COCO earnings analysis
What we found in COCO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Vita Coco delivered a strong Q2: revenue rose 28.1% year over year to $216.153 million, diluted EPS increased to $0.82 from $0.38, and operating margin reached 29.2% from 14.9%. Results reflect broad-based branded and private-label volume growth, especially internationally, but profitability was substantially enhanced by a $15.6 million one-time tariff refund. Liquidity was strong at $278.6 million of cash and no revolver borrowings before the subsequent $140.0 million cash-funded Copra acquisition, which adds growth potential alongside material integration and manufacturing-operating risks.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and EPS accelerated sharply
- Q2 net sales reached $216.153 million, up $47.394 million (28.1%) from $168.759 million a year earlier and up 20.1% from $180 million in Q1 2026. Diluted EPS was $0.82, versus $0.38 in Q2 2025 and $0.50 in Q1 2026.
- Margins expanded materially
- Gross margin expanded 1,240 bps year over year to 48.7% from 36.3%, while operating margin rose to 29.2% from 14.9% (approximately 1,430 bps). Gross profit increased $44.046 million to $105.311 million and operating income rose $38.017 million to $63.139 million.
- Both operating segments grew
- The Americas segment grew $30.504 million, or 21.5%, to $172.465 million. International sales increased $16.890 million, or 63.0%, to $43.688 million, led by International Vita Coco Coconut Water growth of $11.881 million (59.8%).
- Volume-led branded and private-label growth
- Private Label sales rose 82.8% to $38.229 million, supported by a 78.1% increase in case-equivalent volume. Consolidated Vita Coco Coconut Water sales grew 20.9%, with case-equivalent volume up 15.0%.
- Cash generation and liquidity strengthened
- Six-month operating cash flow was $96.529 million, versus $12.010 million a year ago, aided by a $42.7 million working-capital improvement and $41.8 million higher net income after non-cash items. Cash and equivalents rose to $278.6 million from $196.9 million at December 31, 2025, with no credit-facility borrowings.
- Copra acquisition adds strategic capacity
- On July 22, 2026, the company acquired Copra for $175.0 million of initial consideration, including $140.0 million cash and $35.0 million in stock. Management views the Thai production facility as enhancing supply-chain capabilities and supporting long-term growth.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- $15.6M tariff refund is nonrecurring
- The quarter included approximately $15.6 million of tariff refunds recognized as a reduction of cost of goods sold, a one-time benefit that materially supported the 48.7% gross margin. Management says future tariff policies remain uncertain and may not be fully offset by pricing, sourcing, or other mitigation actions.
- Copra adds integration and earnout risk
- The $175.0 million Copra transaction used $140.0 million of cash at closing and includes a 2029 earnout ranging from $45.0 million to $100.0 million. The risk-factor update says integration spans multiple countries and functions and may impede realization of expected benefits.
- Factory ownership and FX add new exposure
- Copra changes the historically asset-light model through ownership of a Thailand manufacturing facility. The company flags potentially significant capital expenditures, fixed costs, idle capacity and production-disruption exposure; it also estimates a 10% U.S.-dollar move could generate an approximately $6.7 million gain or loss on foreign-exchange exposure.
- Customer concentration remains elevated
- Two customers accounted for approximately 44% of consolidated six-month net sales. The filing notes that economic disruption could require additional credit-loss charges, while private-label customer relationships can face contract-loss and margin-compression risk.
- Iran conflict may disrupt supply chain
- The new risk-factor disclosure cites the military conflict involving Iran, which commenced in February 2026, as a potential source of higher fuel, energy, commodity and logistics costs. Supply-chain disruption could delay deliveries and pressure demand or margins.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.82
- Gross margin
- 48.7%
- Operating margin
- 29.2%
- Segment
- Americas revenue: $172.465 million, up $30.504 million (21.5%) year over year.
- Segment
- International revenue: $43.688 million, up $16.890 million (63.0%) year over year.
- Segment
- Americas Vita Coco Coconut Water: $137.921 million, up 14.5%; Private Label: $26.901 million, up 83.2%; Other: $7.643 million, up 12.0%.
- Segment
- International Vita Coco Coconut Water: $31.763 million, up 59.8%; Private Label: $11.328 million, up 82.1%; Other: $0.597 million, down 14.0%.
What they said about what is next.
The 10-Q does not provide a quantitative revenue or EPS outlook. Management states that current cash, future operating cash flow and credit-facility availability are expected to cover anticipated needs for at least 12 months; numeric earnings outlook was deferred outside this filing.
The filing reads better than the one before it.
What came before.
- 10-Q · April 29, 2026
- The Vita Coco Company (COCO) demonstrated stronger-than-expected performance for Q1 2026, reporting revenue of $180 million and an EPS of $0.50, which exceeded estimates by 21% and 51% respectively. The company raised…
- 10-K · February 18, 2026
- Vita Coco (COCO) presents a market-leading coconut-water franchise ( >40% U.S. share; 80% U.K. share) and an asset-light, diversified supply network (16 factories across six countries). Fiscal 2025 revenue accelerated…
- 10-Q · July 30, 2025
- Vita Coco reported Q2 net sales of $168,759,000 and diluted EPS of $0.38, with revenue and EPS up versus the year-ago quarter. Growth was driven by the Americas and International Vita Coco coconut water sales, while…
- 10-Q · August 1, 2024
- Vita Coco reported a quarter of modest top-line growth and materially stronger profitability: net sales rose to $144,116,000 (Q2 2024) versus $139,645,000 a year ago while gross profit increased to $58,737,000 and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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