Vita Coco Company, Inc.
For the period ended Sep 30, 2026. Filed Oct 22, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 22, 2026
COCO$62.45-1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-23.
0001482981-26-000173
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-22.
0001482981-26-000185
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 115 previous paragraphs and 119 current paragraphs.
77 unchanged; 34 reworded; 8 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
As of September 30, 2026, we sourced our products from a diversified global network of third-party factories and co-packers, supported by coconut farmers across the world. In July 2026, we acquired Copra, Inc., including its manufacturing subsidiary, CB Coconuts Co., Ltd. in Thailand, providing us with vertically integrated manufacturing capabilities for Nam Hom coconut water in addition to our third-party supply network.
Current report
Other (Expense) Income, Net
Current report
Foreign Currency Loss
Current report
For the three months ended September 30, 2026, interest income decreased compared to the prior year period, primarily due to lower interest earned on cash investments as a result of reduced average cash balances following the acquisition of Copra, as well as lower interest rates.
Current report
Other (Expense) Income, net
Current report
(c)Acquisition-related costs represent transaction, advisory, legal, accounting, valuation, and other professional fees incurred in connection with the acquisition of Copra.
Current report
Business Combinations
Current report
In connection with the acquisition of the Copra business on July 22, 2026, we recorded a preliminary purchase price allocation under ASC 805. Accounting for business combinations requires us to make significant estimates and assumptions in determining the fair value of acquired assets and assumed liabilities, including identifiable intangible assets, inventory, property and equipment and contingent consideration.The most significant assumptions used in these valuations include projected revenues and profitability, customer attrition rates, royalty rates, discount rates, including the weighted average cost of capital, and the probability and timing of achieving performance metrics associated with contingent consideration arrangements. The preliminary purchase price allocation remains subject to refinement during the measurement period as additional information becomes available regarding facts and circumstances that existed as of the acquisition date. Changes in these estimates and assumptions could result in adjustments to the value of acquired assets and assumed liabilities, including goodwill, and could affect future depreciation, amortization, and contingent consideration expense.
Removed paragraphs (4)
Previous report
As of June 30, 2026, we sourced our products from a diversified global network of approximately 20 factories and co-packers, supported by coconut farmers across the world. As we did not own any of these facilities, our supply chain is a fixed asset-lite model designed to better service our customers and react to changes in the market or consumer preferences.
Previous report
Other Income (Expense), Net
Previous report
Foreign Currency (Loss) Gain
Previous report
Other Income, net
Reworded paragraphs (34)
Previous wording
Our branded portfolio is led by our Vita Coco brand, which is the leader in the coconut water category in the United States, and also includes coconut oil, juice, and milk offerings. Our portfolio also includes PWR LIFT, a protein-infused fitness drink. Additionally, we supply Private Label products to key retailers in both the coconut water and coconut oil categories and generate revenue from bulk product sales to beverage and food companies.
Current wording
Our branded portfolio is led by our Vita Coco brand, which is the leader in the coconut water category in the United States, and also includes coconut oil, juice, and milk offerings. Our portfolio also includes PWR LIFT, a protein-infused fitness drink, and Copra-branded coconut water products acquired as part of our acquisition of Copra Inc. ("Copra"). Additionally, we supply Private Label products to key retailers in both the coconut water and coconut oil categories and generate revenue from bulk product sales to beverage and food companies.
Previous wording
On July 22, 2026, we completed the acquisition of Copra Inc., a super-premium Thai Nam Hom coconut water producer of private label and Copra branded products that owns and operates a factory in Thailand, which became a wholly owned subsidiary of the Company. We believe the acquisition enhances our supply chain capabilities and supports our long-term growth strategy. Additional information regarding the acquisition is included in Note 18, Subsequent Events.
Current wording
On July 22, 2026, we completed the acquisition of Copra Inc., a super-premium Thai Nam Hom coconut water producer of private label and Copra branded products that owns and operates a factory in Thailand, which became a wholly owned subsidiary of the Company. We believe the acquisition enhances our supply chain capabilities and supports our long-term growth strategy. Additional information regarding the acquisition is included in Note 3, Business Combination.
