United Natural Foods Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.60%.
Did UNFI Beat Earnings? Q3 2025 Results
United Natural Foods delivered a standout third quarter of fiscal 2025, with adjusted EPS of $0.44 beating the $0.22 consensus estimate by 104.56% and net sales of $8.06 billion topping expectations by 3.45% on 7.5% year-over-year growth. The performance was driven by a 4% rise in wholesale unit volumes, new business wins, and natural product category strength, which pushed Adjusted EBITDA up 20.8% to $157 million, marking the seventh consecutive quarter of sequential improvement. Free cash flow more than doubled to $119 million, and net debt fell $118 million sequentially to $1.93 billion, the lowest leverage ratio in two fiscal years. The company maintained its full-year outlook for net sales of $31.3 to $31.7 billion and Adjusted EPS of $0.70 to $0.90, though it stopped short of updating most guidance metrics due to a cybersecurity incident discovered on June 5, 2025, that disrupted IT systems and temporarily impaired order fulfillment, sending shares lower. GAAP EPS guidance was revised to reflect network restructuring costs, adding a layer of near-term uncertainty to an otherwise improving operational picture.
- 4% increase in wholesale unit volumes including benefit of new business with existing and new customers
- Inflation contributed to sales growth
- Natural product growth led performance
- Operating expense leverage from higher sales and cost saving initiatives
- Seventh consecutive quarter of sequentially improving Adjusted EBITDA
- Supplier programs and lower shrink partially offset gross margin rate pressure
“During the third quarter, our customers helped us deliver another solid quarter of sales growth and our seventh consecutive quarter of sequentially improving Adjusted EBITDA. I'm pleased that our focus on becoming a more efficient and effective value-adding partner for our customers and suppliers is leading to steady margin improvement, including a higher year-over-year adjusted EBITDA margin rate and increased free cash flow.”
United Natural Foods CEO, on the earnings call
Forward Guidance & Outlook
UNFI maintained its full-year fiscal 2025 outlook for net sales of $31.3–$31.7 billion, Adjusted EBITDA of $550–$580 million, Adjusted EPS of $0.70–$0.90, capital and cloud implementation expenditures of ~$300 million, and free cash flow of >$150 million. The company updated its GAAP net loss outlook to $(80)–$(55) million and GAAP EPS to $(1.30)–$(0.90), reflecting costs and charges associated with exiting a customer contract and optimizing the distribution network in the Northeast. Due to the ongoing assessment of the cybersecurity incident discovered on June 5, 2025, the company chose not to update its outlook for other metrics despite underlying business momentum and Q3 outperformance.
UNFI YoY Financials
UNFI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.