Traeger, Inc. reported that total first-quarter revenue decreased by 1.1 percent to $143.3 million, compared to $144.9 million in the first quarter last year.

  • Grill revenues increased 12.8 percent to $86.7 million compared to last year’s first quarter. The increase was driven by growth in unit volume, offset by a reduction in average selling price.
  • Consumables revenues decreased 6.1 percent to $30.3 million compared to last year’s first quarter. The decrease was reportedly driven by a reduction in unit volumes of wood pellets and food consumables, partially offset by an increase in the average selling price of wood pellets.
  • Accessories revenues decreased 26.6 percent to $26.3 million compared to last year’s first quarter. This decrease was driven primarily by lower sales of the company’s Meater smart thermometers, partially offset by an increase in Traeger branded accessories.

North America revenue increased 5.6 percent in the first quarter compared to the prior year quarter. Rest of World revenue declined 46.5 percent in the first quarter compared to the prior year.

“Our first quarter results were largely in line with our expectations,” commented Jeremy Andrus, CEO of Traeger, Inc. “During the quarter, our grills business grew 13 percent, which benefited from increased consumer demand and the launch of our new Woodridge series of wood pellet grills. The successful launch of Woodridge in the quarter speaks to our organization’s strong product development engine and our commitment to bringing innovation to the outdoor cooking market. Offsetting the growth in grills was pressure on our accessories revenues due to continued challenges at Meater. We will continue to implement strategic actions to stabilize Meater’s sales and profitability.”

Income Statement Summary
Gross profit decreased to $59.5 million, compared to $62.6 million in the first quarter last year. Gross margin was 41.5 percent of net sales in the first quarter, compared to 43.2 percent in the Q1 period last year. The decrease in gross margin was driven primarily by product mix shifts and increased funding for promotional activity, offset by favorability from lower warranty expense and supply chain management.

Sales and marketing expenses were $22.2 million, compared to $21.7 million in the first quarter last year. The increase in sales and marketing expense was driven by increases in employee-related expenses partially offset by decreases in demand creation costs.

General and administrative expenses were $25.0 million, compared to $32.1 million in the first quarter last year. The decrease in general and administrative expense was driven by a decrease in stock-based compensation expense and lower legal costs, partially offset by higher employee costs.

Net loss was $0.8 million in the first quarter, or 1 cent per diluted share, compared to a net loss of $4.7 million, or 4 cents per diluted share in the first quarter of last year.

Adjusted net income was $6.6 million, or 5 cents per diluted share, in Q1, compared to Adjusted net income of $4.7 million, or 4 cents per diluted share, in the first quarter of last year.

Adjusted EBITDA was $22.5 million in the first quarter compared to $24.4 million in the Q1 period last year.

Balance Sheet Summary
Cash and cash equivalents at the end of the first quarter totaled $12.0 million, compared to $15.0 million at December 31, 2024. Inventory at the end of the first quarter was $127.2 million, compared to $107.4 million at December 31, 2024 and $99.9 million at March 31, 2024.

Fiscal 2025 Outlook and Strategic Actions Update
Due to macroeconomic uncertainty related to rapidly evolving trade policy and consumer sentiment, the company is withdrawing its prior guidance for Fiscal 2025. To offset the direct impact of tariffs, promote balance sheet health, and maximize cash flow, the company is implementing a number of mitigation strategies. These efforts include:

  • Supply Chain: The company has identified savings and efficiencies across its supply chain, including cost negotiations with its contract manufacturers. The company is working to further diversify production outside of China into regions where it expects tariffs and costs to be lower and expects a reduction in production in China in 2026.
  • Strategic Pricing Actions: The company has implemented strategic pricing increases across its product portfolio in collaboration with its retail partners.
  • Cost Reduction: The company has implemented a cost-saving initiative to drive efficiencies in its cost structure. Near-term, this includes the deferral of certain non-essential expenditures and projects, a material reduction in travel and entertainment spending and a significant reduction in hiring. The company expects to identify further cost savings opportunities during Fiscal 2025.
  • Inventory Management: In light of the uncertain demand environment and to promote balance sheet health, the company reduced purchase orders on grills and will reassess purchase plans with further sell-through data in the coming months. The company expects that on-hand inventory and in transit, is sufficient to service near-term demand appropriately.

“As we look to the balance of 2025, we face a very dynamic macroeconomic environment,” Andrus added. “The Traeger team has confronted challenges in the past, and we are quickly reacting to the current challenges by taking actions to manage those elements that are within our control.”

Andrus said that given the uncertainty around a rapidly evolving trade policy and the implications on the economy and the Traeger business, the company was withdrawing financial guidance for Fiscal 2025.

“While we have seen healthy consumer demand so far this quarter, the impact of broader macroeconomic pressures on an already fragile consumer makes forecasting this year a challenge. We will provide updates to our outlook as we better understand these dynamics,” concluded Andrus.

Imager courtesy Traeger, Inc.