Previous wording
•On February 20, 2026, the U.S. Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") were unlawful. Following the ruling, U.S. Customs and Border Protection ("CBP") established a process for importers to seek refunds of previously paid tariffs. We submitted claims for eligible tariff payments made in prior periods and, during the three months ended June 30, 2026, received tariff refunds totaling approximately $15.6 million. The refunds were recognized as a reduction of cost of goods sold and favorably impacted gross profit, operating income, net income, and diluted earnings per share for the three and six months ended June 30, 2026. The refunds represent the recovery of tariffs paid in prior periods and provided a one-time benefit to our results during the quarter. The administration has announced its intent to impose additional tariffs under other statutory authorities. While tariffs announced to date have not had a material adverse impact on us, the scope, duration, and impact of future tariff policies remain uncertain and could adversely affect our business, financial condition, results of operations, and cash flows. We continue to monitor developments and may pursue pricing actions, sourcing modifications, and other cost-mitigation measures; however, there can be no assurance that such actions will fully offset the impact of future tariff changes or related economic effects.
Current wording
•On February 20, 2026, the U.S. Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") were unlawful. Following the ruling, U.S. Customs and Border Protection ("CBP") established a process for importers to seek refunds of previously paid tariffs. We submitted claims for eligible tariff payments made in prior periods and, during the three months ended June 30, 2026, received tariff refunds totaling approximately $15.6 million. The refunds were recognized as a reduction of cost of goods sold and favorably impacted gross profit, operating income, net income, and diluted earnings per share for the nine months ended September 30, 2026. The refunds represent the recovery of tariffs paid in prior periods and provided a one-time benefit to our results during the quarter. The administration has announced its intent to impose additional tariffs under other statutory authorities. While tariffs announced to date have not had a material adverse impact on us, the scope, duration, and impact of future tariff policies remain uncertain and could adversely affect our business, financial condition, results of operations, and cash flows. We continue to monitor developments and may pursue pricing actions, sourcing modifications, and other cost-mitigation measures; however, there can be no assurance that such actions will fully offset the impact of future tariff changes or related economic effects.
Previous wording
Cost of goods sold includes the costs of the products sold to customers, inbound and outbound shipping and handling costs, freight, duties and tariffs, shipping and packaging supplies, and warehouse fulfillment costs.
Current wording
Cost of goods sold includes the costs of the products sold to customers, inbound and outbound shipping and handling costs, freight, duties and tariffs, shipping and packaging supplies, and warehouse fulfillment costs. As a result of the Copra acquisition, we are incurring costs to operate the Thailand production facility and associated costs of the Thailand operation.
Previous wording
•Other—This product category consists of all other products, which includes Vita Coco product extensions beyond coconut water, consisting of coconut milk products, including Vita Coco Treats; and PWR LIFT product offerings; Vita Coco coconut oil sold internationally; and other revenue transactions (e.g., bulk product sales). For these products, control is transferred upon customer receipt, at which point we recognize the transaction price for the product as revenue.
Current wording
•Other—This product category consists of all other products, which includes Vita Coco product extensions beyond coconut water, consisting of coconut milk products, including Vita Coco Treats; and PWR LIFT product offerings; Vita Coco coconut oil; Copra-branded coconut water products; and other revenue transactions (e.g., bulk product sales). For these products, control is transferred upon customer receipt, at which point we recognize the transaction price for the product as revenue.
Previous wording
Comparison of the Three and Six Months Ended June 30, 2026 and 2025
Current wording
Comparison of the Three and Nine Months Ended September 30, 2026 and 2025
Previous wording
The following table summarizes our results of operations for the three and six months ended June 30, 2026 and 2025, respectively:
Current wording
The following table summarizes our results of operations for the three and nine months ended September 30, 2026 and 2025, respectively:
Previous wording
For the three months ended June 30, 2026, consolidated net sales increased 28.1%, primarily driven by strong Vita Coco Coconut Water volume growth across both the Americas and International segments. Vita Coco Coconut Water net sales increased 20.9%, underpinned by a case equivalents ("CE") volume increase of 15.0% driven by increased demand, particularly within the International segment, and improved net pricing. The growth was partially offset by the timing shift of a significant retailer promotion, which occurred primarily in the first quarter of 2026 compared to the second quarter of 2025. Private Label net sales increased 82.8% driven by a CE volume increase of 78.1%, while Other category net sales increased 9.6%.
