Revenue growth slowed to 1.1% in 2026Q2 from 10.7% in 2025Q4, while operating margin collapsed to 1.3% from 11.8%, reflecting a 55.7% surge in SG&A to $339.5M that outpaced flat revenue.
Grocery Outlet Holding Corp. (GO) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Sales/Revenue | 4.74B | 4.69B | 4.37B | 3.97B | 3.58B | 3.08B | 3.13B | 2.56B | 2.29B | 2.08B |
| Revenue Growth % | 5.12% | 7.26% | 10.13% | 10.94% | 16.19% | -1.76% | 22.47% | 11.89% | 10.22% | - |
| Cost of Goods Sold | 3.32B | 3.27B | 3.05B | 2.73B | 2.49B | 2.13B | 2.16B | 1.77B | 1.59B | 1.44B |
| COGS % of Revenue | - | 69.73% | 69.76% | 68.72% | 69.48% | 69.19% | 68.95% | 69.25% | 69.6% | 69.55% |
| Gross Profit | 1.42B | 1.42B | 1.32B | 1.24B | 1.09B | 948.79M | 973.35M | 787.1M | 695.4M | 631.88M |
| Gross Margin % | 29.99% | 30.27% | 30.24% | 31.28% | 30.52% | 30.81% | 31.05% | 30.75% | 30.4% | 30.45% |
| Gross Profit Growth % | - | 7.36% | 6.46% | 13.7% | 15.1% | -2.52% | 23.66% | 13.19% | 10.05% | - |
| Operating Expenses | 1.22B | 1.64B | 1.24B | 1.12B | 997.11M | 859.69M | 865.97M | 718.76M | 612.93M | 554.95M |
| OpEx % of Revenue | - | 35% | 28.45% | 28.11% | 27.87% | 27.92% | 27.63% | 28.08% | 26.79% | 26.74% |
| Selling, General & Admin | 1.22B | 1.33B | 1.24B | 1.12B | 997.11M | 859.69M | 810.49M | 670.88M | 567.51M | 511.8M |
| SG&A % of Revenue | - | 28.41% | 28.45% | 28.11% | 27.87% | 27.92% | 25.86% | 26.21% | 24.81% | 24.66% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 308.71M | 0 | 0 | 0 | 0 | 55.48M | 47.88M | 45.42M | 0 |
| Operating Income | 198.48M | -221.71M | 78.33M | 125.78M | 94.99M | 89.09M | 107.38M | 68.34M | 82.47M | 76.94M |
| Operating Margin % | 4.19% | -4.73% | 1.79% | 3.17% | 2.65% | 2.89% | 3.43% | 2.67% | 3.6% | 3.71% |
| Operating Income Growth % | - | -383.05% | -37.73% | 32.42% | 6.62% | -17.02% | 57.11% | -17.13% | 7.19% | - |
| EBITDA | 330.91M | -91.32M | 186.53M | 213.76M | 173.24M | 160.22M | 165.43M | 118.49M | 129.52M | 120.09M |
| EBITDA Margin % | 6.98% | -1.95% | 4.27% | 5.39% | 4.84% | 5.2% | 5.28% | 4.63% | 5.66% | 5.79% |
| EBITDA Growth % | 82.21% | -148.95% | -12.74% | 23.39% | 8.13% | -3.15% | 39.62% | -8.52% | 7.85% | - |
| D&A (Non-Cash Add-back) | 132.43M | 130.39M | 108.21M | 87.98M | 78.25M | 71.12M | 58.05M | 50.14M | 47.06M | 43.16M |
| EBIT | -370.64M | -215.73M | 84.14M | 126.99M | 94.84M | 94.32M | 108.91M | 62.18M | 74.54M | 72.16M |
| Net Interest Income | -27.36M | -28.54M | -21.25M | -15.28M | -15.7M | -15.5M | -20.01M | -45.88M | -55.36M | -49.7M |
| Interest Income | 3.57M | 4.92M | 6.72M | 7.63M | 3.39M | 1.32M | 1.77M | 2.01M | 1.35M | 1.13M |
| Interest Expense | 30.93M | 33.46M | 27.97M | 22.91M | 19.09M | 16.82M | 21.78M | 47.89M | 56.71M | 50.83M |
| Other Income/Expense | -600.06M | -27.48M | -22.16M | -21.7M | -19.24M | -11.59M | -20.24M | -51.56M | -60.62M | -51.16M |
| Pretax Income | -401.57M | -249.19M | 56.17M | 104.08M | 75.75M | 77.5M | 87.13M | 16.78M | 21.85M | 25.77M |
| Pretax Margin % | -8.47% | -5.31% | 1.28% | 2.62% | 2.12% | 2.52% | 2.78% | 0.66% | 0.96% | 1.24% |
| Income Tax | -20.32M | -24.27M | 16.71M | 24.64M | 10.7M | 15.19M | -19.58M | 1.36M | 5.98M | 5.17M |
| Effective Tax Rate % | 5.06% | 9.74% | 29.74% | 23.68% | 14.12% | 19.6% | -22.47% | 8.12% | 27.38% | 20.06% |
| Net Income | -381.25M | -224.91M | 39.47M | 79.44M | 65.05M | 62.31M | 106.71M | 15.42M | 15.87M | 20.6M |
| Net Margin % | -8.04% | -4.8% | 0.9% | 2% | 1.82% | 2.02% | 3.4% | 0.6% | 0.69% | 0.99% |
| Net Income Growth % | -4787.72% | -669.9% | -50.32% | 22.11% | 4.4% | -41.61% | 592.09% | -2.83% | -22.97% | - |
| Net Income (Continuing) | -381.25M | -224.91M | 39.47M | 79.44M | 65.05M | 62.31M | 106.71M | 15.42M | 15.87M | 20.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -3.82 | -2.30 | 0.40 | 0.79 | 0.65 | 0.63 | 1.08 | 0.19 | 0.21 | 0.28 |
| EPS Growth % | -5642.86% | -675% | -49.37% | 21.54% | 3.17% | -41.67% | 468.42% | -9.52% | -25% | - |
| EPS (Basic) | - | -2.30 | 0.40 | 0.80 | 0.67 | 0.65 | 1.16 | 0.20 | 0.21 | 0.28 |
| Diluted Shares Outstanding | 99.77M | 97.98M | 99.61M | 100.83M | 100.16M | 99.42M | 98.45M | 81.86M | 74.23M | 74.23M |
| Basic Shares Outstanding | 99.01M | 97.98M | 98.71M | 98.71M | 96.81M | 95.72M | 91.82M | 81.86M | 74.19M | 74.19M |
