Natural Grocers by Vitamin Cottage Announces Second Quarter Fiscal 2026 Results

Rhea-AI Summary

Natural Grocers (NYSE: NGVC) reported Q2 fiscal 2026 results for the period ended March 31, 2026. Net sales were $337.4 million, net income $13.4 million ($0.58 diluted EPS), and Adjusted EBITDA $27.4 million. The company declared a $0.15 quarterly cash dividend payable June 3, 2026. Cash and cash equivalents were $20.7 million with no borrowings on its $70.0 million revolver. The company opened one store and ended the quarter with 169 stores in 21 states. Management narrowed fiscal 2026 guidance for daily comparable store sales and slightly raised the lower end of diluted EPS guidance.

Positive

• Declared quarterly cash dividend of $0.15 per share payable June 3, 2026
• Adjusted EBITDA of $27.4 million in Q2 fiscal 2026
• Generated $43.8 million cash from operations in first six months
• Company ended the quarter with 169 stores and opened one new store

Negative

• Administrative expenses increased 10.0% to $12.1 million in Q2 fiscal 2026
• Gross margin for first six months declined to 29.9%, driven by higher inventory shrink in Q1

News Market Reaction – NGVC

-4.86%

4 alerts

-4.86% Session close to close

-3.2% Trough Tracked

$598.86M Market Cap

0.2x Rel. Volume

In the May 8 session, NGVC declined 4.86%, reflecting a moderate negative market reaction. Argus tracked a trough of -3.2% from its starting point during tracking. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details modest top-line growth but improving profitability, with Q2 net sales of $...

Analysis

This announcement details modest top-line growth but improving profitability, with Q2 net sales of $337.4M and diluted EPS of $0.58. Management refined fiscal 2026 guidance, maintaining store expansion goals while updating EPS and capital expenditure ranges. Combined with a continued $0.15 quarterly dividend and a cash balance of $20.7M with no revolver borrowings, the release highlights disciplined cost control and cautious expectations for comparable-store sales growth.

Key Figures

Q2 2026 net sales: $337.4M Q2 2026 diluted EPS: $0.58 Q2 2026 Adjusted EBITDA: $27.4M +5 more

8 metrics

Q2 2026 net sales $337.4M Second quarter 2026, up 0.5% vs Q2 2025

Q2 2026 diluted EPS $0.58 Second quarter 2026, vs $0.56 in Q2 2025

Q2 2026 Adjusted EBITDA $27.4M Second quarter 2026, vs $26.3M in Q2 2025

H1 2026 net sales $673.0M First six months 2026, up 1.0% vs H1 2025

H1 2026 diluted EPS $1.07 First six months 2026, vs $0.99 in H1 2025

Quarterly dividend $0.15/share Cash dividend payable June 3, 2026

Cash balance $20.7M Cash and equivalents at March 31, 2026; no borrowings on $70.0M revolver

FY 2026 EPS outlook $2.07–$2.15 Updated diluted EPS guidance range for fiscal 2026

Historical Context

5 past events · Latest: May 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 05	Mother’s Day promos	Positive	-0.1%	Mother’s Day savings and giveaways across 170 stores for {N}power members.
May 04	Beauty promotion	Positive	-2.6%	Body Care & Beauty Bonanza with discounts and sweepstakes through late May.
May 01	Giveaway campaign	Positive	+2.1%	Mile High Giveaway offering weekly $1,000 grocery prizes for {N}power members.
Apr 30	Local promo event	Positive	+4.3%	Montana Day celebration with free totes and coupons for rewards members.
Apr 28	Store expansion	Positive	+1.4%	Announcement of a new Rapid City, South Dakota store opening this summer.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent promotional and expansion headlines have often aligned with modest positive price moves, but some marketing events saw small negative reactions.

Recent Company History

Over the last several weeks, NGVC news focused on store expansion and promotional events. On Apr 28, the company announced a new Rapid City store, with the stock up 1.37%. Subsequent localized promotions in Montana and Colorado between Apr 30 and May 5 drove mixed reactions, from a 4.29% gain to small declines. Today’s earnings update adds fundamental context—slight sales growth and improving profitability—on top of this steady stream of marketing-driven headlines.