Current wording
For the three months ended September 30, 2026, consolidated net sales increased 33.7%, primarily driven by continued strong demand for Vita Coco Coconut Water across both the Americas and International segments as well as the addition of the Copra coconut water business. Vita Coco Coconut Water net sales increased 15.1%, with a case equivalents ("CE") volume increase of 15.8% driven by increased demand, particularly within the International segment. This was partially offset by lower net pricing in the Americas. Private Label net sales increased 152.4% and Other category net sales increased 72.8% driven by CE volume increases of 76.7% and 35.8%, respectively. Private Label net sales benefited from the inclusion of Copra's private label business along with strong continuing Private Label volume growth and Other category Net Sales benefited from the inclusion of Copra's brand and commodity sales.
Previous wording
For the six months ended June 30, 2026, the consolidated net sales increased 32.1%, driven by Vita Coco Coconut Water, which had a 29.5% net sales increase, with a case equivalents CE volume increase of 22.1%. Private label net sales increased 52.5%, driven by CE volume growth of 50.2%. Other category net sales increased 7.8%.
Current wording
For the nine months ended September 30, 2026, the consolidated net sales increased 32.7%, driven by strong growth in Vita Coco Coconut Water, increased organic growth in Private Label and the addition of the Copra business. Vita Coco Coconut Water net sales increased 23.8%, reflecting a 19.7% increase in CE volume. Private label net sales increased 84.9%, driven by CE volume growth of 58.9%. Other category net sales increased 26.7%.
Previous wording
The following table provides a comparative summary of the percentage change in our volume in CE for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025, by operating segment and product category:
Current wording
The following table provides a comparative summary of the percentage change in our volume in CE for the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025, by operating segment and product category:
Previous wording
For the three months ended June 30, 2026, the increase in Vita Coco Coconut Water net sales was primarily driven by higher sales volume and favorable pricing, partially offset by the earlier timing of a retailer promotion in the first quarter of 2026 compared to primarily in the second quarter of 2025. For the six months ended June 30, 2026, the increase in Vita Coco Coconut Water net sales was primarily driven by the increase in CE volume driven by strong consumer demand, and by favorable pricing.
Current wording
For the three months ended September 30, 2026, the increase in Vita Coco Coconut Water net sales was primarily driven by higher sales volume partly offset by net lower pricing. For the nine months ended September 30, 2026, the increase in Vita Coco Coconut Water net sales was primarily driven by the increase in CE volume driven by strong consumer demand, and by favorable pricing.
Previous wording
For the three and six months ended June 30, 2026, the increase in Private Label net sales was primarily driven by an increase in CE volume, due to new and regained distribution and increased velocities.
Current wording
For the three months ended September 30, 2026, the increase in Private Label net sales was driven by an increase in CE volume, reflecting both the contribution from the Copra acquisition and strong organic growth from new and regained distribution and increased velocities. For the nine months ended September 30, 2026, the increase in Private Label net sales was similarly driven by an increase in CE volume, resulting from strong organic growth and the contribution from the Copra acquisition.
Previous wording
For the three and six months ended June 30, 2026, the increase in Other net sales was primarily driven by CE volume growth in Vita Coco Treats.
Current wording
For the three months ended September 30, 2026, the increase in Other net sales was primarily driven by the contribution of Copra branded and commodity sales and CE volume growth in Vita Coco Treats. For the nine months ended September 30, 2026, the increase in Other net sales was similarly driven by CE volume growth in Vita Coco Treats and the contribution of Copra brand and associated commodities sales.
