The Simply Good Foods Company (SMPL) Q4 2026 earnings summary

Executive summary

• FY26 reset focused on cost structure, financial flexibility, organizational priorities, and marketing across Quest, Atkins, and OWYN.

• FY27 sales and Adjusted EBITDA are expected to decline, with improvement through the year and materially stronger second-half performance as pricing effects ease and marketing investments take hold.

• FY27 priorities include restoring business economics, rebuilding consumer connections, and exiting the year with better momentum; new commercial initiatives are too early to assess.

Financial highlights

• Q4 net sales were $333.3M, down 9.7% YoY; Adjusted EBITDA was $57.5M, down 13.2%.

• Q4 GAAP gross profit was $113.3M and gross margin was 34.0%, down 30 bps YoY; Adjusted EBITDA margin was 17.2% versus 17.9%.

• Q4 net loss was $12.4M, or 3.4% of sales, versus net income of $30.5M, or 9.1% of sales, in Q4 FY25; diluted EPS was $(0.12) versus $0.34.

• FY26 net sales were $1,356.5M, down 6.5%; net loss was $155.9M versus net income of $103.6M, and Adjusted EBITDA was $225.9M, down 18.8%.

• FY26 diluted loss per share was $1.69 versus EPS of $1.02; Adjusted Diluted EPS was $1.70 versus $1.92.

Outlook and guidance

• FY27 net sales are expected to decline 13%–17%; Adjusted EBITDA is expected to decline 9%–14%.

• FY27 GAAP gross margin is expected to expand 250–300 bps, driven by pricing, productivity, and lower one-time costs; second-half margin is expected to exceed first-half.

• Q1 FY27 net sales are expected to decline 19%–22%, Adjusted EBITDA 28%–33%, and GAAP gross margin to rise ~100 bps.

• FY27 selling and marketing expense is expected to increase ~80 bps, including marketing investment up ~90 bps; total marketing approaches 10% of sales.

• FY27 interest expense is expected at $18M–$20M and capital expenditures at $15M–$20M; gross margin is expected to move toward 40%, with Adjusted EBITDA margin approaching the long-term 20% aspiration.