| Dividend Payout Ratio | - | - | - | 0.02% | 0.16% | 0.3% | 0.41% | 23.64% | 967.9% | 6.34% |
Quick answers to the most common questions about buying GO stock.
For fiscal year 2025, Grocery Outlet Holding Corp. (GO) reported total revenue of $4.69B. This represents a 125.9% increase compared to $2.08B in 2017.
Grocery Outlet Holding Corp. (GO) reported a net loss of $224.9M for the fiscal year ending 2025.
Grocery Outlet Holding Corp. (GO) reported an operating income of $-221.7M, resulting in an operating profit margin of -4.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Grocery Outlet Holding Corp. (GO) generated $1.42B in gross profit for the year, representing a gross profit margin of 30.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression and expansion costs
Metrics are mathematically derived from official filings.
Growth Deceleration Amid Expansion
Revenue growth slowed to 1.1% in 2026Q2 from 10.7% in 2025Q4, as per the latest quarterly data, suggesting the expansion push is yielding diminishing top-line momentum.
The sequential deceleration from double-digit growth to near-flat is notable, especially given the company's aggressive store expansion into new regions. This may indicate that new stores are cannibalizing existing ones or that the opportunistic sourcing model is facing supply constraints. Investors should monitor whether this is a temporary lull or a structural slowdown.
Gross Margin Stability Masks Underlying Pressure
Gross margin has held near 30% for the past year, but operating margin swung to 1.3% in 2026Q2 from 11.8% in 2025Q4, per reported figures, signaling cost absorption issues.
The stability in gross margin suggests the procurement engine remains effective, but the dramatic drop in operating margin points to escalating SG&A or one-time charges. This divergence between gross and operating profitability warrants a deep dive into expense lines, as it may indicate that the cost of expansion is outpacing revenue gains.
Operating Leverage Reverses Sharply
Operating income fell from $142.9M in 2025Q4 to $15.8M in 2026Q2, a 89% decline, while revenue stayed flat, indicating a severe loss of operating leverage.
The collapse in operating income despite stable revenue suggests that fixed costs or investments are not being leveraged effectively. This could be due to pre-opening costs for new stores or increased marketing spend. The lack of revenue growth to absorb these costs is concerning and may indicate that the expansion is not yet generating sufficient returns.
Earnings Distorted by Non-Recurring Items
Net income swung from -$218.2M in 2025Q4 to $5.6M in 2026Q2, with EPS of $0.06, but the prior quarter's loss appears driven by non-cash charges, per the data.
The massive loss in 2025Q4, despite positive operating income, suggests a significant tax or impairment charge that is not recurring. The subsequent recovery to profitability in 2026Q2, albeit modest, indicates that underlying operations are still generating positive earnings. However, the low EPS relative to revenue highlights thin margins and potential sensitivity to cost fluctuations.
SG&A Spike Threatens Profitability
SG&A surged to $339.5M in 2026Q2 from $218.1M in 2025Q4, a 55.7% increase, while revenue remained flat, per the income statement, indicating a cost control problem.
The sharp rise in SG&A is the primary driver of margin compression, and it appears to be more than just seasonal variation. This could be related to expansion-related expenses, such as new store pre-opening costs or increased marketing. Management's ability to rein in these costs will be critical to restoring profitability.
Expansion Could Dilute Core Advantage
The aggressive push into eight states and the Mid-Atlantic may undermine the opportunistic sourcing model, as logistics complexity rises, potentially compressing gross margins below the historical 30% level.
The company's success hinges on its ability to source closeout deals efficiently, which is easier in its core West Coast markets. Expanding into new geographies without the same supplier relationships could lead to higher procurement costs and lower inventory turnover. If gross margins erode, the entire investment thesis weakens, especially given the already thin operating margins.