Traeger Announces Third Quarter Fiscal 2025 Results

Traeger Announces Third Quarter Fiscal 2025 Results November 5, 2025 Now Targeting $50 million in Annualized Cost Savings from Project Gravity Reiterates FY25 Revenue, Gross Margin and Adjusted EBITDA Guidance Traeger, Inc. ("Traeger" or the "Company") (NYSE: COOK), creator and category leader of the wood pellet grill, today announced its financial results for the three months ended September 30, 2025. Third Quarter FY25 Highlights Total revenues increased 2.7% to $125.4 millionGrill revenues increased 2.2% to $76.6 millionNet loss of $89.8 million compared to net loss of $19.8 million in the prior year, inclusive of a $74.7 million goodwill impairmentAdjusted EBITDA of $13.8 million, up 11.8% from $12.3 million in the prior yearTargeting $20 million of Project Gravity Phase 2 run-rate savings, for a total annualized savings target of $50 million Jeremy Andrus, CEO of Traeger, commented, "I am pleased with our third quarter results, having achieved growth in both revenues and Adjusted EBITDA. Our performance demonstrates our team's strong ability to navigate a dynamic macroeconomic environment and gives us the confidence to reiterate our guidance for Fiscal 2025." "Today, we are updating our Project Gravity cost savings target with an additional $20 million in run-rate savings as part of Gravity Phase 2. This is incremental to the $30 million in savings we previously discussed, for a total run-rate savings target of $50 million once fully implemented," continued Mr. Andrus. "I believe Project Gravity will be transformational to our business. The efficiencies, simplification and cost optimization that we believe will result from Gravity will unlock capacity to invest into our key long-term growth pillars and will enable us to drive household penetration," concluded Mr. Andrus. Operating Results for the Third Quarter Total revenue increased 2.7% to $125.4 million, compared to $122.1 million in the third quarter last year. Grills increased 2.2% to $76.6 million as compared to the third quarter last year. The increase was primarily driven by growth in average selling price, partially offset by a reduction in unit volume.Consumables increased 12.3% to $25.3 million as compared to the third quarter last year. The increase was primarily driven by growth in wood pellet sales, partially offset by a reduction in food consumables.Accessories decreased 4.3% to $23.5 million as compared to the third quarter last year. This decrease was driven by lower sales of MEATER smart thermometers. North America revenues increased 2.1% in the third quarter compared to the prior year. Rest of World revenues increased 9.9% in the third quarter compared to the prior year. Gross profit decreased to $48.5 million, compared to $51.7 million in the third quarter last year. Gross profit margin was 38.7% in the third quarter, compared to 42.3% in the same period last year. The decrease in gross margin was driven primarily by tariff related costs, partially offset by favorability from pricing shifts, supply chain efficiencies, and strategic alignment with wholesale partners. Sales and marketing expenses were $20.0 million, compared to $26.2 million in the third quarter last year. The decrease in sales and marketing expenses was primarily due to cost reduction actions associated with Project Gravity and lower advertising expenses. General and administrative expenses were $22.2 million, compared to $24.1 million in the third quarter last year. The decrease in general and administrative expenses was primarily due to lower stock-based compensation expense, partially offset by a legal settlement in the prior period. Goodwill impairment of $74.7 million was recorded, primarily driven by a sustained decrease in our stock price and market capitalization. The impairment charge is non-cash and does not impact the Company’s cash position, cash flows from operating activities, compliance with debt covenants, or future operations. Restructuring and other costs of $6.2 million were recorded in connection with our multi-step strategic optimization plan, which includes workforce reductions and the centralization and streamlining of operations. These costs primarily relate to professional fees associated with the execution of these initiatives. Net loss was $89.8 million in the third quarter, or a loss of $0.67 per diluted share, compared to net loss of $19.8 million in the third quarter of last year, or a loss of $0.15 per diluted share.1 Adjusted net loss