SMPL's profitability is under severe strain, with gross margins contracting 620 basis points from a peak of 38.7% in 2024Q3 to 32.5% in 2026Q3, resulting in a 14.0% operating margin loss.
The Simply Good Foods Company (SMPL) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Aug'25 | Aug'24 | Aug'23 | Aug'22 | Aug'21 | Aug'20 | Aug'19 | Aug'18 | Aug'17 | Dec'16 |
|---|
| Sales/Revenue | 1.39B | 1.45B | 1.33B | 1.24B | 1.17B | 1.01B | 816.64M | 523.76M | 431.43M | 396.17M | 427.86M |
| Revenue Growth % | -4.48% | 8.98% | 7.13% | 6.33% | 16.22% | 23.14% | 55.92% | 21.4% | 8.9% | -7.41% | - |
| Cost of Goods Sold | 945.33M | 942.07M | 836.67M | 806.67M | 740.4M | 612.83M | 507.57M | 313.57M | 258.56M | 225.56M | 0 |
| COGS % of Revenue | - | 64.93% | 62.85% | 64.91% | 63.35% | 60.94% | 62.15% | 59.87% | 59.93% | 56.93% | - |
| Gross Profit | 446.91M | 508.85M | 494.65M | 436M | 428.28M | 392.78M | 309.07M | 210.19M | 172.87M | 170.62M | 0 |
| Gross Margin % | 32.1% | 35.07% | 37.15% | 35.09% | 36.65% | 39.06% | 37.85% | 40.13% | 40.07% | 43.07% | - |
| Gross Profit Growth % | - | 2.87% | 13.45% | 1.8% | 9.04% | 27.09% | 47.04% | 21.59% | 1.32% | - | - |
| Operating Expenses | 365.13M | 290.21M | 273.63M | 231.06M | 224.95M | 211.86M | 195.22M | 129.87M | 108.73M | 119.42M | 487.09K |
| OpEx % of Revenue | - | 20% | 20.55% | 18.59% | 19.25% | 21.07% | 23.91% | 24.8% | 25.2% | 30.14% | 0.11% |
| Selling, General & Admin | 283.39M | 290.21M | 268.23M | 226.75M | 220.85M | 208.36M | 191.22M | 127.67M | 106.23M | 116.97M | 487.09K |
| SG&A % of Revenue | - | 20% | 20.15% | 18.25% | 18.9% | 20.72% | 23.42% | 24.38% | 24.62% | 29.53% | 0.11% |
| Research & Development | 0 | 5.5M | 5.4M | 4.3M | 4.1M | 3.5M | 4M | 2.2M | 2.5M | 2.3M | 0 |
| R&D % of Revenue | - | 0.38% | 0.41% | 0.35% | 0.35% | 0.35% | 0.49% | 0.42% | 0.58% | 0.58% | - |
| Other Operating Expenses | 1000K | -5.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 141K | 0 |
| Operating Income | 81.78M | 218.63M | 221.02M | 204.95M | 203.32M | 180.93M | 113.85M | 80.31M | 64.14M | 51.2M | -487.09K |
| Operating Margin % | 5.87% | 15.07% | 16.6% | 16.49% | 17.4% | 17.99% | 13.94% | 15.33% | 14.87% | 12.92% | -0.11% |
| Operating Income Growth % | - | -1.08% | 7.84% | 0.8% | 12.38% | 58.92% | 41.76% | 25.21% | 25.28% | 10611.4% | - |
| EBITDA | 100.92M | 242.4M | 249M | 231.93M | 229.24M | 204.15M | 133.7M | 87.81M | 71.64M | 60.82M | -192.5K |
| EBITDA Margin % | 7.25% | 16.71% | 18.7% | 18.66% | 19.62% | 20.3% | 16.37% | 16.77% | 16.61% | 15.35% | -0.04% |
| EBITDA Growth % | -62.45% | -2.65% | 7.36% | 1.17% | 12.29% | 52.69% | 52.27% | 22.57% | 17.79% | 31692.75% | - |
| D&A (Non-Cash Add-back) | 13.36M | 23.76M | 27.98M | 26.98M | 25.92M | 23.23M | 19.86M | 7.5M | 7.5M | 9.62M | 0 |
| EBIT | -238.09M | 159.15M | 212.08M | 205.76M | 172.45M | 112.42M | 111.78M | 5.1M | 65.64M | 27.21M | -192.5K |
| Net Interest Income | -17.46M | -20.59M | -21.72M | -28.92M | -21.87M | -31.47M | -31.3M | -9.8M | -12.55M | 0 | 294.59K |
| Interest Income | 2.58M | 2.66M | 4.31M | 1.14M | 15K | 84K | 1.52M | 3.83M | 0 | 0 | 294.59K |
| Interest Expense | 20.05M | 23.25M | 26.03M | 30.07M | 21.88M | 31.56M | 32.81M | 13.63M | 12.55M | 0 | 0 |
| Other Income/Expense | -336.41M | -82.73M | -34.97M | -29.26M | -52.76M | -100.07M | -34.88M | -88.84M | -11.05M | -48.38M | 294.59K |
| Pretax Income | -254.63M | 135.9M | 186.05M | 175.69M | 150.57M | 80.86M | 78.96M | -8.52M | 53.09M | 2.83M | -192.5K |
| Pretax Margin % | -18.29% | 9.37% | 13.97% | 14.14% | 12.88% | 8.04% | 9.67% | -1.63% | 12.31% | 0.71% | -0.04% |
| Income Tax | -55.87M | 32.29M | 46.74M | 42.12M | 41.99M | 39.98M | 13.33M | 16.71M | -17.36M | 4.86M | 0 |
| Effective Tax Rate % | 21.94% | 23.76% | 25.12% | 23.97% | 27.89% | 49.44% | 16.88% | -196.07% | -32.71% | 172.04% | 0% |
| Net Income | -198.76M | 103.61M | 139.31M | 133.57M | 108.57M | 40.88M | 65.64M | -25.23M | 70.45M | -2.04M | -192.5K |
| Net Margin % | -14.28% | 7.14% | 10.46% | 10.75% | 9.29% | 4.07% | 8.04% | -4.82% | 16.33% | -0.51% | -0.04% |
| Net Income Growth % | -236.83% | -25.62% | 4.29% | 23.03% | 165.59% | -37.72% | 360.12% | -135.82% | 3562.16% | -957.13% | - |
