Simply Good Foods Company (NASDAQ:SMPL) Reports Disappointing Q2 FY2026 Financial Results

Font: Financial Modeling Prep  • Apr 09, 2026

• EPS Miss and Revenue Decline: (NASDAQ:SMPL) reported an EPS of -$1.73 (vs. estimated $0.40) and revenue of $326 million (vs. expected $345.4 million), both missing expectations.
• Significant Net Loss and Negative EBITDA: The company posted a net loss of $159.7 million and negative EBITDA of $219.55 million, highlighting ongoing financial challenges.
• Weaker Outlook for FY2026: Projected net sales of $1.31–$1.35 billion and adjusted EBITDA of $217–$225 million indicate a 7–10% and 19–22% year-over-year decrease, respectively.

Simply Good Foods Company (NASDAQ:SMPL) recently reported disappointing financial results for the second quarter of fiscal year 2026. The company, known for its nutritional snacks and meal replacement products, faced challenges with both earnings and revenue. Despite a history of exceeding earnings expectations, SMPL reported an earnings per share (EPS) of -$1.73, missing the estimated $0.40.

The company's revenue for the quarter was $326 million, falling short of the expected $345.4 million. This represents a decline from the $359.65 million reported in the same quarter the previous year. The revenue miss contributed to a sharp drop in the stock price, as highlighted by Simply Good Foods' weaker fiscal 2026 outlook.

Despite the negative EPS, Simply Good Foods did report adjusted earnings of $0.45 per share, surpassing the Zacks Consensus Estimate of $0.40. This marks a slight decrease from the $0.46 per share reported a year ago. The earnings surprise was +13.21%, showing some resilience in earnings performance.

The company faced a net loss of $159.7 million, contrasting with a net income of $36.7 million from the prior year. Operating income showed a loss of $213.32 million, and EBITDA was negative at $219.55 million. These figures highlight significant financial challenges for the company.

Looking ahead, Simply Good Foods projects net sales between $1.31 billion and $1.35 billion for fiscal year 2026, reflecting a 7% to 10% decrease year-over-year. Gross margins are expected to decline by 300 to 350 basis points, with adjusted EBITDA anticipated to range from $217 million to $225 million, marking a 19% to 22% decrease year-over-year. CEO Joe Scalzo expressed dissatisfaction with the current performance, indicating a commitment to addressing these challenges.