Sprouts Farmers Market (SFM) Q4 2025 earnings summary

Executive summary

• Achieved strong growth in FY2025 with net sales up 14% to $8.8 billion, comparable sales up 7.3%, and EPS up 42%, driven by new store openings, innovation, and disciplined cost management.

• Opened 37 new stores in 2025, reaching 477 stores in 24 states, and launched a loyalty program and self-distribution initiatives.

• Maintained a healthy balance sheet with $257 million in cash, no long-term debt, and robust operating cash flow supporting investments and share repurchases.

• Despite strong full-year results, comp sales momentum slowed at year-end, with traffic slightly negative after a disappointing holiday season.

• Continued focus on health-oriented customers, innovation, and affordability amid an uneven macro environment and value-focused consumers.

Financial highlights

• Q4 2025 net sales were $2.1 billion, up 8% year-over-year; comparable store sales up 1.6%; e-commerce sales grew 15% and represented 15.5% of total sales.

• Q4 diluted EPS was $0.92, up 16% year-over-year; full-year diluted EPS was $5.31, up 42% from the prior year.

• FY2025 net income was $524 million; EBITDA reached $843.9 million; operating cash flow totaled $716 million, funding $224 million in capex (net of landlord reimbursement).

• FY2025 gross margin improved to 38.8% (up 70 bps YoY); EBIT margin was 7.8%; net margin was 6.0%.

• Returned $472 million to shareholders via share repurchases; $836 million remains under new $1 billion authorization.

Outlook and guidance

• FY2026 is a 53-week year; extra week expected to add ~$200 million sales, $28 million EBIT, and $0.21 EPS.

• FY2026 (52-week basis): total sales growth expected at 4.5%-6.5%, comp sales between -1% and +1%, and at least 40 new stores planned.

• FY2026 EBIT guidance: $675–$695 million; EPS $5.28–$5.44, including $300 million in share repurchases.

• Q1 2026 comp sales expected between -3% and -1%; EPS $1.66–$1.70; EBIT margin pressure of ~85 bps due to fixed cost deleverage and loyalty program.

• Capex for 2026 projected at $280–$310 million (net of landlord reimbursement); sequential comp improvement expected in the second half as comps ease and loyalty program matures.