Simply Good Foods Co (SMPL) FY2025 10-K Annual Report

Filed: Oct 28, 2025
Consumer Staples
Food and Kindred ProductsSEC EDGAR

Simply Good Foods Co (SMPL) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Oct 28, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Simply Good Foods Co FY2025 10-K Analysis

Business Overview

  • Core business model: protein-rich, low-carb nutritious snacking products marketed mainly under Quest, Atkins, and OWYN brands
  • New OWYN brand acquisition in June 2024 expanding plant-based, allergen-tested RTD shakes and powders segment
  • Strategic marketing shift to target consumers using FDA-approved weight management medications alongside traditional health-focused buyers
  • Fiscal 2025 sales heavily concentrated: Walmart 31%, Amazon 18%, with e-commerce channel ~19-26% by brand, reflecting distribution expansion
  • Asset-light model driving strong free cash flow; 57% of selling & marketing expense allocated to advertising in FY 2025

Management Discussion & Analysis

  • Net cash from operations $178.5M, down $37.2M YoY from $215.7M, driven by working capital use increasing $51.9M
  • Income from operations $156.9M vs $206.5M, operating expenses rose due to impairment loss, partially offset by higher gross profit
  • Investing cash use $20.9M vs $286.9M prior, prior year includes $280.4M OWYN acquisition, current year $20.5M capex at manufacturing facilities
  • Financing cash used $191.2M vs $115.9M provided prior, includes $150M term loan principal payments and $50.9M repurchases of common stock
  • Management cautious on future revenue projections, performed impairment on Atkins brand and certain intangibles due to reduced outlook

Risk Factors

  • Regulatory risk from OWYN Acquisition integration under FTC scrutiny of brand and product compliance
  • Macroeconomic exposure to unfavorable commodity expense increases reducing gross profit margin despite sales growth
  • Supply chain dependence on contract manufacturing partners for raw ingredients, packaging, and warehousing costs
  • Market disruption risk from declining Atkins brand distribution amid consumer preference shifts benefiting competitors
  • Financial risk from transaction costs and impairment charges related to OWYN Acquisition impacting adjusted EBITDA margins

Simply Good Foods Co FY2025 Key Financial Metrics
XBRL

Revenue

$1.5B

+9.0% YoY

Net Income

$104M

-25.6% YoY

Gross Margin

36.2%

-219bp YoY

Operating Margin

10.8%

-470bp YoY

Net Margin

7.1%

-332bp YoY

ROE

5.7%

-233bp YoY

Total Assets

$2.4B

-1.6% YoY

EPS (Diluted)

$1.02

-26.1% YoY

Operating Cash Flow

$178M

-17.3% YoY

Source: XBRL data from Simply Good Foods Co FY2025 10-K filing on SEC EDGAR. All figures in USD.

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