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# Vita Coco Books $102 Million Of Goodwill On Its Thai Copra Deal, With The Math Still Preliminary
- URL: https://www.bullished.co/vita-coco-books-102-million-of-goodwill-on-its-thai-copra-deal-with-the-math-still-332a6527/
- Published: 2026-10-22T21:40:51.000Z
- Updated: 2026-10-22T21:40:51.000Z
- Description: The coconut water maker's quarterly report puts Copra's total consideration at $237.7 million, including a $55.1 million earn-out that moves earnings.
- Author: Matteo Parrino
- Tags: Earnings, COCO, Industry: Consumer Staples

[Vita Coco](https://www.bullished.co/tag/coco/), which sells packaged coconut water and other plant-based drinks, has assigned [$102.4 million of goodwill](https://www.sec.gov/Archives/edgar/data/0001482981/000148298126000185/coco-20260930.htm?ref=bullished.co) to its July purchase of Thai coconut water maker Copra, and the company says the allocation is still preliminary. The quarterly report also carries a $55.1 million seller's earn-out liability that gets remeasured through earnings every period.

## Where the $237.7 million goes

Total purchase consideration comes to $237.692 million: $147.592 million in cash, $35.0 million in stock (467,071 shares) and the $55.1 million earn-out. Goodwill takes $102.384 million and identifiable intangibles $108.1 million. The deal also left a $24.715 million deferred tax liability.

The [prior quarterly report](https://www.sec.gov/Archives/edgar/data/0001482981/000148298126000173/coco-20260630.htm?ref=bullished.co) put initial consideration at $175.0 million, with $140.0 million in cash. The new filing says $182.6 million, with $147.6 million in cash, funded from cash on hand.

Most of the intangibles, $87.0 million, are private label customer relationships amortized over 20 years. Goodwill is not expected to be tax-deductible and sits in the Americas reporting unit.

## An earn-out that swings earnings

The earn-out is payable in 2029 and tied to Copra's 2028 gross profit. It carries a floor of $45 million and a cap of $100 million, and Vita Coco can pay in cash, stock or both. The company valued it at $55.1 million with a Monte Carlo simulation, a model that runs many scenarios, and changes in that value flow through earnings.

Several inputs remain open, including the earn-out, tax effects and the values of inventory and equipment. The measurement period can run up to a year from the July 22 closing, so goodwill can still move.

The risk factors now flag that Copra leans on a handful of big retailers for its private label business, which could deepen Vita Coco's own customer concentration. Two customers made up 45% of net sales in the first nine months of 2026.

## A fourth-quarter margin hit

Vita Coco [reported](https://www.sec.gov/Archives/edgar/data/0001482981/000148298126000183/coco-20260930xexx991pressr.htm?ref=bullished.co) third-quarter net sales up 34% to $244 million and net income of $35 million, and raised its 2026 net sales outlook to $810 million to $820 million. It guided fourth-quarter gross margin to about 33%, against 38% in the third quarter, citing cost increases with no price actions expected until early 2027.

Shares closed at $59.00 on Thursday, down 7.09%, for a market value of $3.7 billion.

Retailer price increases in early 2027 are the next test of that margin hit.

### Sources

- [10-Q Filing — Vita Coco (COCO)](https://www.sec.gov/Archives/edgar/data/0001482981/000148298126000185/coco-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Vita Coco (COCO), Q2 FY2026 filed 2026-07-23 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0001482981/000148298126000173/coco-20260630.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, coco-20260930xexx991pressr.htm) — Vita Coco, filed 2026-10-22](https://www.sec.gov/Archives/edgar/data/0001482981/000148298126000183/coco-20260930xexx991pressr.htm?ref=bullished.co) — SEC EDGAR
- [Vita Coco posts a beat-and-raise quarter as coconut water demand remains strong (COCO:NASDAQ) | Seeking Alpha](https://seekingalpha.com/news/4655850-vita-coco-posts-a-beat-and-raise-quarter-as-coconut-water-demand-remains-strong?ref=bullished.co) — seekingalpha.com
- [Compared to Estimates, Vita Coco Company (COCO) Q3 Earnings: A Look at Key Metrics](https://finance.yahoo.com/markets/stocks/articles/compared-estimates-vita-coco-company-123003138.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Vita Coco Company, Inc. (COCO) Q3 Earnings and Revenues Top Estimates](https://finance.yahoo.com/markets/stocks/articles/vita-coco-company-inc-coco-113003813.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Vita Coco Q3 EPS $0.58 Beats $0.46 Estimate, ...](https://www.benzinga.com/news/earnings/26/10/62520679/vita-coco-q3-eps-0-58-beats-0-46-estimate-sales-243-825m-beat-230-099m-estimate?ref=bullished.co) — benzinga.com
- [Vita Coco expects $810M-$820M 2026 net sales while planning Q1 2027 pricing actions (NASDAQ:COCO) | Seeking Alpha](https://seekingalpha.com/news/4656073-vita-coco-expects-810m-820m-2026-net-sales-while-planning-q1-2027-pricing-actions?ref=bullished.co) — seekingalpha.com

### More on Vita Coco

- [Vita Coco Sees Fourth-Quarter Gross Margin Near 33% As Freight Costs Spike And Supply Runs Tight](https://www.bullished.co/vita-coco-sees-fourth-quarter-gross-margin-near-33-as-freight-costs-spike-and-supply-runs-e273cfc8/)
- [Vita Coco Lifts 2026 Sales Outlook To $810 Million-$820 Million, Warns Fourth-Quarter Margin Near 33%](https://www.bullished.co/vita-coco-lifts-2026-sales-outlook-to-810-million-820-million-warns-fourth-quarter-margin-62e3ac1f/)

[All Vita Coco (COCO) coverage →](https://www.bullished.co/tag/coco/)