Sprouts Farmers Market, Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 19 February 2026: press release. Guidance figures: 9 new. The quarter’s numbers.

Key takeaways

Full-year net sales rose 14%: Full-year net sales were $8.8 billion, up 14% from $7.7 billion in 2024, with comparable store sales growth of 7.3%. Source
Full-year diluted EPS reached $5.31: Full-year diluted EPS was $5.31 against $3.75 in 2024. Fourth-quarter diluted EPS was $0.92 against $0.79. Net income for the year was $523.7 million. Source
Operating cash flow reached $716 million: Cash from operations was $716 million for 2025 against $645 million in 2024. Purchases of property and equipment were $248.3 million gross, or $224 million net of landlord reimbursement. Source
Repurchases totaled $472 million: The company repurchased 4.0 million shares for $472 million, excluding excise tax. Its 2025 highlights also list a $1 billion buyback authorization. Source
First-quarter 2026 ranges given: First-quarter 2026 comparable store sales growth is guided at -3% to -1%, and diluted EPS at $1.66 to $1.70. Source
Full-year EBIT and EPS ranges set: On the 52-week basis, full-year 2026 EBIT is guided at $675 million to $695 million, and diluted EPS at $5.28 to $5.44. Source

“These results were a testament to the strength of our business and our team's commitment to serving our unique target customer.”
Jack Sinclair, chief executive officer of Sprouts Farmers Market

Guidance

Area	Period	Figure	Against last quarter
Comparable store sales growth Source	first quarter 2026	-3% to -1%	New
Diluted EPS Source	first quarter 2026	$1.66 to $1.70	New
53rd week impact Source	fiscal 2026, fourth quarter	approximately $200 million in sales; $28 million in income before interest and taxes; $0.21 in diluted EPS	New
Net sales growth Source	full-year 2026, 52-week basis	4.5% to 6.5%	New
Comparable store sales growth Source	full-year 2026, 52-week basis	-1% to 1%	New
EBIT Source	full-year 2026, 52-week basis	$675 million to $695 million	New
Diluted EPS Source	full-year 2026, 52-week basis	$5.28 to $5.44	New
Unit growth Source	full-year 2026	40+ new stores	New
Capital expenditures, net of landlord reimbursements Source	full-year 2026	$280 million to $310 million	New

What changed from last quarter

New guidance: First-quarter 2026 ranges were given; the prior release gave only fourth-quarter 2025 and full-year 2025 ranges. Source
New guidance: Full-year 2026 ranges were given on a 52-week basis; the prior release gave full-year 2025 ranges. Source
New guidance: Fiscal 2026 was described as a 53-week year, with the extra week in the fourth quarter. Source

Full-year and fourth-quarter results

Full-year net sales rose 14%: Full-year net sales were $8.8 billion, up 14% from $7.7 billion in 2024, with comparable store sales growth of 7.3%. Source
Fourth-quarter net sales rose 8%: Fourth-quarter net sales were $2.1 billion, up 8% from the same period of 2024, with comparable store sales growth of 1.6%. Source
Full-year diluted EPS reached $5.31: Full-year diluted EPS was $5.31 against $3.75 in 2024. Fourth-quarter diluted EPS was $0.92 against $0.79. Net income for the year was $523.7 million. Source
Management expects 2026 first-half challenges: Management said it expects 2026 challenges, especially in the first half, citing prior year comparisons and a dynamic macro environment. Source

Stores and footprint

37 stores opened in 2025: The company opened 37 new stores in 2025, ending the year with 477 stores in 24 states as of December 28, 2025. Source
13 stores opened in fourth quarter: The company opened 13 new stores in the fourth quarter, following 9 openings in the third quarter. Source
Store count rose from 464: The prior release reported 464 stores at September 28, 2025. Adding the fourth-quarter openings of 13 gives the year-end count of 477.

