Sprouts Farmers Market (SFM) Q4 2025 earnings summary

Executive summary

• Achieved strong growth in FY2025 with net sales up 14% to $8.8B, comparable sales up 7.3%, and EPS up 42%, driven by new stores, loyalty program launch, and expanded self-distribution.

• Opened 37 new stores in 2025, reaching 477 stores in 24 states by year-end, with new stores outperforming expectations.

• Maintained a healthy balance sheet and robust cash flow, ending 2025 with $257M in cash and no long-term debt.

• Continued execution of strategic initiatives, including loyalty program rollout and transition to self-distribution for meat and seafood.

• Despite strong results, comp momentum slowed at year-end, with slightly negative Q4 traffic and increased consumer focus on affordability.

Financial highlights

• Q4 2025 net sales were $2.1B, up 8% YoY; comparable store sales grew 1.6%.

• Q4 diluted EPS was $0.92 (up 16-17% YoY); full-year diluted EPS was $5.31 (up 42% YoY).

• FY2025 net income was $524M; EBITDA reached $843.9M.

• Operating cash flow for 2025 was $716M; capital expenditures (net) were $224M.

• Gross margin for 2025 was 38.8% (up 70 bps YoY); operating margin was 7.8%.

Outlook and guidance

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

• FY2026 (52-week basis): total sales growth 4.5%-6.5%, comp sales -1% to +1%, EBIT $675M-$695M, EPS $5.28-$5.44.

• At least 40 new stores planned for 2026; capex expected at $280M-$310M.

• Q1 2026: comp sales -3% to -1%, EPS $1.66-$1.70, EBIT margin pressure of ~85 bps.

• Share repurchases of at least $300M planned for 2026; $836M remains under current authorization.