| Net Income (Continuing) | -198.76M | 103.61M | 139.31M | 133.57M | 108.57M | 40.88M | 65.64M | -25.23M | 70.45M | -2.04M | -192.5K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.21 | 1.02 | 1.38 | 1.32 | 1.08 | 0.42 | 0.35 | -0.30 | 0.51 | -0.03 | -0.02 |
| EPS Growth % | -251.75% | -26.09% | 4.55% | 22.22% | 157.14% | 20% | 216.67% | -158.82% | 1870.83% | -67.44% | - |
| EPS (Basic) | - | 1.03 | 1.39 | 1.34 | 1.10 | 0.43 | 0.37 | -0.30 | 0.53 | -0.03 | -0.02 |
| Diluted Shares Outstanding | 89.94M | 101.51M | 101.28M | 100.88M | 100.59M | 97.37M | 98.34M | 85.24M | 73.68M | 70.63M | 11.2M |
| Basic Shares Outstanding | 89.94M | 100.7M | 99.93M | 99.44M | 98.75M | 95.74M | 93.97M | 85.24M | 70.58M | 70.63M | 11.2M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying SMPL stock.
For fiscal year 2025, The Simply Good Foods Company (SMPL) reported total revenue of $1.45B. This represents a 239.1% increase compared to $427.9M in 2016.
The Simply Good Foods Company (SMPL) is profitable, generating $103.6M in net income for the fiscal year ending 2025 with a net profit margin of 7.1%.
The Simply Good Foods Company (SMPL) reported an operating income of $218.6M, resulting in an operating profit margin of 15.1%. This margin reflects the operational efficiency of the business before interest and taxes.
The Simply Good Foods Company (SMPL) generated $508.8M in gross profit for the year, representing a gross profit margin of 35.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue decline accelerating
Metrics are mathematically derived from official filings.
Revenue Trend Reversal
SMPL's revenue growth has decelerated from double-digit gains to consistent year-over-year declines, with the latest quarter showing a 6.3% drop according to reported quarterly results.
The company's top-line momentum has shifted decisively, moving from strong growth of 13.8% in 2025Q3 to negative growth in the last three quarters. This reversal suggests potential market share losses or significant volume declines in its packaged foods portfolio, warranting investigation into competitive dynamics and consumer demand shifts.
Structural Margin Compression
Gross margins have contracted by over 600 basis points from a peak of 38.7% in 2024Q3 to 32.5% in the latest quarter, based on company financial statements.
The erosion in gross margin appears persistent and structural, not cyclical, as it has compressed for seven consecutive quarters. This trend indicates significant input cost pressures or a loss of pricing power that has not been offset by operational efficiencies, severely impacting the company's ability to generate profit from sales.
Operational Inflection in 2026Q2
The second quarter of 2026 marked a severe inflection, with operating income turning negative and net income plunging to a loss of $159.7 million, driven by a gross margin collapse and elevated expenses.
While revenue declined 9.4%, the gross margin fell sharply to 30.3% and operating income swung to a loss, indicating a breakdown in cost management or a significant non-recurring charge. The massive net loss suggests potential write-downs or impairments, marking a critical deterioration in the company's fundamental profitability profile.
Sustainability of Historical Profitability
The short thesis would argue that SMPL's prior profitability was built on an unsustainable revenue growth trajectory that has now reversed, exposing structural cost weaknesses.
Looking at the trend, operating margins have fallen from a healthy 18.4% in 2024Q3 to negative territory, suggesting the business model cannot maintain profitability without top-line growth. Investors should monitor whether management can stabilize costs and find a new growth vector, as the current trajectory points to further margin deterioration and potential capital impairment.
Earnings Distorted by Charges
Reported net income is highly volatile and frequently negative due to large non-operating items, as evidenced by EPS swinging from positive $0.26 to negative $1.73 within two quarters.
The quality of SMPL's reported earnings is poor, as core operational performance is obscured by what appear to be significant one-time items. This volatility makes it difficult for investors to assess the true underlying earnings power of the business, requiring a focus on adjusted operating income rather than GAAP net income.