of the safety and quality of our products and shifts in the perceived value for our products relative to alternatives.

Current wording

We have positioned our brand to capitalize on growing consumer interest in natural, clean-label, traceable, ethical, great-tasting and nutritious foods. We believe there is substantial opportunity to grow our consumer base and increase the velocity at which households purchase our products. U.S. household penetration for the shell egg category is approximately 97.3%, while the household penetration for our shell eggs is approximately 10.8%. We intend to increase household penetration by continuing to invest significantly in sales and marketing to educate consumers about our brand, our values and the premium quality of our products. We believe these efforts have helped and will continue to help educate consumers on the attractive attributes of our products, generate further demand for our products and ultimately expand our consumer base. Our ability to continue to attract new consumers will depend, among other things, on the perceived value and quality of our products, the offerings of our competitors and the effectiveness of our marketing efforts. Our performance depends significantly on factors that may affect the level and pattern of consumer spending in the U.S. natural food market in which we operate. Such factors include consumer preference, consumer confidence, consumer income, consumer perception of the safety and quality of our products and shifts in the perceived value for our products relative to alternatives.

Previous wording

We believe that our ability to increase the number of customers that sell our products to consumers is an indicator of our market penetration and our future business opportunities. We define our customers as the entities that sell our products to consumers. With certain of our retail customers, like Whole Foods, we sell our products through distributors. We are not able to precisely attribute our net revenue to a specific retailer for products sold through such channels. We rely on third-party data to calculate the portion of retail sales attributable to such retailers, but this data is inherently imprecise because it is based on gross sales generated by our products sold at retailers, without accounting for price concessions, promotional activities or chargebacks in the ordinary course of business, and because it measures retail sales for only the portion of our retailers serviced through distributors. Based on this third-party data and internal analysis, Whole Foods accounted for approximately 20% and 23% of our retail sales for the 13-week periods ended June 29, 2025 and June 30, 2024 and 20% and 22% for the 26-week periods ended June 29, 2025 and June 30, 2024, respectively.

Current wording

We believe that our ability to increase the number of customers that sell our products to consumers is an indicator of our market penetration and our future business opportunities. We define our customers as the entities that sell our products to consumers. With certain of our retail customers, like Whole Foods, we sell our products through distributors. We are not able to precisely attribute our net revenue to a specific retailer for products sold through such channels. We rely on third-party data to calculate the portion of retail sales attributable to such retailers, but this data is inherently imprecise because it is based on gross sales generated by our products sold at retailers, without accounting for price concessions, promotional activities or chargebacks in the ordinary course of business, and because it measures retail sales for only the portion of our retailers serviced through distributors. Based on this third-party data and internal analysis, Whole Foods accounted for approximately 20% and 21% of our retail sales for the 13-week periods ended September 28, 2025 and September 29, 2024 and 20% and 21% for the 39-week periods ended September 28, 2025 and September 29, 2024, respectively.

Previous wording

As of June 29, 2025, there were approximately more than 23,500 stores selling our products. Since our Quarterly Report on Form 10-Q for the quarter ended March 30, 2025, our third-party data provider revised its reporting methodology for number of stores selling our products. Due to such change in methodology, store count data reported previously may not be comparable to current data. According to the data provider, under this revised methodology, there were approximately 23,250 stores selling our products as of March 30, 2025, rather than the 26,000 store count disclosed in our previous Quarterly Report under the previous reporting methodology. We expect the retail channel to be our largest source of net revenue for the foreseeable future. By capturing greater shelf space, driving higher product velocities and increasing our SKU count, we believe there is meaningful runway for further growth with existing retail customers. Additionally, we believe there is significant opportunity to gain incremental stores from existing customers as well as by adding new retail customers. We also believe there is significant further long-term opportunity in additional distribution channels, including the convenience, drugstore, club, military and international markets. Our ability to execute this strategy will increase our opportunities for incremental sales to consumers, and we also believe this growth will allow for margin expansion. To accomplish these objectives, we intend to continue leveraging consumer awareness of and demand for our brand, offering targeted sales incentives to our customers and utilizing customer-specific marketing tactics. Our ability to grow within the retail channel will depend on a number of factors, such as our customers’ satisfaction with the sales, product velocities and profitability of our products.

