The beat vs consensus is overshadowed by sharply lower guidance and continued Atkins erosion. Watch for further distribution losses, margin pressure from input costs, and whether the turnaround initiatives can stabilize the top line. The stock may face selling pressure on the weak outlook despite the headline beat.
Price Chart
Executive Summary
Simply Good Foods reported Q3 FY2026 adjusted EPS of $0.42 (20% beat vs $0.35 consensus) on revenue of $357.0M (7.3% beat vs $332.6M consensus), but revenue declined 6.3% YoY, gross margin contracted 390 bps to 32.5%, and the company recorded an $82M impairment charge. Guidance was meaningfully lowered: FY2026 net sales now expected to decline 6-7% YoY and adjusted EBITDA to fall 19-21%, signaling continued fundamental deterioration despite the quarterly beat.
Key Financial Metrics
Key Facts
- Q3 net sales $357.0M, down 6.3% YoY, driven by Atkins decline of 24.6%
- Adjusted diluted EPS $0.42 vs $0.35 consensus, but down 17.6% YoY from $0.51
- GAAP net loss of $52.0M vs net income of $41.1M a year ago
- Gross margin 32.5%, down 390 bps, including $6.2M restructuring costs
- Recorded $82M non-cash impairment charge on goodwill and intangible assets
- FY2026 guidance lowered: net sales $1.345-$1.355B (-6% to -7% YoY), adjusted EBITDA $220-$225M (-19% to -21%)
- Q4 guidance: net sales $322-$332M (-13% to -10% YoY), adjusted EBITDA $52-$57M
- Year-to-date operating cash flow $102.2M, down from $133.1M
- Repurchased 2.1M shares for ~$25M during the quarter
Financial Impact
Revenue decline of 6.3% YoY and adjusted EBITDA guidance cut of ~20% YoY, with $82M impairment charge
Risk Factors
- Continued share losses for Atkins brand (distribution declines and weak retail takeaway)
- Input cost inflation and tariff exposure compressing margins further
- High leverage (Net debt/EBITDA 1.2x) limits financial flexibility
- Impairment signals potential further write-downs if revenue projections deteriorate
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3324686 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | 8-K | $10.78 | awaiting T+5 | — | $9.75 (+9.55%) |
Oct 27, 2026 today | Press Release | $11.09 | awaiting T+5 | — | $9.75 (+12.08%) |
Oct 6, 2026 21d ago | Press Release | $9.96 $10.55 | ▲ +5.87% | ▲ +6.01% | $9.75 (−2.11%) |
Jul 9, 2026 15w ago | 8-K | $13.01 $12.07 | ▲ +7.23% | ▲ +7.09% | $9.75 (+25.06%) |
Jul 9, 2026 15w ago | Press Release | $13.01 $12.07 | ▲ +7.23% | ▲ +7.09% | $9.75 (+25.06%) |
Jun 18, 2026 18w ago | Press Release | $12.63 $12.29 | ▼ −2.69% | ▼ −1.03% | $9.75 (−22.80%) |
Jun 11, 2026 19w ago | Institutional Cluster | $12.64 $12.14 | ▼ −3.96% | ▼ −4.39% | $9.75 (−22.86%) |
Apr 21, 2026 27w ago | 8-K | $12.41 $13.79 | ▲ +11.12% | ▲ +10.04% | $9.75 (−21.43%) |
Apr 9, 2026 28w ago | 8-K | $11.80 $11.61 | ▲ +1.61% | ▲ +4.80% | $9.75 (+17.37%) |
Apr 9, 2026 28w ago | Press Release | $11.80 $11.61 | ▲ +1.61% | ▲ +4.80% | $9.75 (+17.37%) |
US Market Status
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