The Simply Good Foods Company reported net sales of $340.2 million for the thirteen weeks ended November 29, 2025, narrowly below last year’s $341.3 million but comfortably ahead of analysts’ consensus estimates. Net income reached $25.3 million, or $0.26 per diluted share, compared with $38.1 million, or $0.38 per share, in the prior-year period. On an adjusted basis, the company delivered diluted earnings of $0.39 per share and Adjusted EBITDA of $55.6 million, marking declines of 20.4% and 20.6% year-over-year, respectively, yet surpassing Wall Street projections by approximately 5% on both metrics.

Total company consumption grew 2%, led by double-digit gains at Quest and OWYN brands. Quest recorded consumption growth of 12.0% and net sales growth of 9.6%, driven by expanded distribution in national grocery chains and increased sampling programs in club stores. OWYN consumption rose 17.8%, though net sales dipped 3.3% after elevated retailer inventories from a prior product quality issue were drawn down. Atkins sales declined 16.5% and retail takeaway fell 19.3%, in line with management’s expectations following the brand’s promotional pullback.

Gross profit declined 15.8% to $109.9 million, with gross margin contracting 590 basis points to 32.3% due to elevated commodity costs, the first full quarter of tariff expenses and lingering integration charges at OWYN. Excluding $2.6 million of integration costs and a $1.0 million purchase accounting adjustment, adjusted gross margin was 33.1%, down 540 basis points. Selling and marketing expenses fell 10.1% to $29.7 million, reflecting reduced promotional spend on Atkins, while G&A expenses were effectively flat at $38.0 million, with core expense reductions offset by $3.6 million in stock-based compensation and $3.3 million in one-time integration costs.

The company ended the quarter with $194.1 million of cash and $400.0 million of term loan debt, yielding a trailing twelve-month net debt to Adjusted EBITDA ratio of 0.8x. Operating cash flow rose to $50.1 million, up from $32.0 million a year ago, driven by working capital improvements. Capital expenditures were $2.1 million. During Q1, Simply Good Foods repurchased 5.0 million shares for $100 million, bringing year-to-date buybacks to 7.4 million shares for $146.6 million. Management reaffirmed its fiscal 2026 outlook, projecting net sales growth between -2% and +2%, gross margin contraction of 100–150 basis points, and Adjusted EBITDA change of -4% to +1%, with profit expansion expected to commence in Q3.