“While we were pleased with our 2025 results and remain confident in our long-term growth, we expect challenges in 2026, especially in the first half due to strong prior year comparisons and a dynamic macro environment,”
Curtis Valentine, chief financial officer of Sprouts Farmers Market

Margins and costs

Gross profit reached $3.4 billion: Full-year gross profit was $3,416,389 thousand against $2,941,491 thousand. Calculated from these figures, gross profit was 38.8% of net sales against 38.1% in 2024. Source
Fourth-quarter gross margin was 38.0%: Calculated from the income statement, fourth-quarter gross profit was 38.0% of net sales against 38.1% a year earlier, with cost of sales of $1.33 billion. Source
EBIT and EBITDA rose: Full-year EBIT was $686.2 million against $504.5 million, and EBITDA was $843.9 million against $644.7 million. Both are non-GAAP measures the company reports. Source
SG&A rose on higher sales: Selling, general and administrative expenses were $2.57 billion for the year against $2.29 billion, and $653.0 million in the fourth quarter against $614.9 million. Source
Store closure costs declined: Store closure and other costs, net were $5.6 million for 2025 against $12.9 million in 2024, and $0.9 million in the fourth quarter. Source

Results against prior guidance

Comparable sales above prior estimate: Full-year comparable store sales grew 7.3%, above the approximately 7.0% the prior release expected. Net sales growth of 14% matched the approximately 14% expected.
Fourth-quarter results within prior ranges: Fourth-quarter comparable store sales of 1.6% fell within the 0.0% to 2.0% range given in the prior release. Diluted EPS of $0.92 was above the $0.86 to $0.90 range.
EBIT, EPS and capex against full-year ranges: Full-year EBIT of $686.2 million was above the $675 million to $680 million range, and diluted EPS of $5.31 was above $5.24 to $5.28. Net capital expenditures of $224 million were below the $230 million to $250 million range.

“We are committed to helping our customers live and eat better and remain laser focused on executing our strategy in the coming years.”
Jack Sinclair, chief executive officer of Sprouts Farmers Market

Cash, capital and shareholder returns

Operating cash flow reached $716 million: Cash from operations was $716 million for 2025 against $645 million in 2024. Purchases of property and equipment were $248.3 million gross, or $224 million net of landlord reimbursement. Source
Repurchases totaled $472 million: The company repurchased 4.0 million shares for $472 million, excluding excise tax. Its 2025 highlights also list a $1 billion buyback authorization. Source
Cash ended the year at $257 million: Cash and cash equivalents were $257 million at year end, against $265 million a year earlier. The $600 million revolving credit facility had a zero balance. Source
Inventory and payables rose: Inventories were $427.1 million against $343.3 million a year earlier. Accounts payable were $291.0 million against $213.4 million. Source
Long-term debt rose: Long-term debt and other finance obligations were $81.6 million at year end, against $7.2 million a year earlier. Source
Common shares outstanding fell: Common shares outstanding were 95,926,024 at December 28, 2025, against 99,255,036 a year earlier. Diluted weighted shares averaged 98.7 million against 101.4 million. Source

2026 guidance

First-quarter 2026 ranges given: First-quarter 2026 comparable store sales growth is guided at -3% to -1%, and diluted EPS at $1.66 to $1.70. Source
Fiscal 2026 includes a 53rd week: The extra week falls in the fourth quarter. Management estimates about $200 million of sales, $28 million of income before interest and taxes, and $0.21 of diluted EPS. Source
Full-year sales and comparables guided: On a 52-week basis, full-year 2026 net sales growth is guided at 4.5% to 6.5%, and comparable store sales growth at -1% to 1%. Source
Full-year EBIT and EPS ranges set: On the 52-week basis, full-year 2026 EBIT is guided at $675 million to $695 million, and diluted EPS at $5.28 to $5.44. Source
Unit growth and capex planned: Management plans 40-plus new stores in 2026 and net capital expenditures of $280 million to $310 million after landlord reimbursements. Source

Strategy and team

Focus on customers and strategy: Management said it is committed to helping customers live and eat better and to executing its strategy in the coming years. Source
Team size above 36,000: The corporate profile says Sprouts employs more than 36,000 team members, up from approximately 35,000 in the prior release's profile. Source
Leadership named in the results: Jack Sinclair is chief executive officer and Curtis Valentine is chief financial officer, as named in the release. Source

Coming up, as management said on 19 February 2026

First-quarter 2026 results next: The next period covered is the first quarter of 2026, for which management gave comparable sales and EPS ranges. Source

Figures management reported

Figure	Reported
Comparable store sales growth, full year Source	7.3%
Comparable store sales growth, fourth quarter Source	1.6%
Store openings, fourth quarter Source	13
Store openings, full year Source	37 new stores; 477 stores at year end
Inventory Source	$427,095 thousand at December 28, 2025
Gross profit, full year Source	$3,416,389 thousand

Risks management discussed

Demand: Management cited a dynamic macro environment as a factor in expected 2026 challenges. Source
Demand: Management cited prior year comparisons as a factor behind its expected first-half 2026 challenges. Source

Earlier plans management reported on

Not stated: Management said it remains committed to customers and to executing its strategy in the coming years. Source
Not stated: Management said it remained confident in long-term growth after the 2025 results. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Sprouts Farmers Market, Inc. Reports Fourth Quarter and Full Year 2025 Results

PHOENIX, Ariz. - (Business Wire) - February 19, 2026 - Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week fourth quarter and 52-week year ending December 28, 2025.