Key Terms

gaap, ebitda, adjusted ebitda, diluted earnings per share, +4 more

8 terms

gaap financial

"presenting the financial results ... in conformity with U.S. generally accepted accounting principles (GAAP)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

ebitda financial

"the Company is also presenting EBITDA and Adjusted EBITDA, which are non-GAAP financial measures."

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

adjusted ebitda financial

"the Company is also presenting EBITDA and Adjusted EBITDA, which are non-GAAP financial measures."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

diluted earnings per share financial

"Net income increased 2.5% to $13.4 million, with diluted earnings per share of $0.58;"

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

operating income financial

"Operating income for the second quarter of fiscal 2026 increased 3.1% to $18.1 million."

Operating income is the profit a company earns from its regular business activities after subtracting the costs directly related to running the business, such as wages, rent, and supplies. It shows how well the core operations are performing, ignoring income or expenses from non-regular activities like investments or one-time events. Investors use it to assess the company's efficiency and profitability from its main work.

View in glossary

operating margin financial

"Operating margin during the second quarter of fiscal 2026 was 5.4%, up from 5.2%"

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

View in glossary

revolving credit facility financial

"no outstanding borrowings on its $70.0 million revolving credit facility."

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

capital expenditures financial

"invested $30.3 million in net capital expenditures, primarily for new and relocated/remodeled stores"

Capital expenditures are the money a company spends to buy or improve big assets like buildings, equipment, or machines that will last a long time. These investments matter because they help the company grow and operate more efficiently, similar to how upgrading a home’s appliances or adding a new room can make it better and more valuable.

View in glossary

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LAKEWOOD, Colo., May 7, 2026 /PRNewswire/ -- Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) today announced results for its second quarter of fiscal 2026 ended March 31, 2026.

Highlights for Second Quarter Fiscal 2026 Compared to Second Quarter Fiscal 2025

• Net sales increased 0.5% to $337.4 million;
• Daily average comparable store sales increased 0.5%, and 9.4% on a two-year basis;
• Net income increased 2.5% to $13.4 million, with diluted earnings per share of $0.58;
• Adjusted EBITDA increased 4.0% to $27.4 million; and
• Opened one new store.

"We performed well in a challenging environment, delivering earnings growth through strong store‑level execution and disciplined expense management," said Kemper Isely, Co-President. "We believe that consumer prioritization of health and wellness, including food and nutrition, is growing and enduring. Our differentiated natural and organic offering, supported by rigorous standards and our Always Affordable^SM pricing strategy, continues to deliver strong value and reinforces our competitive positioning."

In addition to presenting the financial results of Natural Grocers by Vitamin Cottage, Inc. and its subsidiaries (collectively, the Company) in conformity with U.S. generally accepted accounting principles (GAAP), the Company is also presenting EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. The reconciliation from GAAP to these non-GAAP financial measures is provided at the end of this earnings release.

Operating Results — Second Quarter Fiscal 2026 Compared to Second Quarter Fiscal 2025

Net sales during the second quarter of fiscal 2026 increased $1.6 million, or 0.5%, to $337.4 million, compared to the second quarter of fiscal 2025, due to a $1.7 million increase in comparable store sales and a $1.1 million increase in new store sales, partially offset by a $1.1 million decrease in net sales related to closed stores. Daily average comparable store sales increased 0.5% in the second quarter of fiscal 2026, comprised of a 1.6% increase in daily average transaction size and a 1.1% decrease in daily average transaction count.

Gross profit during the second quarter of fiscal 2026 increased $0.7 million to $102.4 million. Gross profit reflects earnings after product and store occupancy costs. Gross margin increased by 10 basis points to 30.4% during the second quarter of fiscal 2026, compared to 30.3% in the second quarter of fiscal 2025. The increase in gross margin was driven by lower store occupancy costs as a percentage of net sales.

Store expenses during the second quarter of fiscal 2026 decreased 1.6% to $71.6 million, primarily driven by expense management. Store expenses as a percentage of net sales were 21.2% during the second quarter of fiscal 2026, down from 21.7% in the second quarter of fiscal 2025.

Administrative expenses during the second quarter of fiscal 2026 increased 10.0% to $12.1 million, primarily driven by higher technology expenses. Administrative expenses as a percentage of net sales were 3.6% in the second quarter of fiscal 2026, up from 3.3% in the second quarter of fiscal 2025.