Current wording

As of September 28, 2025, there were approximately 23,500 stores selling our products. We expect the retail channel to be our largest source of net revenue for the foreseeable future. By capturing greater shelf space, driving higher product velocities and increasing our SKU count, we believe there is meaningful runway for further growth with existing retail customers. Additionally, we believe there is significant opportunity to gain incremental stores from existing customers as well as by adding new retail customers. We also believe there is significant further long-term opportunity in additional distribution channels, including the convenience, drugstore, club, military and international markets. Our ability to execute this strategy will increase our opportunities for incremental sales to consumers, and we also believe this growth will allow for margin expansion. To accomplish these objectives, we intend to continue leveraging consumer awareness of and demand for our brand, offering targeted sales incentives to our customers and utilizing customer-specific marketing tactics. Our ability to grow within the retail channel will depend on a number of factors, such as our customers’ satisfaction with the sales, product velocities and profitability of our products.

Previous wording

We intend to continue to strengthen our product offerings by investing in innovation in new and existing categories. We have a history of product introductions and intend to continue to innovate by introducing new products from time to time. Eggs and egg-related products generated $178.4 million in net revenue, approximately 97% of total net revenue, in the 13-week period ended June 29, 2025. Eggs and egg-related products generated $334.7 million in net revenue, approximately 96% of total net revenue in the 26-week period ended June 29, 2025. We expect eggs and egg-related products to be our largest source of net revenue for the foreseeable future. We believe that investments in innovation will contribute to our long-term growth, including by reinforcing our efforts to increase household penetration. Our ability to successfully develop, market and sell new products will depend on a variety of factors, including the availability of capital to invest in innovation, as well as changing consumer preferences and demand for food products.

Current wording

We intend to continue to strengthen our product offerings by investing in innovation in new and existing categories. We have a history of product introductions and intend to continue to innovate by introducing new products from time to time. Eggs and egg-related products generated $192.6 million in net revenue, approximately 97% of total net revenue, in the 13-week period ended September 28, 2025. Eggs and egg-related products generated $527.4 million in net revenue, approximately 97% of total net revenue in the 39-week period ended September 28, 2025. We expect eggs and egg-related products to be our largest source of net revenue for the foreseeable future. We believe that investments in innovation will contribute to our long-term growth, including by reinforcing our efforts to increase household penetration. Our ability to successfully develop, market and sell new products will depend on a variety of factors, including the availability of capital to invest in innovation, as well as changing consumer preferences and demand for food products.

Previous wording

Selling, general and administrative expenses consist primarily of broker and contractor fees for sales and marketing, as well as personnel costs for sales and marketing, finance, human resources and other administrative functions, including salaries, benefits, bonuses, stock-based compensation expense and sales commissions. Selling, general and administrative expenses also include advertising and digital media costs, agency fees, travel and entertainment costs, and costs associated with consumer promotions, product samples, sales aids incurred to acquire new customers, retain existing customers and build our brand awareness, overhead costs for facilities, including associated depreciation and amortization expenses related to our non-production facilities and assets, and information technology-related expenses. We expect selling, general and administrative expenses to increase in the future in connection with the expansion of the business and increased marketing costs.

Current wording

Selling, general and administrative expenses consist primarily of broker and contractor fees for sales and marketing, as well as personnel costs for sales and marketing, finance, human resources and other administrative functions, including salaries, benefits, bonuses, stock-based compensation expense and sales commissions. Selling, general and administrative expenses also include advertising and digital media costs, agency fees, travel and entertainment costs, and costs associated with consumer promotions, product samples, sales aids incurred to acquire new customers, retain existing customers and build our brand awareness, overhead costs for facilities, including associated depreciation and amortization expenses related to our non-production facilities and assets, and information technology-related expenses. We expect selling, general and administrative expenses to increase in the future in connection with our expansion of the business and increased marketing costs.

Previous wording

The results of operations data for the 13-week and 26-week periods ended June 29, 2025 and June 30, 2024 have been derived from the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report.

Current wording

The results of operations data for the 13-week and 39-week periods ended September 28, 2025 and September 29, 2024 have been derived from the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report.

Previous wording

Includes stock-based compensation expense of $173 and $107 in cost of goods sold for the 13-week periods ended June 29, 2025 and June 30, 2024, respectively.

Current wording

Includes stock-based compensation expense of $155 and $72 in cost of goods sold for the 13-week periods ended September 28, 2025 and September 29, 2024, respectively.

Previous wording

Includes stock-based compensation expense of $2,861 and $2,809 in selling, general and administrative for the 13-week periods ended June 29, 2025 and June 30, 2024, respectively.

