Simply Good Foods Q3 Net Loss of $52M on $357M Sales; FY26 Outlook Cut
SMPL•The Simply Good Foods Company reported Q3 net sales of $357.0 million, down 6.3% year-over-year, and a net loss of $52.0 million versus prior net income of $41.1 million. It lowered FY26 guidance to $1.345–1.355 billion in net sales, gross margins down 375 basis points, and adjusted EBITDA of $220–225 million.
1. Third Quarter Financial Results
In Q3 FY26, The Simply Good Foods Company recorded net sales of $357.0 million, a 6.3% decline year-over-year, driven by weaker retail takeaway. The company posted a net loss of $52.0 million versus a $41.1 million profit last year and generated adjusted EBITDA of $57.2 million, down 22.5%.
2. Brand Performance
Atkins net sales fell 24.6%, largely due to known distribution losses, while Quest and OWYN brands posted sales growth of 1.1% and 3.6% respectively. Total retail takeaway declined 6.7%, with Quest offsetting some weakness in OWYN and significant declines in Atkins distribution.
3. Costs, Margins and Charges
Gross profit decreased 16.2% to $116.1 million, with gross margins contracting 390 basis points to 32.5% due to $6.2 million in restructuring costs and higher input expenses. The company also recorded an $82.0 million goodwill and intangible asset impairment and saw S&M and G&A impacted by restructuring and integration costs.
4. Updated Fiscal Year 2026 Outlook
The company now expects FY26 net sales of $1.345–1.355 billion, a 6%–7% decline, gross margins down approximately 375 basis points, and adjusted EBITDA of $220–225 million, representing a 19%–21% decrease year-over-year as cost actions and reinvestment efforts continue.
