The Simply Good Foods Company (SMPL) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 net sales rose 9% to $1,450.9M, with 3% organic growth and adjusted EBITDA up 3.4% year-over-year; Quest and OWYN now comprise nearly 75% of net sales, both growing double digits.

• Integration of OWYN largely completed, with investments in talent, innovation, and supply chain; $150M term loan repaid and over $50M in stock repurchased.

• Net income for FY25 was $103.6M, down from $139.3M, reflecting a $60.9M non-cash impairment charge for Atkins.

• Facing near-term headwinds: Atkins brand distribution losses, inflationary pressures, and tariffs.

• Board approved a $150M increase to the stock repurchase program, with $171M remaining as of October 23, 2025.

Financial highlights

• FY25 reported net sales: $1,450.9M, up 9%; organic net sales up 3%; Q4 net sales: $369M, down 1.8% year-over-year.

• FY25 gross profit: $525.7M (36.2% margin), up 2.8%; Q4 gross profit: $126.6M, down 13.3%, with gross margin at 34.3%.

• FY25 adjusted EBITDA: $278.2M (19.2% margin), up 3.4%; Q4 adjusted EBITDA: $66.2M, down 14.5%.

• FY25 net income: $103.6M (7.1% margin), down 25.6% year-over-year; Q4 net loss: $12.4M, mainly due to a $60.9M impairment charge.

• FY25 adjusted diluted EPS: $1.92, up 4.9%; full-year diluted EPS: $1.02, down 26.1%.

Outlook and guidance

• FY26 net sales expected to range from -2% to +2%, with Quest and OWYN growth offset by Atkins decline.

• Gross margins projected to decline 100–150 bps; adjusted EBITDA expected between -4% and +1% year-over-year.

• First half of FY26 to be weaker due to pricing elasticity, Atkins distribution losses, and inflation; second half expected to improve as cocoa costs decline and productivity gains materialize.

• Q1 FY26 gross margin expected to decline nearly 600 bps year-over-year; Q4 expected to be the strongest.

• Increased marketing spend planned for Quest and OWYN, especially to build OWYN brand awareness.