Current wording

Includes stock-based compensation expense of $3,084 and $2,602 in selling, general and administrative for the 13-week periods ended September 28, 2025 and September 29, 2024, respectively.

Previous wording

The increase in net revenue of $37.4 million, or 25%, was primarily driven by price/mix benefits of $15.7 million and volume-related increases of $21.7 million. The volume favorability was driven by accelerated demand for existing products, expanded item offerings and store distribution at existing customers. Net revenue from sales through our retail channel was $176.1 million and $141.9 million for the 13-week periods ended June 29, 2025 and June 30, 2024, respectively.

Current wording

The increase in net revenue of $53.9 million, or 37%, was primarily driven by volume-related increases of $27.5 million and price/mix benefits of $26.4 million. The volume favorability was driven by accelerated demand for existing products, expanded item offerings and store distribution at existing customers. Net revenue from sales through our retail channel was $189.7 million and $139.0 million for the 13-week periods ended September 28, 2025 and September 29, 2024, respectively.

Previous wording

The increase in gross profit of $14.1 million, or 24%, was driven by higher net revenue generated during the period from higher volume, increased pricing across our shell egg portfolio and favorable mix benefits. Compared to the corresponding period in the prior year, gross margin declined slightly as investments continue to scale and grow the business driven by increases in labor and overhead costs offset by favorable price/mix benefits.

Current wording

The increase in gross profit of $21.5 million, or 40%, was driven by higher net revenue generated during the period from volume growth, increased pricing across our shell egg portfolio and favorable mix benefits. Compared to the corresponding period in the prior year, gross margin increased slightly driven by favorable price/mix benefits and commodity costs partially offset by increased overhead costs.

Previous wording

The increase in selling, general and administrative expenses of $5.7 million, or 17%, was primarily driven by expenses to support the expansion of our business and continued growth, including:

Current wording

The increase in selling, general and administrative expenses of $8.3 million, or 23%, was primarily driven by expenses to support the expansion of our business and continued growth, including:

Previous wording

an increase of $6.2 million in employee-related costs, including stock-based compensation, driven by an overall increase in employee headcount;

Current wording

an increase of $5.3 million in employee-related costs, including stock-based compensation, driven by an overall increase in employee headcount; and

Previous wording

an increase of $1.8 million in marketing-related expenses;

Current wording

an increase of $3.1 million in marketing-related expenses; partially offset by

Previous wording

The increase in shipping and distribution costs of $3.0 million, or 21%, was driven by higher sales volume.

Current wording

The increase in shipping and distribution costs of $1.0 million, or 13%, was driven by higher sales volume, partially offset by favorable linehaul and fuel rates.

Previous wording

The decrease in interest expense of $39 thousand, or 15%, was primarily driven by a reduction in interest paid on finance leases.

Current wording

The decrease in interest expense of $46 thousand, or 18%, was primarily driven by a reduction in interest paid on finance leases.

Previous wording

The increase of $16 thousand in interest income, or 1%, was primarily driven by an increase in interest income received on our available-for-sale securities and marketable securities.

Current wording

The decrease of $0.1 million in interest income, or 10%, was primarily driven by a decrease in interest income received on our available-for-sale securities and marketable securities.

Previous wording

The increase in other expense, net of $0.3 million, or 334%, was primarily driven by losses on our commodity derivative instruments during the 13-week period ended June 29, 2025 as compared to those in the 13-week period ended June 30, 2024.

Current wording

The increase in other expense, net of $0.5 million, or 8,017%, was primarily driven by losses on our commodity derivative instruments during the 13-week period ended September 28, 2025 as compared to those in the 13-week period ended September 29, 2024.

Previous wording

The increase in the income tax provision of $6.1 million, or 345%, was related to an increase in net income for the 13-week period ended June 29, 2025 as compared to the 13-week period ended June 30, 2024, in addition to a decrease in the tax benefit of non-qualified stock option exercises and RSU releases that occurred during the 13-week period ended June 29, 2025, as compared to the 13-week period ended June 30, 2024.

Current wording

The increase in the income tax provision of $2.6 million, or 89%, was related to an increase in net income for the 13-week period ended September 28, 2025 as compared to the 13-week period ended September 29, 2024, in addition to a decrease in the tax benefit of non-qualified stock option exercises and RSU releases that occurred during the 13-week period ended September 28, 2025, as compared to the 13-week period ended September 29, 2024.

