Vita Coco shares fell hard today, down nearly 10% after their earnings report. The company actually beat revenue expectations at $128M for Q4, but the earnings per share came in light at $0.09. What's interesting is they're still guiding for solid growth in 2026 - expecting $680-700M in revenue and pushing EBITDA up another 27%. So why did the stock fall so much? Pretty simple: the thing had already rallied almost 80% over the last six months and was trading at like 49 times earnings going into today. That's just pricey for a beverage company, even if Vita Coco does own 41% of the U.S. coconut water market.

The earnings themselves weren't terrible. Full year revenue hit $610M, up 18%, and EBITDA jumped 32% to $98M. The only drag was private-label sales, which dropped 52% because they lost some big customer orders. But branded Vita Coco water and their newer treats line both grew fine. Plus coconut water as a category is having a moment - up 21.8% in U.S. sales last year, which is actually the fastest-growing shelf-stable beverage category out there.

So the long-term story for Vita Coco still looks good, but yeah, the stock probably got ahead of itself. When a stock rallies that hard and then you get earnings that are solid but not spectacular, investors tend to take profits. Classic case of valuation catching up with reality.