10-Q · July 9, 2026
Simply Good Foods reported a challenging Q3 fiscal 2026, with a 6.3% decrease in revenue to $357 million from $381 million in Q3 fiscal 2025, and a significant net loss of $51.97 million compared to a profit of $41.1…
Earnings analysis · 10-K
SMPL earnings analysis
Filed October 27, 2026 · Our reading of the company's report
The latest report
Simply Good Foods retains a differentiated three-brand nutritious-snacking platform, but fiscal 2026 marked a material deterioration in revenue, margins, EPS, and brand value. Quest growth was insufficient to offset…
Read full summary
Simply Good Foods retains a differentiated three-brand nutritious-snacking platform, but fiscal 2026 marked a material deterioration in revenue, margins, EPS, and brand value. Quest growth was insufficient to offset Atkins and OWYN distribution and velocity declines, while $331.0 million of impairment charges drove a $155.9 million net loss and diluted EPS of negative $1.69. Positive operating cash flow and an extended March 2030 debt maturity provide liquidity, but retailer concentration, tariff and input-cost pressure, large buybacks, and the sharp forward sales decline described in the fourth-quarter release make the outlook bearish.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-1.69
- Segment
- One consolidated operating/reportable segment: $1,356.5 million of revenue in fiscal 2026; North America revenue was $1,326.2 million, including Atkins $332.7 million, Quest $869.7 million, and OWYN $123.8 million; international revenue was $30.3 million.
What stood out
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Diversified nutritious-snacking platform
The company positions Quest, Atkins, and OWYN as a nutritious-snacking platform focused on protein-rich, low-sugar or low-carbohydrate products, with OWYN adding plant-based beverages tested for the top nine allergens. Management plans new advertising campaigns across all three brands in fiscal 2027.
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Quest growth offsets weaker brands
Quest was the growth driver: North America Quest revenue increased to $869.7 million in fiscal 2026 from $863.6 million in fiscal 2025 and $777.4 million in fiscal 2024. This partially offset Atkins revenue falling to $332.7 million from $420.8 million and OWYN revenue falling to $123.8 million from $137.0 million.
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Three-year revenue and margin deterioration
Fiscal 2026 net sales declined 6.5% to $1,356.5 million from $1,450.9 million, following growth from $1,331.3 million in fiscal 2024. Gross margin compressed to 32.6% from 36.2% in fiscal 2025 and 38.4% in fiscal 2024, while operating margin moved to negative 13.2% from 10.8% and 15.5%, respectively.
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Cash flow stayed positive
Cash generation remained resilient despite the GAAP loss: operating cash flow was $181.0 million and estimated free cash flow was approximately $156.9 million after $24.1 million of property and equipment purchases. Cash increased to $138.4 million from $98.5 million year over year.
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Aggressive buybacks, no dividend
The company repurchased 11.7 million shares for $213.3 million during fiscal 2026 at an average price of $18.29 per share, and approximately $157.4 million remained under the authorization. It paid no dividends and states that it does not expect to pay cash dividends in the foreseeable future.
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Liquidity supported by extended maturity
Debt maturity risk was extended: the company ended fiscal 2026 with $350.0 million of term debt, no revolver borrowings, and no required principal payments over the next twelve months; the term facility matures in March 2030. A 1% increase in interest rates would increase annual interest expense by approximately $3.5 million.
What to watch
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Large impairments signal brand deterioration
Brand and goodwill impairment became a material indicator of weakening economics. Fiscal 2026 included $200.0 million of OWYN brand impairment, $93.0 million of Atkins brand impairment, and $38.0 million of goodwill impairment, versus $60.9 million of impairment charges in fiscal 2025; further declines in revenue projections could cause additional charges.
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Retailer concentration and shelf-space loss
Retail concentration and distribution losses are substantial: Walmart represented approximately 30% of fiscal 2026 sales and Amazon approximately 20%, while the filing says retailers reduced the number of Atkins products carried and that Atkins and OWYN experienced reduced shelf space and points of distribution. The company has no recurring or minimum purchase commitments from these retailers.
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Tariffs and inflation pressure margins
Input-cost and tariff exposure is worsening into fiscal 2027. The company experienced higher costs for core ingredients and supplies in fiscal 2026, anticipates further increases in fiscal 2027, and says U.S. tariffs on imports from the European Union, Canada, Mexico, and China increased ingredient and packaging costs during fiscal 2026 and are expected to continue in fiscal 2027.
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New OWYN integration litigation
A new putative stockholder class action filed on August 14, 2026 names the company, its former CEO, former CFO, and current CFO and covers investors who purchased shares between October 24, 2024 and April 8, 2026. The complaint alleges misleading statements about OWYN integration under Sections 10(b) and 20(a) of the Securities Exchange Act.
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Leverage limits capital flexibility
The company remains leveraged despite positive cash flow: term debt was $350.0 million at August 29, 2026, secured by substantially all domestic assets, and the credit agreement limits acquisitions, dividends, additional debt, and other actions. Variable-rate debt also creates sensitivity to higher SOFR-based borrowing costs.
Management's outlook
The 10-K does not provide numeric fiscal 2027 revenue or EPS guidance; annual outlook was provided separately in the fourth-quarter earnings release/call. The filing does state that approximately $25.0 million of restructuring and other costs are expected, including $19.5 million incurred in fiscal 2026, with remaining costs continuing into fiscal 2027.
Earlier filings 4
10-Q · April 9, 2026
Simply Good Foods reported a revenue decline to $326.0M for the quarter (thirteen weeks ended February 28, 2026) and a large non-cash impairment that pushed the company to a GAAP operating loss of $213.3M and a diluted…
10-K · October 28, 2025
Simply Good Foods reported fiscal 2025 net sales of $1,450,920,000 (up $119.6M or 9.0% vs prior year) driven by Quest and OWYN volume growth, but gross margin compressed to 36.2% (down 220 bps) and the company recorded…
10-Q · June 27, 2024
Simply Good Foods reported quarterly net sales of $334,757,000, up $9,965,000 (3.1%) versus $324,792,000 a year ago, with gross profit increasing to $133,626,000 and diluted EPS rising to $0.41 from $0.35. Gross margin…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.