Simply Good Foods Co
For the period ended Aug 29, 2026. Filed Oct 27, 2026.
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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2026 · Filed Oct 27, 2026
SMPL$12.05-4.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2025-08-30; filed 2025-10-28.
0001702744-25-000046
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2026-08-29; filed 2026-10-27.
0001702744-26-000031
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 101 previous paragraphs and 117 current paragraphs.
47 unchanged; 42 reworded; 23 added; 12 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
The Simply Good Foods Company (“Simply Good Foods”) was formed in March 2017, to acquire NCP-ATK Holdings, Inc. (“Atkins”), which was completed in July 2017. As part of Simply Good Foods’ strategy to become an industry leading snacking platform, in November 2019, we acquired Quest Nutrition, LLC (“Quest”), and we acquired Only What You Need, Inc. in June 2024. We refer to the acquisition of Quest Nutrition, LLC as the “Quest Acquisition” and the acquisition of Only What You Need, Inc. as the “OWYN Acquisition”.
Current report
In fiscal 2027, we will be launching new advertising campaigns across all three brands to potentially increase consumer demand and drive velocities. If we fail to implement our growth strategies or they ultimately prove to be unsuccessful, our sales and profitability may be negatively affected, which could materially and adversely affect our business, financial condition and results of operations.
Current report
Ongoing geopolitical tensions could lead to significant disruption of global energy supplies and increases in global energy prices, adversely affect global supply chains, heighten inflationary pressures on our input costs and supply chain, and adversely affect consumer spending patterns. At this time, these factors have not resulted in a material negative effect on our business, financial condition and results of operations. However, we continue to evaluate the evolving macroeconomic environment as ongoing geopolitical tensions could adversely affect the Company for the aforementioned reasons.
Current report
Goodwill and Intangible Assets
Current report
As a result of the sustained decline in the Company’s stock price and declines in the Company’s market capitalization assessed during the third quarter of fiscal year 2026, the Company identified a triggering event indicating that it was more likely than not that the fair value of the goodwill reporting unit was less than its carrying amount. The Company conducted a quantitative interim goodwill assessment as of the last day of its third quarter, utilizing a weighted combination of the discounted cash flow method under the income approach and the guideline public company method under the market approach to estimate the fair value of the equity of the Company. Based on testing, the carrying value was greater than its fair value, resulting in an impairment of $38.0 million related to goodwill for the fifty-two weeks ended August 29, 2026.
Current report
As a result of the declines of net sales and future revenue projections assessed during the second quarter of fiscal year 2026, the Company identified a triggering event indicating that it was more likely than not that the fair value of both the OWYN and Atkins brands and trademarks indefinite-lived intangible assets were less than their respective carrying amounts. The Company conducted a quantitative assessment as of the last day of its second quarter, utilizing the relief from royalty methodology under the income approach to estimate the fair value of the intangible assets. Based on testing, the respective assets’ carrying values exceeded their fair values, resulting in a loss on impairment for OWYN and for Atkins.
Current report
As a result of the sustained decline in the Company’s stock price and declines in the Company’s market capitalization assessed during the third quarter of fiscal year 2026, the Company identified a triggering event indicating that it was more likely than not that the fair value of both the OWYN and Atkins brands and trademarks indefinite-lived intangible assets were less than their respective carrying amounts. The Company conducted a quantitative assessment as of the last day of its third quarter, utilizing the relief from royalty methodology under the income approach to estimate the fair value of the intangible assets. Based on testing, the respective assets’ carrying values exceeded their fair values, resulting in a loss on impairment for OWYN and for Atkins. In addition, the Company included the Quest brand and trademark indefinite-lived intangible asset within the quantitative assessment, utilizing the relief from royalty methodology under the income approach to estimate the fair value of the intangible asset. Based on testing, Quest’s fair value exceeded its carrying value, resulting in no impairment.
Current report
During the fifty-two weeks ended August 29, 2026, the Company recorded a loss on impairment of $200.0 million and $93.0 million for the OWYN and Atkins brand indefinite-lived intangible assets, respectively. During the fifty-two weeks ended August 30, 2025, the Company recorded a loss on impairment of $60.9 million for the Atkins brand indefinite-lived intangible asset and the licensing agreements finite-lived intangible asset.
Current report
The Company performed its annual qualitative impairment assessment of goodwill and its indefinite-lived and finite-lived intangible assets as of the first day of the fourth quarter of fiscal year 2026, which did not identify any incremental indicators of impairment from its previously performed quantitative assessment as of the last day of its third quarter. It was determined that it was more likely than not that goodwill and each indefinite-lived intangible asset had fair values in excess of or equal to their carrying values and its finite-lived intangible assets did not indicate that their carrying amounts may not be recoverable.
Current report
Restructuring and Other
Current report
For the fifty-two weeks ended August 29, 2026, the Company incurred $19.5 million of costs for restructuring activities, of which $5.7 million have been included within Cost of goods sold, $1.1 million have been included within Selling and marketing, and $12.7 million have been included within General and administrative, which includes $2.6 million of impairment charges related to various assets utilized at our contract manufacturing facilities for which their carrying values were greater than their fair values, in the Consolidated Statements of Income and Comprehensive Income (Loss). Refer to Note 16, Restructuring and Other, for additional information regarding restructuring and other activities.
Current report
During the second quarter of fiscal year 2026, the Company announced certain restructuring activities in conjunction with the implementation of the Company’s modified organization design and actions to streamline its operations, which will create a more efficient organization that will continue to support and build its business. These restructuring plans primarily included workforce reductions, changes in management structure, actions to streamline its operations and other cost savings initiatives. As of August 29, 2026, the Company expects to incur approximately $25.0 million, including the $19.5 million referenced above, in restructuring and other costs, which were paid throughout fiscal 2026 and will continue to be paid throughout fiscal 2027.
Current report
In connection with the restructuring activities, the Company recorded incremental stock-based compensation expense of $1.0 million in the second quarter of fiscal year 2026 related to the separation of the Company’s prior President and Chief Executive Officer in January 2026. Refer to Note 14, Incentive Plan, for additional information.
Current report
During the fifty-two weeks ended August 29, 2026, our net sales decreased 6.5% to $1,356.5 million compared to $1,450.9 million for the fifty-two weeks ended August 30, 2025, driven by continued velocity-related declines driving distribution-related declines for Atkins and OWYN, which were partially offset by Quest volume-driven growth.
Current report
Net sales. Net sales were $1,356.5 million for the fifty-two weeks ended August 29, 2026, compared to $1,450.9 million for the fifty-two weeks ended August 30, 2025, representing a decrease of $94.4 million, or 6.5%, driven by continued velocity-related declines driving distribution-related declines for Atkins and OWYN, which were partially offset by Quest volume-driven growth.