Operating income for the second quarter of fiscal 2026 increased 3.1% to $18.1 million. Operating margin during the second quarter of fiscal 2026 was 5.4%, up from 5.2% in the second quarter of fiscal 2025.

Net income for the second quarter of fiscal 2026 was $13.4 million, or $0.58 diluted earnings per share, compared to net income of $13.1 million, or $0.56 diluted earnings per share, for the second quarter of fiscal 2025.

Adjusted EBITDA for the second quarter of fiscal 2026 was $27.4 million, compared to $26.3 million in the second quarter of fiscal 2025.

Operating Results — First Six Months Fiscal 2026 Compared to First Six Months Fiscal 2025

During the first six months of fiscal 2026, net sales increased $7.0 million, or 1.0%, to $673.0 million, compared to the first six months of fiscal 2025, due to a $7.4 million increase in comparable store sales and a $3.5 million increase in new store sales, partially offset by a $3.9 million decrease in net sales related to closed stores. Daily average comparable store sales increased 1.1% in the first six months of fiscal 2026, primarily driven by an increase in daily average transaction size.

Gross profit during the first six months of fiscal 2026 increased $0.7 million, or 0.4%, to $201.3 million, compared to $200.6 million in the first six months of fiscal 2025. Gross profit reflects earnings after product and store occupancy costs. Gross margin decreased to 29.9% during the first six months of fiscal 2026, compared to 30.1% in the first six months of fiscal 2025. The decrease in gross margin was driven by lower product margin primarily due to higher inventory shrink in the first quarter of fiscal 2026.

Store expenses during the first six months of fiscal 2026 decreased 1.2% to $144.6 million, primarily driven by expense management. Store expenses as a percentage of net sales were 21.5% during the first six months of fiscal 2026, down from 22.0% in the first six months of fiscal 2025.

Administrative expenses during the first six months of fiscal 2026 increased 1.9% to $23.0 million, primarily driven by higher technology expenses partially offset by lower compensation expenses. Administrative expenses as a percentage of net sales were 3.4% in each of the first six months of fiscal 2026 and fiscal 2025.

Operating income for the first six months of fiscal 2026 increased 6.0% to $32.8 million. Operating margin during the first six months of fiscal 2026 was 4.9%, compared to 4.6% in the first six months of fiscal 2025.

Net income for the first six months of fiscal 2026 was $24.8 million, or $1.07 diluted earnings per share, compared to net income of $23.0 million, or $0.99 diluted earnings per share, for the first six months of fiscal 2025.

Adjusted EBITDA for the first six months of fiscal 2026 was $50.9 million, compared to $49.1 million in the first six months of fiscal 2025.

Balance Sheet and Cash Flow

As of March 31, 2026, the Company had $20.7 million in cash and cash equivalents and no outstanding borrowings on its $70.0 million revolving credit facility.

During the first six months of fiscal 2026, the Company generated $43.8 million in cash from operations and invested $30.3 million in net capital expenditures, primarily for new and relocated/remodeled stores and real property acquisitions.

Dividend Announcement

Today, the Company announced the declaration of a quarterly cash dividend of $0.15 per common share. The dividend will be paid on June 3, 2026 to stockholders of record at the close of business on May 18, 2026.

Growth and Development

During the second quarter of fiscal 2026, the Company opened one new store. The Company ended the second quarter with 169 stores in 21 states. Since March 31, 2026, the Company relocated one existing store and opened one new store.

Fiscal 2026 Outlook

The Company is refining its fiscal 2026 outlook:

Fiscal 2026		Prior Outlook		Updated Outlook
Number of new stores		6 to 8		6 to 8
Number of relocations/remodels		2 to 3		2 to 3
Daily average comparable store sales growth		1.5% to 4.0%		1.5% to 2.5%
Diluted earnings per share		$2.00 to $2.15		$2.07 to $2.15
Capital expenditures (in millions)		$50 to $55		$45 to $50

Earnings Conference Call

The Company will host a conference call today at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time) to discuss this earnings release. The dial-in number is 1-888-347-6606 (US) or 1-412-902-4289 (International). The conference ID is "Natural Grocers Q2 FY 2026 Earnings Call." A simultaneous audio webcast will be available at http://Investors.NaturalGrocers.com and archived for a minimum of 20 days.

