Revenue and profitability momentum underscored by the following:
- Revenue: Net sales of $335.8 million in Q2 2025, up 8.98% YoY; QoQ growth of 1.68% reflected continued demand and promotional activity.
- Gross margin: 30.30%, up 100 basis points YoY driven by higher product margins from effective promotions. Gross profit of $101.748 million, up 22.78% YoY and 2.96% QoQ.
- Operating income: $17.6 million, up 55.9% YoY; operating margin 5.23% (+150 bps YoY).
- Net income and EPS: Net income of $13.1 million (+64.6% YoY); diluted EPS $0.56 (+60% YoY).
- Cash flow: Operating cash flow of $34.1 million for the period; capital expenditures were $9.68 million with free cash flow (TTM) of $43.7 million; six months cash from operations totaled $36.7 million with $15.9 million invested in capex.
- Liquidity and leverage: Cash and cash equivalents of $21.2 million; no borrowings outstanding with $70.3 million available on the revolving facility; total debt reported at $335.6 million and net debt around $314.4 million.
- Store and loyalty metrics: Empower Rewards penetration at 81% (vs 78% prior year); Natural Grocers brand products at 8.6% of sales; two new stores opened in Q2 (Brownsville and Waco, TX); plan for 3-4 new stores and 2-4 relocations/remodels in FY2025; long-term growth trajectory of 6-8 store openings per year.
- Operational execution: In-stock levels near pre-pandemic norms at ~97% across products; Instacart delivery contributing around 2% of sales; ongoing emphasis on differentiated pricing and value, with a 2% annualized impact from product cost inflation embedded in the mix.