The earnings call presented a mixed picture with strong sales and profitability growth but was overshadowed by significant operational disruptions due to an IT security breach. The termination of a major contract with Key Food also poses challenges. While underlying business momentum remains strong, the immediate focus is on resolving the IT issues and managing customer relationships.
Company Guidance -
Q3 2025
During UNFI's Third Quarter Fiscal 2025 earnings call, management provided a comprehensive update on the company's performance and strategic initiatives. They reported a 7.5% increase in third-quarter sales, reaching nearly $8.1 billion, driven by a 12% rise in the Wholesale Natural Products segment and close to a 3% increase in the Wholesale Conventional Products segment. Adjusted EBITDA grew by 21% year-over-year to $157 million, with an adjusted EBITDA rate of 2%, the highest in two years. UNFI also achieved a 75 basis point reduction in operating expenses as a percentage of net sales, reflecting improvements in process efficiency and Lean Daily Management implementation in 20 of their 52 distribution centers. The company generated $190 million in free cash flow during the quarter, surpassing their original annual outlook, and reduced net leverage by 1.3 turns compared to the previous year. Despite a recent cybersecurity incident, which UNFI is actively managing, the company remains confident in achieving its fiscal 2027 financial objectives ahead of schedule, with plans to update long-term financial goals in the fall.
Strong Q3 Sales Growth
Sales grew by 7.5% or about $506 million to nearly $8.1 billion, driven by 12% growth in the Wholesale Natural Products business and new business wins in the Wholesale Conventional Products business.
Adjusted EBITDA and Margin Improvement
Adjusted EBITDA grew by 21% to $157 million, with an adjusted EBITDA margin rate of 2%, the highest in 2 years.
Free Cash Flow and Debt Reduction
Generated $190 million in free cash flow in the quarter, reducing net debt to under $1.93 billion and lowering net leverage to 3.3 turns.
Network Optimization
Closed the sale of the Billings distribution center and used the proceeds to reduce debt. Continued progress on Lean Daily Management in 20 of 52 distribution centers.
United Natural Foods (UNFI) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
UNFI Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Jun 10, 2025
$25.94
$23.30
-10.18%
Mar 11, 2025
$25.83
$24.57
-4.88%
Dec 10, 2024
$24.68
$29.62
+20.02%
Oct 01, 2024
$16.82
$21.96
+30.56%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does United Natural Foods (UNFI) report earnings?
United Natural Foods (UNFI) is schdueled to report earning on Oct 07, 2025, After Close (Confirmed).
What is United Natural Foods (UNFI) earnings time?
United Natural Foods (UNFI) earnings time is at Oct 07, 2025, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.