United Natural Foods, Inc. Reports Fourth Quarter and Full Year Fiscal 2026 Results

PROVIDENCE, R.I.--(BUSINESS WIRE)--United Natural Foods, Inc. (NYSE: UNFI) (the “Company” or “UNFI”) today reported financial results for the fourth quarter (13 weeks) and fiscal year (52 weeks) ended August 1, 2026.

“UNFI delivered a strong fiscal year through disciplined execution of our strategy to add value for customers and suppliers while becoming a more effective and efficient company. We continued strengthening commercial and supply chain capabilities to better serve our partners, while generating solid growth in Adjusted EBITDA and Free cash flow, enabling us to further reduce net debt,” said Sandy Douglas, UNFI’s Chief Executive Officer.

“Our progress demonstrates the strength of our customer base and our commitment to creating long-term, shared value for all stakeholders. In fiscal 2027, we remain focused on helping our partners execute their growth strategies, accelerating our operating momentum, and returning to revenue growth.”

Fourth Quarter Fiscal 2026 Summary

Net sales decreased 0.7% in the fourth quarter of fiscal 2026 compared to the fourth quarter of fiscal 2025. Sales in the fourth quarter of fiscal 2026 included an approximately 500 basis point impact from planned accretive optimization actions and a 150 basis point headwind from the completed unwind of short-term project work. Sales in the fourth quarter of fiscal 2025 were impacted by the previously disclosed cybersecurity incident experienced in the fourth quarter of fiscal 2025.

Gross profit in the fourth quarter of fiscal 2026 was $1,050 million, an increase of $20 million, or 1.9%, compared to the fourth quarter of fiscal 2025. The gross profit rate in the fourth quarter of fiscal 2026 was 13.7% of net sales compared to 13.4% of net sales in the fourth quarter of fiscal 2025. The gross profit rate benefitted from network optimization actions and customer mix, partially offset by a lower gross margin rate in the Retail segment.

Operating expenses in the fourth quarter of fiscal 2026 were $984 million, or 12.9% of net sales, compared to $1,046 million, or 13.6% of net sales, in the fourth quarter of fiscal 2025. The decrease in operating expenses as a percent of net sales was primarily driven by the benefits of cost saving initiatives, including network optimization actions and higher levels of distribution center productivity. Operating expenses in the fourth quarter of fiscal 2025 included an investment in servicing customers during the cybersecurity incident.

Interest expense, net for the fourth quarter of fiscal 2026 was $29 million, compared to $36 million for the fourth quarter of fiscal 2025. The decrease in interest expense was primarily driven by lower average outstanding debt balances.

Effective tax rate for the fourth quarter of fiscal 2026 was an expense rate of 23.9% on a pre-tax income compared to a benefit rate of 21.1% on a pre-tax loss for the fourth quarter of fiscal 2025. The change from the fourth quarter of fiscal 2025 was primarily driven by the increase in pre-tax income and discrete tax benefits from employee stock award vestings during the fourth quarter of fiscal 2026.

Net income for the fourth quarter of fiscal 2026 was $35 million. Net loss for the fourth quarter of fiscal 2025 was $87 million.

Adjusted EBITDA for the fourth quarter of fiscal 2026 increased 48.3% to $172 million from $116 million for the fourth quarter of fiscal 2025.

Net income per diluted share was $0.57 for the fourth quarter of fiscal 2026 compared to net loss per diluted share of $1.43 for the fourth quarter of fiscal 2025.

Adjusted earnings per share were $0.69 for the fourth quarter of fiscal 2026, compared to adjusted loss per share of $0.11 in the fourth quarter of fiscal 2025.

