Natural Grocers 2025 Q3 Earnings Beats Expectations, Net Income Up 26%

Natural Grocers (NGVC) reported its fiscal 2025 Q3 earnings on Aug 07, 2025, showing strong performance across key metrics. The company exceeded expectations with revenue growth and improved profitability, and has raised its fiscal 2025 outlook for comparable store sales and earnings per share. This reflects confidence in its operational momentum and customer demand for natural and organic products.

Natural Grocers generated total revenue of $328.70 million in fiscal 2025 Q3, representing a 6.3% increase compared to $309.08 million in the same period of 2024. The growth was driven by strong performances across all business segments, with grocery sales contributing $235.29 million, dietary supplements bringing in $61.99 million, and body care, pet care, and other categories totaling $31.43 million.

The company's profitability continued to strengthen, with earnings per share (EPS) rising 27.5% to $0.51 in fiscal 2025 Q3 from $0.40 in 2024 Q3. Net income also increased by 26.0% to $11.61 million from $9.21 million year-over-year, demonstrating sustained earnings growth and operational efficiency over 14 years.

Following the earnings release, Natural Grocers’ stock experienced a 3.79% decline in the latest trading day, a 2.30% drop during the most recent full week, and a 2.63% decline month-to-date. The post-earnings price action review of a strategy to buy NGVC shares after a revenue increase quarter-over-quarter and hold for 30 days showed no return over the past three years, with a CAGR of 0.00% and an excess return of -51.69%, significantly underperforming the benchmark.

Despite the post-earnings stock decline, the company reported positive operational performance, including 7.4% daily average comparable store sales growth. The company attributed this to its value offering of natural and organic products at affordable prices, as well as effective promotions and enhanced store productivity, which contributed to a 50 basis point improvement in operating margin and a 25% increase in diluted earnings per share. Natural Grocers also raised its fiscal 2025 outlook for comparable store sales and diluted earnings per share.

However, the company noted that a UNFI cybersecurity incident in June had a 1.0 to 1.5 percentage point negative impact on Q3 comparable store sales and a $0.04 to $0.05 impact on diluted earnings per share. Operations have largely returned to normal, and the company does not expect any further material impact from the incident.

Additional News

In a significant development in Nigeria, the Economic and Financial Crimes Commission (EFCC) recently arrested 66 suspected internet fraudsters in a coordinated operation in Lagos and Ogun states. The arrests were made under a sting operation, highlighting the government’s ongoing efforts to combat cybercrime. This action follows broader international efforts to address transnational crime, including a Spanish police operation that dismantled a criminal ring involved in the illegal shipment of hazardous waste to Ghana.

In another development, the Lagos Blue Line of the Lagos Rail Mass Transit system announced an increase in daily trips to 90, with trains now operating every 10 minutes. This enhancement is expected to reduce travel time and improve public transport efficiency. The timing of these updates coincided with regional political developments, including discussions in Kaduna State, where the governor emphasized the importance of the All Progressives Congress securing key bye-elections.

Globally, political tensions continued, with Israel's military action in Lebanon resulting in the death of one person. Internationally, Germany announced a suspension of arms exports to Israel in response to its plan to take control of the Gaza Strip. The move is part of a broader European response to the conflict, with the EU urging Israel to reconsider its approach. Meanwhile, China expressed support for improved relations between the United States and Russia, as noted in a phone call between President Xi Jinping and Russian President Vladimir Putin.

Natural Grocers 2025 Q3 Earnings: Beats Expectations, Net Income Up 26%

Natural Grocers (NGVC) reported its fiscal 2025 Q3 earnings on Aug 07, 2025, showing strong performance across key metrics. The company exceeded expectations with revenue growth and improved profitability, and has raised its fiscal 2025 outlook for comparable store sales and earnings per share. This reflects confidence in its operational momentum and customer demand for natural and organic products.

Natural Grocers generated total revenue of $328.70 million in fiscal 2025 Q3, representing a 6.3% increase compared to $309.08 million in the same period of 2024. The growth was driven by strong performances across all business segments, with grocery sales contributing $235.29 million, dietary supplements bringing in $61.99 million, and body care, pet care, and other categories totaling $31.43 million.

The company's profitability continued to strengthen, with earnings per share (EPS) rising 27.5% to $0.51 in fiscal 2025 Q3 from $0.40 in 2024 Q3. Net income also increased by 26.0% to $11.61 million from $9.21 million year-over-year, demonstrating sustained earnings growth and operational efficiency over 14 years. The strong performance in both EPS and net income indicates a healthy financial position and effective cost management.

Following the earnings release, Natural Grocers’ stock experienced a 3.79% decline in the latest trading day, a 2.30% drop during the most recent full week, and a 2.63% decline month-to-date. The post-earnings price action review of a strategy to buy NGVC shares after a revenue increase quarter-over-quarter and hold for 30 days showed no return over the past three years, with a CAGR of 0.00% and an excess return of -51.69%, significantly underperforming the benchmark.

Despite the post-earnings stock decline, the company reported positive operational performance, including 7.4% daily average comparable store sales growth. The company attributed this to its value offering of natural and organic products at affordable prices, as well as effective promotions and enhanced store productivity, which contributed to a 50 basis point improvement in operating margin and a 25% increase in diluted earnings per share. Natural Grocers also raised its fiscal 2025 outlook for comparable store sales and diluted earnings per share.

However, the company noted that a UNFI cybersecurity incident in June had a 1.0 to 1.5 percentage point negative impact on Q3 comparable store sales and a $0.04 to $0.05 impact on diluted earnings per share. Operations have largely returned to normal, and the company does not expect any further material impact from the incident.

Additional News

In a significant development in Nigeria, the Economic and Financial Crimes Commission (EFCC) recently arrested 66 suspected internet fraudsters in a coordinated operation in Lagos and Ogun states. The arrests were made under a sting operation, highlighting the government’s ongoing efforts to combat cybercrime. This action follows broader international efforts to address transnational crime, including a Spanish police operation that dismantled a criminal ring involved in the illegal shipment of hazardous waste to Ghana.

In another development, the Lagos Blue Line of the Lagos Rail Mass Transit system announced an increase in daily trips to 90, with trains now operating every 10 minutes. This enhancement is expected to reduce travel time and improve public transport efficiency. The timing of these updates coincided with regional political developments, including discussions in Kaduna State, where the governor emphasized the importance of the All Progressives Congress securing key bye-elections.

Globally, political tensions continued, with Israel's military action in Lebanon resulting in the death of one person. Internationally, Germany announced a suspension of arms exports to Israel in response to its plan to take control of the Gaza Strip. The move is part of a broader European response to the conflict, with the EU urging Israel to reconsider its approach. Meanwhile, China expressed support for improved relations between the United States and Russia, as noted in a phone call between President Xi Jinping and Russian President Vladimir Putin.