Previous wording
For the three months ended June 30, 2026, the increase in Vita Coco Coconut Water net sales was primarily driven by strong volume growth in Europe, particularly in Germany and the U.K.. For the six months ended June 30, 2026, the increase in Vita Coco Coconut Water net sales was primarily driven by strong CE volume growth in Europe, particularly in Germany and the U.K., coupled with favorable pricing.
Current wording
For the three months ended September 30, 2026 and for the nine months ended September 30, 2026, the increase in Vita Coco Coconut Water net sales was primarily driven by strong volume growth in Europe, particularly in Germany and the U.K., coupled with favorable pricing.
Previous wording
For the three and six months ended June 30, 2026, the increase in Private Label net sales was primarily driven by the 71.0% and 66.9% increase, respectively, in CE volume in Europe due to very strong demand growth, coupled with favorable pricing.
Current wording
For the three months ended September 30, 2026 and for the nine months ended September 30, 2026, the increase in Private Label net sales was primarily driven by the 23.1% and 48.8% increase, respectively, in CE volume in Europe due to very strong demand growth, coupled with favorable net pricing.
Previous wording
Net sales from Other products decreased during both the three and six months ended June 30, 2026 compared to the prior-year periods, reflecting lower sales volumes across certain non-core product offerings.
Current wording
Net sales from Other products increased during the three months ended September 30, 2026 compared to the prior year periods, reflecting higher sales volumes across certain non-core product offerings. Net sales from Other products decreased slightly during the nine months ended September 30, 2026 compared to the prior year periods, reflecting lower sales volumes across certain non-core product offerings.
Previous wording
For the three months ended June 30, 2026, the increase in cost of goods sold was primarily driven by higher CE volume and higher domestic logistics costs, partially offset by the recognition of the tariff refunds and lower ocean freight costs and lower finished goods costs. For the six months ended June 30, 2026, the increase in cost of goods sold was primarily related to increased CE volume, higher domestic logistics and finished goods costs, partially offset by the recognition of the tariff refunds and lower ocean freight costs.
Current wording
For the three months ended September 30, 2026, the increase in cost of goods sold was primarily driven by higher CE volume, the inclusion of Copra, and higher domestic logistics costs, partially offset by lower tariff costs. For the nine months ended September 30, 2026, the increase in cost of goods sold was driven by higher CE volume, the inclusion of Copra, and higher domestic logistics, partially offset by lower tariff costs and reduced ocean freight expenses compared with the prior year period.
Previous wording
For the three months ended June 30, 2026, the increase in consolidated gross profit was primarily driven by the recognition of the tariff refunds, higher sales, favorable pricing, and lower ocean freight and finished goods costs, partially offset by higher domestic logistics costs. For the six months ended June 30, 2026, the increase in gross profit was primarily driven by the recognition of the tariff refunds, higher sales, favorable pricing, and lower ocean freight costs.
Current wording
For the three months ended September 30, 2026, the increase in consolidated gross profit was primarily driven by higher volume sales, the inclusion of Copra, and the non-recurrence of tariffs that were incurred in the prior year period, partially offset by higher domestic logistics costs. For the nine months ended September 30, 2026, the increase in gross profit was primarily driven by higher volume sales, tariff refunds received during the period, lower tariff costs, favorable net pricing, lower ocean freight costs, and the inclusion of Copra, partially offset by higher domestic logistics.
Previous wording
Gross margin increased for both the three and six months ended June 30, 2026, primarily due to the recognition of thetariff refunds, favorable pricing, and lower ocean freight rates, slightly offset by higher domestic logistics costs.
Current wording
Gross margin increased for the three months ended September 30, 2026, primarily due to the non-recurrence in 2026 of tariffs incurred in the prior year period, partially offset by lower net pricing, higher domestic logistics costs, and the dilutive impact of Copra. Gross margin increased for the nine months ended September 30, 2026, primarily due to the recognition of the tariff refunds, favorable pricing, and lower ocean freight and tariff costs, slightly offset by higher domestic logistics costs.
