On this page of StockholderLetter.com we present the latest annual shareholder letter from Natural Grocers by Vitamin Cottage, Inc. — ticker symbol NGVC. Reading current and past NGVC letters to shareholders can bring important insights into the investment thesis.
NATURAL GROCERS BY VITAMIN COTTAGE, INC. 2025 ANNUAL REPORT
2025 ANNUAL REPORT DEAR FELLOW STOCKHOLDERS: We take great pride in our sales and profitability growth in fiscal 2025 and in recent years. Fiscal 2025 represented another year of record performance for Natural Grocers , including net sales of $1.33 billion and diluted earnings per share of $2.00. The daily average comparable store sales increase was 7.3%, and 14.3% on a two-year basis. The year s robust sales growth, combined with effective operational execution, generated a year-over-year operating margin improvement of 90 basis points and a 36.1% increase in diluted earnings per share. Fiscal 2025 marked our twenty-second consecutive year of positive daily average comparable store sales growth. Consumers continue to be drawn to our differentiated offering of high-quality, natural and organic products. We believe that consumers prioritization of health and wellness, including food and nutrition, will continue to be highly resilient. Furthermore, we believe that our Always Affordable PriceSM strategy provides compelling value for our customers, strengthening our competitive position during periods of economic uncertainty. We would like to thank every member of our good4uSM Crew for their commitment to operational execution and exceptional customer service, which were instrumental in driving our strong results. GROWTH DRIVERS Our key initiatives fueled growth during fiscal 2025 and are expected to drive our long-term success. {N}power rewards: We continue to enhance the personalization and interactivity of our {N}power rewards program offerings. The maturity and high penetration rate of our {N}power rewards program we finished the year with a net sales penetration of 82% enables efficient and relevant customer engagement. Natural Grocers brand products: Our Natural Grocers brand private label products continue to experience elevated growth, accounting for 8.7% of total sales, up from 8.5% a year ago. During fiscal 2025, we extended our Natural Grocers brand offerings with the launch of 119 new items, providing our customers with premium quality at compelling prices. New stores: In fiscal 2025 we opened two new stores, relocated two stores, and remodeled one store. Accelerating new store unit growth is another core element of our growth strategy. In August 2025, we announced our plan to open six to eight new stores in fiscal 2026, and are committed to four to five percent annual new store unit growth for the foreseeable future. Our new store pipeline includes real estate opportunities in states in which we operate and adjacent states. With a consistent track record of strong financial and operating performance over the past several years, we believe we are well positioned to execute this plan. STOCKHOLDER RETURN We remain committed to enhancing value for our stockholders by maintaining a balanced approach to capital allocation. In addition to investing in our business to accelerate new store unit growth, in November 2025 our Board of Directors increased the quarterly cash dividend by 25% to $0.15 per common share, reflecting our strong fiscal 2025 operating performance and financial position, as well as confidence in the direction and trajectory of our business. Since initiating the dividend in 2019, and through the dividend paid in December 2025, the Company has cumulatively returned $122 million in capital to our stockholders through $5.39 of cumulative dividends per common share. LOOKING AHEAD We are committed to maximizing value for our stockholders. As we look forward to fiscal year 2026, we expect to build upon our momentum by executing to our founding principles, including our Always Affordable Price strategy and differentiated product offering, emphasizing operational excellence, and delivering on our new store unit growth plans. We are confident in our ability to continue to drive profitable, long-term growth and enhance value for all stakeholders. 2 KEMPER ISELY, CO -PRESIDENT ZEPHYR ISELY, CO -PRESIDENT
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NGVC Shareholder/Stockholder Letter Transcript:

NATURAL GROCERS BY VITAMIN COTTAGE, INC.
2025 ANNUAL REPORT

2025 ANNUAL REPORT
DEAR FELLOW STOCKHOLDERS:
We take great pride in our sales and profitability growth in fiscal 2025 and in recent years. Fiscal 2025
represented another year of record performance for Natural Grocers  , including net sales of $1.33
billion and diluted earnings per share of $2.00. The daily average comparable store sales increase was
7.3%, and 14.3% on a two-year basis. The year   s robust sales growth, combined with effective operational
execution, generated a year-over-year operating margin improvement of 90 basis points and a 36.1%
increase in diluted earnings per share.
Fiscal 2025 marked our twenty-second consecutive year of positive daily average comparable store
sales growth. Consumers continue to be drawn to our differentiated offering of high-quality, natural
and organic products. We believe that consumers    prioritization of health and wellness, including food
and nutrition, will continue to be highly resilient. Furthermore, we believe that our Always Affordable
PriceSM strategy provides compelling value for our customers, strengthening our competitive position
during periods of economic uncertainty.
We would like to thank every member of our good4uSM Crew for their commitment to operational
execution and exceptional customer service, which were instrumental in driving our strong results.
GROWTH DRIVERS
Our key initiatives fueled growth during fiscal 2025 and are expected to drive our long-term success.
    {N}power   rewards: We continue to enhance the personalization and interactivity of our
{N}power rewards program offerings. The maturity and high penetration rate of our {N}power
rewards program     we finished the year with a net sales penetration of 82%     enables efficient
and relevant customer engagement.
    Natural Grocers brand products: Our Natural Grocers brand private label products continue
to experience elevated growth, accounting for 8.7% of total sales, up from 8.5% a year ago.
During fiscal 2025, we extended our Natural Grocers brand offerings with the launch of 119 new
items, providing our customers with premium quality at compelling prices.
    New stores: In fiscal 2025 we opened two new stores, relocated two stores, and remodeled
one store. Accelerating new store unit growth is another core element of our growth strategy. In
August 2025, we announced our plan to open six to eight new stores in fiscal 2026, and are
committed to four to five percent annual new store unit growth for the foreseeable future.
Our new store pipeline includes real estate opportunities in states in which we operate and
adjacent states. With a consistent track record of strong financial and operating performance
over the past several years, we believe we are well positioned to execute this plan.
STOCKHOLDER RETURN
We remain committed to enhancing value for our stockholders by maintaining a balanced approach
to capital allocation. In addition to investing in our business to accelerate new store unit growth, in
November 2025 our Board of Directors increased the quarterly cash dividend by 25% to $0.15 per
common share, reflecting our strong fiscal 2025 operating performance and financial position, as well
as confidence in the direction and trajectory of our business. Since initiating the dividend in 2019, and
through the dividend paid in December 2025, the Company has cumulatively returned $122 million in
capital to our stockholders through $5.39 of cumulative dividends per common share.
LOOKING AHEAD
We are committed to maximizing value for our stockholders. As we look forward to fiscal year 2026,
we expect to build upon our momentum by executing to our founding principles, including our Always
Affordable Price strategy and differentiated product offering, emphasizing operational excellence,
and delivering on our new store unit growth plans. We are confident in our ability to continue to drive
profitable, long-term growth and enhance value for all stakeholders.
2
KEMPER ISELY, CO -PRESIDENT
ZEPHYR ISELY, CO -PRESIDENT



shareholder letter icon 1/22/2026 Letter Continued (Full PDF)
 

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