Why Vita Coco Fell Today

Solid but less-than-perfect earnings weren't enough for this high-flying stock today.Shares of Vita Coco (COCO 11.27%) were falling in Wednesday trading, down 9.4% as of 2:40 p.m. EDT. Vita Coco is the leading coconut water brand in the U.S. and also provides coconut water to third-party private-label brands. Today, the company held its fourth quarter earnings report, which delivered a top-line beat but a bottom-line miss. And while forward guidance for 2026 was solid, it apparently wasn't enough to satisfy shareholders who had bid the stock up to lofty levels. ExpandNASDAQ: COCOVita CocoToday's Change(-11.27%) $-6.37Current Price$50.15Key Data PointsMarket Cap$3.2BDay's Range$48.67 - $57.2752wk Range$25.79 - $59.88Volume202KAvg Vol726KGross Margin35.86% Vita Coco completes a year of high-teens growth In the fourth quarter, Vita Coco delivered 0.5% revenue growth to $128 million, which beat expectations, while earnings per share of $0.09 missed expectations by $0.04. Some might look at that meager growth number and scratch their head; however, the decline was due to a 52% drop in U.S. private-label sales. But private-label sales are lower-margin and can be highly volatile due to demand from a single large customer, according to the company. Outside of that, every other segment grew steadily, including the branded Vita Coco water, the new Vita Coco treats product, and even international private label sales. For the full year, sales grew 18% to $610 million, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 32% to $98 million. For 2026, management forecasts revenue between $680 million and $700 million and adjusted EBITDA between $122 million and $128 million. That would mark 13.1% revenue growth and 27.6% EBITDA growth, at the respective midpoints. Image source: Getty Images. Valuation is likely the reason for the pullback It may be odd that Vita Coco's stock pulled back on these numbers, given that the forward guidance beat out current sell-side revenue expectations of $683.6 million in 2026. Therefore, the sell-off could likely be attributed to Vita Coco's valuation. Vita Coco's stock had rallied nearly 80% over the past six months and was trading at a lofty 49 times earnings heading into today's report. Vita Coco remains the largest coconut water brand by far, accounting for 41% to 42% of the U.S. industry in 2025. Meanwhile, coconut water sales surged 21.8% in the U.S. last year -- the highest growth rate of all shelf-stable beverage categories. Overall, it looks like Vita Coco's long-term growth story remains intact, but the stock might have gotten ahead of itself in the near term. Read NextDec 23, 2025 •By David ButlerWhat to Watch With COCO Stock in 2026Dec 10, 2025 •By John BromelsAre COCO Stock Investors Happy, Or Did They Miss Out?Nov 17, 2025 •By Joe TenebrusoWhy Vita Coco Stock Jumped TodayOct 30, 2025 •By Timothy GreenWhy Vita Coco Stock Is Sinking TodayOct 29, 2025 •By Josh Kohn-LindquistWhy The Vita Coco Company Stock Is Popping TodayOct 5, 2025 •By Billy DubersteinMonster Beverage Was a 2,000-Bagger Between 1994 and 2024.

Could This Coconut Water Leader Be Next?About the AuthorBilly Duberstein is a contributing Motley Fool technology analyst covering semiconductors, hardware, software, and AI, as well as consumer goods. Billy loves looking at the story behind investments from an interdisciplinary point of view, with an equal appetite for high-growth disruptors and beaten-down value names. He is also CEO of Stone Oak Capital, a registered investment adviser in California. He previously worked as a technology analyst for several hedge funds and as a research assistant at Wedbush Securities. Billy holds an MBA in finance from New York University and a bachelor’s degree in music from the University of Virginia.TMFStoneOakStocks MentionedVita CocoNASDAQ: COCO$50.15 (11.27%) $6.37*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.