About Natural Grocers by Vitamin Cottage

Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) is an expanding specialty retailer of natural and organic groceries, body care products and dietary supplements. The grocery products sold by Natural Grocers must meet strict quality guidelines and may not contain artificial flavors, preservatives, or sweeteners (as defined in its standards), synthetic colors, or partially hydrogenated or hydrogenated oils. The Company sells only USDA certified organic produce and exclusively pasture-raised, non-confinement dairy products, and free-range eggs. Natural Grocers' flexible smaller-store format allows it to offer affordable prices in a shopper-friendly, clean and convenient retail environment. The Company also provides extensive free science-based nutrition education programs to help customers make informed health and nutrition choices. The Company, founded in 1955, has 170 stores in 21 states.

Visit www.NaturalGrocers.com for more information and store locations.

Forward-Looking Statements

The following constitutes a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995. Except for the historical information contained herein, statements in this release are "forward-looking statements" and are based on management's current expectations and are subject to uncertainty and changes in circumstances. All statements that are not statements of historical fact are forward-looking statements. Actual results could differ materially from these expectations due to changes in global, national, regional or local political, economic, inflationary, disinflationary, recessionary, business, interest rate, labor market, competitive, market, regulatory, trade policy, supply chain and other factors, and other risks detailed in the Company's Annual Report on Form 10-K and the Company's subsequent quarterly reports on Form 10-Q. The information contained herein speaks only as of the date of this release and the Company undertakes no obligation to publicly update forward-looking statements, except as may be required by the securities laws.

For further information regarding risks and uncertainties associated with the Company's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Form 10-K and the Company's subsequent quarterly reports on Form 10-Q, copies of which may be obtained by contacting Investor Relations at 303-986-4600 or by visiting the Company's website at http://Investors.NaturalGrocers.com.

Investor Contact:

Reed Anderson, ICR, 646-277-1260, reed.anderson@icrinc.com

 

NATURAL GROCERS BY VITAMIN COTTAGE, INC.
Consolidated Statements of Income (Unaudited) (Dollars in thousands, except per share data)
		Three months ended March 31,					Six months ended March 31,
		2026			2025		2026		2025
Net sales		$	337,376		335,769		672,955		665,990
Cost of goods sold and occupancy costs		234,933			234,021		471,653		465,418
Gross profit		102,443			101,748		201,302		200,572
Store expenses		71,573			72,755		144,582		146,281
Administrative expenses		12,125			11,023		22,960		22,537
Pre-opening expenses		640			417		1,008		853
Operating income		18,105			17,553		32,752		30,901
Interest expense, net		(632)			(750)		(1,345)		(1,673)
Income before income taxes		17,473			16,803		31,407		29,228
Provision for income taxes		(4,039)			(3,702)		(6,639)		(6,189)
Net income		$	13,434		13,101		24,768		23,039
Net income per share of common stock:
Basic		$	0.58		0.57		1.08		1.01
Diluted		$	0.58		0.56		1.07		0.99
Weighted average number of shares of common stock            outstanding:
Basic		23,035,242			22,935,698		23,021,642		22,919,457
Diluted		23,215,112			23,273,700		23,234,930		23,215,633

 

NATURAL GROCERS BY VITAMIN COTTAGE, INC.
Consolidated Balance Sheets (Unaudited) (Dollars in thousands, except per share data)
		March 31, 2026			September 30, 2025
Assets
Current assets:
Cash and cash equivalents		$	20,723		17,116
Accounts receivable, net		13,095			11,966
Merchandise inventory		129,686			132,968
Prepaid expenses and other current assets		7,052			6,025
Total current assets		170,556			168,075
Property and equipment, net		204,220			182,741
Other assets:
Operating lease assets, net		253,194			259,586
Finance lease assets, net		39,839			42,895
Other assets		5,569			5,452
Goodwill and other intangible assets, net		11,323			11,755
Total other assets		309,925			319,688
Total assets		$	684,701		670,504
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	89,640		80,991
Accrued expenses		31,355			37,236
Operating lease obligations, current portion		37,336			36,495
Finance lease obligations, current portion		4,149			4,061
Total current liabilities		162,480			158,783
Long-term liabilities:
Co-PACE Financing		1,451			—
Operating lease obligations, net of current portion		238,982			245,803
Finance lease obligations, net of current portion		42,604			45,660
Deferred income tax liabilities, net		8,289			7,863
Total long-term liabilities		291,326			299,326
Total liabilities		453,806			458,109
Stockholders' equity:
Common stock, $0.001 par value, 50,000,000 shares authorized, 23,040,786 and      22,954,712 shares issued and outstanding at March 31, 2026 and September 30, 2025,              respectively		23			23
Additional paid-in capital		63,675			63,033
Retained earnings		167,197			149,339
Total stockholders' equity		230,895			212,395
Total liabilities and stockholders' equity		$	684,701		670,504

