Vita Coco Reports Strong Q3 Growth on Rising Coconut Water Sales

The Vita Coco Company, a producer of functional and health-focused beverages, continues to benefit from shifting consumer preferences toward natural hydration and lower-sugar drink options.

The company distributes its products through major retail chains and online platforms across the United States, Europe, and other international markets. Its asset-light model allows retail partners to broaden their beverage offerings without developing private-label brands, while consumers gain access to recognizable, natural alternatives.

Strong quarterly performance

In the third quarter of 2025, the company reported revenue of $182 million, representing a 37% year-over-year increase. Sales of coconut water rose by 42% compared with the same period last year.

Net income for the quarter reached $24 million, while adjusted EBITDA totaled $32 million, reflecting improved operating leverage as volumes expanded.

Balance sheet and cash generation

As of September 2025, the company held approximately $204 million in cash and reported no outstanding debt. This balance sheet position provides flexibility to support marketing initiatives, product innovation, and international expansion without reliance on external financing.

Adjusted free cash flow for the quarter amounted to $15 million, reinforcing the company’s ability to fund growth initiatives internally.

Industry backdrop

The functional and natural beverage segment continues to grow faster than traditional soft drinks, supported by long-term trends toward reduced sugar consumption and cleaner ingredient labels. Coconut water, in particular, has gained traction as an alternative hydration option positioned between plain water and sports drinks.

These broader consumption patterns have helped insulate the segment from some of the volume pressures seen in carbonated beverages.

Capital allocation

The company is also executing a share repurchase program totaling $65 million. As of the latest update, $22.2 million had already been deployed, with the remaining authorization expected to be funded from existing cash resources.

Management has indicated that capital allocation decisions will continue to balance growth investments with shareholder returns, depending on market conditions.

This article is for informational purposes only and does not constitute investment advice.