Sprouts Farmers Market, Inc. Reports Third Quarter 2026 Results

Sprouts Farmers Market, Inc. Reports Third Quarter 2026 Results PHOENIX--( BUSINESS WIRE)--Sprouts Farmers Market, Inc. (Nasdaq: SFM) today reported results for the 13-week third quarter ended September 27, 2026.

“While a challenging consumer environment and the cyclospora disruption affected the quarter, we recognize the need to improve our performance and are taking action to strengthen execution and drive traffic,” said Jack Sinclair, chief executive officer of Sprouts Farmers Market. “We are increasing investments to enhance affordability and deepen customer engagement, while building on the differentiated assortment and experience that define Sprouts. I want to thank our teams for their dedication, including opening a record 15 new stores during the quarter. The strong performance of our recent store vintages and continued momentum in unit growth reinforce our confidence in the significant opportunity ahead for Sprouts.”

Third Quarter Highlights:

Leverage and Liquidity in Third Quarter 2026

Fourth Quarter and Full-Year 2026 Outlook

The following provides information on our fourth quarter 2026 outlook (on a 13-week basis):

The Company notes that 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 $190 million in sales, $20 million in income before interest and taxes, and $0.16 in diluted earnings per share.

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

Third Quarter 2026 Conference Call

Sprouts will hold a conference call at 5:00 p.m. Eastern Time on Wednesday, October 28, 2026, during which Sprouts executives will further discuss third quarter 2026 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 28, 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

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," "believes," or "projects," 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 in a timely manner; 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

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 approximately 36,000 team members and operates more than 500 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

(UNAUDITED)

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Thirteen weeks ended

Thirty-nine weeks ended

September 27,

2026

September 28,

2025

September 27,

2026

September 28,

2025

Net sales

2,304,720

2,200,430

6,959,703

6,657,468

Cost of sales

1,423,926

1,349,379

4,260,985

4,057,454

Gross profit

880,794

851,051

2,698,718

2,600,014

Selling, general and administrative expenses

683,262

653,329

2,024,676

1,921,682

Depreciation and amortization (exclusive of depreciation included in cost of sales)

44,916

38,862

130,024

110,567

Store closure and other costs/(credits), net

(169

)

1,462

1,752

4,679

Income from operations

152,785

157,398

542,266

563,086

Interest expense/(income), net

1,419

(690

)

1,358

(2,045

)

Income before income taxes

151,366

158,088

540,908

565,131

Income tax provision

37,945

37,972

134,568

131,286

Net income

113,421

120,116

406,340

433,845

Net income per share:

Basic

1.22

1.23

4.32

4.43

Diluted

1.21

1.22

4.30

4.38

Weighted average shares outstanding:

Basic

93,128

97,672

93,976

98,023

Diluted

93,666

98,715

94,556

99,086

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

September 27,

2026

December 28,

2025

ASSETS

Current assets:

Cash and cash equivalents

228,664

257,282

Accounts receivable, net

31,539

65,221

Inventories

440,434

427,095

Prepaid expenses and other current assets

35,229

60,306

Total current assets

735,866

809,904

Property and equipment, net of accumulated depreciation

1,246,011

1,085,356

Operating lease assets, net

1,863,438

1,652,732

Intangible assets

208,215

Goodwill

381,750

Other assets

23,781

20,692

Total assets

4,459,061

4,158,649

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

224,740

291,033

Accrued liabilities

272,845

304,419

Accrued salaries and benefits

65,501

96,017

Current portion of operating lease liabilities

192,553

177,263

Current portion of finance lease and other finance obligations

3,509

2,071

Total current liabilities

759,148

870,803

Long-term operating lease liabilities

1,909,922

1,682,425

Long-term debt and other finance obligations

129,577

81,585

Other long-term liabilities

44,656

40,283

Deferred income tax liability

86,430

80,479

Total liabilities

2,929,733

2,755,575

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, 92,673,774 shares issued and outstanding, September 27, 2026; 95,926,024 shares issued and outstanding, December 28, 2025

Additional paid-in capital

863,652

841,848

Retained earnings

665,583

561,130

Total stockholders’ equity

1,529,328

1,403,074

Total liabilities and stockholders’ equity

4,459,061

4,158,649

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(IN THOUSANDS)

Thirty-nine weeks ended

September 27,

2026

September 28,

2025

Operating activities

Net income

406,340

433,845

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization expense

137,671

116,003

Operating lease asset amortization

121,171

107,866

Share-based compensation

19,465

22,045

Deferred income taxes

5,951

(488

)

Other non-cash items

3,819

1,643

Changes in operating assets and liabilities:

Accounts receivable

8,495

24,688

Inventories

(13,339

)

(56,608

)

Prepaid expenses and other current assets

25,836

5,310

Other assets

(3,647

)

(3,928

)

Accounts payable

4,819

23,231

Accrued liabilities

(34,660

)

23,496

Accrued salaries and benefits

(30,516

)

(8,397

)

Accrued income tax

—

11,522

Operating lease liabilities

(102,885

)

(123,680

)

Other long-term liabilities

6,607

923

Cash flows provided by operating activities

555,127

577,471

Investing activities

Purchases of property and equipment

(284,210

)

(176,081

)

Cash flows used in investing activities

(284,210

)

(176,081

)

Financing activities

Payments on finance lease liabilities

(598

)

(793

)

Repurchase of common stock

(299,221

)

(341,925

)

Payments of excise tax on repurchases of common stock

(4,172

)

(2,091

)

Proceeds from exercise of stock options

2,339

1,686

Other financing activities

1,100

—

Cash flows used in financing activities

(300,552

)

(343,123

)

(Decrease)/increase in cash, cash equivalents, and restricted cash

(29,635

)

58,267

Cash, cash equivalents, and restricted cash at beginning of the period

260,894

267,213

Cash, cash equivalents, and restricted cash at the end of the period

231,259

325,480

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 (income) expense, net, provision for income tax, and depreciation, amortization and accretion. The company defines EBIT as net income before interest (income) expense, net 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 27, 2026 and September 28, 2025:

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES

NON-GAAP MEASURE RECONCILIATION

(UNAUDITED)

(IN THOUSANDS)

Thirteen weeks ended

Thirty-nine weeks ended

September 27,

2026

September 28,

2025

September 27,

2026

September 28,

2025

Net income

113,421

120,116

406,340

433,845

Income tax provision

37,945

37,972

134,568

131,286

Interest (income)/expense, net

1,419

(690

)

1,358

(2,045

)

Earnings before interest and taxes (EBIT)

152,785

157,398

542,266

563,086

Depreciation, amortization and accretion

47,720

40,739

137,671

116,003

EBITDA

200,505

198,137

679,937

679,089