Revenue growth has moderated significantly to 4.1% as of 2026Q1, though the company maintains resilient profitability with a 37.6% gross margin despite ongoing commodity cost pressures.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 8.9B | 8.81B | 7.72B | 6.84B | 6.4B | 6.1B | 6.47B | 5.63B | 5.21B | 4.66B | 4.05B | 3.59B | 2.97B | 2.44B | 1.79B | 1.11B |
| Revenue Growth % | 10.25% | 14.08% | 12.9% | 6.76% | 4.99% | -5.7% | 14.8% | 8.21% | 11.63% | 15.28% | 12.62% | 21.08% | 21.72% | 35.83% | 62.3% | - |
| Cost of Goods Sold | 5.61B | 5.54B | 4.76B | 4.3B | 4.04B | 3.88B | 4.08B | 3.73B | 3.46B | 3.1B | 2.68B | 2.54B | 2.08B | 1.71B | 1.26B | 794.9M |
| COGS % of Revenue | - | 62.91% | 61.63% | 62.85% | 63.13% | 63.61% | 63.1% | 66.23% | 66.44% | 66.41% | 66.3% | 70.73% | 70.17% | 70.25% | 70.45% | 71.88% |
| Gross Profit | 3.29B | 3.27B | 2.96B | 2.54B | 2.36B | 2.22B | 2.39B | 1.9B | 1.75B | 1.57B | 1.36B | 1.05B | 885.2M | 725.27M | 530.31M | 310.97M |
| Gross Margin % | 36.98% | 37.09% | 38.37% | 37.15% | 36.87% | 36.39% | 36.9% | 33.77% | 33.56% | 33.59% | 33.7% | 29.27% | 29.83% | 29.75% | 29.55% | 28.12% |
| Gross Profit Growth % | - | 10.29% | 16.6% | 7.58% | 6.36% | -7.01% | 25.44% | 8.9% | 11.52% | 14.93% | 29.65% | 18.8% | 22.05% | 36.76% | 70.53% | - |
| Operating Expenses | 2.61B | 2.58B | 2.46B | 2.19B | 2B | 1.89B | 2B | 1.69B | 1.52B | 1.34B | 1.15B | 822.87M | 685.49M | 585.76M | 460.05M | 330.31M |
| OpEx % of Revenue | - | 29.24% | 31.83% | 32.03% | 31.27% | 30.91% | 30.85% | 29.91% | 29.28% | 28.75% | 28.43% | 22.9% | 23.1% | 24.03% | 25.63% | 29.87% |
| Selling, General & Admin | 2.61B | 2.58B | 2.31B | 2.02B | 1.87B | 1.76B | 1.87B | 1.56B | 1.4B | 1.25B | 1.07B | 821.07M | 684.77M | 583.71M | 435.27M | 58.53M |
| SG&A % of Revenue | - | 29.24% | 29.95% | 29.52% | 29.17% | 28.83% | 28.93% | 27.65% | 26.97% | 26.7% | 26.42% | 22.85% | 23.08% | 23.94% | 24.25% | 5.29% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 145.64M | 171.17M | 134.56M | 126.93M | 123.75M | 127.75M | 120.12M | 95.32M | 81.52M | 1.8M | 725K | 2.05M | 0 | 271.79M |
| Operating Income | 680.16M | 691.15M | 504.5M | 350.23M | 358.36M | 334.08M | 391.67M | 217.36M | 222.91M | 226.07M | 212.93M | 228.75M | 199.71M | 139.5M | 95.04M | -25.72M |
| Operating Margin % | 7.64% | 7.85% | 6.54% | 5.12% | 5.6% | 5.48% | 6.05% | 3.86% | 4.28% | 4.85% | 5.26% | 6.37% | 6.73% | 5.72% | 5.3% | -2.33% |
| Operating Income Growth % | - | 37% | 44.05% | -2.27% | 7.27% | -14.7% | 80.19% | -2.49% | -1.4% | 6.17% | -6.92% | 14.54% | 43.16% | 46.78% | 469.5% | - |
| EBITDA | 995.85M | 995.47M | 644.66M | 482.14M | 485.43M | 459.62M | 518.17M | 340.16M | 333.66M | 323.06M | 293.65M | 298.27M | 260.92M | 187.04M | 131.05M | 28.92M |
| EBITDA Margin % | 11.19% | 11.3% | 8.35% | 7.05% | 7.58% | 7.53% | 8.01% | 6.04% | 6.41% | 6.93% | 7.26% | 8.3% | 8.79% | 7.67% | 7.3% | 2.62% |
| EBITDA Growth % | 30.79% | 54.42% | 33.71% | -0.68% | 5.62% | -11.3% | 52.33% | 1.95% | 3.28% | 10.01% | -1.55% | 14.31% | 39.5% | 42.73% | 353.08% | - |
| D&A (Non-Cash Add-back) | 315.69M | 304.32M | 140.16M | 131.91M | 127.07M | 125.54M | 126.51M | 122.8M | 110.75M | 96.99M | 80.72M | 69.51M | 61.21M | 47.54M | 36.01M | 54.65M |
