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Investor Contact: Media Contact:
Susannah Livingston media@sprouts.com
(602) 682-1584
susannahlivingston@sprouts.com
Sprouts Farmers Market, Inc. Reports Third Quarter 2025 Results
PHOENIX, Ariz. – (Business Wire) – October 29, 2025 – 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 7.0%
•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 endedThirty-nine weeks ended
September 28, 2025September 29, 2024September 28, 2025September 29, 2024
Net sales$2,200,430 $1,945,735 $6,657,468 $5,723,062 
Cost of sales1,349,379 1,204,812 4,057,454 3,541,461 
Gross profit851,051 740,923 2,600,014 2,181,601 
Selling, general and administrative expenses653,329 580,332 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, net1,462 3,732 4,679 8,968 
Income from operations157,398 122,451 563,086 398,034 
Interest income, net(690)(1,061)(2,045)(382)
Income before income taxes158,088 123,512 565,131 398,416 
Income tax provision37,972 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:
Basic97,672100,14898,023100,560
Diluted98,715101,02599,086101,469


SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
September 28, 2025December 29, 2024
ASSETS
Current assets:
Cash and cash equivalents$322,415 $265,159 
Accounts receivable, net64,848 30,901 
Inventories399,938 343,329 
Prepaid expenses and other current assets30,344 36,131 
Total current assets817,545 675,520 
Property and equipment, net of accumulated depreciation989,587 895,189 
Operating lease assets, net1,596,100 1,466,903 
Intangible assets208,215 208,094 
Goodwill381,750 381,750 
Other assets19,925 13,243 
Total assets$4,013,122 $3,640,699 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$268,330 $213,414 
Accrued liabilities239,836 216,842 
Accrued salaries and benefits89,595 97,991 
Accrued income tax11,522 — 
Current portion of operating lease liabilities170,614 150,400 
Current portion of finance lease and other finance obligations1,597 1,321 
Total current liabilities781,494 679,968 
Long-term operating lease liabilities1,633,293 1,520,272 
Long-term debt and other finance obligations53,423 7,248 
Other long-term liabilities37,783 38,259 
Deferred income tax liability72,571 73,059 
Total liabilities2,578,564 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 capital831,870 808,140 
Retained earnings602,590 513,654 
Total stockholders’ equity1,434,558 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, 2025September 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 expense116,003 103,881 
Operating lease asset amortization107,866 99,278 
Share-based compensation22,045 19,925 
Deferred income taxes(488)1,170 
Other non-cash items1,643 3,116 
Changes in operating assets and liabilities:
Accounts receivable24,688 30,273 
Inventories(56,608)(6,275)
Prepaid expenses and other current assets5,310 18,595 
Other assets(3,928)219 
Accounts payable23,231 25,556 
Accrued liabilities23,496 37,877 
Accrued salaries and benefits(8,397)6,777 
Accrued income tax11,522 1,392 
Operating lease liabilities(123,680)(122,646)
Other long-term liabilities923 214 
Cash flows from operating activities577,471 520,351 
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 options1,686 4,729 
Cash flows used in financing activities(343,123)(250,809)
Increase in cash, cash equivalents, and restricted cash58,267 107,855 
Cash, cash equivalents, and restricted cash at beginning of the period267,213 203,870 
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 endedThirty-nine weeks ended
September 28, 2025September 29, 2024September 28, 2025September 29, 2024
Net income$120,116 $91,610 $433,845 $300,999 
Income tax provision37,972 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 accretion40,739 36,125 116,003 103,881 
EBITDA$198,137 $158,576 $679,089 $501,915 
###

Source: Sprouts Farmers Market, Inc
Phoenix, AZ
10/29/25