Previous wording

Includes stock-based compensation expense of $280 and $154 in cost of goods sold for the 26-week periods ended June 29, 2025 and June 30, 2024, respectively.

Current wording

Includes stock-based compensation expense of $435 and $226 in cost of goods sold for the 39-week periods ended September 28, 2025 and September 29, 2024, respectively.

Previous wording

Includes stock-based compensation expense of $5,607 and $4,744 in selling, general and administrative for the 26-week periods ended June 29, 2025 and June 30, 2024, respectively.

Current wording

Includes stock-based compensation expense of $8,691 and $7,346 in selling, general and administrative for the 39-week periods ended September 28, 2025 and September 29, 2024, respectively.

Previous wording

The increase in net revenue of $51.6 million, or 17%, was primarily driven by price/mix benefits of $28.1 million and volume-related increases of $23.6 million. The volume favorability was driven by accelerated demand for existing products, expanded item offerings and store distribution at existing customers. Net revenue from sales through our retail channel was $330.7 million and $284.1 million for the 26-week periods ended June 29, 2025 and June 30, 2024, respectively.

Current wording

The increase in net revenue of $105.6 million, or 24%, was primarily driven by price/mix benefits of $54.5 million and volume-related increase of $51.1 million. The volume favorability was driven by accelerated demand for existing products, expanded item offerings and store distribution at existing customers. Net revenue from sales through our retail channel was $520.5 million and $423.2 million for the 39-week periods ended September 28, 2025 and September 29, 2024, respectively.

Previous wording

The increase in gross profit of $17.7 million, or 15%, was driven by higher net revenue generated during the period from higher volume, increased pricing across our shell egg portfolio and favorable mix benefits. Compared to the corresponding period in the prior year, gross margin declined slightly as investments continue to scale and grow the business driven by increases in labor and overhead costs offset price/mix benefits.

Current wording

The increase in gross profit of $39.2 million, or 23%, was driven by higher net revenue generated during the period from volume growth, increased pricing across our shell egg portfolio and favorable mix benefits. Compared to the corresponding 39-week period in the prior year, gross margin declined slightly as investments continue to scale and grow the business driven by increases in labor and overhead costs offset price/mix benefits.

Previous wording

The increase in selling, general and administrative expenses of $10.4 million, or 17%, was primarily driven by expenses to support the expansion of our business and continued growth:

Current wording

The increase in selling, general and administrative expenses of $18.7 million, or 19%, was primarily driven by expenses to support the expansion of our business and continued growth:

Previous wording

an increase of $1.7 million in employee-related costs, including stock-based compensation, driven by an overall increase in employee headcount;

Current wording

an increase of $11.4 million in employee-related costs, including stock-based compensation, driven by an overall increase in employee headcount;

Previous wording

an increase of $2.8 million in marketing-related expenses; and

Current wording

an increase of $5.9 million in marketing-related expenses; and

Previous wording

an increase of $1.5 million in technology and software related expenses; partially offset by

Current wording

an increase of $2.3 million in technology and software related expenses; partially offset by

Previous wording

an increase of $0.6 million in other selling, general and administrative expenses.

Current wording

a decrease of $0.9 million in other selling, general and administrative expenses.

Previous wording

The increase in shipping and distribution costs of $1.8 million, or 25%, was driven by higher sales volume.

Current wording

The increase in shipping and distribution costs of $4.1 million, or 18%, was driven by higher sales volume.

Previous wording

The decrease of $59 thousand in interest expense, or 12%, was primarily driven by a reduction in interest paid on finance leases.

Current wording

The decrease of $0.1 million in interest expense, or 14%, was primarily driven by a reduction in interest paid on finance leases.

Previous wording

The increase of $0.1 million in interest income, or 6%, was primarily driven by higher interest income from our available-for-sale securities and marketable securities portfolios resulting from a higher balance and higher interest rates.

Current wording

The increase of $3 thousand in interest income, or 0%, was primarily driven by higher interest income from our available-for-sale securities and marketable securities portfolios resulting from a higher balance and higher interest rates.

Previous wording

The increase in other expense, net of $0.4 million, or 115%, was primarily driven by losses on our commodity derivative instruments during the 26-week period ended June 29, 2025 as compared to those in the 26-week period ended June 30, 2024.

Current wording

The increase in other expense, net of $0.9 million, or 243%, was primarily driven by losses on our commodity derivative instruments during the 39-week period ended September 28, 2025 as compared to those in the 39-week period ended September 29, 2024.