Current report
Interest expense. Interest expense of $21.4 million decreased $1.8 million for the fifty-two weeks ended August 29, 2026, compared to the fifty-two weeks ended August 30, 2025, primarily due to the decrease in interest rates on our Term Facility to 5.8% as of August 29, 2026 from 6.3% as of August 30, 2025.
Current report
On November 19, 2025, the Company entered into an eighth amendment (the “2026 Incremental Facility Amendment”) to the Credit Agreement to increase the principal borrowed on the Term Facility by $150.0 million and provided for an extension of the maturity date from March 17, 2027, to March 17, 2030. The 2026 Incremental Facility Amendment also provided for an extension of the stated maturity date of the
Current report
The Company adopted a stock repurchase program in November 2018. On January 6, 2026, the Company announced that its Board of Directors approved a $200.0 million increase in its repurchase authorization under its stock repurchase program (the “Current Authorization”). Under the stock repurchase program, the Company may repurchase shares from time to time in the open market or in privately negotiated transactions. The stock repurchase program does not obligate the Company to acquire any specific number of shares or acquire shares over any specific period of time. The stock repurchase program may be suspended or discontinued at any time by the Company and does not have an expiration date.
Current report
Goodwill and Intangible Assets
Current report
As a result of the sustained decline in the Company’s stock price and declines in the Company’s market capitalization assessed during the third quarter of fiscal year 2026, the Company identified a triggering event indicating that it was more likely than not that the fair value of the goodwill reporting unit was less than its carrying amount. The Company conducted a quantitative interim goodwill assessment as of the last day of its third quarter, utilizing a weighted combination of the discounted cash flow method under the income approach and the guideline public company method under the market approach to estimate the fair value of the equity of the Company. Based on testing, the carrying value was greater than its fair value, resulting in an impairment of $38.0 million related to goodwill for the fifty-two weeks ended August 29, 2026.
Current report
As a result of the declines of net sales and future revenue projections assessed during the second quarter of fiscal year 2026, the Company identified a triggering event indicating that it was more likely than not that the fair value of both the OWYN and Atkins brands and trademarks indefinite-lived intangible assets were less than their respective carrying amounts. The Company conducted a quantitative assessment as of the last day of its second quarter, utilizing the relief from royalty methodology under the income approach to estimate the fair value of the intangible assets. Based on testing, the respective assets’ carrying values exceeded their fair values, resulting in a loss on impairment for OWYN and for Atkins.
Current report
As a result of the sustained decline in the Company’s stock price and declines in the Company’s market capitalization assessed during the third quarter of fiscal year 2026, the Company identified a triggering event indicating that it was more likely than not that the fair value of both the OWYN and Atkins brands and trademarks indefinite-lived intangible assets were less than their respective carrying amounts. The Company conducted a quantitative assessment as of the last day of its third quarter, utilizing the relief from royalty methodology under the income approach to estimate the fair value of the intangible assets. Based on testing, the respective assets’ carrying values exceeded their fair values, resulting in a loss on impairment for OWYN and for Atkins. In addition, the Company included the Quest brand and trademark indefinite-lived intangible asset within the quantitative assessment, utilizing the relief from royalty methodology under the income approach to estimate the fair value of the intangible asset. Based on testing, Quest’s fair value exceeded its carrying value, resulting in no impairment.
Current report
During the fifty-two weeks ended August 29, 2026, the Company recorded a loss on impairment of $200.0 million and $93.0 million for the OWYN and Atkins brand indefinite-lived intangible assets, respectively. During the fifty-two weeks ended August 30, 2025, the Company recorded a loss on impairment of $60.9 million for the Atkins brand indefinite-lived intangible asset and the licensing agreements finite-lived intangible asset.
Removed paragraphs (12)
Previous report
To that end, in June 2024, we completed the acquisition of Only What You Need, Inc., a plant-based protein food company, for a cash purchase price of approximately $281.9 million (subject to customary adjustments). For more information, please see “Liquidity and Capital Resources-OWYN Acquisition”.
Previous report
Net sales. Net sales of $1,450.9 million represented an increase of $119.6 million, or 9.0%, for the fifty-two weeks ended August 30, 2025, compared to the fifty-three weeks ended August 31, 2024. The increase in net sales was primarily driven by Quest and OWYN volume growth, which more than offset continued declines in Atkins driven primarily by a reduction of distribution.
Previous report
Interest expense. Interest expense decreased $2.8 million for the fifty-two weeks ended August 30, 2025, compared to the fifty-three weeks ended August 31, 2024, primarily due to the effect of principal payments reducing the outstanding balance of the Term Facility (as defined below) during the fiscal year. Additionally, interest expense related to the amortization of deferred financing costs and debt discount decreased $0.6 million for the fifty-two weeks ended August 30, 2025, compared to the fifty-three weeks ended August 31, 2024.
Previous report
OWYN Acquisition
Previous report
On April 29, 2024, the Company’s wholly owned subsidiary, Simply Good Foods, USA, Inc. entered into a stock purchase agreement (the “Purchase Agreement”) to acquire Only What You Need, Inc. (“OWYN”), a plant-based protein food company (the “OWYN Acquisition”), for approximately $280.0 million. On June 13, 2024, pursuant to the Purchase Agreement, the Company completed the OWYN Acquisition by acquiring 100% of the equity interests for a cash purchase price at closing of $281.9 million, subject to certain customary post-closing adjustments. We acquired OWYN as a part of our vision to lead the nutritious snacking movement with trusted brands that offer a variety of convenient, innovative, great-tasting, better-for-you snacks and meal replacements that will now offer plant-based products to a wider market of consumers.
Previous report
The OWYN Acquisition was funded through a combination of incremental borrowings under our outstanding Term Facility, totaling $250.0 million, and cash on hand. In the second fiscal quarter of 2025, the Company received a post-closing release from escrow of approximately $1.7 million related to net working capital adjustments, resulting in a total net consideration paid of $280.2 million. Business transaction costs within the Consolidated Statements of Income and Comprehensive Income for the fifty-two weeks ended August 30, 2025, were $0.8 million, which consisted of legal, accounting, and other costs.
Previous report
As of August 30, 2025, approximately $20.7 million remained available for repurchases under our $150.0 million stock repurchase program. On October 21, 2025, the Company's Board of Directors approved a $150.0 million increase to its existing stock repurchase program. Refer to Note 12, Stockholders’ Equity, of the Consolidated Financial Statements included in Item 8 of this Report for additional information related to our stock repurchase program.
