Natural Grocers by Vitamin Cottage (NGVC) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 FY26 rose 0.5% year-over-year to $337.4 million, with daily average comparable store sales up 0.5% and 9.4% on a two-year basis.

• Net income for Q2 FY26 increased 2.5% to $13.4 million, with diluted EPS of $0.58, up 3.6%.

• Adjusted EBITDA for Q2 FY26 was $27.4 million, up 4.0% year-over-year; for the first six months, Adjusted EBITDA reached $50.9 million.

• Opened one new store in Q2 FY26, bringing the total to 169 stores in 21 states at quarter-end, with plans for 6–8 new stores and 2–3 relocations/remodels in FY26.

• Strong membership gains in the {N}power Rewards program, with net sales penetration rising to 84%.

Financial highlights

• Gross profit for Q2 FY26 increased to $102.4 million, with gross margin up 10 basis points to 30.4%.

• Store expenses in Q2 FY26 decreased 1.6% to $71.6 million, representing 21.2% of net sales; administrative expenses rose 10% to $12.1 million, mainly due to higher technology costs.

• Operating income for Q2 FY26 increased 3.1% to $18.1 million, with an operating margin of 5.4%.

• Free cash flow for the first six months was $13.5 million.

• Cash and cash equivalents at March 31, 2026, were $20.7 million, with no outstanding borrowings and $67.6 million available on the credit facility.

Outlook and guidance

• FY26 daily average comparable store sales growth outlook narrowed to 1.5%–2.5%; diluted EPS guidance updated to $2.07–$2.15, up from $2.00–$2.15.

• Capital expenditures for FY26 revised to $45–$50 million, down from $50–$55 million.

• Second half sales comps expected at 2%–4%, with Q3 at the lower end and Q4 slightly higher.

• Modest inflation and relatively flat gross margin anticipated for the year.

• Capital expenditures for the remainder of FY26 projected at $14.7–$19.7 million.