Free cash flow margins have plummeted to a marginal 0.8% in 2026Q2, reflecting a disconnect between earnings and cash generation as the company continues to prioritize $88.5 million in share repurchases.
| Cash from Operations | 173.38M | 178.46M | 214.5M | 168.42M | 110.09M | 132.09M | 58.92M | 73.04M | 60.72M | -5.42M | -216.13K |
| Operating CF Margin % | - | 12.3% | 16.11% | 13.55% | 9.42% | 13.14% | 7.22% | 13.95% | 14.07% | -1.37% | -0.05% |
| Operating CF Growth % | -26.67% | -16.81% | 27.36% | 52.98% | -16.65% | 124.18% | -19.33% | 20.3% | 1220.9% | -2406.33% | - |
| Net Income | -105.68M | 103.61M | 139.31M | 133.57M | 108.57M | 40.88M | 65.64M | -25.23M | 70.45M | -2.04M | -192.5K |
| Depreciation & Amortization | 26.64M | 23.76M | 27.98M | 26.98M | 25.92M | 23.23M | 19.86M | 7.5M | 7.5M | 9.62M | 0 |
| Stock-Based Compensation | 7.11M | 0 | 0 | 0 | 0 | 8.27M | 7.64M | 0 | 0 | 0 | 0 |
| Deferred Taxes | -65.9M | 3K | 8.37M | 10.59M | 11.79M | 9.4M | 8.22M | 10.87M | -21.11M | -4.26M | 0 |
| Other Non-Cash Items | 325.61M | 84.01M | 19.83M | 15.78M | 44.84M | 72.47M | -25.48M | 79.13M | 2.38M | 3.63M | 0 |
| Working Capital Changes | -14.39M | -32.93M | 19.02M | -18.5M | -81.02M | -22.15M | -16.95M | 780K | -591K | -12.36M | -2.3M |
| Change in Receivables | 34.09M | -14.68M | 9.13M | -13.37M | -21.8M | -22.28M | -18.29M | -8.36M | -6.16M | 8.89M | -14.85M |
| Change in Inventory | -28.8M | -25.85M | 13.73M | 8.17M | -29.51M | -39.35M | 23.88M | -8.18M | 2.42M | 6.04M | 6.08M |
| Change in Payables | -9.23M | 18.54M | -15.45M | -9.51M | 2.88M | 25.92M | -8.74M | 4.73M | -3.6M | -5.16M | 2.25M |
| Cash from Investing | -28.57M | -20.93M | -286.88M | -12.19M | -8.16M | -2.51M | -983.99M | -1.79M | -3.51M | -217.76M | -815K |
| Capital Expenditures | -28.57M | -22.64M | -6.47M | -12.19M | -5.76M | -6.71M | -2.67M | -1.04M | -1.77M | -956K | 0 |
| CapEx % of Revenue | 2.02% | 1.56% | 0.49% | 0.98% | 0.49% | 0.67% | 0.33% | 0.2% | 0.41% | 0.24% | 0% |
| Acquisitions | 0 | 1.71M | -280.41M | 0 | 0 | 5.8M | -982.08M | 0 | -1.74M | -620.78M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | -2.4M | -1.6M | 750K | -750K | 0 | 0 | 0 |
| Cash from Financing | -140.62M | -191.21M | 117.1M | -135.84M | -109.49M | -150.05M | 754.65M | 83.38M | -1.27M | 227.26M | 403.96M |
| Debt Issued (Net) | -50.05M | -150M | 114.86M | -121.78M | -50.31M | -150.31M | 409.63M | -2M | -1.5M | 130.21M | -7.46M |
| Equity Issued (Net) | -235.23M | -37.97M | 4.29M | -11.2M | -55.52M | 700K | 353.43M | 112.03M | 352K | 97.11M | 412.01M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -239.07M | -50.89M | 0 | -16.45M | -59.86M | 0 | 0 | -2.15M | 0 | 0 | 0 |
| Other Financing | 144.65M | -3.24M | -2.05M | -2.86M | -3.66M | -435K | -8.4M | -26.65M | -120K | -59K | -8.05M |
| Net Change in Cash | 3.76M | -34.06M | 44.81M | 20.22M | -7.85M | -20.5M | -170.49M | 154.37M | 55.47M | 55.55M | 21.4M |
| Free Cash Flow | 146.01M | 157.91M | 208.03M | 156.24M | 104.34M | 125.38M | 57.19M | 72M | 58.95M | -6.37M | -216.13K |
| FCF Margin % | 10.31% | 10.88% | 15.63% | 12.57% | 8.93% | 12.47% | 7% | 13.75% | 13.66% | -1.61% | -0.05% |
| FCF Growth % | -17.78% | -24.09% | 33.15% | 49.74% | -16.78% | 119.26% | -20.58% | 22.15% | 1024.98% | -2848.69% | - |
| FCF per Share | 1.58 | 1.56 | 2.05 | 1.55 | 1.04 | 1.29 | 0.58 | 0.84 | 0.80 | -0.09 | -0.02 |
