Simply Good Foods Co/the — Income Statement, Cash Flows & Balance Sheet
Is Simply Good Foods profitable?
Simply Good Foods grew revenue meaningfully, but a one-time impairment charge on the Atkins brand significantly dented reported profits.
| Metric | FY2024 (53 wks) | FY2025 (52 wks) | Change |
|---|---|---|---|
| Net sales | $1,331.3M | $1,450.9M | +9.0% |
| Gross profit | $511.6M | $525.7M | +2.8% |
| Gross margin | 38.4% | 36.2% | −2.2 pts |
| Loss on impairment | $0 | $60.9M | — |
| Net income | $139.3M | $103.6M | −25.6% |
| Diluted EPS | $1.38 | $1.02 | −26.1% |
Revenue grew at a healthy clip, but gross margins slipped as the OWYN acquisition brought in lower-margin product mix and cost of goods rose faster than sales. The headline profit decline is largely explained by a $60.9M non-cash write-down (impairment charge) of the Atkins brand, which reflects lowered long-term revenue expectations for that product line — strip that out and the underlying business remained solidly profitable.
Where does Simply Good Foods' revenue come from?
Quest is the undisputed growth engine, while Atkins is in structural decline — and OWYN is a meaningful new contributor in its first full year.
| Brand / Region | FY2024 | FY2025 | Change |
|---|---|---|---|
| Quest (North America) | $777.4M | $863.6M | +11.1% |
| Atkins (North America) | $492.0M | $420.8M | −14.5% |
| OWYN (North America) | $29.2M | $137.0M | +369% (first full year) |
| International | $32.7M | $29.5M | −9.8% |
| Total | $1,331.3M | $1,450.9M | +9.0% |
Quest now accounts for nearly 60% of total revenue and is growing strongly. Atkins — once the flagship brand — is shrinking, which is what triggered the impairment charge. OWYN, acquired in mid-2024, contributed a full year of sales this period and is the company's bet on plant-based protein growth.
Does Simply Good Foods generate cash?
The business generates solid operating cash flow and used it to aggressively pay down debt and buy back shares.
| Cash Flow Item | FY2024 | FY2025 | Change |
|---|---|---|---|
| Operating cash flow | $215.7M | $178.5M | −17.2% |
| Capital expenditures | $(5.7M) | $(20.5M) | +257% |
| Free cash flow (GAAP approx.) | $210.0M | $158.0M | −24.8% |
| Debt repaid | $(135.0M) | $(150.0M) | +11.1% |
| Share repurchases | $0 | $(50.9M) | — |
Operating cash flow dipped partly because working capital (inventories and receivables) built up during the year. Capital spending jumped due to investment in contract manufacturing facilities. Despite that, the company used its free cash flow to repay $150M of debt and initiate meaningful share buybacks — signs of a management team confident in the business's cash generation.
How strong is Simply Good Foods' balance sheet?
Debt has been cut nearly in half over two years and is manageable, but the balance sheet is dominated by intangible assets that carry write-down risk.
| Item | FY2024 | FY2025 | Change |
|---|---|---|---|
| Cash | $132.5M | $98.5M | −$34.0M |
| Long-term debt (gross) | $400.0M | $250.0M | −$150.0M |
| Total assets | $2,436.1M | $2,396.0M | −$40.1M |
| Intangibles + goodwill | $1,928.2M | $1,851.6M | −$76.6M |
| Total stockholders' equity | $1,727.5M | $1,806.8M | +$79.3M |
Debt paydown has been impressive — the company has paid down $406.5M since fiscal 2023 — and the remaining $250M term loan matures in March 2027, giving time to refinance or repay. The key watch item is that roughly 77% of total assets are intangibles and goodwill, meaning the balance sheet is heavily dependent on the sustained value of the Quest, Atkins, and OWYN brands. The Atkins write-down this year is a reminder that those values can and do change.