Sprouts Farmers Market, Inc. (NASDAQ:SFM) today reported results for the 13-week third quarter ended September 28, 2025.

"We are opening stores nationwide, and our strategy continues to resonate with our target customers, resulting in strong third quarter performance," said Jack Sinclair, chief executive officer of Sprouts Farmers Market. "Our passionate team members, financial foundation, and disciplined execution will position us to deliver sustainable earnings growth, as we navigate strong year-over-year comparisons."

Third Quarter Highlights:

Net sales totaled $2.2 billion; a 13% increase from the same period in 2024
Comparable store sales growth of 5.9%
Diluted earnings per share of $1.22; compared to diluted earnings per share of $0.91 in the same period in 2024
Opened 9 new stores, resulting in 464 stores in 24 states as of September 28, 2025

Leverage and Liquidity in Third Quarter 2025

Entered into a new $600 million credit facility with terms and conditions substantially similar to our previous agreement
Ended the quarter with $322 million in cash and cash equivalents and zero balance on our $600 million revolving credit facility
Authorized a new $1 billion share repurchase program and repurchased 0.4 million shares of common stock for a total investment of $50 million, excluding excise tax
Generated cash from operations of $577 million and invested $194 million in capital expenditures, net of landlord reimbursement, year-to-date thru September 28, 2025

Fourth Quarter and Full-Year 2025 Outlook

The following provides information on our fourth quarter 2025 outlook:

Comparable store sales growth: 0.0% to 2.0%
Diluted earnings per share: $0.86 to $0.90

The following provides information on our full-year 2025 outlook:

Net sales growth: approximately 14%
Comparable store sales growth: approximately 7%
EBIT: $675 million to $680 million
Diluted earnings per share: $5.24 to $5.28
Unit growth: 37 new stores
Capital expenditures (net of landlord reimbursements): $230 million to $250 million

Third Quarter 2025 Conference Call

Sprouts will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, October 29, 2025, during which Sprouts executives will further discuss third quarter 2025 financial results.

A webcast of the conference call will be available through Sprouts' investor relations webpage, accessible via the following link. Participants should register on the website approximately ten minutes prior to the start of the webcast.

A webcast replay will be available at approximately 8:00 p.m. Eastern Time on October 29, 2025. This can be accessed with the following link.

Important Information Regarding Outlook

There is no guarantee that Sprouts will achieve its projected financial expectations, which are based on management estimates, currently available information and assumptions that management believes to be reasonable. These expectations are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. See "Forward-Looking Statements" below.

Forward-Looking Statements

Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact (including, but not limited to, statements to the effect that Sprouts Farmers Market or its management "anticipates," "plans," "estimates," "expects," "will," or "believes," or the negative of these terms and other similar expressions) should be considered forward-looking statements, including, without limitation, statements regarding the company's outlook, growth, opportunities and long-term strategy. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks and uncertainties include, without limitation, the company's ability to execute on its long-term strategy; the company's ability to successfully compete in its competitive industry; the company's ability to successfully open new stores; the company's ability to manage its growth; the company's ability to maintain or improve its operating margins; the company's ability to identify and react to trends in consumer preferences; product supply disruptions; equipment supply disruptions; general economic conditions that impact consumer spending or result in competitive responses; accounting standard changes; potential inflationary and/or deflationary trends; tariffs; and other factors as set forth from time to time in the company's Securities and Exchange Commission filings, including, without limitation, the company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The company intends these forward-looking statements to speak only as of the time of this release and does not undertake to update or revise them as more information becomes available, except as required by law.

Corporate Profile

True to its farm-stand heritage, Sprouts offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspires wellness naturally with a carefully curated assortment of better-for-you products paired with purpose-driven people. The healthy grocer continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. Headquartered in Phoenix, and one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States, Sprouts employs approximately 35,000 team members and operates more than 450 stores in 24 states nationwide. To learn more about Sprouts, and the good it brings communities, visit sprouts.com/about/.


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

	Thirteen weeks ended						Thirty-nine weeks ended
	September 28, 2025			September 29, 2024			September 28, 2025			September 29, 2024
Net sales	$	2,200,430		$	1,945,735		$	6,657,468		$	5,723,062
Cost of sales		1,349,379			1,204,812			4,057,454			3,541,461
Gross profit		851,051			740,923			2,600,014			2,181,601
Selling, general and administrative expenses		653,329			580,332			1,921,682			1,676,470
Depreciation and amortization (exclusive of depreciation included in cost of sales)		38,862			34,408			110,567			98,129
Store closure and other costs, net		1,462			3,732			4,679			8,968
Income from operations		157,398			122,451			563,086			398,034
Interest income, net		(690	)		(1,061	)		(2,045	)		(382	)
Income before income taxes		158,088			123,512			565,131			398,416
Income tax provision		37,972			31,902			131,286			97,417
Net income	$	120,116		$	91,610		$	433,845		$	300,999
Net income per share:
Basic	$	1.23		$	0.91		$	4.43		$	2.99
Diluted	$	1.22		$	0.91		$	4.38		$	2.97
Weighted average shares outstanding:
Basic		97,672			100,148			98,023			100,560
Diluted		98,715			101,025			99,086			101,469


