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Aug 30, 2025
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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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