Previous report
Business Combination
Previous report
On June 13, 2024, we completed the OWYN Acquisition for a cash purchase price of approximately $281.9 million, subject to certain customary post-closing adjustments. The OWYN Acquisition was accounted for using the acquisition method of accounting prescribed by Accounting Standard Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”), whereby the results of operations, including the revenues and earnings of OWYN, are included in the financial statements from the date of acquisition. Additionally, assets acquired and liabilities assumed were recognized at their fair values based on widely accepted valuation techniques in accordance with ASC Topic 820, Fair Value Measurements, as of the closing date. Significant judgment is required to determine the fair value of certain tangible and intangible assets. The process for estimating fair values requires the use of significant estimates, assumptions and judgments, including determining the timing and estimates of future cash flows and developing appropriate discount rates. ASC 805 establishes a measurement period to provide companies with a reasonable amount of time to obtain the information necessary to identify and measure various items in a business combination and cannot extend beyond one year from the acquisition date. Measurement period adjustments are recognized in the reporting period in which the adjustments are determined and calculated as if the accounting had been completed as of the acquisition date. In the second fiscal quarter of 2025, a measurement period adjustment of $1.7 million was recorded to goodwill. The final fair value determination of the assets acquired and liabilities assumed was completed prior to one year from the transaction completion, consistent with ASC 805.
Previous report
Goodwill and Other Intangible Assets
Previous report
For the fifty-two weeks ended August 30, 2025, and the fifty-three weeks ended August 31, 2024, the Company determined its operations are organized into two operating segments, Quest and Atkins, and OWYN, which are aggregated into one reportable segment due to similar financial, economic and operating characteristics. The operating segments are also similar in the following areas: (a) the nature of the products; (b) the nature of the production processes; (c) the methods used to distribute products to customers, (d) the type of customer for the products, and (e) the nature of the regulatory environment. The Company also designed its organizational structure to support entity-wide business functions across brands, products, customers, and geographic regions. As of the fifty-two weeks ended August 26, 2023, the Company determined its operations were organized into one consolidated operating segment and reportable segment.
Previous report
As a result of the declines of future revenue projections during the fourth quarter of fiscal year 2025, the Company conducted an additional qualitative assessment in the fiscal fourth quarter that indicated potential indicators of impairment for the Atkins brand and trademarks indefinite-lived intangible asset. Accordingly, the Company proceeded to conduct a quantitative impairment assessment. Based on our quantitative assessment, the asset had an excess carrying value over its respective fair value, resulting in a loss on impairment. No impairment charges related to goodwill or indefinite-lived intangibles were recognized in the fifty-three weeks ended August 31, 2024, or fifty-two weeks ended August 26, 2023.
Reworded paragraphs (42)
Previous wording
Our fiscal year ends the last Saturday in August. Our fiscal year 2025 ended August 30, 2025, was a fifty-two week period. Our fiscal years 2024 and 2023 ended August 31, 2024, and August 26, 2023, were a fifty-three week period and a fifty-two week period, respectively. Our fiscal quarters are comprised of thirteen weeks each, except for fifty-three week fiscal periods for which the fourth quarter is comprised of fourteen weeks, and end on the thirteenth Saturday of each quarter (fourteenth Saturday of the fourth quarter, when applicable). Our fiscal quarters for fiscal 2025 ended on November 30, 2024, March 1, 2025, May 31, 2025, and August 30, 2025.
Current wording
Our fiscal year ends the last Saturday in August. Our fiscal year 2026 ended August 29, 2026, was a fifty-two week period. Our fiscal years 2025 and 2024 ended August 30, 2025, and August 31, 2024, were a fifty-two week period and a fifty-three week period, respectively. Our fiscal quarters are comprised of thirteen weeks each, except for fifty-three week fiscal periods for which the fourth quarter is comprised of fourteen weeks, and end on the thirteenth Saturday of each quarter (fourteenth Saturday of the fourth quarter, when applicable). Our fiscal quarters for fiscal 2026 ended on November 29, 2025, February 28, 2026, May 30, 2026, and August 29, 2026.
Previous wording
Unless the context requires otherwise in this Report, the terms “we,” “us,” “our,” the “Company” and “Simply Good Foods” refer to The Simply Good Foods Company and its subsidiaries. In context, “Quest” may also refer to the Quest brand, “Atkins” may also refer to the Atkins brand, and “OWYN” may also refer to the OWYN brand. Atkins, Quest, OWYN, and the Simply Good logo are either registered trademarks or trademarks of the Company’s wholly owned subsidiary Simply Good Foods USA, Inc. or one of its affiliates in the United States and elsewhere. All rights are reserved.
Current wording
Unless the context requires otherwise in this Report, the terms “we,” “us,” “our,” the “Company” and “Simply Good Foods” refer to The Simply Good Foods Company and its subsidiaries. In context, “Quest” may also refer to the Quest brand, “Atkins” may also refer to the Atkins brand, and “OWYN” may also refer to the OWYN brand. Atkins, Atkins Endulge, Quest, OWYN, and the Simply Good logo are either registered trademarks or trademarks of the Company’s wholly owned subsidiary Simply Good Foods USA, Inc. or one of its affiliates in the United States and elsewhere. All rights are reserved.
Previous wording
The Simply Good Foods Company is a consumer packaged food and beverage company that aims to lead the nutritious snacking movement with trusted brands that offer a variety of convenient, innovative, great-tasting, better-for-you snacks and meal replacements, and other product offerings. The product portfolio we develop, market and sell consists primarily of protein bars, ready-to-drink (“RTD”) shakes, sweet and salty snacks and confectionery products marketed under the Quest, Atkins, and OWYN brand names. We believe Simply Good Foods is poised to expand its wellness platform through innovation and organic growth along with acquisition opportunities.
Current wording
The Simply Good Foods Company is a consumer packaged food and beverage company that aims to lead the nutritious snacking movement with trusted brands that offer a variety of convenient, innovative, great-tasting, better-for-you snacks and meal replacements, and other product offerings that seek to address consumers’ increasing demand for protein-rich food, that is low in simple carbohydrates. The product portfolio we develop, market and sell consists primarily of protein bars, ready-to-drink (“RTD”) protein shakes, sweet and salty protein snacks and confectionery products marketed under the Quest, Atkins, and OWYN brand names. Simply Good Foods is poised to expand its wellness platform through innovation and organic growth along with acquisition and licensing opportunities.
Previous wording
Our nutritious snacking platform consists of brands that specialize in providing products for consumers that follow certain nutritional philosophies and health-and-wellness trends: Quest for consumers seeking a variety of protein-rich foods and beverages that also limit sugars and simple carbs, Atkins for those following a low-carb lifestyle, and OWYN for those looking for a plant-based food and beverage option. We distribute our products in major retail channels, primarily in North America, including grocery, club, and mass merchandise, as well as through e-commerce, convenience, specialty, and other channels. Our portfolio of nutritious snacking brands gives us a strong platform with which to introduce new products, expand distribution, and attract new consumers to our products.
