Financial Analysis

19. Commitments and Contingencies Self-Insurance The Company is self-insured for certain losses, liabilities and employee benefit costs, subject to a stop loss policy or deductible limits. Liabilities associated with the risks that are retained by the Company are estimated, in part, by considering an analysis of actual claims, historical claims experience, demographic factors and other actuarial assumptions. While the Company believes that its assumptions are appropriate, the estimated accrual for these liabilities could be significantly affected if future occurrences and claims materially differ from these assumptions and historical trends. Legal Proceedings The Company is periodically involved in various legal proceedings that are incidental to the conduct of its business, including but not limited to labor and employment-related claims, customer injury claims, investigations and other proceedings arising in the ordinary course of business. When the potential liability from a matter can be estimated and the loss is considered probable, the Company records the estimated loss. Due to uncertainties related to the resolution of lawsuits, investigations, and claims, the ultimate outcome may differ from the estimates. Although the Company cannot predict with certainty the ultimate resolution of any lawsuits, investigations, and claims asserted against it, management does not believe any currently pending legal proceeding to which the Company is a party will have a material advers …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Year ended September 30, 2025 2024 2023 Grocery $ 952,171 72 % 878,263 71 796,241 70 Dietary supplements 252,941 19 243,953 20 235,714 21 Body care, pet care and other 125,724 9 119,369 9 108,613 9 $ 1,330,836 100 % 1,241,585 100 1,140,568 100

DisaggregationOfRevenueTableTextBlock

13. Share-Based Compensation The Company adopted the 2012 Omnibus Incentive Plan (as amended, the Plan) on July 17, 2012. Restricted stock unit awards granted pursuant to the Plan, if they vest, are settled in new shares of the Companys common stock or shares of common stock held in treasury. At the adoption of the Plan, there were 1,090,151 shares of common stock available for issuance or delivery under the Plan. In March 2019, the Companys stockholders approved a proposal to amend the Plan to: (i) increase the number of shares of common stock reserved for issuance thereunder by 600,000 shares and (ii) extend its term by five years. In March 2024, the Companys stockholders approved a proposal to amend the Plan to: (i) increase the number of shares of common stock reserved for issuance thereunder by 600,000 shares and (ii) extend its term by five years. As of September 30, 2025, 452,390 shares of common stock remain available for grants under the Plan. The Plan provides for awards of options, stock appreciation rights, stock grants, restricted stock units, other share-based awards and cash-based incentive awards to officers, members of the Board, certain employees who are not named executive officers and consultants. As of September 30, 2025, restricted stock units had been granted under the Plan, at no out-of-pocket cost to officers, Board members and key employees. These restricted stock units generally vest, subject to requisite service requirements, annually in installmen …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

5. Fair Value Measurements The Company records its financial assets and liabilities at fair value in accordance with the framework for measuring fair value. The framework establishes a fair value hierarchy that distinguishes between assumptions based on market data (observable inputs) and market participants assumptions (unobservable inputs). Non-financial assets, such as goodwill, indefinite-lived intangibles and long-lived assets, are accounted for at fair value on a non-recurring basis. These items are tested for impairment on the occurrence of a triggering event or, in the case of goodwill and indefinite-lived intangibles, at least on an annual basis. During fiscal year 2025, long-lived assets with an aggregate carrying value of $0.1 million were written down to their fair value of less than $0.1 million, resulting in asset impairment charges of $0.1 million. During fiscal year 2024, long-lived assets with an aggregate carrying value of $6.1 million were written down to their fair value of $3.9 million, resulting in asset impairment charges of $2.2 million. During fiscal year 2023, long-lived assets with an aggregate carrying value of $5.9 million were written down to their fair value of $4.6 million, resulting in asset impairment charges of $1.3 million. The carrying amounts of the Companys financial assets and liabilities, including cash and cash equivalents, accounts receivable, accounts payable and other accrued expenses, approximate fair value because of the short ma …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

9. Goodwill and Other Intangible Assets Goodwill and other intangible assets as of September 30, 2025 and 2024, are summarized as follows, dollars in thousands: Useful lives As of September 30, (in years) 2025 2024 Amortizable intangible assets: Internal-use software (1) 1 7 $ 14,969 14,774 Other intangibles (1) 1 10 92 92 Amortizable intangible assets 15,061 14,866 Less accumulated amortization (8,929 ) (7,034 ) Amortizable intangible assets, net 6,132 7,832 Internal-use software in process (1) 21 50 Trademarks Indefinite 389 389 Deferred financing costs, net 3 5 15 19 Total other intangibles, net 6,557 8,290 Goodwill Indefinite 5,198 5,198 Total goodwill and other intangibles, net $ 11,755 13,488 (1) Internal-use software at September 30, 2024 has been reclassified from other intangibles to be consistent with the current year presentation. Amortization expense was $1.9 million, $1.7 million and $1.5 million for the years ended September 30, 2025, 2024 and 2023, respectively. Future aggregate amortization expense associated with intangible assets for the fiscal years subsequent to 2025 is estimated to be approximately as follows, dollars in thousands: Fiscal year Amortization expense 2026 $ 1,799 2027 1,642 2028 1,405 2029 1,305 2030 5 Thereafter 12 Total amortization expense $ 6,168 Capitalized costs for internal-use software implementation and development were $0.2 million, $1.1 million and $1.1 million for the years ended September 30, 2025, 2024 and 2023, respectively, p …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

