Simply Good Foods Co/the — Financial Results
Revenue Fell 6.5% as Atkins and OWYN Struggled While Quest Grew
| Metric | FY2026 | FY2025 | Change |
|---|---|---|---|
| Net Sales | $1,356.5M | $1,450.9M | -6.5% |
| Gross Profit | $442.4M | $525.7M | -15.9% |
| Gross Margin | 32.6% | 36.2% | -360 bps |
Net sales dropped $94.4 million, driven by Atkins and OWYN losing shelf space at retailers as fewer shoppers were buying their products — a problem known as declining velocity (how quickly products sell through). Quest partially offset this with volume-driven growth, but not enough to prevent an overall decline. Gross margin (the share of revenue left after production costs) also fell sharply, hurt by higher ingredient costs and restructuring charges.
$331 Million in Asset Write-Downs Signal Serious Brand Value Deterioration
| Impairment Charge | FY2026 | FY2025 |
|---|---|---|
| OWYN brand | $200.0M | $0 |
| Atkins brand | $93.0M | $60.9M |
| Goodwill | $38.0M | $0 |
| Total | $331.0M | $60.9M |
An impairment charge is when a company formally acknowledges that an asset — here, brand names — is worth less on the books than it is in reality. The size of these write-downs, $331 million in a single year, reflects how much the market value and future revenue prospects for Atkins and OWYN have deteriorated. Notably, the Quest brand passed its impairment test with no write-down required.
The Company Swung to a $155.9 Million Net Loss From a $103.6 Million Profit
| FY2026 | FY2025 | |
|---|---|---|
| Net Income (Loss) | -$155.9M | +$103.6M |
| Adjusted EBITDA | $225.9M | $278.2M |
The headline net loss is almost entirely explained by the $331 million in non-cash impairment charges. Adjusted EBITDA — a measure that strips out items like impairments and restructuring costs to show underlying operating performance — fell a more modest but still meaningful 18.8%, from $278.2 million to $225.9 million. This suggests the core business is under real pressure, not just an accounting adjustment.
Restructuring Underway After CEO Departure and Org Redesign
The company incurred $19.5 million in restructuring costs in FY2026 — covering workforce reductions, management changes, and operational streamlining — and expects total restructuring costs to reach approximately $25 million including payments that will continue into FY2027. This followed the departure of the company's President and CEO in January 2026. These are real cash costs tied to a deliberate effort to shrink the cost base and simplify the organization.
Debt Extended to 2030 but Balance Sheet Carries $350 Million in Term Loans
In November 2025, the company borrowed an additional $150 million and pushed its debt maturity from March 2027 out to March 2030, buying itself more runway. The outstanding term loan (a fixed borrowing repaid at maturity) stands at $350 million. The company held $138.4 million in cash at year-end and generated $181 million in operating cash flow, so near-term liquidity appears manageable — but the debt load is worth watching given the declining profitability.
Company Bought Back $213 Million of Its Own Stock at Depressed Prices
During FY2026, Simply Good Foods repurchased 11.7 million shares at an average price of $18.29, spending $213.3 million — a dramatic acceleration from just $50.9 million spent in FY2025 at $31.95 per share. The Board also approved a fresh $200 million repurchase authorization in January 2026. Buying back stock while the business is under pressure and carrying $350 million in debt is an aggressive capital allocation choice that investors will likely want to evaluate carefully.