was $22.3 million, or $0.17 per diluted share, compared to $7.4 million, or $0.06 per diluted share in the third quarter last year.2 Adjusted EBITDA was $13.8 million in the third quarter compared to Adjusted EBITDA of $12.3 million in the same period last year.2 ___________________________________1There were no potentially dilutive securities outstanding as of September 30, 2025 and 2024.2Reconciliations of GAAP to non-GAAP financial measures, as well as definitions for the non-GAAP financial measures included in this press release and the reasons for their use, are presented below. Balance Sheet Cash and cash equivalents at the end of the third quarter totaled $5.9 million, compared to $15.0 million at December 31, 2024. Inventory at the end of the third quarter was $114.6 million, compared to $107.4 million at December 31, 2024. Project Gravity Update: Company Announces Phase 2 Cost Savings Target The Company is providing an update on its Project Gravity transformation initiative, which is aimed at streamlining operations, enhancing organizational efficiency, and simplifying the business. These initiatives are expected to strengthen the Company’s financial foundation, improve profitability, and support continued investment in its core growth pillars. Project Gravity initiatives are expected to be largely implemented by the end of 2026. Phase 1 is focused on driving efficiencies to the Company’s operations, including a reduction in force in the second quarter and the integration of MEATER into the Company's headquarters. These actions are expected to deliver approximately $30 million in annualized cost savings, with about $13 million anticipated to be realized in Fiscal 2025.Phase 2 introduces additional strategic actions aimed at channel optimization, supply chain and manufacturing efficiencies, and other general productivity measures. These key initiatives include discontinuing the Costco roadshow program, redirecting Traeger.com consumers to our retail partners' websites as part of an exit from the Traeger direct-to-consumer business, transitioning to a distributor model in European markets that currently operate under a direct model, and pellet mill consolidation. Once fully implemented, these actions are expected to contribute approximately $20 million in annualized cost savings. Guidance For Full Year Fiscal 2025 Based on year to date performance and its outlook for the rest of the year, the Company is reiterating its total revenue, gross margin and Adjusted EBITDA guidance for Fiscal 2025. Total revenue is expected to be between $540 million and $555 millionGross Margin is expected to be between 40.5% and 41.5%Adjusted EBITDA is expected to be between $66 million and $73 million A reconciliation of Adjusted EBITDA guidance to Net Loss on a forward-looking basis cannot be provided without unreasonable efforts, as the Company is unable to provide reconciling information with respect to provision (benefit) for income taxes, interest expense, depreciation and amortization, other (income) expense, stock-based compensation, non-routine legal expenses, goodwill impairment, restructuring and other costs and employee retention tax credits all of which are adjustments to Adjusted EBITDA. Conference Call Details A conference call to discuss the Company's third quarter results is scheduled for Wednesday, November 5, 2025, at 4:30 p.m. ET. To participate, please dial (833) 470-1428 or +1 (646) 844-6383 for international callers, conference ID 513369. The conference call will also be webcast live at https://investors.traeger.com. A recording will be available shortly after the conclusion of the call. To access the replay, please dial (866) 813-9403, conference ID 489606. A replay of the webcast will also be available approximately two hours after the conclusion of the call on the Company's website at https://investors.traeger.com. A supplemental presentation has also been posted to the Company's website at https://investors.traeger.com. About Traeger Traeger, headquartered in Salt Lake City, is the creator and category leader of the wood pellet grill, an outdoor cooking system that ignites all-natural hardwoods to grill, smoke, bake, roast, braise, and barbecue. In 2023, Traeger entered the griddle category, further establishing its leadership position in the outdoor cooking space. Traeger grills are versatile and easy to use, empowering cooks of all skill sets to create delicious meals with flavor that cannot be replicated. Grills are at the core of our platform and are complemented by Traeger wood pellets, rubs, sauces, accessories, and MEATER smart thermometers. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our organization focus, our Project Gravity initiative and its impact on our business, including anticipated cost savings, and our anticipated full year Fiscal 2025 results. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, our history of operating losses; our ability to manage our future growth effectively; our ability to expand into additional markets; our ability to maintain and strengthen our brand to generate and maintain ongoing demand for our products; our ability to cost-effectively attract new customers and retain our existing customers; our failure to maintain product quality and product performance at an acceptable cost; United States trade policies that restrict imports or increase import tariffs, including the impact of recently implemented and proposed tariffs; the impact of product liability and warranty claims and product recalls; the highly competitive market in which we operate; the use of social media and community ambassadors affecting our reputation or subjecting us to fines or other penalties; issues in relation to environmental, social and governance matters; any decline in demand from certain retailers; risks associated with our significant international operations; our reliance on limited number of third-party manufacturers; and the other factors discussed under the caption "Risk Factors" in our periodic and current reports filed with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2024. Any such forward-looking statements represent management's estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. TRAEGER, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) September 30, 2025 December 31, 2024 (unaudited) ASSETS Current Assets Cash and cash equivalents $ 5,866 $ 14,981 Accounts receivable, net 80,674 85,331 Inventories 114,627 107,367 Prepaid expenses and other current assets 14,759 35,444 Total current assets 215,926 243,123 Property, plant, and equipment, net 33,739 36,949 Operating lease right-of-use assets 40,560 44,370 Goodwill — 74,725 Intangible assets, net 397,403 428,536 Other non-current assets 1,994 2,974 Total assets $ 689,622 $ 830,677 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable $ 14,105 $ 27,701 Accrued expenses 54,648 82,143 Line of credit — 5,000 Current portion of notes payable 250 250 Current portion of operating lease liabilities 3,409 3,790 Other current liabilities 604 3,357 Total current liabilities 73,016 122,241 Notes payable, net of current portion 399,304 398,445 Operating leases liabilities, net of current portion 24,307 26,646 Deferred tax liability 6,363 6,376 Other non-current liabilities 496 539 Total liabilities 503,486 554,247 Commitments and contingencies—See Note 11 Stockholders’ equity: Preferred stock, $0.0001 par value; 25,000,000 shares authorized and no shares issued or outstanding as of September 30, 2025 and December 31, 2024 — — Common stock, $0.0001 par value; 1,000,000,000 shares authorized Issued and outstanding shares - 136,912,932 and 130,648,819 as of September 30, 2025 and December 31, 2024, respectively 14 13 Additional paid-in capital 971,607 960,966 Accumulated deficit (786,866 ) (688,885 ) Accumulated other comprehensive income 1,381 4,336 Total stockholders’ equity 186,136 276,430 Total liabilities and stockholders’ equity $ 689,622 $ 830,677 TRAEGER, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (in thousands, except share and per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue $ 125,396 $ 122,050 $ 414,162 $ 435,435 Cost of revenue 76,850 70,362 249,157 248,856 Gross profit 48,546 51,688 165,005 186,579 Operating expenses: Sales and marketing 20,000 26,162 66,989 76,065 General and administrative 22,164 24,135 73,215 86,764 Amortization of intangible assets 8,813 8,819 26,447 26,456 Goodwill impairment 74,725 — 74,725 — Restructuring and other costs 6,204 — 9,672 — Total operating expense 131,906 59,116 251,048 189,285 Loss from operations (83,360 ) (7,428 ) (86,043 ) (2,706 ) Other income (expense): Interest expense (7,815 ) (8,534 ) (23,799 ) (25,308 ) Other income (expense), net 1,049 (3,964 ) 9,563 993 Total other expense (6,766 ) (12,498 ) (14,236 ) (24,315 ) Loss before provision (benefit) for income taxes (90,126 ) (19,926 ) (100,279 ) (27,021 ) Provision (benefit) for income taxes (307 ) (137 ) (2,298 ) 29 Net loss $ (89,819 ) $ (19,789 ) $ (97,981 ) $ (27,050 ) Net loss per