Current wording
Our nutritious snacking platform consists of brands that specialize in providing products for consumers that follow certain nutritional philosophies and health-and-wellness trends: Quest for consumers seeking a variety of protein-rich foods and beverages that also limit sugars and simple carbohydrates, Atkins for those following a low-carbohydrate lifestyle or seeking to manage weight or blood sugar levels, and OWYN for consumers seeking protein-rich beverages that are plant-based and tested for the top nine allergens. We distribute our products in major retail channels, primarily in North America, including grocery, club, and mass merchandise, and through e-commerce, convenience, specialty, and other channels. Our portfolio of nutritious snacking brands gives us a strong platform with which to introduce new products, expand distribution, and attract new consumers to our products.
Previous wording
Our consolidated results of operations for the fiscal year ended August 30, 2025, were primarily driven by Quest and OWYN volume growth, which more than offset continued declines in Atkins driven primarily by a reduction of distribution. In recent periods, retail distribution for the Atkins brand has been under pressure, driving net sales declines for the brand that have been partially offset by growth in the e-commerce channel. The Atkins brand has had, and continues to have, a large retail presence on-shelf, which is being reduced in fiscal year 2026 and could be reduced in future periods. In response, in fiscal year 2026, we are taking actions to bolster the highest performing Atkins products and simultaneously working with retailers to replace lower performing Atkins products with higher performing Quest and OWYN products.
Current wording
During the fifty-two weeks ended August 29, 2026, our results of operations were primarily driven by declines for Atkins and OWYN, which were partially offset by Quest growth. For Atkins and OWYN, our results of operations were affected negatively by reduced household penetration leading to reduced velocities and continued distribution-related losses. In recent periods, retail distribution for the Atkins brand has been under pressure due to declining velocities. The Atkins brand has had, and continues to have, a large retail presence on-shelf, which was reduced in the current fiscal year and could be reduced in future periods. In response, we have been taking action to bolster the highest performing Atkins products and simultaneously working with retailers to replace lower performing Atkins products with higher performing products. In fiscal year 2026, OWYN’s reduced household penetration contributed to softer velocities, including on newly expanded distribution, which has resulted in distribution-related declines in the current fiscal year, and which could continue in future periods.
Previous wording
The Company’s gross margin was affected by the unfavorable effects of higher commodity expenses compared to the prior year. We continue to monitor macroeconomic trends and uncertainties such as consumer and economic uncertainty, key ingredient inflation, supply chain challenges, and the effects of tariffs, which may have adverse effects on net sales and profitability. We are continuing to evaluate these factors and our ability to potentially offset all or a portion of cost increases through pricing actions and cost savings efforts for fiscal year 2026. Economic pressures on customers and consumers, including the challenges of high inflation and the effects of tariffs, may negatively affect our net sales and profitability in the future.
Current wording
The Company’s gross margin was affected by the unfavorable effects of higher input costs and restructuring costs compared to the prior year, with productivity a modest offset. Margins are expected to remain under pressure and are dependent on the Company’s ability to realize incremental benefits from productivity and cost savings initiatives, our recently announced and implemented pricing actions and other mitigating actions. Economic pressures on customers and consumers, including the challenges of high inflation and consumer sensitivity to price increases, are expected to have corresponding elasticity impacts which may have adverse effects on net sales and profitability. We continue to monitor and evaluate macroeconomic trends including consumer purchasing behavior and sentiment, economic uncertainty, key ingredient inflation, supply chain challenges, and the effects of tariffs.
Previous wording
We also have intangible assets that have determinable useful lives, consisting primarily of customer relationships, proprietary recipes and formulas, licensing agreements, and software and website development costs. Costs of these finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. Finite-lived intangible assets are tested for impairment when events or circumstances indicated that the carrying amount may not be recoverable. For the fifty-two weeks ended August 30, 2025, we identified indicators of impairment related to our licensing agreements finite-lived intangible asset. Accordingly, the Company proceeded to conduct a quantitative impairment assessment. Based on our quantitative assessment, the asset had an excess carrying value over its respective fair value, resulting in a loss on impairment. For the fifty-three weeks ended August 31, 2024, and August 26, 2023, we did not identify indicators of impairment related to our finite-lived intangible assets, and as such there were no impairments recorded related to finite-lived intangible assets. We believe the estimates and assumptions utilized in our impairment assessment are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those utilized in our valuations. Significant declines of future revenue projections or changes of other assumptions used in estimating fair values versus those utilized at the time of the initial valuations could result in further impairment charges that could materially affect the consolidated financial statements.
Current wording
We believe the estimates and assumptions utilized in our impairment assessments are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those utilized in our valuations. Significant declines of future revenue projections or changes of other assumptions used in estimating fair values versus those utilized at the time of the initial valuations could result in further impairment charges that could materially affect the consolidated financial statements. Refer to Note 5, Goodwill and Intangibles, for additional information regarding the Company’s reporting units and impairment assessments.
Previous wording
Following the OWYN Acquisition during the fifty-three weeks ended August 31, 2024, the Company determined its operations are organized into two operating segments, Quest and Atkins, and OWYN, due to similar financial, economic and operating characteristics. The operating segments are also similar in the following areas: (a) the nature of the products; (b) the nature of the production processes; (c) the methods used to distribute products to customers, (d) the type of customer for the products, and (e) the nature of the regulatory environment. The Company also designed its organizational structure to support entity-wide business functions across brands, products, customers, and geographic regions. As a result, as of the fifty-two weeks ended August 30, 2025, and fifty-three weeks ended August 31, 2024, the Company determined its operations are organized into two operating segments, which were aggregated into one reportable segment due to similar financial, economic and operating characteristics. As of the fifty-two weeks ended August 26, 2023, the Company determined its operations were organized into one consolidated operating segment and reportable segment.
Current wording
As of August 29, 2026, the Company determined its operations are organized intoone consolidated operating segment and reportable segment, represented by the Company’s consolidated financial statements. Previously, as of August 30, 2025, the Company’s operations were organized intotwo operating segments, Quest and Atkins, and OWYN, which were aggregated intoone reportable segment due to similar financial, economic and operating characteristics.
Previous wording
•General and administrative. General and administrative expenses are comprised of expenses associated with corporate and administrative functions that support our business, including employee compensation, stock-based compensation, professional services, executive transition costs, integration expense, restructuring costs, insurance and other general corporate expenses.
Current wording
•General and administrative. General and administrative expenses are comprised of expenses associated with corporate and administrative functions that support our business, including employee compensation, stock-based compensation, professional services, integration expense, restructuring costs, insurance and other general corporate expenses.