Capital Structure and Financing Overview

• Free Cash Flow – Net cash provided by operating activities was $197 million in the fourth quarter of fiscal 2026 compared to $160 million in the fourth quarter of fiscal 2025, reflecting higher levels of profitability. The Company made payments of $117 million for capital expenditures in the fourth quarter of fiscal 2026 compared to $74 million in the fourth quarter of fiscal 2025, with the higher spending driven primarily by investments in supply chain and technology. Free cash flow was $80 million in the fourth quarter of 2026, compared to free cash flow of $86 million in the fourth quarter of fiscal 2025.
• Net Leverage – Total outstanding debt, net of cash, was $1.54 billion at the end of the fourth quarter of 2026, reflecting a decrease of $93 million compared to the end of the third quarter of fiscal 2026 and a decrease of $295 million during fiscal 2026. The Net leverage ratio was 2.2x as of August 1, 2026.
• Liquidity – As of August 1, 2026, total liquidity was approximately $1.27 billion, consisting of $37 million in cash, plus the unused capacity of approximately $1.23 billion under the Company’s asset-based lending facility.
• Repurchase Program – During the fourth quarter of 2026, the Company repurchased 420,502 shares at an average price of $49.94 for an aggregate cost of approximately $21 million. On September 3, 2026, the Company’s Board of Directors approved a new stock repurchase program that authorizes the Company to repurchase up to $200 million of its shares. This program replaces the Company’s previous repurchase program announced in September 2022.

Fiscal 2027 Outlook ⁽¹⁾

The Company is providing the following outlook for fiscal 2027, a 52-week year.

Conference Call and Webcast

The Company’s fourth quarter and full year fiscal 2026 conference call and audio webcast will be held today, Tuesday, September 8, 2026 at 8:30 a.m. ET. A webcast of the conference call (and supplemental materials) will be available to the public, on a listen only basis, via the internet at the Investors section of the Company’s website www.unfi.com. The call can also be accessed at (800) 715 - 9871 (conference ID 5462932). An online archive of the webcast (and supplemental materials) will be available for 120 days.

About United Natural Foods

United Natural Foods, Inc. (UNFI) is a leading North American grocery wholesaler, providing a broad assortment of natural, organic, specialty, fresh, conventional, and private label products to over 30,000 retail locations. The Company supports independent, regional, and national grocers with access to a wide assortment of products from thousands of established and emerging suppliers, delivered through a scaled, technology-enabled distribution network. UNFI provides a broad range of value-added data, insights, programs, and services to help retailers differentiate their stores and grow profitably, while connecting suppliers to a diverse and dynamic retail ecosystem. With a strategic focus on adding value and improving effectiveness and efficiency, UNFI is committed to creating long-term, shared value for all its stakeholders. To learn more, visit www.unfi.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the Company’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties and are based on current expectations and management estimates; actual results may differ materially. The risks and uncertainties which could impact these statements are described in the Company’s filings under the Securities Exchange Act of 1934, as amended, including under the section entitled “Risk Factors” in the Company’s annual report on Form 10-K for the year ended August 2, 2025 filed with the Securities and Exchange Commission (the “SEC”) on October 1, 2025 and other filings the Company makes with the SEC, and include, but are not limited to, our dependence on principal customers; our relatively low margins, which are sensitive to inflationary and deflationary pressures and intense competition, including as a result of the continuing retailer consolidation and the growth of consumer choices for grocery and consumable purchases; our ability to realize the anticipated benefits of our strategic initiatives; changes in relationships with our suppliers; our ability to develop, implement, operate and maintain, and rely on third parties to operate and maintain, reliable and secure technology systems; the effectiveness of our business continuity plans in response to incidents impacting our operating network or technology systems; our sensitivity to general economic conditions including inflation, tariff policy and changes in disposable income levels and consumer purchasing habits; labor and other workforce shortages and challenges; the addition or loss of significant customers or material changes to our relationships with these customers; our ability to continue to grow sales, including of our higher margin natural and organic foods and non-food products; our ability to maintain sufficient volume in our Natural and Conventional businesses to support our operating infrastructure; increases in healthcare, pension and other costs under our single employer benefit plan and multiemployer benefit plans; the potential for our insurance and self-insurance programs not to be adequate to cover our claims; the potential for disruptions in our supply chain or our distribution capabilities from circumstances beyond our control, including due to lack of long-term contracts, severe weather, labor shortages or work stoppages or otherwise; the effect of adverse decisions in, or settlement of, litigation or other proceedings to which we are subject; volatility in fuel costs; our ability to access additional capital; our ability to realize anticipated benefits of strategic transactions; the potential for additional asset impairment charges; our ability to maintain food quality and safety; moderated supplier promotional activity, including decreased forward buying opportunities; union-organizing activities that could cause labor relations difficulties and increased costs; and changes in tax laws and regulations, and actions by federal, state and local taxing authorities related to the interpretation and application of such tax laws and regulations. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company is not undertaking to update any information in the foregoing reports until the effective date of its future reports required by applicable laws. Any estimates of future results of operations are based on a number of assumptions, many of which are outside the Company’s control and should not be construed in any manner as a guarantee that such results will in fact occur. These estimates are subject to change and could differ materially from final reported results. The Company may from time to time update these publicly announced estimates, but it is not obligated to do so.

