Simply Good Foods Swings to $159.7M Net Loss in Q2 FY2026 on Asset Writedown

The Simply Good Foods Company, a maker of nutritional snack bars and protein products, reported a net loss of $159.7 million for the second quarter of fiscal 2026, a sharp reversal from net income of $36.7 million in the same quarter a year earlier. The company posted diluted earnings per share of negative $1.73, compared to positive $0.36 in the prior-year period. Read more earnings reports.

Revenue for the quarter ending February 28 totaled $326.0 million, down 9.4% from $359.7 million in the year-ago quarter. For the six-month period, net sales declined 5.0% to $666.2 million from $700.9 million.

Operating Loss Widens Sharply

Operating expenses surged to $316.4 million in the second quarter from $75.4 million a year earlier, driving the company to an operating loss of $213.3 million versus operating income of $54.7 million in the prior-year period. The six-month operating loss reached $175.7 million, compared to operating income of $109.3 million in the first half of fiscal 2025.

Gross profit for the quarter fell 20.8% to $103.0 million from $130.1 million, even as cost of goods sold declined slightly to $223.0 million from $229.5 million. The gross margin compression reflected the lower sales volume.

Balance Sheet and Cash Position

Total assets declined to $2.13 billion as of February 28 from $2.40 billion at the end of fiscal 2025 on August 30. Intangible assets dropped to $1.00 billion from $1.26 billion over the same period. Cash and cash equivalents stood at $107.4 million, up modestly from $98.5 million.

Long-term debt increased to $396.9 million from $249.1 million at fiscal year-end. Total stockholders' equity fell to $1.49 billion from $1.81 billion, a decline of 17.5%.

Cash Flow Holds Steady

Cash from operations for the six-month period totaled $58.2 million, down slightly from $63.3 million in the prior-year period. Cash used in financing activities totaled $41.8 million, compared to $92.4 million a year earlier.

The company increased its share repurchase activity, with treasury stock rising to $319.4 million from $129.3 million at the end of fiscal 2025. Common shares outstanding stood at 90.5 million as of the period end.