share, basic and diluted $ (0.67 ) $ (0.15 ) $ (0.74 ) $ (0.21 ) Weighted average common shares outstanding, basic and diluted 134,214,292 128,291,933 132,290,564 126,886,385 Other comprehensive income (loss): Foreign currency translation adjustments $ 49 $ 25 $ (102 ) $ 111 Amortization of dedesignated cash flow hedge (909 ) (1,456 ) (2,853 ) (5,506 ) Total other comprehensive loss (860 ) (1,431 ) (2,955 ) (5,395 ) Comprehensive loss $ (90,679 ) $ (21,220 ) $ (100,936 ) $ (32,445 ) TRAEGER, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) Nine Months Ended September 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (97,981 ) $ (27,050 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation of property, plant and equipment 9,363 10,139 Amortization of intangible assets 31,489 31,936 Amortization of deferred financing costs 1,474 1,500 Loss (gain) on disposal of property, plant, and equipment (84 ) 414 Stock-based compensation expense 12,476 23,064 Unrealized loss on derivative contracts 3,550 7,526 Amortization of dedesignated cash flow hedge (2,853 ) (5,506 ) Change in contingent consideration — (15,000 ) Goodwill impairment 74,725 — Other non-cash adjustments 1,214 1,425 Change in operating assets and liabilities: Accounts receivable 4,649 (10,851 ) Inventories (7,259 ) (8,883 ) Prepaid expenses and other current assets 15,591 2,596 Other non-current assets 95 86 Accounts payable and accrued expenses (41,440 ) 5,020 Net cash provided by operating activities 5,009 16,416 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant, and equipment (5,614 ) (10,034 ) Capitalization of patent costs (357 ) (312 ) Proceeds from sale of property, plant, and equipment 108 113 Net cash used in investing activities (5,863 ) (10,233 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from line of credit 47,000 47,000 Repayments on line of credit (52,000 ) (63,400 ) Repayments of long-term debt (188 ) (188 ) Payment of deferred financing costs (820 ) (119 ) Principal payments on finance lease obligations (418 ) (384 ) Taxes paid related to net share settlement of equity awards (1,835 ) (2,141 ) Net cash used in financing activities (8,261 ) (19,232 ) Net decrease in cash and cash equivalents (9,115 ) (13,049 ) Cash and cash equivalents at beginning of period 14,981 29,921 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 5,866 $ 16,872 TRAEGER, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) (Continued) Nine Months Ended September 30, 2025 2024 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for interest $ 25,324 $ 29,643 Income taxes paid, net of refunds $ 1,426 $ 1,575 NON-CASH FINANCING AND INVESTING ACTIVITIES Equipment purchased under finance leases $ 314 $ 206 Property, plant, and equipment included in accounts payable and accrued expenses $ 928 $ 51 TRAEGER, INC. RECONCILIATIONS OF AND OTHER INFORMATION REGARDING NON-GAAP FINANCIAL MEASURES (unaudited) In addition to our results and measures of performance determined in accordance with U.S. GAAP, we believe that certain non-GAAP financial measures are useful in evaluating and comparing our financial and operational performance over multiple periods, identifying trends affecting our business, formulating business plans and making strategic decisions. Each of Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per share, Adjusted EBITDA Margin, and Adjusted Net Income (Loss) Margin are key performance measures that our management uses to assess our financial performance and are also used for internal planning and forecasting purposes. We believe that these non-GAAP financial measures are useful to investors and other interested parties in analyzing our financial performance because they provide a comparable overview of our operations across historical periods. In addition, we believe that providing each of Adjusted EBITDA and Adjusted Net Income (Loss), together with a reconciliation of Net Loss to each such measure, and providing Adjusted Net Income (Loss) per share, together with a reconciliation of Net Loss per share to such measure, and Adjusted EBITDA Margin and Adjusted Net Income (Loss) Margin, together with a reconciliation of Net Loss Margin to such measures, helps investors make comparisons between our company and other companies that may have different capital structures, different tax rates, and/or different forms of employee compensation. For example, due to finite-lived intangible assets included on our balance sheet following our corporate reorganization in 2017, we have significant