Grocery Outlet Q4 Revenue $1.22B Misses by 0.6%, EPS Falls 8.9%
Grocery Outlet reported Q4 CY2025 revenue of $1.22 billion, 10.7% higher year-on-year but 0.6% below estimates, with adjusted EPS of $0.19 missing by 8.9%. For fiscal 2026 it guided $0.50 EPS (down 38.6%) and $227.5M in EBITDA, and launched an Optimization Plan after $110M of impairments.
1. Significant Q4 Shortfall
Grocery Outlet’s Q4 CY2025 revenue grew 10.7% to $1.22 billion but fell 0.6% short of expectations, while adjusted EPS of $0.19 missed consensus by 8.9% and adjusted EBITDA reached $68.0 million, 5.6% below forecasts. The company recorded an operating margin of -19.3% and a net loss of $218 million ($2.22 per share), driven by non-cash impairment charges.
2. 2026 Guidance and Optimization Plan
Full-year 2026 guidance targets $0.50 adjusted EPS and $227.5 million adjusted EBITDA, missing analyst estimates by 38.6% and $46.5 million respectively. An Optimization Plan includes $110 million in non-cash asset impairments, the closure of underperforming stores and resource realignment to strengthen profitability and cash flow.
3. Operational and Store Metrics
Year-end store count rose to 570 from 533 a year earlier, while comparable store sales were flat year-over-year. Free cash flow swung to $32.5 million positive from a $19.6 million deficit, supporting operational liquidity despite margin pressure.