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Get filing alertsUNFI reports Q3 earnings beat with 16.6% EBITDA growth, cuts debt to lowest since 2018
Filed June 9, 2026 · Period ending June 9, 2026 · ~1 min read
Key Changes
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high
Q3 net income $33M ($0.52 EPS) vs. $7M loss prior year; Adjusted EBITDA up 16.6% to $183M despite 4.2% sales decline to $7.7B (450 bps from optimization actions including Allentown DC transition)
Exhibit 99.1 view on EDGAR → -
high
Net debt reduced to $1.63B (down $296M year-over-year, $46M quarter-over-quarter); net leverage ratio improved to 2.5x, lowest since fiscal 2018
Exhibit 99.1 view on EDGAR → -
high
FY2026 guidance narrowed with midpoints unchanged: net sales $31.1-$31.3B, Adjusted EBITDA $685-$705M, Adjusted EPS $2.40-$2.60; tighter ranges reflect increased confidence
Exhibit 99.1 view on EDGAR → -
medium
Repurchased ~990K shares for $38M through May 2026, including 82,233 shares in Q3 at average $48.64; signals management confidence in business trajectory
Exhibit 99.1 view on EDGAR → -
medium
ABL facility amended and extended to April 2031 maturity; total liquidity $1.25B ($43M cash plus $1.20B unused ABL capacity) supports operational flexibility
Exhibit 99.1 view on EDGAR →
Summary
UNFI delivered a strong Q3 that demonstrates its transformation is gaining traction. Despite a 4.2% sales decline to $7.7 billion—roughly half driven by deliberate optimization moves like the Allentown distribution center transition—the company swung to $33 million net income from a $7 million loss a year ago and grew Adjusted EBITDA 16.6% to $183 million. Profitability gains funded aggressive deleveraging: net debt fell to $1.63 billion, the lowest leverage ratio (2.5x) since fiscal 2018, and the company bought back nearly 1 million shares for $38 million.
Management narrowed full-year guidance ranges while holding midpoints steady, a sign of confidence with one quarter left. The ABL facility extension to 2031 locks in liquidity through the next phase of the turnaround. For holders, the quarter validates that UNFI can shrink strategically while expanding margins and strengthening the balance sheet—a credible path if customer retention and cost discipline hold through fiscal year-end.
Section-by-Section Diff
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Net sales decreased 4.2% to $7.7 billion, includes impact of approximately 450 basis points from optimization actions
•Net income of $33 million; Net income per diluted share (EPS) of $0.52
•Adjusted EBITDA(1) increased 16.6% to $183 million
•Adjusted EPS(1) increased to $0.77
•Net cash provided by operating activities of $98 million; Free cash flow(1) of $54 million
UNFI disclosed third-quarter fiscal 2026 results showing net sales of $7.7 billion, down 4.2% year-over-year, with approximately 450 basis points of the decline attributable to optimization actions including the Allentown distribution center transition. Despite lower sales, profitability improved: net income reached $33 million ($0.52 per diluted share) versus a $7 million loss in the prior-year quarter, and Adjusted EBITDA rose 16.6% to $183 million. Operating cash flow was $98 million and free cash flow $54 million.
Added in current filing · view on EDGAR →
The Company is reiterating its full-year outlook midpoints and narrowing applicable ranges:
Fiscal Year Ending August 1, 2026 (52 weeks) Previous Full Year Outlook Provided March 10, 2026Updated Full Year OutlookChange in Midpoint
Net sales ($ in billions) $31.0 - $31.4$31.1 - $31.3$—
Net income ($ in millions) $50 - $75$55 - $70$—
EPS (2) $0.80 - $1.20$0.90 - $1.10$—
Adjusted EPS (2) (3) (4) $2.30 - $2.70$2.40 - $2.60$—
Adjusted EBITDA (4) ($ in millions) $680 - $710$685 - $705$—
UNFI narrowed its fiscal 2026 guidance ranges while maintaining midpoints: net sales $31.1-$31.3 billion, net income $55-$70 million, EPS $0.90-$1.10, Adjusted EPS $2.40-$2.60, and Adjusted EBITDA $685-$705 million. The tighter ranges reflect increased confidence in full-year performance with three quarters complete.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 23, 2026 · How we verify