non-cash amortization expense attributable to the nature of our capital structure. Each of Adjusted EBITDA, Adjusted Net Income (Loss), and Adjusted Net Income (Loss) per share are used by our management team as an additional measure of our performance for purposes of business decision-making, including managing expenditures, and evaluating potential acquisitions. Period-to-period comparisons of Adjusted EBITDA, Adjusted Net Income (Loss), and Adjusted Net Income (Loss) per share help our management identify additional trends in our financial results that may not be shown solely by period-to-period comparisons of Net Loss or Loss from Continuing Operations or Net Loss per share. In addition, we may use Adjusted EBITDA in the incentive compensation programs applicable to some of our employees. Each of Adjusted EBITDA, Adjusted Net Income (Loss), and Adjusted Net Income (Loss) per share has inherent limitations because of the excluded items, and may not be directly comparable to similarly titled metrics used by other companies. The following table presents a reconciliation of Net Loss, Net Loss Margin and Net Loss per share, the most directly comparable financial measures calculated in accordance with U.S. GAAP, to Adjusted Net Income (Loss), Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Net Income (Loss) per share, respectively, on a consolidated basis. Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (dollars in thousands, except share and per share amounts) Net loss $ (89,819 ) $ (19,789 ) $ (97,981 ) $ (27,050 ) Adjustments: Other (income) expense (1) (1,376 ) 2,419 (7,478 ) (7,131 ) Stock-based compensation 3,331 5,901 12,476 23,064 Non-routine legal expenses(2) 5 79 24 1,782 Amortization of acquisition intangibles(3) 8,111 8,246 24,333 24,756 Goodwill impairment 74,725 — 74,725 — Restructuring and other costs(4) 6,204 — 9,672 — Employee retention tax credit(5) (982 ) — (6,049 ) — Tax impact of adjusting items(6) (22,501 ) (4,268 ) (27,393 ) (10,880 ) Adjusted net income (loss) $ (22,302 ) $ (7,412 ) $ (17,671 ) $ 4,541 Net loss $ (89,819 ) $ (19,789 ) $ (97,981 ) $ (27,050 ) Adjustments: Provision (benefit) for income taxes (307 ) (137 ) (2,298 ) 29 Interest expense 7,815 8,534 23,799 25,308 Depreciation and amortization 13,302 13,885 40,852 42,076 Other (income) expense (7) (467 ) 3,875 (4,625 ) (1,625 ) Stock-based compensation 3,331 5,901 12,476 23,064 Non-routine legal expenses(3) 5 79 24 1,782 Goodwill impairment 74,725 — 74,725 — Restructuring and other costs(4) 6,204 — 9,672 — Employee retention tax credit(5) (982 ) — (6,049 ) — Adjusted EBITDA $ 13,807 $ 12,348 $ 50,595 $ 63,584 Revenue $ 125,396 $ 122,050 $ 414,162 $ 435,435 Net loss margin (71.6 )% (16.2 )% (23.7 )% (6.2 )% Adjusted net income (loss) margin (17.8 )% (6.1 )% (4.3 )% 1.0 % Adjusted EBITDA margin 11.0 % 10.1 % 12.2 % 14.6 % Net loss per diluted share $ (0.67 ) $ (0.15 ) $ (0.74 ) $ (0.21 ) Adjusted net income (loss) per diluted share $ (0.17 ) $ (0.06 ) $ (0.13 ) $ 0.04 Weighted average common shares outstanding - diluted 134,214,292 128,291,933 132,290,564 126,886,385 (1) Represents realized and unrealized (gains) losses on the interest rate swap, including amortization of dedesignated cash flow hedge, (gains) losses on the disposal of property, plant, and equipment, and unrealized (gains) losses from foreign currency transactions and derivatives. (2) Represents external legal expenses incurred in connection with the defense of a class action lawsuit and intellectual property litigation. (3) Represents the amortization expense associated with intangible assets recorded in connection with the 2017 acquisition of Traeger Pellet Grills Holdings LLC. (4) Represents restructuring and other costs in connection with Project Gravity primarily related to professional fees and severance and other personnel costs. (5) Represents the total benefit recorded associated with the refund from the Internal Revenue Service in connection with the Employee Retention Tax Credit. (6) Represents the tax effect of non-GAAP adjustments calculated at an estimated blended statutory tax rate of 25.4% for both the three and nine months ended September 30, 2025 and 26.2% and 25.5% for both the three and nine months ended September 30, 2024, respectively. (7) Represents realized and unrealized (gains) losses on the interest rate swap, (gains) losses on the disposal of property, plant, and equipment, and unrealized (gains) losses from foreign currency transactions and derivatives. Source: Traeger, Inc.