Mar 01

Simply Good Foods Q2 2025 Earnings Report

Simply Good Foods reported solid top-line growth and margin expansion in Q2 2025.

Key Takeaways

Simply Good Foods delivered strong Q2 results, with revenue rising 15% year-over-year, driven by Quest and the newly acquired OWYN brand. Adjusted EBITDA increased 18% amid favorable costs and disciplined spending.

Revenue rose 15% year-over-year to $359.7M

OWYN added $33.8M in sales in its first full quarter

Adjusted EBITDA increased 18% to $68M

Atkins sales declined 11.5%, while Quest and OWYN saw double-digit growth

Total Revenue
$360M
Previous year: $312M
+15.2%
EPS
$0.46
Previous year: $0.4
+15.0%
Adjusted EBITDA
$68M
Previous year: $57.8M
+17.6%
Gross Profit
$130M
Previous year: $113M
+15.5%
Cash and Equivalents
$104M
Previous year: $136M
-23.7%
Free Cash Flow
$63.3M
Previous year: $46.1M
+37.2%
Total Assets
$2.43B
Previous year: $2.15B
+13.0%

Simply Good Foods

Simply Good Foods

Simply Good Foods Revenue by Segment

Simply Good Foods Revenue by Geographic Location

Forward Guidance

Simply Good Foods reaffirmed its FY25 outlook, projecting moderate growth driven by volume and product innovation.

Positive Outlook

  • FY25 Net Sales expected to grow 8.5–10.5%
  • OWYN FY25 revenue guided at $140–150M
  • Adjusted EBITDA expected to grow 4–6%
  • Cost savings and productivity initiatives in place
  • Continued strong demand for high-protein, low-sugar products

Challenges Ahead

  • 53rd week in FY24 is a 2-point headwind to growth comparisons
  • Gross margin expected to decline ~200 bps YoY
  • Tariffs and higher input costs anticipated in 2H FY25
  • Atkins brand continues to see sales pressure
  • Cash flow from operations down vs. prior year due to working capital

Revenue & Expenses

Visualization of income flow from segment revenue to net income