Simply Good Foods Q2 Earnings Call Highlights

2 weeks ago 10

MarketBeat

Thu, April 9, 2026 astatine 9:05 AM CDT 8 min read

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Q2 results missed expectations: Net income fell to $326 million (-9.4% Y/Y) and adjusted EBITDA dropped to $55.5 million (-18.4%), portion a $249 cardinal non‑cash impairment drove a GAAP operating nonaccomplishment of $213.3 cardinal and a nett nonaccomplishment of $159.7 million.
Brand weakness and merchandise issues: Quest depletion grew modestly (+2.4%) but bars mislaid momentum, portion Atkins declined sharply (-23.4%) from organisation losses and OWYN fell (-2.4%) aft integration and a Pro Elite shingle prime occupation that volition apt origin near‑term organisation losses.
Turnaround program and lowered guidance: CEO Joe Scalzo launched a large restructuring to chopped fixed costs (about $15 million of one‑time charges), volition support selling investment, and trimmed FY26 guidance to $1.31–1.35 billion successful nett income and $217–225 million successful adjusted EBITDA, portion continuing stock repurchases.
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Simply Good Foods (NASDAQ:SMPL) reported second-quarter fiscal 2026 results that absorption said fell good abbreviated of expectations, driven by weaker-than-anticipated depletion trends and execution issues crossed its marque portfolio. President and CEO Joe Scalzo, who rejoined the institution astir 12 weeks ago, said the institution is “not pleased with our performance” and is taking “immediate and cardinal actions to crook astir some our fiscal and in-market performance.”

Chief Financial Officer Chris Bealer said retail takeaway “slowed importantly compared to Q1,” declining 6.4% year-over-year, with the slowdown astir pronounced successful the 2nd fractional of the 4th during the New Year, New You promotional window.

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Net income were $326 million, down 9.4% year-over-year, which Bealer attributed chiefly to weaker consumption. Adjusted EBITDA totaled $55.5 million, down 18.4% from the anterior year.

Gross nett was $103 million, down 20.8%, and gross borderline declined 460 ground points to 31.6%. Bealer cited “inflationary costs, astir notably cocoa, whey, and tariffs,” on with “some one-time effects from actions taken to mitigate OWYN merchandise prime issues.” Excluding $3.9 cardinal of one-time OWYN integration expenses successful the existent twelvemonth and a $0.4 cardinal non-cash inventory acquisition accounting step-up accommodation disbursal successful the anterior twelvemonth period, gross borderline was 32.8%, down 350 ground points.

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