The Simply Good Foods Company (SMPL) investor relations material

Executive summary

• Q1 net sales were $340.2 million, down 0.3% year-over-year, with Quest up 9.6–12%, Atkins down 16.5–19%, and OWYN down 3.3%, offsetting each other.

• Adjusted EBITDA was $55.6 million, down 20.6% year-over-year, due to margin pressures from inflation, tariffs, and higher input costs.

• Net income declined 33.7% to $25.3 million, with diluted EPS at $0.26 versus $0.38 last year; adjusted diluted EPS was $0.39.

• Share repurchases totaled nearly $150 million for 7.4 million shares fiscal year-to-date, with an additional $200 million repurchase authorization announced.

• Full-year outlook for net sales and Adjusted EBITDA reaffirmed, expecting improvement in the second half.

Financial highlights

• Gross profit was $109.9 million, down 15.8% year-over-year, with gross margin at 32.3%, down 590 basis points due to higher input costs and tariffs.

• Adjusted EBITDA margin was 16.3–16.4%.

• Cash flow from operations increased to $50.1 million from $32 million last year.

• Net debt to trailing 12-month Adjusted EBITDA was 0.8x.

• Cash at period end was $194.1 million; term loan balance at $400 million.

Outlook and guidance

• Fiscal 2026 net sales growth expected between -2% and +2%, with Quest and OWYN growth offset by Atkins declines.

• Gross margins expected to decline 100–150 basis points; adjusted EBITDA to range from -4% to +1% year-over-year.

• Q2 expected to be the weakest quarter, with sequential improvement in gross margin and stronger second half performance.

• Capital expenditures for the year expected at $30–$40 million, mainly for Quest salty snacks capacity.

• Net interest expense for FY26 expected at $19–21 million; weighted average diluted share count around 96 million.