16. Income Taxes The following are the components of the provision for income taxes for the years ended September 30, 2025, 2024 and 2023, respectively, dollars in thousands: Year ended September 30, 2025 2024 2023 Current federal income tax expense $ 12,575 10,413 5,291 Current state income tax expense 2,516 2,408 1,311 Total current income tax expense 15,091 12,821 6,602 Deferred federal income tax benefit (2,246 ) (3,283 ) (1,334 ) Deferred state income tax benefit (362 ) (672 ) (141 ) Total deferred income tax benefit (2,608 ) (3,955 ) (1,475 ) Total provision for income taxes $ 12,483 8,866 5,127 The differences between the United States federal statutory income tax rate and the Companys effective tax rate are as follows: Year ended September 30, 2025 2024 2023 Statutory tax rate 21.0 % 21.0 21.0 State income taxes, net of federal income tax expense 2.9 2.9 3.1 Enhanced food deduction (1.3 ) (1.9 ) (3.1 ) Deferred tax liability adjustment 0.3 0.8 Other, net (1.7 ) (2.1 ) (2.9 ) Effective tax rate 21.2 % 20.7 18.1 Deferred taxes have been classified on the consolidated balance sheets as follows, dollars in thousands: As of September 30, 2025 2024 Long-term assets $ Long-term liabilities (7,863 ) (10,471 ) Net deferred tax liabilities $ (7,863 ) (10,471 ) The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows, dollars in thousands: As of September 30, 2025 2024 Deferred tax assets: …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

11. Debt Credit Facility The Company is party to a credit facility originally entered into on January 28, 2016, as subsequently amended, consisting of a revolving loan facility and, prior to its repayment in September 2024, a $35.0 million term loan (the Term Loan and, collectively, the Credit Facility). As of September 30, 2024, the Company had fully repaid all remaining amounts outstanding under the Term Loan. The operating company is the borrower under the Credit Facility and its obligations under the Credit Facility are guaranteed by the holding company. The Credit Facility is secured by a lien on substantially all of the Companys assets. At September 30, 2025, the aggregate revolving commitment amount available under the Credit Facility was $72.5 million, including a $5.0 million sublimit for standby letters of credit. The Company has the right to borrow, prepay and re-borrow revolving amounts under the Credit Facility at any time prior to its maturity date without premium or penalty. The aggregate revolving commitment amount will be automatically and permanently reduced by $2.5 million on each anniversary date until the Credit Facility matures on November 16, 2028, unless the Company has previously exercised its option to reduce the aggregate revolving commitments to a lower amount. Base rate loans under the Credit Facility bear interest at a fluctuating base rate, as determined by the lenders administrative agent based on the most recent compliance certificate of the o …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Pronouncements In November 2023, the FASB issued Accounting Standards Update (ASU) 2023-07, Improvements to Reportable Segment Disclosures, ASC Topic 280, Segment Reporting (ASU 2023-07). The ASU 2023-07 provisions require enhanced disclosures primarily about significant segment expenses. In addition, the provisions enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The Company adopted ASU 2023-07 effective for the year ended September 30, 2025 by updating its single reportable segment disclosures (see Note 18), but there was no other impact on the Companys consolidated financial statements upon adoption. In March 2023, the FASB issued ASU 2023-01, Common Control Arrangements, ASC Topic 842, Leases (ASU 2023-01). Issue 1, Terms and Conditions to Be Considered, of ASU 2023-01 is not applicable to public entities. Issue 2, Accounting for Leasehold Improvements, of ASU 2023-01 requires leasehold improvements associated with common control leases to be amortized over the useful life of the improvements and certain disclosures when the useful life of leasehold improvements to the common control group exceeds the related lease term. The provisions of ASU 2023-01, Issue 2, were effective for the Companys first quarter of the year ended …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

17. Defined Contribution Plan The Company has a defined contribution retirement plan (the Retirement Plan) covering substantially all employees who meet certain eligibility requirements as to age and length of service. The Retirement Plan incorporates the salary deferral provisions of Section 401(k) of the Internal Revenue Code of 1986, as amended (the Code). Employees may defer up to the annual maximum limit prescribed by the Code. The Company, on a discretionary basis, may match up to 25% of participant contributions up to a maximum annual employer match of $2,500. As of September 30, 2025, the Company had accrued $1.1 million for matching contributions to be paid out after the plan year ending December 31, 2025. Subsequent to plan years ended December 31, 2024 and 2023, the Company funded matching contributions to participants accounts of $1.4 million and $1.3 million, respectively. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