| EBIT | 680.16M | 691.15M | 504.9M | 386.68M | 366.43M | 338.84M | 391.67M | 221.46M | 234.51M | 226.77M | 215.93M | 228.75M | 200.44M | 141.56M | 95.04M | -25.36M |
| Net Interest Income | -2.67M | -2.66M | -5.78M | -6.49M | -11.07M | -17.46M | -19.09M | -20.94M | -27.83M | -21.17M | -14.79M | -17.72M | -25.06M | -37.2M | -35.49M | -19.81M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.67M | 2.66M | 5.78M | 6.49M | 11.07M | 17.46M | 19.09M | 20.94M | 27.83M | 21.17M | 14.79M | 17.72M | 25.06M | 37.2M | 35.49M | 19.81M |
| Other Income/Expense | -3.2M | -2.36M | 2.2M | -6.49M | -9.05M | -11.68M | -14.79M | -21.19M | -27.11M | -20.55M | -14.34M | -22.76M | -25.61M | -55.44M | -60.27M | -19.45M |
| Pretax Income | 676.96M | 688.78M | 506.7M | 343.74M | 349.31M | 322.39M | 376.88M | 196.17M | 195.8M | 205.52M | 198.59M | 205.99M | 174.11M | 84.07M | 34.77M | -45.18M |
| Pretax Margin % | 7.61% | 7.82% | 6.56% | 5.03% | 5.45% | 5.29% | 5.83% | 3.48% | 3.76% | 4.41% | 4.91% | 5.73% | 5.87% | 3.45% | 1.94% | -4.09% |
| Income Tax | 169.6M | 165.11M | 126.1M | 84.88M | 88.15M | 78.23M | 89.43M | 46.54M | 37.26M | 47.08M | 74.29M | 77M | 66.41M | 32.74M | 15.27M | -17.73M |
| Effective Tax Rate % | 25.05% | 23.97% | 24.89% | 24.69% | 25.23% | 24.27% | 23.73% | 23.72% | 19.03% | 22.91% | 37.41% | 37.38% | 38.15% | 38.95% | 43.91% | 39.25% |
| Net Income | 507.37M | 523.67M | 380.6M | 258.86M | 261.16M | 244.16M | 287.45M | 149.63M | 158.54M | 158.44M | 124.31M | 128.99M | 107.69M | 51.33M | 19.5M | -27.45M |
| Net Margin % | 5.7% | 5.95% | 4.93% | 3.79% | 4.08% | 4% | 4.44% | 2.66% | 3.04% | 3.4% | 3.07% | 3.59% | 3.63% | 2.11% | 1.09% | -2.48% |
| Net Income Growth % | 13.63% | 37.59% | 47.03% | -0.88% | 6.97% | -15.06% | 92.11% | -5.62% | 0.06% | 27.46% | -3.63% | 19.78% | 109.82% | 163.21% | 171.05% | - |
| Net Income (Continuing) | 507.37M | 523.67M | 380.6M | 258.86M | 261.16M | 244.16M | 287.45M | 149.63M | 158.54M | 158.44M | 124.31M | 128.99M | 107.69M | 51.33M | 0 | -27.45M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 5.31 | 5.31 | 3.75 | 2.50 | 2.39 | 2.10 | 2.43 | 1.25 | 1.22 | 1.15 | 0.83 | 0.83 | 0.70 | 0.37 | 0.14 | -0.19 |
| EPS Growth % | 16.85% | 41.6% | 50% | 4.6% | 13.81% | -13.58% | 94.4% | 2.46% | 6.09% | 38.55% | 0% | 18.57% | 89.19% | 164.29% | 173.68% | - |
| EPS (Basic) | - | 5.36 | 3.79 | 2.53 | 2.41 | 2.12 | 2.44 | 1.25 | 1.23 | 1.17 | 0.84 | 0.84 | 0.72 | 0.38 | 0.14 | -0.19 |
| Diluted Shares Outstanding | 95.58M | 98.7M | 101.38M | 103.39M | 109.14M | 116.08M | 118.22M | 119.74M | 129.78M | 137.88M | 149.65M | 155.88M | 154.33M | 139.76M | 143.85M | 143.85M |
| Basic Shares Outstanding | 94.81M | 97.69M | 100.36M | 102.48M | 108.23M | 115.38M | 117.82M | 119.37M | 128.83M | 135.17M | 147.31M | 153.1M | 149.75M | 134.62M | 140.81M | 140.81M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | 576.55% | - | - |
Commodity price and shrink volatility
As reported in recent financial statements, Sprouts Farmers Market experienced a deceleration in revenue growth, falling from a peak of 18.7% in 2025Q1 to 4.1% by 2026Q1, suggesting that the initial post-pandemic momentum in the specialty grocery segment may be normalizing across its core markets.
