Grocery store chain Sprouts Farmers Market (NASDAQ:SFM) met Wall Street’s revenue expectations in Q4 CY2025, with sales up 7.6% year on year to $2.15 billion. Its GAAP profit of $0.92 per share was 3.8% above analysts’ consensus estimates.

Is now the time to buy Sprouts? Find out in our full research report.

Revenue: $2.15 billion vs analyst estimates of $2.15 billion (7.6% year-on-year growth, in line)

EPS (GAAP): $0.92 vs analyst estimates of $0.89 (3.8% beat)

Adjusted EBITDA: $164.8 million vs analyst estimates of $154.9 million (7.7% margin, 6.4% beat)

EPS (GAAP) guidance for the upcoming financial year 2026 is $5.36 at the midpoint, missing analyst estimates by 5.8%

Operating Margin: 5.7%, in line with the same quarter last year

Free Cash Flow Margin: 3.1%, similar to the same quarter last year

Locations: 477 at quarter end, up from 440 in the same quarter last year

Same-Store Sales rose 1.6% year on year (11.5% in the same quarter last year)

Market Capitalization: $6.59 billion

“Sprouts delivered strong growth in 2025," said Jack Sinclair, chief executive officer of Sprouts Farmers Market.

Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ:SFM) is a grocery store chain emphasizing natural and organic products.

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $8.81 billion in revenue over the past 12 months, Sprouts is a mid-sized retailer, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. On the bright side, it can still flex high growth rates because it’s working from a smaller revenue base.

As you can see below, Sprouts’s sales grew at a decent 11.2% compounded annual growth rate over the last three years as it opened new stores and increased sales at existing, established locations.

This quarter, Sprouts grew its revenue by 7.6% year on year, and its $2.15 billion of revenue was in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 9.5% over the next 12 months, a slight deceleration versus the last three years. Still, this projection is noteworthy and indicates the market is forecasting success for its products.

The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

Sprouts operated 477 locations in the latest quarter. It has opened new stores at a rapid clip over the last two years, averaging 7.4% annual growth, much faster than the broader consumer retail sector. This gives it a chance to become a large, scaled business over time.

When a retailer opens new stores, it usually means it’s investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance.

A company's store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it’s prudent to close some locations and use the money in other ways. Same-store sales is an industry measure of whether revenue is growing at those existing stores and is driven by customer visits (often called traffic) and the average spending per customer (ticket).

Sprouts has been one of the most successful retailers over the last two years thanks to skyrocketing demand within its existing locations. On average, the company has posted exceptional year-on-year same-store sales growth of 7.5%. This performance suggests its rollout of new stores is beneficial for shareholders. We like this backdrop because it gives Sprouts multiple ways to win: revenue growth can come from new stores, e-commerce, or increased foot traffic and higher sales per customer at existing locations.

In the latest quarter, Sprouts’s same-store sales rose 1.6% year on year. This was a meaningful deceleration from its historical levels. We’ll be watching closely to see if Sprouts can reaccelerate growth.

We enjoyed seeing Sprouts beat analysts’ EBITDA expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its full-year EPS guidance missed and its gross margin fell slightly short of Wall Street’s estimates. Overall, this was a mixed quarter. The stock traded up 1.3% to $68.78 immediately after reporting.

Big picture, is Sprouts a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.