 

NATURAL GROCERS BY VITAMIN COTTAGE, INC.
Consolidated Statements of Cash Flows (Unaudited) (Dollars in thousands)
		Six months ended March 31,
		2026			2025
Operating activities:
Net income		$	24,768		23,039
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		16,124			15,838
Loss on impairment of long-lived assets and store closing costs		21			81
(Gain) loss on disposal of property and equipment		(13)			15
Share-based compensation		1,802			2,257
Deferred income tax expense (benefit)		426			(1,800)
Non-cash interest expense		3			2
Other		156			1
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable, net		(696)			(368)
Merchandise inventory		3,282			(4,102)
Prepaid expenses and other assets		(276)			(2,217)
Income tax receivable		(1,006)			—
Operating lease assets		17,203			16,787
(Decrease) increase in:
Operating lease liabilities		(17,232)			(16,974)
Accounts payable		5,158			4,650
Accrued expenses		(5,881)			(465)
Net cash provided by operating activities		43,839			36,744
Investing activities:
Acquisition of property and equipment		(29,928)			(16,040)
Acquisition of other intangibles		(454)			(152)
Proceeds from sale of property and equipment		17			44
Proceeds from property insurance settlements		22			268
Net cash used in investing activities		(30,343)			(15,880)
Financing activities:
Borrowings under revolving loans		321,300			314,200
Repayments under revolving loans		(321,300)			(314,200)
Finance lease obligation payments		(1,819)			(1,951)
Dividends to shareholders		(6,910)			(5,500)
Payments on withholding tax for restricted stock unit vesting		(1,160)			(1,075)
Net cash used in financing activities		(9,889)			(8,526)
Net increase in cash and cash equivalents		3,607			12,338
Cash and cash equivalents, beginning of period		17,116			8,871
Cash and cash equivalents, end of period		$	20,723		21,209
Supplemental disclosures of cash flow information:
Cash paid for interest		$	346		721
Cash paid for interest on finance lease obligations, net of capitalized interest of $235 and               $108, respectively		893			964
Income taxes paid		7,219			7,328
Supplemental disclosures of non-cash investing and financing activities:
Acquisition of property and equipment not yet paid		$	5,872		2,653
Lease assets obtained in exchange for new operating lease obligations			11,253		8,282
Lease assets obtained in exchange for new finance lease obligations			(32)		—
Building and land acquired in exchange for assumed Co-PACE Financing			1,343		—
Tenant lease intangibles acquired in exchange for assumed Co-PACE Financing			109		—

 

‌	NATURAL GROCERS BY VITAMIN COTTAGE, INC.
	Non-GAAP Financial Measures
	(Unaudited)

EBITDA and Adjusted EBITDA

EBITDA and Adjusted EBITDA are not measures of financial performance under GAAP. We define EBITDA as net income before interest expense, provision for income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA as adjusted to exclude the effects of certain income and expense items that management believes make it more difficult to assess the Company's actual operating performance, including certain items such as impairment charges, store closing costs, share-based compensation, amortization of SaaS implementation costs and non-recurring items.

The following table reconciles net income to EBITDA and Adjusted EBITDA, dollars in thousands:

		Three months ended March 31,					Six months ended March 31,
		2026			2025		2026		2025
Net income		$	13,434		13,101		24,768		23,039
Interest expense, net		632			750		1,345		1,673
Provision for income taxes		4,039			3,702		6,639		6,189
Depreciation and amortization		8,151			7,888		16,124		15,838
EBITDA			26,256		25,441		48,876		46,739
Impairment of long-lived assets and store closing costs			—		31		45		118
Share-based compensation			945		822		1,802		2,257
Amortization of SaaS implementation costs			150		1		153		1
Adjusted EBITDA		$	27,351		26,295		50,876		49,115

EBITDA increased 3.2% to $26.3 million for the three months ended March 31, 2026 compared to $25.4 million for the three months ended March 31, 2025. EBITDA increased 4.6% to $48.9 million for the six months ended March 31, 2026 compared to $46.7 million for the six months ended March 31, 2025. EBITDA as a percentage of net sales was 7.8% and 7.6% for the three months ended March 31, 2026 and 2025, respectively. EBITDA as a percentage of net sales was 7.3% and 7.0% for the six months ended March 31, 2026 and 2025, respectively.