Non-GAAP Financial Measures: To supplement the financial information presented on a U.S. generally accepted accounting principles (“GAAP”) basis, the Company has included in this press release the non-GAAP financial measures Adjusted EBITDA, Adjusted EPS, adjusted effective tax rate, Free cash flow, Net leverage ratio and Capital and cloud implementation expenditures. Adjusted EBITDA is a consolidated measure which the Company reconciles by adding Net income (loss) including noncontrolling interests, less Net income attributable to noncontrolling interests, plus Non-operating income and expenses, including Net periodic benefit income, excluding service cost, Interest expense, net and Other (income) expense, net, plus (Benefit) provision for income taxes and Depreciation and amortization all calculated in accordance with GAAP, plus adjustments for Share-based compensation, non-cash LIFO charge or benefit, Restructuring, acquisition and integration related expenses, Goodwill impairment charges, Loss (gain) on sale of assets and other asset charges, certain legal charges and gains, and certain other non-cash charges or other items, as determined by management. Adjusted EPS is a consolidated measure, which the Company reconciles by adding Net income (loss) attributable to UNFI plus the LIFO charge or benefit, Goodwill impairment benefits and charges, Restructuring, acquisition, and integration related expenses, gains and losses on sales of assets, certain legal charges and gains, surplus property depreciation and interest expense, losses on debt extinguishment, the impact of diluted shares when GAAP earnings is presented as a loss and non-GAAP earnings represent income, and the tax impact of adjustments and the adjusted effective tax rate, which tax impact is calculated using the adjusted effective tax rate, and certain other non-cash charges or items, as determined by management. The adjusted effective tax rate is calculated based on adjusted net income before tax and excludes the potential impact of changes to uncertain tax positions, valuation allowances, tax impacts related to the vesting of share-based compensation awards and discrete GAAP tax items which could impact the comparability of the operational effective tax rate. Free cash flow is defined as net cash provided by operating activities less payments for capital expenditures. Net leverage ratio (previously referred to as Net Debt to Adjusted EBITDA leverage ratio) is defined as the total carrying value of the Company’s outstanding short- and long-term debt and finance lease liabilities less net cash and cash equivalents, the sum of which is divided by the trailing four quarters Adjusted EBITDA. Capital and cloud implementation expenditures is defined as the sum of payments for capital expenditures and cloud technology implementation expenditures.

The reconciliation of these non-GAAP financial measures to their comparable GAAP financial measures and the calculation of Net leverage ratio are presented in the tables appearing below, where practicable. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. The Company believes that presenting Adjusted EBITDA and Adjusted EPS aids in making period-to-period comparisons, assessing the performance of the Company’s business and understanding the underlying operating performance and core business trends by excluding certain adjustments not expected to recur in the normal course of business or that are not meaningful indicators of actual and estimated operating performance. The Company believes that providing the adjusted effective tax rate gives investors a meaningful, consistent comparison of the Company’s effective tax rate on ongoing operations. The inclusion of Free cash flow assists investors in understanding the cash generating ability of the Company separate from cash generated by the sale of assets. Net leverage ratio is a commonly used metric that assists investors in understanding and evaluating the Company’s capital structure and changes to its capital structure over time. The Company believes that providing Capital and cloud implementation expenditures provides investors with better visibility into the Company's total investment expenditures. The components of Capital and cloud implementation expenditures for fiscal 2027 will be primarily dependent on the nature of certain contracts to be executed. Management utilizes and plans to utilize these non-GAAP financial measures to compare the Company’s operating performance during fiscal 2027 to the comparable periods in fiscal 2026 and to internally prepared projections. These non-GAAP financial measures may differ from similarly titled measures of other companies.

INVESTOR CONTACTS:
Steve Bloomquist
Vice President, Investor Relations
952-828-4144 sbloomquist@unfi.com

Jeremy Perron
SVP, Investor Relations and Corporate Development
781-733-6890 jeremy.perron@unfi.com