Previous wording
For the three months ended June 30, 2026, the increase in SG&A was primarily driven by higher people‑related expenses of $4.1 million, reflecting increased incentive compensation, headcount growth, and stock-based compensation, as well as a $2.0 million increase in marketing expense to support sales growth initiatives and expansion into new markets. For the six months ended June 30, 2026, the increase in SG&A was primarily driven by higher people-related costs of approximately $7.7 million, a $5.7 million increase in marketing investments and a distributor‑related expense increase of $2.1 million.
Current wording
For the three months ended September 30, 2026, the increase in SG&A was primarily driven by $3.2 million of costs related to the acquisition of the Copra business, $1.0 million of amortization expense associated with intangible assets acquired in the Copra acquisition, higher people‑related expenses of $0.8 million associated with increased headcount and stock-based compensation, and a $0.7 million increase in sales related expenses. For the nine months ended September 30, 2026, the increase in SG&A was primarily driven by higher people-related costs of approximately $8.5 million associated with increased headcount and stock based compensation, a $5.3 million increase in marketing investments to support sales growth initiatives and expansion into new markets, $3.2 million of costs related to the acquisition of the Copra business, a distributor‑related expense increase of $2.1 million, and $1.0 million of amortization expense associated with intangible assets acquired in the Copra acquisition.
Previous wording
For the three months ended June 30, 2026, the change in fair value of our outstanding forward foreign currency exchange contracts was less favorable than in the prior year period, primarily driven by unfavorable movements in the fair values of Brazilian Real and Thai Baht hedge contracts.
Current wording
For the three months ended September 30, 2026, the change in fair value of our outstanding forward foreign currency exchange contracts was less favorable than in the prior year period, resulting in an unrealized loss compared to an unrealized gain in the prior year. This change was primarily driven by unfavorable movements in the fair values of Brazilian Real and Thai Baht hedge contracts.
Previous wording
For the six months ended June 30, 2026, gains recognized on our outstanding forward foreign currency exchange contracts were lower than in the prior year period reflecting less favorable fair value adjustments in Brazilian Real and Thai Baht hedge contracts. These impacts were partially offset by more favorable adjustments on Great British Pound, Euro, and Canadian Dollar hedge contracts.
Current wording
For the nine months ended September 30, 2026, gains recognized on our outstanding forward foreign currency exchange contracts were lower than in the prior year period reflecting less favorable fair value adjustments in,Thai Baht hedge contracts. These impacts were partially offset by more favorable adjustments on Great British Pound, Euro, Brazilian Real, and Canadian Dollar hedge contracts.
Previous wording
Foreign currency (loss) gain represents transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency. The foreign currency loss recorded during the three months ended June 30, 2026 was primarily driven by increased losses on operational foreign currency transactions and less favorable remeasurement of foreign currency-denominated balances, partially offset by higher realized gains on foreign currency derivative contracts used to economically hedge the Company's foreign currency exposures. See "Quantitative and Qualitative Disclosures about Market Risk -Foreign Currency Exchange Risk" for further information. The foreign currency loss in the six months ended June 30, 2026 was primarily driven by increased losses on operational foreign currency transactions. This impact was partially offset by higher realized gains on foreign currency derivative contracts and favorable changes in the remeasurement of foreign currency-denominated balances.
Current wording
Foreign currency loss represents transaction losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency. The lower foreign currency loss recorded during the three months ended September 30, 2026 was primarily driven by favorable settlement on derivative contracts and remeasurement of foreign currency-denominated balances, partially offset by higher realized loss on operational foreign currency transactions. See "Quantitative and Qualitative Disclosures about Market Risk -Foreign Currency Exchange Risk" for further information. The foreign currency loss in the nine months ended September 30, 2026 was primarily driven by increased losses on operational foreign currency transactions and realized losses on foreign currency derivative contracts. This impact was partially offset by favorable changes in the remeasurement of foreign currency-denominated balances.
Previous wording
The increase in interest income for both the three and six months ended June 30, 2026 was primarily attributable to approximately $0.6 million of interest received from the U.S. government related to tariff refunds and $0.4 million increase in interest earned on cash investments. Higher average invested cash balances contributed to the increase in interest earned on cash investments, partially offset by lower interest rates.