| FCF Conversion (FCF/Net Income) | -1.38x | 1.72x | 1.54x | 1.26x | 1.01x | 3.23x | 0.90x | -2.89x | 0.86x | 2.66x | 1.12x |
| Interest Paid | -3.67M | 21.99M | 25.67M | 25.51M | 19.22M | 27.82M | 30.04M | 11.16M | 11.22M | 0 | 0 |
| Taxes Paid | -5.88M | 39.27M | 33.24M | 27.41M | 49.18M | 32.19M | 4.53M | 7.45M | 4.58M | 0 | 0 |
Atkins brand relevance decay
According to recent financial disclosures, the relationship between net income and operating cash flow has become increasingly erratic, highlighted by a 2026Q2 net loss of $159.7 million contrasted against a positive $8.1 million in operating cash flow, suggesting significant non-cash accounting distortions.
The wide variance between reported net income and cash generation indicates that headline earnings are currently poor proxies for the company's underlying liquidity. Investors should monitor whether these recurring non-cash adjustments are masking structural operational deterioration or simply reflecting one-time accounting charges.
As reported in quarterly filings, free cash flow margins have experienced extreme fluctuations, plummeting from a peak of 21.5% in 2024Q3 to a marginal 0.8% in 2026Q2, reflecting the company's struggle to maintain consistent cash conversion amidst a challenging top-line environment.
The sharp decline in FCF margins suggests that the business is losing its ability to self-fund operations efficiently. This trend warrants further investigation into whether the current cash flow profile is sufficient to support ongoing marketing and slotting fee requirements without external financing.
Based on the provided cash flow statements, working capital changes have turned increasingly negative, with a $33.6 million outflow in 2026Q2, indicating that the company is facing mounting difficulties in managing its cash conversion cycle and inventory turnover relative to historical norms.
The shift toward negative working capital impacts suggests that the company may be struggling to collect receivables or is accumulating excess inventory that is not moving through the retail channel as expected. This liquidity drag appears to be a primary contributor to the recent compression in free cash flow.
As indicated by recent financial statements, the company has prioritized share repurchases, including $88.5 million in 2026Q2, despite a significant net loss, which suggests a management preference for returning capital over retaining liquidity during periods of operational volatility.
The decision to aggressively buy back shares while the core Atkins business faces volume pressure may indicate management's confidence in long-term brand equity, though it simultaneously reduces the cash buffer available for potential strategic pivots. Investors should monitor whether this capital allocation strategy remains sustainable if cash flow generation continues to weaken.
Quick answers to the most common questions about buying SMPL stock.
The Simply Good Foods Company (SMPL) generated $178.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
The Simply Good Foods Company (SMPL) generated $157.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
The Simply Good Foods Company (SMPL) spent $22.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, The Simply Good Foods Company (SMPL) spent $50.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.