The Simply Good Foods Company reported net sales of $340.2 million for the thirteen weeks ended November 29, 2025, a 0.3% decrease from $341.3 million in the prior-year period. Net income declined 33.7% to $25.3 million, while reported earnings per diluted share fell to $0.26 from $0.38. On an adjusted basis, diluted EPS was $0.39 versus $0.49 and Adjusted EBITDA totaled $55.6 million compared with $70.1 million a year earlier. Gross profit contracted 15.8% to $109.9 million, yielding a 32.3% gross margin that was down 590 basis points year-over-year, driven by elevated input costs and the first full quarter of tariff expenses, partially offset by productivity gains and favorable mix.

Quest brand net sales grew by 9.6%, contributing to total retail takeaway growth of 1.8% across the portfolio. OWYN consumption increased 17.8% despite a 3.3% net sales decline linked to inventory reductions following a prior product quality issue. Atkins net sales declined 16.5% and retail takeaway fell 19.3%, in line with management expectations. Selling and marketing expenses decreased 10.1% to $29.7 million, reflecting lower promotional spend for Atkins and strategic reinvestment behind Quest and OWYN, while general and administrative expenses held steady at $38.0 million before non-recurring items.

As of November 29, 2025, Simply Good Foods held $194.1 million in cash and carried $400.0 million of term loan debt, resulting in a trailing twelve-month net debt to Adjusted EBITDA ratio of 0.8x. Operating cash flow rose to $50.1 million from $32.0 million a year ago, driven by improved working capital management. Capital expenditures totaled $2.1 million. The company repurchased approximately 5.0 million shares for $100 million in the quarter and has acquired 7.4 million shares for $146.6 million year-to-date, with $224 million remaining under the current authorization.

Management reaffirmed full-year guidance for net sales to range between a 2% decline and 2% growth, gross margin contraction of 100 to 150 basis points, and Adjusted EBITDA between a 4% decrease and 1% increase. The outlook assumes increased marketing investment behind Quest and OWYN, with a significant lift planned to drive trial and awareness for OWYN. The company expects the second half of the year to outperform the first, as benefits from productivity, pricing actions and cost reductions offset first-half inflation and tariff impacts. Net interest expense is projected at $19 million to $21 million, weighted average diluted share count around 96 million, and an effective tax rate near 25%.