15. Related Party Transactions The Company has ongoing relationships with related entities as noted below: Chalet Properties, LLC: The Company has five operating leases (see Note 12) with Chalet. Chalet is owned by the Companys four non-independent Board members, Kemper Isely, Zephyr Isely, Heather Isely and Elizabeth Isely, and other related family members. Rent paid to Chalet was $0.9 million for each of the years ended September 30, 2025, 2024 and 2023. Isely Family Land Trust LLC: The Company has one operating lease (see Note 12) with the Land Trust. The Land Trust is owned by the Isely Childrens Trust and by the Margaret A. Isely Family Trust. Rent paid to the Land Trust was $0.3 million for each of the years ended September 30, 2025, 2024 and 2023. FTVC LLC: The Company has one operating lease (see Note 12) with FTVC, which is owned by the Companys four non-independent Board members and other related family members. Rent paid to FTVC was less than $0.1 million for each of the years ended September 30, 2025, 2024 and 2023. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

3. Revenue Recognition The nature of the goods the Company transfers to customers at the point of sale consists of merchandise purchased for resale. In these transactions, the Company acts as a principal and recognizes revenue (net sales) from the sale of goods when control of the promised goods is transferred to the customer. Control refers to the ability of the customer to direct the use of, and obtain substantially all the remaining benefits from, the transferred goods. The Companys performance obligations are satisfied upon the transfer of goods to the customer (at the point of sale), and payment from the customer is also due at that time. Transaction prices are considered fixed. Discounts provided to customers at the point of sale are recognized as a reduction in revenue as the goods are sold. Revenue excludes sales and usage-based taxes collected. Proceeds from the sale of the Companys gift cards are recorded as a liability at the time of sale and recognized as revenue when the gift cards are redeemed by the customer and the performance obligation is satisfied by the Company. As of September 30, 2025 and 2024, the balance of contract liabilities related to unredeemed gift cards was $1.6 million and $1.5 million, respectively. Revenue for the year ended September 30, 2025 includes $0.8 million that was included in the contract liability balance of unredeemed gift cards at September 30, 2024. Rewards program points are accrued as deferred revenue at the retail value per p …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

18. Segment Reporting The Company has one operating segment, and therefore, a single reportable segment: natural and organic retail stores. This segment derives all of its revenue from the sale of grocery, dietary supplements, body care and other products at the Companys stores located in the United States. The accounting policies of this segment are the same as those described in the Company's summary of significant accounting policies. The Company's chief operating decision maker (CODM) is its Co-President and Chairman of the Board. The CODM uses the segment's net income to assess performance against budget, make key operating decisions, and allocate capital resources, including the rate at which to invest in new or relocated stores. The measure of the segments assets is reported on the consolidated balance sheet as total assets and its depreciation and amortization expense is reported in Note 6, Property and Equipment . The following table represents the significant categories and amounts that are regularly reviewed by the CODM and included in the segment's net income, dollars in thousands: Year ended September 30, 2025 2024 2023 Net sales $ 1,330,836 1,241,585 1,140,568 Less: Cost of goods sold and occupancy costs 932,959 876,775 813,637 Direct operating costs 316,661 296,385 274,167 Pre-opening expenses 1,043 1,722 2,007 Other segment items (1) 18,183 19,726 19,088 Interest expense, net 3,063 4,176 3,299 Provision for income taxes 12,483 8,866 5,127 Net income $ 46,444 3 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

14. Stockholders Equity As of September 30, 2025, the Company had 50,000,000 shares of common stock authorized, of which 22,954,712 shares were issued and outstanding, as well as 10,000,000 shares of preferred common stock authorized, of which none was issued and outstanding. Share Repurchases In May 2016, the Board authorized a two -year share repurchase program pursuant to which the Company may repurchase up to $10.0 million in shares of the Companys common stock. The Board subsequently extended the share repurchase program most recently in May 2024 and the current program will terminate on May 31, 2026. Repurchases under the Companys share repurchase program may be made from time to time at managements discretion on the open market or through privately negotiated transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the Exchange Act), subject to market conditions, applicable legal requirements and other relevant factors. Repurchases of common stock may also be made under a Rule 10b5-1 plan, which permits common stock to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The share repurchase program does not obligate the Company to purchase any particular amount of common stock and may be suspended, modified or discontinued by the Company without prior notice. Between October 1, 2025 and December 8, 2025 (the latest practical date for making the determination), the Company has n …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

20. Subsequent Events On November 19, 2025, the Board approved the payment of a quarterly cash dividend of $0.15 per share of common stock, which was paid on December 10, 2025 to stockholders of record as of the close of business on December 1, 2025.

SubsequentEventsTextBlock