Simply Good Foods posts Q3 loss, cuts fiscal 2026 outlook

The Simply Good Foods Company (Nasdaq: SMPL) reported a net loss of $52.0 million for its fiscal third quarter ended May 30, 2026, compared with net income of $41.1 million in the year-ago period, according to a company press release.

Net sales fell 6.3% to $357.0 million from $381.0 million a year earlier. The decline was driven by a 24.6% drop in Atkins brand sales due to distribution losses, partially offset by Quest growth of 1.1% and OWYN growth of 3.6%. Loss per diluted share was $0.58, versus earnings of $0.40 per diluted share in the prior-year quarter. Adjusted diluted EPS was $0.42, down from $0.51.

Adjusted EBITDA fell 22.5% to $57.2 million from $73.9 million. Gross margin declined 390 basis points to 32.5%, reflecting higher input costs and $6.2 million in restructuring charges.

The quarter included an $82.0 million non-cash impairment charge related to goodwill and the Atkins and OWYN brand intangible assets, which the company said was largely the result of declines in its stock price. Year-to-date impairment charges totaled $331.0 million.

The company repurchased approximately 2.1 million shares for about $25 million during the quarter. Cash at quarter end was $123.9 million, with $400.0 million outstanding on its term loan, for a net debt to adjusted EBITDA ratio of 1.2x.

Simply Good Foods lowered its fiscal year 2026 outlook, now projecting net sales of $1.345 to $1.355 billion, a decline of roughly 6% to 7% year-over-year. Adjusted EBITDA is expected to range from $220 to $225 million, representing a decline of 19% to 21%. Gross margins are expected to fall approximately 375 basis points. For the fourth quarter, the company expects net sales of $322 to $332 million and adjusted EBITDA of $52 to $57 million.

President and CEO Joe Scalzo said the results were ahead of internal expectations, supported in part by early cost actions. "We recognize significant work remains," he said, noting the company is focused on strengthening its business model and improving execution.

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