Simply Good Foods beats fiscal Q3 estimates despite lower sales, weaker gross margin, and impairment charges.
Stock Earnings Results
July 9, 2026
Table of Contents
July 9, 2026
The Simply Good Foods Company (NASDAQ: SMPL) reported fiscal third-quarter 2026 results above expectations, with revenue and earnings topping estimates despite lower year-over-year sales, weaker gross margin, and a large non-cash impairment charge.
Simply Good Foods is a nutritional snacking company that owns brands including Quest, Atkins, and OWYN, offering protein bars, shakes, snacks, and other better-for-you food and beverage products.
The dashboard showed EPS of $0.36, above estimates of $0.32, representing a 12.5% earnings surprise. Revenue came in at $356.98 million, above estimates of $331.30 million, though net sales declined 6.3% from the prior-year quarter.
Net sales were $357.0 million, down from $381.0 million a year earlier.
The decline was driven mainly by a 24.6% drop in Atkins sales, which reflected known distribution-related declines and softer retail takeaway.
Quest sales increased 1.1%, while OWYN sales increased 3.6%.
Total retail takeaway declined about 6.7%, with Quest up 1.4%, OWYN down 1.3%, and Atkins down 23.9%.
Gross profit fell 16.2% to $116.1 million. Gross margin declined 390 basis points to 32.5%, pressured by lower volume, higher input costs, and restructuring costs.
Simply Good Foods reported a net loss of $52.0 million, compared with net income of $41.1 million a year earlier.
The company recorded an $82.0 million non-cash impairment charge related to goodwill and the Atkins and OWYN brand intangible assets.
Adjusted EBITDA was $57.2 million, down 22.5% from the prior-year quarter, but ahead of management’s expectations.
The company said early cost actions helped support results, though management noted the turnaround remains in the early stages.
Simply Good Foods updated its fiscal 2026 outlook.
The company now expects net sales of $1.345 billion to $1.355 billion, representing a decline of roughly 7% to 6% year-over-year.
Gross margins are expected to decline about 375 basis points.
Adjusted EBITDA is expected to range from $220 million to $225 million, down 21% to 19% from the prior year.
For the fiscal fourth quarter, the company expects net sales of $322 million to $332 million, down 13% to 10% year-over-year, and adjusted EBITDA of $52 million to $57 million.
Investors are likely watching Atkins distribution losses, Quest growth, OWYN performance, retail takeaway, gross margin pressure, restructuring costs, impairment charges, share repurchases, and whether Simply Good Foods can stabilize sales as turnaround efforts continue.
The revenue beat was positive, but the year-over-year sales decline and lower fiscal 2026 outlook show the business remains under pressure.
Simply Good Foods delivered a better-than-expected quarter, but the recovery is still early.
Revenue topped estimates and adjusted results came in ahead of expectations, helped by cost actions. Still, Atkins remains a major drag, gross margin declined, adjusted EBITDA fell, and the company recorded a large impairment charge tied to goodwill and brand assets.
The key question is whether management can restore consistent growth across Atkins, Quest, and OWYN while protecting margins and rebuilding brand momentum.
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