Current wording
For the nine months ended September 30, 2026, interest income increased compared to the prior year period, primarily attributable to approximately $0.6 million of interest received from the U.S. government related to tariff refunds. Higher average invested cash balances earlier in the year also, contributed to the increase, partially offset by lower interest rates and reduced cash balances following the acquisition of Copra.
Previous wording
For the three months ended June 30, 2026, the change in other income, net was immaterial. For the six months ended June 30, 2026, the change in other income, net is due to the sale of intellectual property in the prior year period.
Current wording
For the three months ended September 30, 2026, the change in other income, net was immaterial. For the nine months ended September 30, 2026, the change in other income, net is due to the sale of intellectual property in the prior year period.
Previous wording
For the six months ended June 30, 2026 and 2025, our effective tax rate was 21.5% and 20.5%, respectively. The effective tax rate for the current period was higher than the U.S. federal statutory rate of 21.0%, primarily due to the geographic mix of earnings across jurisdictions with different tax rates. The increase in the effective tax rate compared to the prior-year period was primarily attributable to a lower benefit from discrete tax items, largely driven by reduced tax benefits associated with stock-based compensation awards.
Current wording
For the nine months ended September 30, 2026 and 2025, our effective tax rate was 21.0% and 20.9%, respectively. The effective tax rate for the current period was consistent with the U.S. federal statutory rate of 21.0%, primarily due to the geographic mix of earnings across jurisdictions and the offsetting impact of tax credits, state taxes, and other permanent tax items. The effective tax rate was consistent with the prior year period as the overall impact of these items remained relatively unchanged year over year.
Previous wording
(c)The three and six months ended June 30, 2025 included $0.6 million and $1.2 million, respectively, related to a one-time incentive program established in 2023 and measured based on full-year 2025 performance, and $0.4 million and $0.7 million, respectively, of overlapping rent expense associated with our new New York City office. The six-month period was partially offset by $0.1 million of partial recoveries of prepaid inventory from a supplier (refer to the Form 10-K for further details) and a $0.2 million gain from a sale of intellectual property.
Current wording
(d)The three and nine months ended September 30, 2025 included $0.6 million and $1.8 million, respectively, related to a one-time incentive program established in 2023 and measured based on full-year 2025 performance, and $0.4 million and $1.1 million, respectively, of overlapping rent expense associated with our new New York City office, and $0.2 million of impairment loss related to the sale of Runa. The three months ended September 30, 2025 also includes $0.1 million of provision for credit losses related to the partially recovered prepaid inventory from a supplier recorded in the first half of 2025 (refer to the Form 10-K and the Form 10-Q for the quarterly period ended June 30, 2025 for further details). The nine month period was partially offset by $0.1 million of partial recoveries of prepaid inventory from a supplier (refer to the Form 10-K for further details) and a $0.2 million gain from a sale of intellectual property.
Previous wording
Since our inception, we have financed our operations primarily through cash generated from our business operations and proceeds on borrowings through our credit facilities and term loans. We had $278.6 million and $196.9 million of cash and cash equivalents as of June 30, 2026 and December 31, 2025, respectively. From time to time, we may supplement our liquidity needs with incremental borrowing capacity under the Credit Facility.
Current wording
Since our inception, we have financed our operations primarily through cash generated from our business operations and proceeds on borrowings through our credit facilities and term loans. We had $152.0 million and $196.9 million of cash and cash equivalents as of September 30, 2026 and December 31, 2025, respectively. From time to time, we may supplement our liquidity needs with incremental borrowing capacity under the Credit Facility.
Previous wording
As earlier disclosed, on July 22, 2026, we completed the acquisition of Copra Inc., a super-premium Thai Nam Hom coconut water producer of private label and Copra branded products, that owns and operates a factory in Thailand. The initial consideration for this transaction was $175.0 million, including $140.0 million in cash and $35.0 million paid in our Common Stock at the date of closing. The initial purchase price is subject to customary closing adjustments, with additional earnout consideration to be paid in 2029 based on 2028 financial performance with a minimum of $45 million and maximum of $100.0 million, which will be payable in a combination of cash and our Common Stock. The closing cash consideration of $140.0 million was funded with cash on hand.