Previous wording
During the fifty-two weeks ended August 30, 2025, our net sales increased $119.6 million, or 9.0%, to $1,450.9 million compared to net sales of $1,331.3 million for the fifty-three weeks ended August 31, 2024, driven by Quest and OWYN volume growth, which more than offset continued declines in Atkins driven primarily by a reduction of distribution. Gross profit increased, driven by higher sales volumes, while gross profit margin decreased primarily as a result of unfavorable commodity expenses compared to the prior period and lower gross profit margins of the OWYN business. We expect to continue building on our existing capabilities and strengthening the position of our brands in the marketplace, and will continue to invest in our business and improve our operating efficiencies.
Current wording
Gross profit decreased and gross profit margin decreased 360 basis points, primarily as a result of higher input costs and current period restructuring costs compared to the prior period. We expect to continue building on our existing capabilities and strengthening the position of our brands in the marketplace, and will continue to invest in our business and improve our operating efficiencies.
Previous wording
A discussion regarding our financial condition and results of operations for the fifty-two weeks ended August 30, 2025, compared to the fifty-three weeks ended August 31, 2024, is presented below. A discussion regarding our financial condition and results of operations for the fifty-three weeks ended August 31, 2024, compared to the fifty-two weeks ended August 26, 2023, can be found under Item 7 of our Annual Report on Form 10-K for the fiscal year ended August 31, 2024, filed with the SEC on October 29, 2024.
Current wording
A discussion regarding our financial condition and results of operations for the fifty-two weeks ended August 29, 2026, compared to the fifty-two weeks ended August 30, 2025, is presented below. A discussion regarding our financial condition and results of operations for the fifty-two weeks ended August 30, 2025, compared to the fifty-three weeks ended August 31, 2024, can be found under Item 7 of our Annual Report on Form 10-K for the fiscal year ended August 30, 2025, filed with the SEC on October 28, 2025.
Previous wording
Comparison of Results for the Fifty-Two Weeks Ended August 30, 2025, and the Fifty-three weeks ended August 31, 2024
Current wording
Comparison of Results for the Fifty-Two Weeks Ended August 29, 2026, and the Fifty-two weeks ended August 30, 2025
Previous wording
Cost of goods sold. Cost of goods sold increased $105.4 million, or 12.9%, for the fifty-two weeks ended August 30, 2025, compared to the fifty-three weeks ended August 31, 2024. The cost of goods sold increase was primarily driven by higher sales volumes, primarily as a result of the growth for Quest and OWYN.
Current wording
Cost of goods sold. Cost of goods sold decreased $11.0 million, or 1.2%, for the fifty-two weeks ended August 29, 2026, compared to the fifty-two weeks ended August 30, 2025. The cost of goods sold decrease was primarily driven by the decrease of net sales compared to the prior year period and partially offset by higher input costs and restructuring costs compared to the prior year period.
Previous wording
Gross profit. Gross profit of $525.7 million increased $14.2 million, or 2.8%, for the fifty-two weeks ended August 30, 2025, compared to the fifty-three weeks ended August 31, 2024. Gross profit as a percentage of net sales was 36.2% for the fifty-two weeks ended August 30, 2025, a decrease of 220 basis points from 38.4% of net sales for the fifty-three weeks ended August 31, 2024. The decrease in gross profit margin was primarily driven by unfavorable commodity expenses compared to the prior year period and lower gross profit margins of the OWYN business.
Current wording
Gross profit. Gross profit decreased $83.4 million, or 15.9%, to $442.4 million for the fifty-two weeks ended August 29, 2026, compared to the fifty-two weeks ended August 30, 2025. Gross profit margin was 32.6% of net sales for the fifty-two weeks ended August 29, 2026, a decrease of 360 basis points from 36.2% of net sales for the fifty-two weeks ended August 30, 2025. The decrease in gross profit margin was primarily driven by higher input costs and restructuring costs compared to the prior year period.
Previous wording
Operating expenses. Operating expenses increased $63.8 million, or 20.9%, for the fifty-two weeks ended August 30, 2025, compared to the fifty-three weeks ended August 31, 2024, due to the following:
Current wording
Operating expenses. Operating expenses increased $253.2 million, or 68.6%, for the fifty-two weeks ended August 29, 2026, compared to the fifty-two weeks ended August 30, 2025, due to the following:
Previous wording
•Selling and marketing. Selling and marketing expenses decreased $9.6 million, or 6.7%, for the fifty-two weeks ended August 30, 2025, compared to the fifty-three weeks ended August 31, 2024. The decrease was primarily related to an overall decrease in marketing spend.
Current wording
•Selling and marketing. Selling and marketing expenses decreased $4.8 million, or 3.6%, for the fifty-two weeks ended August 29, 2026, compared to the fifty-two weeks ended August 30, 2025. The decrease was primarily related to a planned decrease in Atkins marketing spend partially offset by increases for Quest and OWYN.
Previous wording
•General and administrative. General and administrative expenses increased $26.2 million, or 20.2%, for the fifty-two weeks ended August 30, 2025, compared to the fifty-three weeks ended August 31, 2024. The increase was primarily attributable to an increase of $20.3 million in integration expenses related to the OWYN Acquisition, an increase of $8.0 million in employee-related costs, and higher corporate expenses and other costs, partially offset by a decrease in stock based compensation of $3.1 million.
Current wording
•General and administrative. General and administrative expenses decreased $12.0 million, or 7.7%, for the fifty-two weeks ended August 29, 2026, compared to the fifty-two weeks ended August 30, 2025. The decrease was primarily attributable to a decrease of $16.4 million in integration expenses related to the OWYN Acquisition, a decrease of $7.5 million in employee-related costs, and lower general corporate expenses, partially offset by an increase of $12.7 million in restructuring costs and an increase of $2.3 million in term loan transaction fees.
Previous wording
•Depreciation and amortization. Depreciation and amortization expenses were $16.9 million for both the fifty-two weeks ended August 30, 2025, and the fifty-three weeks ended August 31, 2024.
Current wording
•Depreciation and amortization. Depreciation and amortization expense was $17.7 million and $16.9 million for the fifty-two weeks ended August 29, 2026, compared to the fifty-two weeks ended August 30, 2025, respectively.
Previous wording
•Business transaction costs. Business transaction costs were $0.8 million for the fifty-two weeks ended August 30, 2025, compared to $14.5 million for the fifty-three weeks ended August 31, 2024, and were comprised of expenses related to the OWYN Acquisition.
Current wording
•Business transaction costs. Business transaction costs were zero for the fifty-two weeks ended August 29, 2026, compared to $0.8 million for the fifty-two weeks ended August 30, 2025.
Previous wording
•Loss on impairment. Loss on impairment charges were $60.9 million for the fifty-two weeks ended August 30, 2025. Refer to Note 5, Goodwill and Intangibles, for additional information regarding the Company’s impairment assessments.
