Vita Coco (COCO) combines category leadership, 28.1% Q2 sales growth, zero debt, and a premium Copra expansion with supply-chain and margin risks that create a favorable five-year asymmetric profile.
Overview
The Vita Coco Company is a leading asset-light beverage platform built around branded coconut water, with the Americas generating 83.4% of FY2025 sales and International contributing 16.6%. Its core branded portfolio represents approximately 96% of revenue, while private label contributes roughly 17% and helps balance manufacturing and freight scale. **Q2 2026 demonstrated strong operating momentum:** net sales increased 28.1% year over year to $216.15 million, diluted EPS rose 115.8% to $0.82, gross margin reached 48.7%, and adjusted EBITDA grew 130% to $67.23 million. Management raised FY2026 sales guidance to $790–$805 million and adjusted EBITDA guidance to $154–$161 million, although full-year gross margin is expected to moderate to approximately 40% as tariff refunds, freight benefits, and favorable pricing normalize. **The strategic catalyst is Copra**, acquired for $175 million, which adds a premium Thai chilled platform projected to generate more than $100 million of FY2026 sales. COCO trades at approximately 32.32x trailing normalized P/E, 28.60x forward P/E, and 28.0x EV/EBITDA, so valuation requires continued growth. The five-year probability-weighted target is $93.35 versus a report reference price of $61.71, with Q3 earnings and supply-chain execution as near-term catalysts.