Current wording
As earlier disclosed, on July 22, 2026, we completed the acquisition of Copra Inc., a super-premium Thai Nam Hom coconut water producer of private label and Copra branded products, that owns and operates a factory in Thailand. The initial consideration for this transaction was $182.6 million, including $147.6 million in cash and $35.0 million paid in our Common Stock at the date of closing. The initial purchase price is subject to customary closing adjustments, with additional earnout consideration to be paid in 2029 based on 2028 financial performance with a minimum of $45 million and maximum of $100 million, which will be payable in a combination of cash and our Common Stock. The closing cash consideration of $147.6 million was funded with cash on hand.
Previous wording
During the six months ended June 30, 2026, cash provided by operating activities increased $84.5 million compared to the six months ended June 30, 2025. The increase was driven by a $41.8 million rise in net income, after adjusting for non-cash items, and a $42.7 million improvement in working capital, primarily attributable to the timing of vendor invoices and inventory sales exceeding inventory purchases. Net income benefited from $15.6 million in tariff refunds and $0.6 million of related interest income.
Current wording
During the nine months ended September 30, 2026, cash provided by operating activities increased $100.9 million compared to the nine months ended September 30, 2025. The increase was driven by a $58.8 million rise in net income, after adjusting for non-cash items, and a $42.0 million improvement in working capital, primarily attributable to inventory sales exceeding inventory purchases and timing of vendor payments. Net income benefited from $15.6 million in tariff refunds and $0.6 million of related interest income.
Previous wording
During the six months ended June 30, 2026, cash used in investing activities was $0.6 million compared to $1.5 million for the six months ended June 30, 2025. The decrease of cash used for investing activities was primarily due to the absence of leasehold improvements related spend on our new offices during the six months ended June 30, 2025.
Current wording
During the nine months ended September 30, 2026, cash used in investing activities was $140.1 million compared to $4.9 million for the nine months ended September 30, 2025. Net cash used in investing activities increased during the nine months ended September 30, 2026, primarily due to the acquisition of the Copra business in July 2026, offset by the absence of leasehold improvements related spend on our new offices during the nine months ended September 30, 2025.
Previous wording
During the six months ended June 30, 2026 compared to the six months ended June 30, 2025, net cash used by financing activities increased by $4.8 million, primarily driven by higher volume and price of share repurchases in the six months ended June 30, 2026 compared to the prior year period, partially offset by increased proceeds from the exercise of stock options. See Note 10, Stockholders' Equity, in our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, for further discussion on share repurchases.
Current wording
During the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, net cash used by financing activities increased by $48.4 million, primarily driven by an increase in share repurchase driven by both higher price per share and the number of shares acquired in the nine months ended September 30, 2026 compared to the prior year period, partially offset by increased proceeds from the exercise of stock options. See Note 11, Stockholders' Equity, in our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, for further discussion on share repurchases.
Previous wording
Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Significant Judgments and Estimates” in the Form 10-K and the notes to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. During the six months ended June 30, 2026, there were no material changes to our critical accounting policies from those discussed in the Form 10-K.
Current wording
Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Significant Judgments and Estimates” in the Form 10-K and the notes to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. During the nine months ended September 30, 2026, there were no material changes to our critical accounting policies from those discussed in the Form 10-K, except for the addition of business combination accounting and the related valuation of acquired assets and liabilities associated with the acquisition of the Copra business, which is discussed below.
Previous wording
There have been no material changes to our contractual obligations from those described in the Form 10-K.
Current wording
Other than the contingent consideration payable in 2029 in connection with the acquisition of Copra, which has a minimum of $45.0 million and a maximum of $100.0 million and may be paid in cash, shares of our Common Stock or a combination thereof at our discretion, there have been no material changes to our contractual obligations from those described in the Form 10-K.