Current wording
•Loss on impairment. Loss on impairment charges were $331.0 million for the fifty-two weeks ended August 29, 2026 and $60.9 million for the fifty-two weeks ended August 30, 2025. Refer to Note 5, Goodwill and Intangibles, for additional information regarding the Company’s impairment assessments.
Previous wording
Interest income. Interest income decreased $1.6 million or 38.2% to $2.7 million for the fifty-two weeks ended August 30, 2025, compared to $4.3 million of interest income for the fifty-three weeks ended August 31, 2024, primarily due to lower cash balances and the decrease in interest rates.
Current wording
Interest income. Interest income of $2.9 million increased $0.3 million for the fifty-two weeks ended August 29, 2026, compared to the fifty-two weeks ended August 30, 2025, primarily due to higher cash balances.
Previous wording
(Loss) gain on foreign currency transactions. Foreign currency transactions resulted in an immaterial loss and an immaterial gain for the fifty-two weeks ended August 30, 2025, and August 31, 2024, respectively.
Current wording
(Loss) gain on foreign currency transactions. Foreign currency transactions resulted in a $0.1 million loss and a $0.4 million loss for the fifty-two weeks ended August 29, 2026, and August 30, 2025, respectively.
Previous wording
Income tax expense. Income tax expense decreased $14.5 million for the fifty-two weeks ended August 30, 2025, compared to the fifty-three weeks ended August 31, 2024. The decrease in our income tax expense is primarily driven by lower income from operations and changes in permanent differences.
Current wording
Income tax (benefit) expense. Income tax benefit was $42.2 million for the fifty-two weeks ended August 29, 2026, compared to income tax expense of $32.3 million for the fifty-two weeks ended August 30, 2025. The change in our income tax (benefit) expense was primarily driven by lower income from operations, primarily the loss on impairment.
Previous wording
Net income. Net income was $103.6 million for the fifty-two weeks ended August 30, 2025, a decrease of $35.7 million, compared to net income of $139.3 million for the fifty-three weeks ended August 31, 2024. The decrease was driven by higher operating expenses, primarily the loss on impairment, and was partially offset by higher gross profit and lower interest expense.
Current wording
Net (loss) income. Net loss was $155.9 million for the fifty-two weeks ended August 29, 2026, a decrease of $259.5 million, compared to net income of $103.6 million for the fifty-two weeks ended August 30, 2025. The decrease was driven by higher operating expenses, primarily the loss on impairment, and was partially offset by lower income tax (benefit) expense and other expense.
Previous wording
Adjusted EBITDA. Adjusted EBITDA increased $9.0 million, or 3.4%, for the fifty-two weeks ended August 30, 2025, compared to the fifty-three weeks ended August 31, 2024, driven primarily by higher gross profit. For a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, see “Reconciliation of EBITDA and Adjusted EBITDA” below.
Current wording
Adjusted EBITDA. Adjusted EBITDA decreased $52.3 million, or 18.8%, for the fifty-two weeks ended August 29, 2026, compared to the fifty-two weeks ended August 30, 2025, driven primarily by lower gross profit. For a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, see “Reconciliation of EBITDA and Adjusted EBITDA” below.
Previous wording
EBITDA and Adjusted EBITDA are non-GAAP financial measures commonly used in our industry and should not be construed as alternatives to net income as an indicator of operating performance or as alternatives to cash flow provided by operating activities as a measure of liquidity (each as determined in accordance with GAAP). Simply Good Foods defines EBITDA as net income or loss before interest income, interest expense, income tax expense, depreciation and amortization, and Adjusted EBITDA as further adjusted to exclude the following items: loss on impairment, stock-based compensation expense, executive transition costs, business transaction costs, inventory step-up, integration expenses, term loan transaction fees, and other non-core expenses. The Company believes that EBITDA and Adjusted EBITDA, when used in conjunction with net income, are useful to provide additional information to investors. Management of the Company uses EBITDA and Adjusted EBITDA to supplement net income because these measures reflect operating results of the on-going operations, eliminate items that are not directly attributable to the Company’s underlying operating performance, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to the key metrics the Company’s management uses in its financial and operational decision making. The Company also believes that EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in its industry. EBITDA and Adjusted EBITDA may not be comparable to other similarly titled captions of other companies due to differences in the non-GAAP calculation.
Current wording
EBITDA and Adjusted EBITDA are non-GAAP financial measures commonly used in our industry and should not be construed as alternatives to net income as an indicator of operating performance or as alternatives to cash flow provided by operating activities as a measure of liquidity (each as determined in accordance with GAAP). Simply Good Foods defines EBITDA as net income or loss before interest income, interest expense, income tax expense, depreciation and amortization, and Adjusted EBITDA as further adjusted to exclude the following items: loss on impairment, stock-based compensation expense, business transaction costs, purchase price accounting inventory step-up, integration expense, term loan transaction fees, restructuring and other costs, and other non-core expenses. The Company believes that EBITDA and Adjusted EBITDA, when used in conjunction with net income, are useful to provide additional information to investors. Management of the Company uses EBITDA and Adjusted EBITDA to supplement net income because these measures reflect operating results of the on-going operations, eliminate items that are not directly attributable to the Company’s underlying operating performance, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to the key metrics the Company’s management uses in its financial and operational decision making. The Company also believes that EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in its industry. EBITDA and Adjusted EBITDA may not be comparable to other similarly titled captions of other companies due to differences in the non-GAAP calculation.
Previous wording
The following unaudited table provides a reconciliation of EBITDA and Adjusted EBITDA to its most directly comparable GAAP measure, which is net income, for the fifty-two weeks ended August 30, 2025, and fifty-three weeks ended August 31, 2024:
Current wording
The following unaudited table provides a reconciliation of EBITDA and Adjusted EBITDA to their most directly comparable GAAP measure, which is net income, for the fifty-two weeks ended August 29, 2026, and fifty-two weeks ended August 30, 2025:
Previous wording
We had $98.5 million in cash as of August 30, 2025. We believe our sources of liquidity and capital will be sufficient to finance our continued operations, growth strategy and additional expenses we expect to incur for at least the next twelve months. As circumstances warrant, we may issue debt and/or equity securities from time to time on an opportunistic basis, dependent upon market conditions and available pricing. We make no assurance that we can issue and sell such securities on acceptable terms or at all.
Current wording
We had $138.4 million in cash as of August 29, 2026. We believe our sources of liquidity and capital will be sufficient to finance our continued operations, growth strategy and additional expenses we expect to incur for at least the next twelve months. As circumstances warrant, we may issue debt and/or equity securities from time to time on an opportunistic basis, dependent upon market conditions and available pricing. We make no assurance that we can issue and sell such securities on acceptable terms or at all.
