United Natural Foods Inc. ($UNFI) Stock: Q3 Earnings Beat Estimates Despite Net Loss

TLDR

United Natural Foods Inc. reports Q3 FY2025 EPS of $0.44, topping forecasts of $0.21. Revenue rises 7.5% to $8.1 billion, beating estimates of $7.78 billion. Net loss stands at $7 million, or $0.12 per diluted share. Adjusted EBITDA improves 20.8% to $157 million; free cash flow jumps to $119 million. Stock trades at $25.12, down 3.18% as of June 10, 2025.

On June 10, 2025, United Natural Foods Inc. (NYSE: UNFI) posted its third-quarter fiscal 2025 results, showing stronger-than-expected earnings despite reporting a net loss. The stock was priced at $25.12 as of writing,  reflecting a 3.18% decline at the market open.

United Natural Foods, Inc. (UNFI)

For the quarter ending April 30, 2025, the company delivered adjusted earnings per share (EPS) of $0.44, up sharply from $0.10 per share in the same period last year and well ahead of the $0.21 consensus forecast. Revenue also surpassed expectations, reaching $8.1 billion, a 7.5% year-over-year increase, compared to analysts’ estimate of $7.78 billion.

Net Loss and Margin Pressure

Despite the beat on top and bottom lines, United Natural Foods reported a net loss of $7 million, or $0.12 per diluted share. This represents a slight improvement compared to the prior year’s loss of $0.34 per share. The company attributed the loss partly to lower product margin rates and a business mix that reduced its gross profit rate from 13.6% to 13.4%.

Gross profit rose by $62 million to $1.1 billion. However, operational costs remained high, limiting overall profitability. Operating expenses were lowered to 12.7% of net sales from 13.2% last year, thanks to stronger sales and cost-saving efforts.

United Natural Foods, Inc., $UNFI, Q3-25. Results:
🟢 +5% Pre-Market

📊 Adj. EPS: $0.44 🟢
💰 Revenue: $8.1B 🟢
🔎 Strong execution drove 20.8% Adj. EBITDA growth and $70M improvement in free cash flow; lean management rollout expanded to 20 distribution centers. pic.twitter.com/R96ltr7Kbl

— EarningsTime (@Earnings_Time) June 10, 2025

Improved Cash Flow and Debt Position

Free cash flow jumped to $119 million, up from $49 million a year ago. Adjusted EBITDA climbed 20.8% to $157 million, indicating solid operational efficiency and cost management.

One positive highlight was the improvement in the company’s financial leverage. The net debt to adjusted EBITDA ratio fell to 3.3x, its lowest point in two fiscal years, demonstrating improved financial stability.

Analyst Ratings and Stock Performance

Wall Street’s median 12-month price target for UNFI stock stands at $30.00. The current average analyst rating remains “hold,” with 2 buys, 9 holds, and 1 sell recommendation.

Despite recent quarterly gains, United Natural Foods shares have dropped 5.3% this quarter and are down 5.0% year-to-date. The stock’s longer-term performance trails the broader market; its 3-year return is down 39.94%, while the S&P 500 gained 54.34% over the same period.

Outlook and Forecast Changes

Analysts have lowered their earnings estimates by 11% over the past three months. However, there have been no revisions in the past 30 days.

The company’s focus on operational efficiency, cost controls, and cash flow improvement points to a cautious yet stable outlook amid competitive industry pressures.

 

The post United Natural Foods Inc. ($UNFI) Stock: Q3 Earnings Beat Estimates Despite Net Loss appeared first on CoinCentral.