Simply Good Foods Company Surpasses Expectations in Q3 2025 with Strong Net Sales Growth and Robust Cash Flow Generation
Simply Good Foods Company, a leading provider of nutritional snacks and beverages, has announced impressive results for the third quarter of fiscal year 2025. According to Geoff Tanner, President and CEO, net sales increased by 14% year-over-year, driven by the acquisition of Only What You Need Inc. (OWYN) and approximately 4% organic growth.
The company's momentum continues, with consumption up double digits for both Quest and OWYN brands, which together make up around 70% of Simply Good Foods' net sales. This strong performance has helped offset anticipated declines in Atkins sales. The nutritional snacking category as a whole remains robust, growing double digits in Q3 due to consumer demand for high-protein, low-sugar, and low-carb food and beverage options.
Adjusted EBITDA grew approximately 3% year-over-year, with the company's strong margins remaining under pressure from inflation. However, Simply Good Foods has taken proactive measures to mitigate these headwinds, including stepped-up productivity and cost management efforts. The company expects to realize the full benefit of these actions over the next 12-18 months.
Cash flow generation remains a hallmark of Simply Good Foods' business model, with the company repaying essentially all of the $250 million borrowed to finance the OWYN acquisition in just one year. During Q3, the company repurchased over $24 million worth of its common stock, demonstrating its ability to generate cash and create value for shareholders.
With its strong balance sheet and optionality going forward, Simply Good Foods is well-positioned to capitalize on future opportunities. The company has tightened its ranges for full-year net sales and adjusted EBITDA, reflecting its confidence in its performance.
"We're proud of our Q3 results," said Geoff Tanner. "Our momentum continues, driven by the strength of our portfolio, leading sales and marketing capabilities, and talented R&D and supply chain teams."
Simplified Good Foods' Q3 2025 earnings call was attended by investors and analysts, who were provided with a detailed overview of the company's performance and updated fiscal year 2025 outlook. The call marked an important milestone in the company's journey, as it continues to grow and evolve in response to changing consumer demands.
As Simply Good Foods looks to the future, its commitment to innovation, quality, and customer satisfaction remains unwavering. With a strong track record of performance and a solid foundation for growth, the company is poised to continue its success story in the years ahead."
