Total Revenue

5.9% increase " " " " "

Total revenue climbed to $381.00 million in Q3 2025 from $359.66 million in Q2 2025 due to solid performance from key brands such as Atkins and Quest, whose improvements more than offset a slight decline in OWYN, reflecting corrective actions based on previous period trends. " " " " "

Atkins

Up 10.6% " "

Atkins rebounded from a weaker Q2 2025 performance, increasing from $108.65 million to $120.30 million in Q3 2025. This improvement may be attributed to renewed promotional initiatives and better merchandising following earlier challenges such as lost distribution and reduced displays. " "

Quest

Up 8.0% " "

Quest experienced an 8.0% increase, rising from $210.77 million to $227.70 million, continuing its momentum from prior periods. Its sustained growth is likely driven by ongoing product innovations and effective advertising strategies that built on Q2’s strong performance. " "

OWYN

Down 0.6% " "

OWYN saw a slight decline from $33.81 million to $33.60 million, reflecting a modest setback in Q3 2025. Despite previous robust growth, this minor dip could be attributed to temporary market fluctuations or integration challenges that have not yet been fully resolved, compared to earlier gains. " "

Total Reported Net Sales

FY 2025

8.5% to 10.5% "

8.5% to 9.5% "

lowered

Total Company Adjusted EBITDA

FY 2025

4% to 6% "

4% to 5% "

lowered

OWYN Net Sales

FY 2025

$140 million to $150 million "

Approximately $145,000,000 "

no change

Economic Conditions and Consumer Purchasing Behavior

FY 2025

generally consistent "

generally consistent "

no change

Q4 Organic Net Sales Growth

Q4 2025

no prior guidance

around 3% "

no prior guidance

Implied Gross Margin Outlook for Q4

Q4 2025

no prior guidance

reflects an increase in realized inflation and the impact of tariffs, expected to continue "

no prior guidance

Full Year Adjusted EBITDA Growth Outlook

FY 2025

no prior guidance

implies a low double-digit decline at the midpoint in Q4 or a mid-single-digit decline excluding the extra week "

no prior guidance

Quest & OWYN Brand Growth and Innovation

In Q4 2024, Q1 and Q2 2025, the discussion centered on consistent double‐digit sales growth, expanding product platforms, innovative new launches (e.g., Overload bars, milkshakes) and strong brand momentum. " " " "

Q3 2025 maintained this narrative with strong double‐digit retail takeaway growth, aggressive innovation across multiple platforms and expanded channel placements. " " "

Consistent and positive – the focus on innovation and growth remains steady, with a continuous emphasis on expanding product offerings and distribution.

Atkins Decline & Strategic Portfolio Rebalancing

In Q4 2024, Q1 and Q2 2025, conversations emphasized declining Atkins sales, distribution losses, and deliberate rebalancing through cutting low‐ROI trade spend and reallocating shelf space to higher‐margin Quest and OWYN products. " " " "

Q3 2025 confirmed the ongoing decline in Atkins consumption (e.g., 13% decline) and further noted distribution cuts alongside a strategic shift in investment toward higher‐performing and higher‐margin brands. " "

Downward with strategic redirection – Atkins continues to lag, while the company is actively reallocating resources to drive overall portfolio profitability.

Ongoing Product Innovation and New Launches

Prior periods (Q4 2024, Q1 and Q2 2025) detailed multiple new product launches including Quest Overload bars, Milkshake platforms and Atkins Strong Shake as part of a robust innovation pipeline. " " " "

Q3 2025 reiterated an aggressive innovation strategy with successful launches (Overload bars, 45‑gram Quest Milkshake) and continued investment in disruptive product developments. " " "

Robust and continuous – the company maintains a healthy pipeline of new launches, keeping consumer excitement and category leadership intact.

Distribution Expansion and Channel Optimization

Across Q4 2024, Q1 and Q2 2025, the company emphasized improved distribution—expanding physical availability, non‐traditional placements and optimizing retail execution to boost growth. " " "

In Q3 2025, there was continued emphasis on expanding distribution channels, enhancing placements (such as health and wellness walls) and non‐traditional locations to further drive retail takeaway growth. " " "

Progressive improvement – sustained efforts to optimize channel strategies with ongoing expansion and innovative placement approaches driving incremental gains.

Financial Strength and Capital Allocation

Q4 2024 and Q1 2025 stressed strong operating cash flows, significant debt reduction, and disciplined capital allocation practices. Even Q2 2025 mentioned debt reduction and cautious capital management. " "

Q3 2025 focused on robust cash flow generation, further debt repayments, active share repurchases and maintained strategic optionality for M&A, reflecting ongoing financial discipline. " "

Steady and disciplined – the company’s financial strength remains a central pillar, with proven consistency in cash generation and capital management.

Tariff, Commodity Inflation, and Input Cost Pressures

Q1 2025 and Q2 2025 highlighted rising input costs (especially cocoa and whey), tariff uncertainties and their impact on margins. Q4 2024 mentioned input cost inflation in a more general sense. " " "

In Q3 2025, specific emphasis was placed on escalating cocoa and whey costs that contributed to a 350‑basis point drop in gross margins, along with ongoing tariff uncertainty affecting profitability. " "

Escalating pressures – cost pressures have intensified, with current period commentary indicating sharper impacts on margins relative to previous periods.

Supply Chain and Execution Risks

Q4 2024 and Q1 2025 detailed issues such as capacity constraints, shipment timing delays, and chip supply disruptions, with efforts such as a new production line easing these problems. " " "

Q3 2025 did not highlight specific challenges in supply chain execution, suggesting that earlier constraints—like chip supply issues—have been largely resolved or are less top‐of‑mind now. " "

Reduced emphasis – earlier operational challenges seem to have been mitigated, leading to a diminished focus on supply chain risks in the current period.

Competitive Pressures

Competitive dynamics in Q4 2024 and Q1 2025 were centered on intensified rivalry in the Quest bars segment and in the RTD category, prompting the need for innovative product differentiation and pricing initiatives. " "

Q3 2025 continued to acknowledge competition—especially in the Quest bars and RTD space—but maintained confidence through its innovation and aggressive channel strategies. " "

Stable with innovation as countermeasure – ongoing competitive pressures remain, yet the company’s proactive innovation and channel expansion strategies persist as effective responses.

Emergence of Nutritional Trends & GLP-1 Tailwinds

Q4 2024, Q1 and Q2 2025 placed considerable focus on evolving nutritional trends; GLP‑1 drugs were seen as tailwinds supporting weight management offerings and bolstering the Atkins brand repositioning and other product strategies. " " "

Q3 2025 did not explicitly discuss GLP‑1 tailwinds or new weight‑management messaging, although broader nutritional trends persisted in the backdrop. " "

Less emphasized – while nutritional trends continue to underpin the overall strategy, explicit references to GLP‑1 tailwinds have diminished in the current period, possibly suggesting a strategic recalibration.

Shifts in Promotional and Trade Investment Strategies

In Q4 2024, Q1 and Q2 2025, the company discussed cutting low‑ROI promotions, rightsizing trade spend (particularly for Atkins) and reallocating resources to higher‑margin brands, along with targeted marketing increases for Quest. " " " "

Q3 2025 did not specifically address promotional or trade investment strategy shifts, with such discussions absent from current period commentary.

Reduced focus – previous strategic shifts in promotional investments have not been emphasized in the current period, suggesting these changes may now be integrated into overall marketing execution or are less top‑of‑mind.