United Natural Foods, Inc. (UNFI) estimated in July 2025 that its June cyber incident would reduce fiscal 2025 net sales by approximately $350 million to $400 million. That was management’s estimate of the sales impact—not a final audited tally of sales definitively lost—and it was separate from the company’s projected effects on net income and adjusted EBITDA.
What UNFI estimated the incident would cost
In a July 2025 business update, UNFI projected the following effects for fiscal 2025. The estimates excluded anticipated insurance proceeds.
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| Measure | UNFI’s July 2025 estimate | What it represents |
|---|---|---|
| Net sales | Approximately $350 million to $400 million lower | Estimated impact on sales, not a confirmed amount of permanently lost sales |
| Net income | $50 million to $60 million lower | Estimated impact on the company’s net income |
| Adjusted EBITDA | $40 million to $50 million lower | Estimated impact on adjusted earnings before interest, taxes, depreciation and amortization |
These are different measures and should not be added together: sales are revenue, while net income and adjusted EBITDA are earnings measures. UNFI said the effects reflected lower sales volume, higher operating costs, and expenses for investigating and remediating the incident. UNFI’s July 2025 business update contains the estimates and management’s explanation.
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UNFI said it became aware of unauthorized activity on certain information technology systems on June 5, 2025. The company activated its incident response plan and proactively took some systems offline. That temporarily affected its ability to fulfill and distribute customer orders; it used workarounds where possible while working to restore systems. In its June 9 Form 8-K, UNFI described the event as “unauthorized activity on certain of its Information Technology (IT) systems.” The filing did not identify an attack group or malware family.
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In a June 21 filing, UNFI reported lower sales volume and higher operating costs in the weeks after the incident, as well as investigation and remediation expenses. Its July update said it did not then expect meaningful operational or financial impact beyond fiscal fourth-quarter 2025, aside from insurance reimbursement. That was management’s outlook at the time, not a statement that later incident-related costs or reporting would cease. UNFI’s June 23, 2025 Form 8-K describes the initial operating effects.
Evidence of disruption at a customer
Natural Grocers by Vitamin Cottage reported product shortages in June and July 2025 after UNFI’s fulfillment and distribution ability was temporarily affected. The retailer said distribution normalized in the following weeks. This provides a customer-side example of the disruption, but it is evidence specific to Natural Grocers and should not be treated as a measure of effects across all UNFI customers. The account appears in Natural Grocers’ fiscal 2025 annual report.
What later financial disclosures show
UNFI’s fiscal 2026 reporting adds context, but does not turn the July 2025 sales estimate into a final audited loss figure. The company reported $24 million in fiscal 2026 incident-related costs and charges in its annual report: $20 million was allocated to gross profit and $4 million to operating expenses. The annual report also says UNFI received $50 million in incident insurance proceeds during fiscal 2026. Its September 8, 2026 results release instead lists $45 million of fiscal 2026 insurance recoveries; the reviewed disclosures do not reconcile the different descriptions.
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| Fiscal-year disclosure | Reported amount | Qualification |
|---|---|---|
| Incident-related costs and charges | $24 million | Fiscal 2026; $20 million in gross profit and $4 million in operating expenses, according to the annual report |
| Insurance proceeds | $50 million | Described as proceeds received during fiscal 2026 in UNFI’s annual report |
| Insurance recoveries | $45 million | Listed for fiscal 2026 in UNFI’s September 8, 2026 results release |
The two insurance figures are attributed to their respective documents; the disclosures reviewed do not explain the difference. They should not be silently combined or treated as directly interchangeable. See UNFI’s fiscal 2026 Form 10-K and its September 8, 2026 fiscal-year results release.
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How to read UNFI’s fiscal 2026 sales comparison
UNFI reported fiscal 2026 net sales of $31.152 billion, down 2.0% from $31.784 billion in fiscal 2025. Fiscal 2026 ended August 1, 2026; fiscal 2025 ended August 2, 2025. UNFI’s annual report attributes the change to multiple factors, including decreases in its Conventional and Retail segments, partly offset by Natural segment growth and the comparison with the prior-year cyber incident. The full year-over-year decline therefore should not be attributed to the attack alone.
In its July 2025 update, CEO Sandy Douglas said, “We are grateful to our customers, suppliers, and associates for their resilience and collaboration as we worked through a challenging period for all of us.” That statement reflected the company’s response during the disruption; the later fiscal 2026 disclosures provide the subsequent financial context.
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