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- Goodwill Impairment (new) — The company recorded an $82M non-cash impairment charge in Q3 related to Goodwill and brand intangibles, largely due to stock price declines.
- Asset Impairment (new) — Year-to-date, the company recorded a $331M non-cash impairment charge related to Goodwill and the Atkins and OWYN brand intangibles, driven by current performance, updated revenue projections, and stock price declines.
Simply Good Foods reports $52M Q3 loss, $331M YTD impairment, cuts FY2026 outlook
Filed July 9, 2026 · Period ending July 9, 2026 · ~1 min read
Key Changes
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high
Recorded $331M YTD non-cash impairment charge on Goodwill and Atkins/OWYN brand intangibles, driven by performance shortfalls, revised revenue projections, and stock price declines; Q3 impairment was $82M.
Exhibit 99.1 view on EDGAR → -
high
Q3 net sales fell 6.3% to $357M with 24.6% Atkins decline; posted $52M net loss ($0.58 per share) vs. $41.1M income prior year; Adjusted EBITDA down 22.5% to $57.2M on distribution losses, softer retail, higher costs.
Exhibit 99.1 view on EDGAR → -
high
Lowered FY2026 outlook: net sales $1.345–$1.355B (down 7%–6% YoY), gross margin down ~375 bps, Adjusted EBITDA $220–$225M (down 21%–19% YoY); Q4 sales expected $322–$332M (down 13%–10%).
Exhibit 99.1 view on EDGAR → -
medium
Repurchased 2.1M shares for ~$25M in Q3, $213.2M YTD; weighted average diluted shares fell to 89.9M from 101.6M prior year.
Exhibit 99.1 view on EDGAR → -
medium
Ended quarter with $123.9M cash, $400M term loan principal (1.2x Net Debt/Adjusted EBITDA); borrowed additional $150M in Nov 2025 with three-year credit facility extension.
Exhibit 99.1 view on EDGAR →
Summary
Simply Good Foods disclosed a challenging fiscal third quarter, reporting a $52 million net loss compared to $41.1 million in income a year earlier. The quarter's results were heavily impacted by an $82 million non-cash impairment charge against Goodwill and the Atkins and OWYN brand intangibles, bringing the year-to-date impairment total to $331 million.
These write-downs reflect deteriorating brand performance, downward revenue revisions, and sustained stock price weakness—a clear signal that management's prior valuations for these assets no longer hold.
While the impairments are non-cash and don't affect liquidity, they underscore fundamental business headwinds: Atkins sales plunged 24.6% on distribution losses and weak retail takeaway, dragging overall net sales down 6.3% to $357 million despite growth in Quest and OWYN. The company slashed its full-year outlook, now expecting sales of $1.345–$1.355 billion (down 6%–7%), gross margins to compress roughly 375 basis points, and Adjusted EBITDA of $220–$225 million (down 19%–21%). Fourth-quarter guidance implies continued pressure with sales expected to fall 10%–13%. Management continues to repurchase shares—$25 million in Q3, $213 million year-to-date—and maintains a manageable 1.2x net leverage ratio after borrowing an additional $150 million last November. However, the combination of a major impairment, widening losses, and a sharply reduced outlook raises concerns about the Atkins turnaround timeline and whether the company can stabilize its core portfolio before further value erosion.
Section-by-Section Diff
Event · Exhibit 99.1
Simply Good Foods reported Q3 FY2026 results with a net loss of $52M, $331M YTD impairment charge, and lowered FY2026 outlook.
Added in current filing · view on EDGAR →
Net sales of $357.0 million versus $381.0 million
•Net loss of $52.0 million versus net income of $41.1 million
•Loss per diluted share of $0.58 versus earnings per diluted share of $0.40
•Adjusted Diluted EPS(2) of $0.42 versus $0.51
•Adjusted EBITDA(3) of $57.2 million versus $73.9 million
For the thirteen weeks ended May 30, 2026, Simply Good Foods reported net sales of $357.0 million, down 6.3% year-over-year, driven by a 24.6% decline in Atkins sales partially offset by Quest and OWYN growth. The company posted a net loss of $52.0 million compared to net income of $41.1 million in the prior year period, with loss per diluted share of $0.58. Adjusted EBITDA declined 22.5% to $57.2 million. The results reflect distribution losses for Atkins, softer retail takeaway, higher input costs, and $7.3 million in restructuring costs.
Added in current filing · view on EDGAR →
•Net Sales expected to range between $1.345 to $1.355 billion, or a decline of roughly 7% to 6% year-over-year
•Gross Margins expected to decline approximately 375 basis points year-over-year
•Adjusted EBITDA expected to range between $220 to $225 million, or -21% to -19% year-over-year
The company updated its fiscal year 2026 outlook, now expecting net sales of $1.345 to $1.355 billion (down 7% to 6% year-over-year), gross margins to decline approximately 375 basis points, and Adjusted EBITDA of $220 to $225 million (down 21% to 19% year-over-year). For Q4 FY2026, the company expects net sales of $322 to $332 million (down 13% to 10%) and Adjusted EBITDA of $52 to $57 million (down 22% to 14%). The outlook reflects ongoing challenges with Atkins distribution losses, softer retail takeaway, and higher input costs.
Added in current filing · view on EDGAR →
Higher cash and debt balances reflect the Company's strategic decision to borrow an additional $150.0 million concurrently with a three-year extension of the Company's existing credit facilities, which closed in November 2025.
At quarter-end, the company had cash of $123.9 million and an outstanding term loan principal balance of $400.0 million, bringing the trailing twelve-month Net Debt to Adjusted EBITDA ratio to 1.2x. The company borrowed an additional $150.0 million in November 2025 concurrently with a three-year extension of its existing credit facilities. Year-to-date cash flow from operations was $102.2 million versus $133.1 million in the prior year period.
Event · Item 2.02 — Results of Operations and Financial Condition
Simply Good Foods reported fiscal Q3 2026 results ended May 30, 2026, via press release and investor presentation.
Added in current filing · verify on EDGAR →
On July 9, 2026, The Simply Good Foods Company, a Delaware corporation (the “Company”), reported its results for the fiscal third quarter ended May 30, 2026.
The company disclosed financial results for its fiscal third quarter ended May 30, 2026. The detailed results are provided in an attached press release (Exhibit 99.1) and an investor presentation posted on the company's website. This is a routine quarterly earnings disclosure.
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