“Net sales increased 10.6%, driven by the OWYN acquisition.”
— Geoff Tanner, President and CEO
03Detailed Report
SMPL
Company SMPL
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 17, 2026
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Executive Summary
The Simply Good Foods Company reported QQ1 2025 net sales of $341.3 million, up 10.6% year over year, driven by the OWYN acquisition. Gross margin improved to 38.2%, slightly ahead of forecast, supporting adjusted EBITDA of $70.1 million (+13.1% YoY). Legacy net sales were flat versus the prior year, with timing of shipments weighing on legacy channels, while OWYN contributed meaningfully to top-line growth. Management reaffirmed full-year 2025 guidance: net sales growth of 4%–6% and adjusted EBITDA growth modestly above net sales growth, with OWYN expected to contribute $135–$145 million of net sales in 2025. Management stressed continued momentum in Quest (retail takeaway up about 10% in Q1; Chips POS up 26%), healthy growth in the broader Nutritional Snacking category (about 12%), and ongoing OWYN distribution expansion and SKU/pack-size expansion. Atkins faced a slightly larger headwind in QQ1 with a ~4% decline in retail takeaway, reflecting ongoing optimization of low ROI investments, portfolio pruning, and a higher emphasis on GLP-1–related weight-management messaging. The company remains confident in Quest and OWYN as growth platforms and expects Atkins to stabilize under its revitalization plan, with improvements anticipated later in fiscal 2025 and into 2026. The overall risk/reward profile remains favorable given a diversified three-brand portfolio, improving gross margins, strong free cash flow conversion, and a clear path to higher-margin OWYN synergies and scale in the coming years.
Key Performance Indicators
Revenue
Increasing
341.27M
QoQ: -9.16% | YoY: 10.56%
Gross Profit
Increasing
130.49M
38.24% margin
QoQ: -7.94% | YoY: 13.35%
Operating Income
Increasing
54.63M
QoQ: 14.23% | YoY: 5.41%
Net Income
Increasing
38.12M
QoQ: 30.15% | YoY: 7.20%
EPS
Increasing
0.38
QoQ: 31.03% | YoY: 5.56%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue performance: QQ1 2025 net sales of $341.3 million, up 10.6% YoY; legacy net sales $309.0 million (flat YoY) and OWYN-driven uplift. — YoY: +10.6%; QoQ: not disclosed in QQ1 press release.
- Gross profitability: Gross profit of $130.5 million; gross margin 38.2%, up ~90 bps YoY; include a ~$1.0 million non-cash inventory step-up impacting gross margin by ~30 bps.
- EBITDA and profitability: Adjusted EBITDA $70.1 million, +13.1% YoY; Operating income $54.6 million, margin 16.0%. Net income $38.1 million, margin 11.2%; GAAP EPS $0.38; Adjusted diluted EPS $0.49.
- Cash flow and liquidity: Operating cash flow approximately $32.0 million; net income to cash conversion supported by working capital dynamics; cash at period-end ~$121.8 million; debt repayment of $50.0 million in QQ1; ending debt $350 million; net debt $226.2 million. Free cash flow (FCF) $31.7 million.
- Capital structure and leverage: Total debt $348.0 million; interest expense ~ $7.86 million; debt metrics imply modest leverage with solid liquidity (current ratio ~4.23, quick ratio ~2.75).
- Forward guidance: 2025 net sales growth guided to 4%–6%; OWYN net sales expected between $135–$145 million; total company adjusted EBITDA growth 4%–6%; 53rd week headwind (~2 percentage points) noted.
- Strategic KPIs: Quest retail takeaway up ~10% in QQ1; Quest Chips in November-December retail takeaway ~35% (unconstrained by year-end line); OWYN consumption ~70% of QQ1; OWYN distribution gains cited as positive; Atkins QQ1 takeaway down ~4% with recovery seen in RTD shakes and key customers.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
341.27M
10.56%
-9.16%
Gross Profit
130.49M
13.35%
-7.94%
Operating Income
54.63M
5.41%
14.23%
Net Income
38.12M
7.20%
30.15%
EPS
0.38
5.56%
31.03%
Key Financial Ratios
Gross Profit Margin
Fair
38.20%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Good
16.00%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
11.20%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.57%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.15%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
4.23
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.20
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Growth
26.20x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
Fair Value
2.25x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
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