The Simply Good Foods Company (NASDAQ:SMPL) reported a challenging second quarter for fiscal 2026 on April 9, 2026, headlined by a significant net loss and a downward revision of its full-year financial outlook.
The results reflect ongoing headwinds in the nutritional snacking category and a major write-down of the company’s key brand assets.
Net sales for the second quarter were $326 million, a decrease of 9.4% compared to the same period in the prior year.
The company reported a substantial net loss of $159.7 million, primarily due to a non-cash $249 million impairment charge related to the intangible assets of its Atkins and OWYN brands.
This charge suggests a recalibration of long-term growth expectations for these product lines in an increasingly competitive health-and-wellness market.
Profitability metrics also saw compression, with adjusted EBITDA falling 18.4% to $55.5 million.
The decline was attributed to lower volume and a shift in product mix, which offset some of the company’s internal cost-saving initiatives.
In light of the quarterly results, Simply Good Foods has significantly lowered its guidance for the full fiscal year 2026.
The company now expects net sales in the range of $1.31 billion to $1.35 billion, representing a year-over-year decline of 7% to 10%.
Adjusted EBITDA is now projected to fall between $217 million and $225 million, a decrease of 19% to 22% compared to fiscal 2025.