The sharp decline in year-over-year revenue growth indicates that the company may be facing tougher comparable periods and potential saturation in its primary Western US footprint. Investors should monitor whether this trend reflects a broader cooling in consumer demand for premium organic offerings or if it is a temporary byproduct of the current store-format transition strategy.
Based on the provided income statement data, Sprouts maintained a robust gross margin of 37.6% in 2026Q1, demonstrating a consistent ability to preserve pricing power despite the inherent commodity cost pressures associated with a high-turnover, perishable-heavy inventory model that typically challenges traditional grocery retailers.
The stability of these margins suggests that the company's private-label strategy and focus on high-margin supplement categories are effectively insulating the bottom line from inflationary headwinds. This performance appears superior to conventional peers like Kroger, implying that the specialty-hub model provides a structural buffer against the aggressive price competition seen in mass-market retail.
According to the latest quarterly filings, operating income reached $216.5 million in 2026Q1, yet the operating margin of 9.3% remains sensitive to SG&A fluctuations, which have shown a persistent upward trend in absolute dollar terms as the company continues its aggressive store expansion and operational scaling efforts.
While the company has successfully scaled operating income, the rising SG&A costs suggest that the benefits of operating leverage may be partially offset by the overhead required to support new store openings. Analysts should investigate whether these rising expenses are fixed investments in infrastructure or variable costs that could threaten future margin expansion if revenue growth continues to decelerate.
Analysis of the income statement reveals that stock-based compensation remains a recurring expense, totaling $8.6 million in 2026Q1, which warrants careful consideration when evaluating the true cash-generative capacity of the reported net income of $163.7 million for the same period.
The presence of consistent stock-based compensation suggests that management is utilizing equity-based incentives to align employee interests, though this does create a non-cash drag on earnings that investors must adjust for. Furthermore, the absence of R&D expenses highlights a pure-play retail focus, meaning that earnings quality is primarily driven by operational execution rather than innovation-led capital expenditures.
While the company currently enjoys strong profitability, a critical counter-narrative suggests that the 37.6% gross margin may be vulnerable if mass-market competitors continue to expand their organic and natural product offerings, potentially forcing Sprouts to increase promotional activity to defend its market share in the specialty grocery space.
Short-term margin expansion may be masking a long-term risk where the company's 'treasure hunt' value proposition is eroded by the convenience and pricing of larger, more diversified retailers. Investors should remain cautious regarding whether the current margin profile is sustainable in a more competitive environment where consumers may prioritize price over the specialty-store experience.
Quick answers to the most common questions about buying SFM stock.
For fiscal year 2025, Sprouts Farmers Market, Inc. (SFM) reported total revenue of $8.81B. This represents a 696.3% increase compared to $1.11B in 2011.
Sprouts Farmers Market, Inc. (SFM) is profitable, generating $523.7M in net income for the fiscal year ending 2025 with a net profit margin of 5.9%.
Sprouts Farmers Market, Inc. (SFM) reported an operating income of $691.1M, resulting in an operating profit margin of 7.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Sprouts Farmers Market, Inc. (SFM) generated $3.27B in gross profit for the year, representing a gross profit margin of 37.1%. This demonstrates the company's core pricing power and production efficiency.