UNFI: Q4 ‘Builds Momentum’ After Cyberattack Recovery

Mainline distribution company UNFI reported “strength and resilience” despite elevated year-over-year net losses in its fourth-quarter earnings call.

During the Tuesday morning call, the company reported net loss was $87 million in Q4 and $118 million in FY2025, attributed to lost income and costs associated with its early-June cyber incident.

Company leadership calculated that approximately $50 million of adjusted EBITDA was impacted by the cyber attack in Q4, down from earlier estimates of a $65 million to $75 million loss. Adjusted EBITDA was $116 million, declining from $143 million in the same period last year.

“We’re building momentum as we enter year two of our strategic plan,” said CEO Sandy Douglas in prepared remarks.

Douglas pointed to the net sales gains and adjusted EBITDA growth as examples of UNFI’s success in climbing back from a series of disappointing quarters in 2023 and 2024.

Net sales increased 1.6% in Q4 and 4.6% in FY2025 (when excluding the extra week in Q4 2024), while FY2025 adjusted EBITDA rose to $552 million, versus $518 million in 2024.

“Our progress towards becoming a more effective and efficient company has been driven by four components: work optimization, cost efficiency, working capital management and reducing capital intensity,” he said in a prepared statement.

The company consolidated its volumes at four distribution centers as it took a “lean” approach to capacity management. UNFI has also invested in automation at distribution centers in Manchester, Pa., and Sarasota, Fla.

By segment, UNFI grew natural channel net sales by 9.1% in Q4, while conventional channel declined 6.1%.

Douglas conceded that conventional has been a “headwind” for UNFI category growth, but is on a path of “optimization” to address those issues. The company hopes to offset some of those hurdles with its new merchandising service fee program it announced over the summer.

“We’re just performing slightly better than we expected when we originally guided last year,” he said.

For FY2026, the company forecasts net sales between $31.6 billion and $32 billion, income flat to $50 million and adjusted EBITDA between $630 million and $700 million.