Previous wording
Effective as of the 2025 Repricing Amendment, the interest rate per annum for the Initial Term Loans is based on either:
Current wording
Effective as of the 2026 Incremental Facility Amendment, the interest rate per annum for the Initial Term Loans is based on either:
Previous wording
i. A base rate equaling the higher of (a) the “prime rate,” (b) the federal funds effective rate plus 0.50%, or (c) the Adjusted Term SOFR Rate (as defined in the Credit Agreement) applicable for an interest period of one month plus 1.00% plus (x) 1.00% margin for the Term Loan or (y) 2.00% margin for the Revolving Credit Facility; or
Current wording
i. A base rate equaling the higher of (a) the “prime rate,” (b) the federal funds effective rate plus 0.50%, or (c) the Adjusted Term SOFR Rate (as defined in the Credit Agreement) applicable for an interest period of one month plus 1.00% plus (x) 1.00% margin for the Term Loan or (y) 1.00% margin for the Revolving Credit Facility; or
Previous wording
ii. SOFR subject to a floor of 0.50%, plus (x) 2.00% margin for the Term Loan or (y) 3.00% margin for the Revolving Credit Facility.
Current wording
ii. SOFR, subject to a floor of 0.00%, plus (x) 2.00% margin for the Term Loan or (y) 2.00% margin for the Revolving Credit Facility.
Previous wording
In connection with the closing of the 2025 Repricing Amendment, the Company expensed $0.7 million of non-deferrable third-party costs through General and administrative expenses within the Consolidated Statements of Income and Comprehensive Income.
Current wording
In connection with the closing of the 2026 Incremental Facility Amendment, the Company expensed $2.7 million of non-deferrable third-party costs through General and administrative within the Consolidated Statements of Income and Comprehensive Income (Loss) and capitalized $2.6 million of upfront lender fees (original issue discount) and third-party financing costs.
Previous wording
As of August 30, 2025, the outstanding balance of the Term Facility was $250.0 million. We are not required to make principal payments on the Term Facility over the twelve months following the period ended August 30, 2025. The outstanding balance of the Term Facility is due upon its maturity in March 2027. As of August 30, 2025, there were no amounts drawn against the Revolving Credit Facility.
Current wording
As of August 29, 2026, the outstanding balance of the Term Facility was $350.0 million. We are not required to make principal payments on the Term Facility over the twelve months following the period ended August 29, 2026. The outstanding balance of the Term Facility is due upon its maturity in March 2030. As of August 29, 2026, there were no amounts drawn against the Revolving Credit Facility.
Previous wording
On October 21, 2022, we announced that our Board of Directors had approved the addition of $50.0 million to our stock repurchase program, resulting in authorized stock repurchases of up to an aggregate of $150.0 million. During the fifty-two weeks ended August 30, 2025, the Company repurchased 1,592,471 shares of common stock at an average share price of $31.95. The Company did not repurchase any shares of common stock during the fifty-three weeks ended August 31, 2024. During the fifty-two weeks ended August 26, 2023, the Company repurchased 546,346 shares of common stock at an average share price of $30.11 per share.
Current wording
During the fifty-two weeks ended August 29, 2026, the Company repurchased 11,662,234 shares of common stock at an average share price of $18.29 per share, inclusive of commissions and exclusive of accrued excise tax. During the fifty-two weeks ended August 30, 2025, the Company repurchased 1,592,471 shares of common stock at an average share price of $31.95 per share, inclusive of commissions and exclusive of accrued excise tax. The Company did not repurchase any shares of common stock during the fifty-three weeks ended August 31, 2024. The U.S. Inflation Reduction Act of 2022 requires a 1% excise tax on the net amount of share repurchases. As of August 29, 2026, approximately $157.4 million remained available under the Current Authorization.
Previous wording
The following table sets forth the major sources and uses of cash for the fifty-two weeks ended August 30, 2025, and the fifty-three weeks ended August 31, 2024. A discussion regarding the major sources and uses of cash for the fifty-two weeks ended August 26, 2023, can be found under Item 7 of our Annual Report on Form 10-K for the fiscal year ended August 31, 2024, filed with the SEC on October 29, 2024.
Current wording
The following table sets forth the major sources and uses of cash for the fifty-two weeks ended August 29, 2026, and the fifty-two weeks ended August 30, 2025. A discussion regarding the major sources and uses of cash for the fifty-three weeks ended August 31, 2024, can be found under Item 7 of our Annual Report on Form 10-K for the fiscal year ended August 30, 2025, filed with the SEC on October 28, 2025.
Previous wording
Operating activities. Our net cash provided by operating activities decreased $37.2 million to $178.5 million for the fifty-two weeks ended August 30, 2025, compared to $215.7 million for the fifty-three weeks ended August 31, 2024. The decrease in cash provided by operating activities was primarily attributable to changes in working capital, comprised of changes in accounts receivable, net, inventories, prepaid expenses, other current assets, accounts payable, accrued interest, accrued expenses and other current liabilities, and other assets and liabilities, which are driven by the timing of payments and receipts and the building of inventory. Changes in working capital consumed cash of $32.9 million in the fifty-two weeks ended August 30, 2025, compared to $19.0 million of cash provided in the fifty-three weeks ended August 31, 2024, a difference of $51.9 million. Income from operations decreased by $49.7 million to $156.9 million for the fifty-two weeks ended August 30, 2025, as compared to $206.5 million for the fifty-three weeks ended August 31, 2024. The decrease was driven by higher operating expenses, primarily the loss on impairment, and was partially offset by higher gross profit.
Current wording
Operating activities. Our net cash provided by operating activities increased $2.6 million to $181.0 million for the fifty-two weeks ended August 29, 2026, compared to $178.5 million for the fifty-two weeks ended August 30, 2025. The increase in cash provided by operating activities was primarily attributable to changes in working capital, comprised of changes in accounts receivable, net, inventories, net, prepaid expenses, other current assets, accounts payable, accrued interest, accrued expenses and other current liabilities, and other assets and liabilities, which are driven by the timing of payments and receipts and decreases of inventory balances. Changes in working capital provided cash of $5.3 million in the fifty-two weeks ended August 29, 2026, compared to $32.9 million of cash consumed in the fifty-two weeks ended August 30, 2025, a difference of $38.2 million. Loss from operations was $179.7 million for the fifty-two weeks ended August 29, 2026, as compared to income from operations of $156.9 million for the fifty-two weeks ended August 30, 2025. The decrease was driven by higher operating expenses, primarily the loss on impairment.
