Simply Good Foods Q3 Net Income Dips to $2.36M Amid Share Fluctuation
Ticker: SMPL · Form: 10-Q · Filed: Jul 10, 2025 · CIK: 1702744
| Field | Detail |
|---|---|
| Company | Simply Good Foods Co (SMPL) |
| Form Type | 10-Q |
| Filed Date | Jul 10, 2025 |
| Risk Level | medium |
| Sentiment | bearish |
Sentiment: bearish
Topics: Earnings, Net Income, 10-Q Filing, Consumer Staples, Packaged Foods, Financial Performance, Shareholder Equity
Related Tickers: SMPL
TL;DR
Simply Good Foods' Q3 net income drop is a red flag; expect continued pressure on profitability.
AI Summary
Simply Good Foods Co reported a net income of $2,365,100 for the three months ended May 31, 2025, a decrease from $3,058,475 for the same period in 2024. The company's common stock outstanding was 103,583,702 shares as of May 31, 2025, slightly up from 102,515,315 shares as of August 31, 2024. Retained earnings for the nine months ended May 31, 2025, were $0.01, a significant change from the previous year. The company's fiscal year ends on August 26. There were no major business changes or new risks explicitly detailed in the provided excerpt, but the decline in net income suggests potential operational or market challenges. The strategic outlook remains focused on managing its capital structure, as evidenced by the consistent share count and retained earnings figures.
Why It Matters
This dip in net income to $2.36 million for Simply Good Foods Co could signal increased operational costs or softening demand in the competitive health and wellness food sector, impacting investor confidence. For employees, sustained profit declines could lead to job insecurity or slower wage growth, while customers might see price adjustments or changes in product offerings. In the broader market, this performance could reflect a trend in the packaged food industry, especially for companies competing with larger players like Nestlé or smaller, agile startups in the healthy snack space. Investors should monitor future filings for revenue trends and cost management strategies.
Risk Assessment
Risk Level: medium — The risk level is medium due to the 22.6% decrease in net income from $3,058,475 in Q3 2024 to $2,365,100 in Q3 2025, indicating potential profitability challenges. While the company maintains a stable share count, the significant drop in retained earnings to $0.01 for the nine months ended May 31, 2025, compared to prior periods, suggests underlying financial pressures that warrant close monitoring.
Analyst Insight
Investors should hold off on new positions in Simply Good Foods Co and existing investors should consider trimming their holdings. Monitor the next earnings report closely for signs of revenue growth or improved cost control, as the current net income decline suggests a challenging environment.
Key Numbers
- $2.36M — Net Income (Decreased from $3.06M in Q3 2024 to $2.36M in Q3 2025, a 22.6% decline.)
- 103.58M — Common Shares Outstanding (Increased slightly from 102.52M shares as of August 31, 2024, to 103.58M shares as of May 31, 2025.)
- $0.01 — Retained Earnings (Reported for the nine months ended May 31, 2025, indicating a significant change from prior periods.)
Key Players & Entities
- Simply Good Foods Co (company) — filer of the 10-Q
- $2,365,100 (dollar_amount) — net income for Q3 2025
- $3,058,475 (dollar_amount) — net income for Q3 2024
- 103,583,702 (dollar_amount) — common shares outstanding as of May 31, 2025
- 102,515,315 (dollar_amount) — common shares outstanding as of August 31, 2024
- SEC (regulator) — recipient of the 10-Q filing
- Bloomberg (company) — publisher of the analysis
FAQ
What was Simply Good Foods Co's net income for the quarter ended May 31, 2025?
Simply Good Foods Co reported a net income of $2,365,100 for the three months ended May 31, 2025.
How did Simply Good Foods Co's net income compare to the same period last year?
The net income of $2,365,100 for Q3 2025 was a decrease from $3,058,475 reported for the three months ended May 31, 2024.
What was the number of common shares outstanding for Simply Good Foods Co as of May 31, 2025?
As of May 31, 2025, Simply Good Foods Co had 103,583,702 common shares outstanding.
What were Simply Good Foods Co's retained earnings for the nine months ended May 31, 2025?
Simply Good Foods Co reported retained earnings of $0.01 for the nine months ended May 31, 2025.
When did Simply Good Foods Co file its 10-Q report?
Simply Good Foods Co filed its 10-Q report on July 10, 2025.
What is the fiscal year end for Simply Good Foods Co?
The fiscal year end for Simply Good Foods Co is August 26.
Where is Simply Good Foods Co's business address located?
Simply Good Foods Co's business address is 1225 17th Street, Suite 1000, Denver, CO 80202.
What is the CIK number for Simply Good Foods Co?
The Central Index Key (CIK) for Simply Good Foods Co is 0001702744.
Has Simply Good Foods Co's common stock changed significantly?
The common stock outstanding increased slightly from 102,515,315 shares on August 31, 2024, to 103,583,702 shares on May 31, 2025.
What does the decrease in net income mean for Simply Good Foods Co investors?
The 22.6% decrease in net income to $2,365,100 suggests potential challenges in profitability, which could negatively impact investor returns and stock performance.
Industry Context
Simply Good Foods Co operates in the food and kindred products sector, specifically focusing on healthy snacking options. The industry is characterized by intense competition from both established food giants and emerging niche brands, driven by evolving consumer preferences towards health and wellness. Trends include demand for plant-based ingredients, reduced sugar content, and convenient formats.
Regulatory Implications
As a food manufacturer, Simply Good Foods Co is subject to stringent regulations from bodies like the FDA concerning food safety, labeling, and manufacturing practices. Compliance with these regulations is critical to avoid product recalls, reputational damage, and potential fines. Changes in dietary guidelines or labeling requirements could necessitate product reformulation or marketing adjustments.
What Investors Should Do
- Investigate the drivers behind the 22.6% decline in net income for Q3 2025.
- Analyze the reasons for the slight increase in common shares outstanding.
- Monitor trends in the healthy snack market and competitive responses.
Key Dates
- 2025-05-31: Quarterly Report Filing (Q3) — Provides the latest financial performance data, including a decrease in net income compared to the prior year.
- 2024-08-31: Fiscal Year End — Marks the end of the company's fiscal year, with common stock outstanding reported as of this date for comparison.
- 2025-07-10: 10-Q Filing — The official filing date for the quarterly report ending May 31, 2025.
Glossary
- us-gaap:RetainedEarningsMember
- The cumulative net income of a company that has not been distributed to shareholders as dividends. (The reported retained earnings of $0.01 for the nine months ended May 31, 2025, indicates a significant change from prior periods and suggests a very low level of accumulated profits available for reinvestment or distribution.)
- us-gaap:CommonStockMember
- Represents ownership in a corporation, typically with voting rights. (The slight increase in common shares outstanding from 102,515,315 as of August 31, 2024, to 103,583,702 as of May 31, 2025, is a key metric for understanding potential dilution or share-based compensation impacts.)
Year-Over-Year Comparison
The most recent 10-Q filing for the period ending May 31, 2025, shows a notable decrease in net income to $2.36 million, down from $3.06 million in the comparable prior-year period, representing a 22.6% decline. The number of common shares outstanding has seen a slight increase from 102.52 million to 103.58 million. Retained earnings have shifted significantly, with a reported $0.01 for the nine months ended May 31, 2025, indicating a substantial change from previous reporting periods, though specific comparative figures for retained earnings are not detailed in the provided excerpt.
Filing Details
This Form 10-Q (Form 10-Q) was filed with the SEC on July 10, 2025 regarding Simply Good Foods Co (SMPL).