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

	September 28, 2025		December 29, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	322,415	$	265,159
Accounts receivable, net		64,848		30,901
Inventories		399,938		343,329
Prepaid expenses and other current assets		30,344		36,131
Total current assets		817,545		675,520
Property and equipment, net of accumulated depreciation		989,587		895,189
Operating lease assets, net		1,596,100		1,466,903
Intangible assets		208,215		208,094
Goodwill		381,750		381,750
Other assets		19,925		13,243
Total assets	$	4,013,122	$	3,640,699
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	268,330	$	213,414
Accrued liabilities		239,836		216,842
Accrued salaries and benefits		89,595		97,991
Accrued income tax		11,522		—
Current portion of operating lease liabilities		170,614		150,400
Current portion of finance lease and other finance obligations		1,597		1,321
Total current liabilities		781,494		679,968
Long-term operating lease liabilities		1,633,293		1,520,272
Long-term debt and other finance obligations		53,423		7,248
Other long-term liabilities		37,783		38,259
Deferred income tax liability		72,571		73,059
Total liabilities		2,578,564		2,318,806
Commitments and contingencies
Stockholders' equity:
Undesignated preferred stock; $0.001 par value; 10,000,000 shares authorized, no shares issued and outstanding		—		—
Common stock, $0.001 par value; 200,000,000 shares authorized, 97,451,026 shares issued and outstanding, September 28, 2025; 99,255,036 shares issued and outstanding, December 29, 2024		98		99
Additional paid-in capital		831,870		808,140
Retained earnings		602,590		513,654
Total stockholders' equity		1,434,558		1,321,893
Total liabilities and stockholders' equity	$	4,013,122	$	3,640,699


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS)

	Thirty-nine weeks ended
	September 28, 2025			September 29, 2024
Operating activities
Net income	$	433,845		$	300,999
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense		116,003			103,881
Operating lease asset amortization		107,866			99,278
Share-based compensation		22,045			19,925
Deferred income taxes		(488	)		1,170
Other non-cash items		1,643			3,116
Changes in operating assets and liabilities:
Accounts receivable		24,688			30,273
Inventories		(56,608	)		(6,275	)
Prepaid expenses and other current assets		5,310			18,595
Other assets		(3,928	)		219
Accounts payable		23,231			25,556
Accrued liabilities		23,496			37,877
Accrued salaries and benefits		(8,397	)		6,777
Accrued income tax		11,522			1,392
Operating lease liabilities		(123,680	)		(122,646	)
Other long-term liabilities		923			214
Cash flows from operating activities		577,471			520,351
Investing activities
Purchases of property and equipment		(176,081	)		(161,687	)
Cash flows used in investing activities		(176,081	)		(161,687	)
Financing activities
Payments on revolving credit facilities		—			(125,000	)
Payments on finance lease liabilities		(793	)		(840	)
Repurchase of common stock		(341,925	)		(129,698	)
Payments of excise tax on repurchases of common stock		(2,091	)		—
Proceeds from exercise of stock options		1,686			4,729
Cash flows used in financing activities		(343,123	)		(250,809	)
Increase in cash, cash equivalents, and restricted cash		58,267			107,855
Cash, cash equivalents, and restricted cash at beginning of the period		267,213			203,870
Cash, cash equivalents, and restricted cash at the end of the period	$	325,480		$	311,725

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with accounting principles generally accepted in the United States ("GAAP"), the company presents EBITDA and EBIT. These measures are not in accordance with, and are not intended as alternatives to, GAAP. The company's management believes that this presentation provides useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the company, and certain of these measures may be used as components of incentive compensation.

The company defines EBITDA as net income before interest expense, provision for income tax, and depreciation, amortization and accretion. The company defines EBIT as net income before interest expense and provision for income tax.

Non-GAAP measures are intended to provide additional information only and do not have any standard meanings prescribed by GAAP. Use of these terms may differ from similar measures reported by other companies. Because of their limitations, non-GAAP measures should not be considered as a measure of discretionary cash available to use to reinvest in the growth of the company's business, or as a measure of cash that will be available to meet the company's obligations. Each non-GAAP measure has its limitations as an analytical tool, and they should not be considered in isolation or as a substitute for analysis of the company's results as reported under GAAP.

The following table shows a reconciliation of EBIT and EBITDA to net income for the thirteen and thirty-nine weeks ended September 28, 2025 and September 29, 2024:


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES NON-GAAP MEASURE RECONCILIATION (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

	Thirteen weeks ended						Thirty-nine weeks ended
	September 28, 2025			September 29, 2024			September 28, 2025			September 29, 2024
Net income	$	120,116		$	91,610		$	433,845		$	300,999
Income tax provision		37,972			31,902			131,286			97,417
Interest (income) expense, net		(690	)		(1,061	)		(2,045	)		(382	)
Earnings before interest and taxes (EBIT)		157,398			122,451			563,086			398,034
Depreciation, amortization and accretion		40,739			36,125			116,003			103,881
EBITDA	$	198,137		$	158,576		$	679,089		$	501,915

View source version on businesswire.com: https://www.businesswire.com/news/home/20251029700440/en/

Investor Contact:

Susannah Livingston

(602) 682-1584

susannahlivingston@sprouts.com

Media Contact:

media@sprouts.com

Sprouts Farmers Market, Inc. Reports Third Quarter 2025 Results