Previous wording
Investing activities. Our net cash used in investing activities was $20.9 million for the fifty-two weeks ended August 30, 2025, compared to $286.9 million for the fifty-three weeks ended August 31, 2024. Our net cash used in investing activities for the fifty-two weeks ended August 30, 2025, was primarily comprised of $20.5 million of purchases of property and equipment, primarily at our contract manufacturing facilities. The $286.9 million of net cash used in investing activities for the fifty-three weeks ended August 31, 2024, was primarily comprised of the OWYN Acquisition for $280.4 million, and $5.7 million purchases of property and equipment.
Current wording
Investing activities. Our net cash used in investing activities was $24.1 million for the fifty-two weeks ended August 29, 2026, compared to $20.9 million for the fifty-two weeks ended August 30, 2025. Our net cash used in investing activities for the fifty-two weeks ended August 29, 2026, was primarily comprised of $24.1 million of purchases of property and equipment, primarily at our contract manufacturing facilities. The $20.9 million of net cash used in investing activities for the fifty-two weeks ended August 30, 2025, was primarily comprised of $20.5 million of purchases of property and equipment, primarily at our contract manufacturing facilities.
Previous wording
Financing activities. Our net cash used in financing activities was $191.2 million for the fifty-two weeks ended August 30, 2025, compared to the net cash provided by financing activities of $115.9 million for the fifty-three weeks ended August 31, 2024. Net cash used in financing activities for the fifty-two weeks ended August 30, 2025, primarily consisted $150.0 million in principal payments on the Term Facility and $50.9 million in repurchases of common stock, which was offset by $12.9 million in proceeds from option exercises. Net cash provided by financing activities for the fifty-three weeks ended August 31, 2024, primarily consisted of $250.0 million of proceeds from the 2024 Incremental Facility Amendment in conjunction with the OWYN Acquisition, partially offset by $135.0 million in principal prepayments on the Term Facility.
Current wording
Financing activities. Our net cash used in financing activities was $117.2 million for the fifty-two weeks ended August 29, 2026, compared to the net cash used in financing activities of $191.2 million for the fifty-two weeks ended August 30, 2025. Net cash used in financing activities for the fifty-two weeks ended August 29, 2026, primarily consisted of $213.3 million in repurchases of common stock, inclusive of commissions and exclusive of accrued excise tax, and $50.0 million in principal payments on the Term Facility, partially offset by $150.0 million in proceeds from issuance of long-term debt and $1.1 million of cash proceeds received from option exercises. Net cash used in financing activities for the fifty-two weeks ended August 30, 2025, primarily consisted of $150.0 million in principal prepayments on the Term Facility, and $50.9 million in repurchases of common stock, inclusive of commissions and exclusive of accrued excise tax, partially offset by $12.9 million of cash proceeds received from option exercises.
Previous wording
Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. While the majority of our revenue, expenses, assets and liabilities are not based on estimates, there are certain accounting principles that require management to make estimates regarding matters that are uncertain and susceptible to change. Critical accounting policies are defined as those policies that are reflective of significant judgments, estimates and uncertainties, which could potentially result in materially different results under different assumptions and conditions. Management regularly reviews the estimates and assumptions used in the preparation of the financial statements for reasonableness and adequacy. Our significant accounting policies are discussed in Note 2, Summary of Significant Accounting Policies, of our Consolidated Financial Statements in this filing; however, the following discussion pertains to accounting policies we believe are most critical to the portrayal of its financial condition and results of operations and that require significant, difficult, subjective or complex judgments. Other companies in similar businesses may use different estimation policies and methodologies, which may affect the comparability of our financial condition, results of operations and cash flows to those of other companies.
Current wording
Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. While the majority of our revenue, expenses, assets and liabilities are not based on estimates, there are certain accounting principles that require management to make estimates regarding matters that are uncertain and susceptible to change. Critical accounting policies are defined as those policies that are reflective of significant judgments, estimates and uncertainties, which could potentially result in materially different results under different assumptions and conditions. Management regularly reviews the estimates and assumptions used in the preparation of the financial statements for reasonableness and adequacy. Our significant accounting policies are discussed in Note 2, Summary of Significant Accounting Policies, of our Consolidated Financial Statements in this filing; however, the following discussion pertains to accounting policies we believe are most critical to the portrayal of our financial condition and results of operations and that require significant, difficult, subjective or complex judgments. Other companies in similar businesses may use different estimation policies and methodologies, which may affect the comparability of our financial condition, results of operations and cash flows to those of other companies.
Previous wording
Although some payment terms may be longer, the majority of our payment terms are less than 60 days. As a result, we do not have any material significant payments’ terms as payment is received shortly after the time of sale.
Current wording
Although some payment terms may be longer, the majority of our payment terms are less than 60 days. As a result, we do not have any material significant payment terms as payment is received shortly after the time of sale.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Revolving Commitments and Revolving Loans (each as defined in the Credit Agreement) from December 16, 2026, to the earlier of (i) 91 days prior to the then-effective maturity date of the Term Facility and (ii) December 16, 2029. The terms of the incremental borrowing are substantially the same as the terms of the outstanding borrowings under the Term Facility. No amounts of the Term Facility were repaid as a result of the execution of the 2026 Incremental Facility Amendment.
Current report — wording carried from elsewhere
As of August 29, 2026, the Company determined its operations are organized intoone consolidated operating segment and reportable segment, represented by the Company’s consolidated financial statements. Previously, as of August 30, 2025, the Company’s operations were organized intotwo operating segments, Quest and Atkins, and OWYN, which were aggregated intoone reportable segment due to similar financial, economic and operating characteristics.
Current report — wording carried from elsewhere
We also have intangible assets that have determinable useful lives, consisting primarily of customer relationships, proprietary recipes and formulas, licensing agreements, and software and website development costs. Costs of these finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. Finite-lived intangible assets are tested for impairment when events or circumstances indicated that the carrying amount may not be recoverable.
Current report — wording carried from elsewhere
For the fifty-two weeks ended August 29, 2026, we did not identify indicators of impairment related to our finite-lived intangible assets, and as such there were no impairments recorded related to finite-lived intangible assets. For the fifty-two weeks ended August 30, 2025, we identified indicators of impairment related to our licensing agreements finite-lived intangible asset. Accordingly, the Company proceeded to conduct a quantitative impairment assessment. Based on our quantitative assessment, the asset had an excess carrying value over its respective fair value, resulting in a loss on impairment. For the fifty-three weeks ended August 31, 2024, we did not identify indicators of impairment related to our finite-lived intangible assets, and as such there were no impairments recorded related to finite-lived intangible assets.
Current report — wording carried from elsewhere
We believe the estimates and assumptions utilized in our impairment assessment are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those utilized in our valuations. Significant declines of future revenue projections or changes of other assumptions used in estimating fair values versus those utilized at the time of the initial valuations could result in further impairment charges that could materially affect the consolidated financial statements.