Adjusted EBITDA increased 4.0% to $27.4 million for the three months ended March 31, 2026 compared to $26.3 million for the three months ended March 31, 2025. Adjusted EBITDA increased 3.6% to $50.9 million for the six months ended March 31, 2026 compared to $49.1 million for the six months ended March 31, 2025. Adjusted EBITDA as a percentage of net sales was 8.1% and 7.8% for the three months ended March 31, 2026 and 2025, respectively. Adjusted EBITDA as a percentage of net sales was 7.6% and 7.4% for the six months ended March 31, 2026 and 2025, respectively.

Management believes some investors' understanding of our performance is enhanced by including EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. We believe EBITDA and Adjusted EBITDA provide additional information about: (i) our operating performance, because they assist us in comparing the operating performance of our stores on a consistent basis, as they remove the impact of non-cash depreciation and amortization expense as well as items not directly resulting from our core operations, such as interest expense and income taxes and (ii) our performance and the effectiveness of our operational strategies. Additionally, EBITDA is a component of a measure in our financial covenants under our credit facility.

Furthermore, management believes some investors use EBITDA and Adjusted EBITDA as supplemental measures to evaluate the overall operating performance of companies in our industry. Management believes that some investors' understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations. By providing these non-GAAP financial measures, together with a reconciliation from net income, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives.

Our competitors may define EBITDA and Adjusted EBITDA differently, and as a result, our measures of EBITDA and Adjusted EBITDA may not be directly comparable to EBITDA and Adjusted EBITDA of other companies. Items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing financial performance. EBITDA and Adjusted EBITDA are supplemental measures of operating performance that do not represent and should not be considered in isolation or as an alternative to, or substitute for, net income or other financial statement data presented in the consolidated financial statements as indicators of financial performance. EBITDA and Adjusted EBITDA have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of the limitations are:

• EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments;
  
  
• EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs;
  
  
• EBITDA and Adjusted EBITDA do not reflect any depreciation or interest expense for leases classified as finance leases;
  
  
• EBITDA and Adjusted EBITDA do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments on our debt;
  
  
• Adjusted EBITDA does not reflect share-based compensation, impairment of long-lived assets, store closing costs and amortization of SaaS implementation costs;
  
  
• EBITDA and Adjusted EBITDA do not reflect our tax expense or the cash requirements to pay our taxes; and
  
  
• Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements.

Due to these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using EBITDA and Adjusted EBITDA as supplemental information.

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SOURCE Natural Grocers by Vitamin Cottage, Inc.

FAQ

What were Natural Grocers (NGVC) Q2 fiscal 2026 sales and EPS results?

Natural Grocers reported $337.4 million in Q2 net sales and $0.58 diluted EPS. According to the company, net income for the quarter was $13.4 million and adjusted EBITDA was $27.4 million.

When will Natural Grocers (NGVC) pay the declared dividend and who is eligible?

The company will pay a $0.15 quarterly dividend on June 3, 2026 to shareholders of record as of May 18, 2026. According to the company, the dividend was declared today and details appear in the release.

How many stores does Natural Grocers (NGVC) have after Q2 fiscal 2026 and were there openings?

Natural Grocers ended Q2 with 169 stores in 21 states and opened one new store during the quarter. According to the company, it also relocated one existing store and opened an additional store after quarter end.

What is Natural Grocers' updated fiscal 2026 guidance for EPS and comparable store sales?

The company updated fiscal 2026 outlook to $2.07 to $2.15 diluted EPS and narrowed daily comparable store sales growth to 1.5%–2.5%. According to the company, other guidance items, including new stores and remodels, remain unchanged.

What was Natural Grocers' cash position and capital spending through March 31, 2026?

As of March 31, 2026, the company had $20.7 million in cash and no outstanding revolver borrowings. According to the company, it invested $30.3 million in net capital expenditures in the first six months.