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Aug 30
Simply Good Foods Q4 2025 Earnings Report
Reported a net loss due to a non-cash impairment on the Atkins brand despite strong growth from Quest and OWYN.
Key Takeaways
Simply Good Foods reported Q4 FY25 results showing a net loss primarily due to a $60.9 million non-cash impairment on the Atkins brand. Revenue declined slightly due to an extra week in the prior-year period, though Quest and OWYN brands posted strong growth. Adjusted EPS came in at $0.46, and Adjusted EBITDA was $66.2 million, reflecting lower margins from higher input costs.
Net sales were $369.0 million, down 1.8% year over year due to the extra week in Q4 FY24.
Gross profit declined 13.3% to $126.6 million with a 450 bps margin decrease to 34.3%.
A $60.9 million non-cash impairment on the Atkins brand led to a net loss of $12.4 million.
Adjusted EBITDA was $66.2 million, down 14.5% year over year, and Adjusted EPS was $0.46.
Simply Good Foods
Simply Good Foods
Simply Good Foods Revenue by Segment
Simply Good Foods Revenue by Geographic Location
Revenue by Segment
Atkins Revenue
CapyFin.comQuest Revenue
CapyFin.comOWYN Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
For FY26, the company expects net sales growth between -2% and +2% year over year, gross margins to decline by 100–150 basis points, and Adjusted EBITDA to range from -4% to +1%.
Positive Outlook
- Continued strong growth expected from Quest and OWYN brands.
- Significant increase in marketing spending to support OWYN trial and awareness.
- Productivity and pricing benefits anticipated in the second half of FY26.
- Stronger second-half performance expected both on revenue and profit.
- Potential for additional investments to accelerate growth.
Challenges Ahead
- Reduced distribution for Atkins expected to be a headwind.
- Gross margin pressure from inflation and tariffs in the first half of FY26.
- Timing lag between inflationary expenses and productivity gains.
- Short-term profit declines before recovery in later quarters.
- Dependence on stable economic and tariff conditions throughout FY26.
Revenue & Expenses
Visualization of income flow from segment revenue to net income