NGVC · Natural Grocers by Vitamin Cottage, Inc.

Summary

Revenue and earnings grew modestly year-over-year, supported by improved gross margin driven by lower store occupancy costs as a percentage of sales — a reflection of maturing store economics rather than pricing or product margin gains.

Key takeaways

• Revenue was $337.4M, up from $335.8M in Q2 FY2025, reflecting continued stability in a competitive retail environment.
• Gross profit was $102.4M, with gross margin improving to 30.4% — driven by lower store occupancy costs as a percentage of sales, per Management’s Discussion.
• Operating income was $18.1M, up 3.1% year-over-year, supported by expense management as noted in Management’s Discussion.
• Net income was $13.4M, with diluted EPS of $0.58, up from $0.56 in Q2 FY2025, consistent with the underlying operating trend.
• Net cash provided by operating activities was $43.8M, while capital expenditures were $29.9M — both GAAP-reported figures reflecting ongoing investment in store growth.
• Free cash flow was $13.9M, calculated as operating cash flow less capital expenditures, representing internally generated liquidity available for capital allocation.