“Sprouts delivered strong growth in 2025," said Jack Sinclair, chief executive officer of Sprouts Farmers Market. "These results were a testament to the strength of our business and our team's commitment to serving our unique target customer. We are committed to helping our customers live and eat better and remain laser focused on executing our strategy in the coming years."

Fourth Quarter Highlights:

Net sales totaled $2.1 billion; an 8% increase from the same period in 2024
Comparable store sales growth of 1.6%
Diluted earnings per share of $0.92; compared to diluted earnings per share of $0.79 in the same period in 2024
Opened 13 new stores

Full Year Highlights:

Net sales totaled $8.8 billion; a 14% increase from 2024
Comparable store sales growth of 7.3%
Diluted earnings per share of $5.31; compared to diluted earnings per share of $3.75 in 2024
Opened 37 new stores, resulting in 477 stores in 24 states as of December 28, 2025

Leverage and Liquidity in 2025:

Ended the year with $257 million in cash and cash equivalents and zero balance on its $600 million revolving credit facility.
Authorized a new $1 billion share buyback program and repurchased 4.0 million shares of common stock for a total investment of $472 million, excluding excise tax
Generated cash from operations of $716 million and invested $224 million in capital expenditures, net of landlord reimbursement

First Quarter and Full-Year 2026 Outlook

“While we were pleased with our 2025 results and remain confident in our long-term growth, we expect challenges in 2026, especially in the first half due to strong prior year comparisons and a dynamic macro environment,” said Curtis Valentine, chief financial officer of Sprouts Farmers Market.

The following provides information on our first quarter 2026 outlook.

Comparable store sales growth: -3% to -1%
Diluted earnings per share: $1.66 to $1.70

The Company notes the fiscal year 2026 will be a 53-week year, with the extra week falling in the fourth quarter. We estimate the impact from the 53rd week to be approximately $200 million in sales, $28 million in income before interest and taxes, and $0.21 in diluted earnings per share.

The following provides information on our full-year 2026 outlook (on a 52 week basis):

Net sales growth: 4.5% to 6.5%
Comparable store sales growth: -1% to 1%
EBIT: $675 million to $695 million
Diluted earnings per share: $5.28 to $5.44
Unit growth: 40+ new stores
Capital expenditures (net of landlord reimbursements): $280 million to $310 million

Fourth Quarter and Full Year 2025 Conference Call

Sprouts will hold a conference call at 5:00 p.m. Eastern Time on Thursday, February 19, 2026, during which Sprouts executives will further discuss fourth quarter and full year 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 February 19, 2026. 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

Forward-looking statements notice

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," 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; general economic conditions that impact consumer spending or result in competitive responses; 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; accounting standard changes; the current inflationary environment and future 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

Sprouts Farmers Market is one of the largest and fastest growing specialty retailers of fresh, natural and organic food in the United States. Sprouts helps people live and eat better with fresh produce at the heart of the store and delicious discoveries for every dietary lifestyle. Always foraging for what’s fresh and innovative, Sprouts offers a carefully curated assortment of products that inspire wellness naturally, including organic, gluten-free, plant-based and non-GMO favorites. Headquartered in Phoenix, AZ, Sprouts employs more than 36,000 team members and operates more than 480 stores in 25 states nationwide. To learn more about Sprouts and the role it plays in its communities, visit sprouts.com/about.

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

	Thirteen Weeks ended				Fifty-Two Weeks ended
	December 28, 2025		December 29, 2024		December 28, 2025		December 29, 2024
Net sales	$2,148,691		$1,996,228		$8,806,159		$7,719,290
Cost of sales	1,332,316		1,236,338		5,389,770		4,777,799
Gross profit	816,375		759,890		3,416,389		2,941,491
Selling, general and administrative expenses	653,005		614,880		2,574,687		2,291,350
Depreciation and amortization (exclusive of depreciation included in cost of sales)	39,402		34,619		149,969		132,748
Store closure and other costs, net	896		3,928		5,575		12,896
Income from operations	123,072		106,463		686,158		504,497
Interest income, net	(581)		(1,819)		(2,626)		(2,201)
Income before income taxes	123,653		108,282		688,784		506,698
Income tax provision	33,828		28,680		165,114		126,097
Net income	$89,825		$79,602		$523,670		$380,601
Net income per share:
Basic	$0.93		$0.80		$5.36		$3.79
Diluted	$0.92		$0.79		$5.31		$3.75
Weighted average shares outstanding:
Basic		96,681		99,820		97,687		100,363
Diluted		97,536		101,020		98,704		101,379

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

	December 28, 2025	December 29, 2024
ASSETS
Current assets:
Cash and cash equivalents	$257,282	$265,159
Accounts receivable, net	65,221	30,901
Inventories	427,095	343,329
Prepaid expenses and other current assets	60,306	36,131
Total current assets	809,904	675,520
Property and equipment, net of accumulated depreciation	1,085,356	895,189
Operating lease assets, net	1,652,732	1,466,903
Intangible assets	208,215	208,094
Goodwill	381,750	381,750
Other assets	20,692	13,243
Total assets	$4,158,649	$3,640,699
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$291,033	$213,414
Accrued liabilities	304,419	216,842
Accrued salaries and benefits	96,017	97,991
Current portion of operating lease liabilities	177,263	150,400
Current portion of finance lease and other finance obligations	2,071	1,321
Total current liabilities	870,803	679,968
Long-term operating lease liabilities	1,682,425	1,520,272
Long-term debt and other finance obligations	81,585	7,248
Other long-term liabilities	40,283	38,259
Deferred income tax liability	80,479	73,059
Total liabilities	2,755,575	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, 95,926,024 shares issued and outstanding, December 28, 2025; 99,255,036 shares issued and outstanding, December 29, 2024	96	99
Additional paid-in capital	841,848	808,140
Retained earnings	561,130	513,654
Total stockholders’ equity	1,403,074	1,321,893
Total liabilities and stockholders’ equity	$4,158,649	$3,640,699

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

	Fifty-Two Weeks ended
	December 28, 2025	December 29, 2024
Operating activities
Net income	$523,670	$380,601
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	157,722	140,164
Operating lease asset amortization	146,599	133,923
Impairment of assets	-	406
Share-based compensation	31,103	28,417
Deferred income taxes	7,420	10,691
Other non-cash items	4,722	5,610
Changes in operating assets and liabilities, net of effects from acquisition:
Accounts receivable	27,216	30,007
Inventories	(83,766)	(20,131)
Prepaid expenses and other current assets	36,672	11,903
Other assets	(5,433)	(45)
Accounts payable	11,198	27,986
Accrued liabilities	25,246	39,305
Accrued salaries and benefits	(1,975)	23,240
Operating lease liabilities	(166,206)	(168,538)
Other long-term liabilities	1,810	1,675
Cash flows from operating activities	715,998	645,214
Investing activities
Purchases of property and equipment	(248,267)	(230,375)
Cash flows used in investing activities	(248,267)	(230,375)
Financing activities
Payments on revolving credit facilities	-	(125,000)
Payments on finance lease liabilities	(1,017)	(1,148)
Payments of deferred financing costs	(1,622)	-
Repurchase of common stock	(471,926)	(228,472)
Payments of excise tax on repurchases of common stock	(2,091)	(1,766)
Proceeds from exercise of stock options	2,606	4,890
Cash flows used in financing activities	(474,050)	(351,496)
(Decrease)/Increase in cash, cash equivalents, and restricted cash	(6,319)	63,343
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	$260,894	$267,213

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 fifty-two weeks ended December 28, 2025 and December 29, 2024:

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

NON-GAAP MEASURE RECONCILIATION

(UNAUDITED)

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

	Thirteen Weeks ended		Fifty-Two Weeks ended
	December 28, 2025	December 29, 2024	December 28, 2025	December 29, 2024
Net income	$89,825	$79,602	$523,670	$380,601
Income tax provision	33,828	28,680	165,114	126,097
Interest income, net	(581)	(1,819)	(2,626)	(2,201)
Earnings before interest and taxes (EBIT)	123,072	106,463	686,158	504,497
Depreciation, amortization and accretion	41,719	36,283	157,722	140,164
EBITDA	$164,791	$142,746	$843,880	$644,661

Source: Sprouts Farmers Market, Inc

Phoenix, AZ

2/19/26

Contacts
Susannah Livingston · (602) 682-1584 · susannahlivingston@sprouts.com
media@sprouts.com