Solo Brands, Inc., owner of the Solo Stove, Chubbies, and Oru brands, said results for the second quarter “improved meaningfully” from the first quarter, highlighted by narrowing of the net loss for the period.

Net sales of $88.5 million in Q2 2026 decreased 4.1 percent from $92.3 million in the year-ago period, said to be primarily the result of the decline in direct-to-consumer (DTC) net sales within the Solo Stove and Chubbies segments, partially offset by an increase in retail channel sales within the company’s Watersports segment and international sales.

“April and May started the quarter on a strong note, though direct-to-consumer demand softened in June as consumers remained selective in their discretionary spending,” said company President and CEO John Larson. “Our second quarter international sales increased year-over-year, and we also advanced our international strategy through new distribution agreements across Europe, the UK, and parts of APAC, extending the reach of our brands and supporting long-term growth.”

Larson said the company strengthened its leadership team across sales and digital, “enhancing focus and execution” across the portfolio.

“Our priorities remain clear: improve demand at Solo Stove and Chubbies, maintain disciplined expense and working capital management, and invest behind the products, markets, and channels that offer the most attractive returns. While there is still work ahead, we are making measurable progress and believe we are positioning Solo Brands for sustainable, profitable growth,” Larson stated.

Second Quarter Segment Summary

Solo Stove
Net sales of $32.7 million decreased 14.7 percent year-over-year (y/y), said to reflect lower unit volumes driven by the company’s continued focus on pricing and promotional discipline within the DTC channel. The company also called out softness in the retail channel as it rebuild retail partnerships.

Segment Adjusted EBITDA amounted to $3.6 million, or 11.2 percent of net sales, in Q2, compared to $3.4 million, or 8.9 percent of net sales, in Q2 2025, reflecting the benefit of ongoing cost reduction initiatives, specifically employee compensation and marketing, amid lower net sales and, to a lesser extent, prior-period tariff refunds received during the current period.

Chubbies
Net sales were $40.6 million in Q2, decreasing 8.6 percent y/y. This was reportedly due to lower DTC channel sales, partially offset by higher retail channel sales.

Segment Adjusted EBITDA of $12.8 million, or 31.4 percent of net sales, in Q2, compared to $11.5 million, or 25.8 percent of net sales, in the year-ago period, reflecting the benefit of cost reduction initiatives for employee compensation and prior-period tariff refunds received during the current period.

Watersports
Net sales came in at $15.1 million in Q2, increasing 59.2 percent y/y, reflecting an expanded partnership with a key customer within the retail channel, partially offset by variability in customer demand within the DTC channel.

Segment Adjusted EBITDA of $2.9 million, or 19.0 percent of net sales, in Q2, compared to $1.8 million, or 19.1 percent of net sales, in Q2 last year, said to reflect the higher net sales during the period and the benefit of cost reduction initiatives.

Profitability & Expenses Summary
Second quarter gross profit amounted to $53.0 million, or 59.9 percent of net sales, compared to $56.6 million, or 61.3 percent of net sales, in the prior-year Q2 period. Adjusted gross profit was tallied at $54.7 million, or 61.8 percent of net sales, in Q2, compared to $56.9 million, or 61.7 percent of net sales, in the 2025 Q2 period. Gross profit was reportedly impacted by lower net sales, changes in channel and product mix, and a raw material inventory write-off related to the closure of Oru’s manufacturing facility, partially offset by prior period tariff refunds received during the current period.

Operating expenses of $49.5 million decreased 25.5 percent from $66.4 million.

Selling, general & administrative expenses of $42.6 million decreased 10.6 percent from $47.7 million, primarily due to lower employee compensation, reflective of our disciplined, efficiency-driven spend management and ongoing payroll reduction efforts, as well as lower seller fees and shipping costs resulting from lower DTC sales volume.

Restructuring, contract termination and impairment charges were $1.9 million compared to $10.3 million.
Net loss attributable to Solo Brands, Inc. of $4.4 million, or $1.72 diluted loss per share of Class A common stock, compared to $13.5 million, or $8.93 diluted loss per share of Class A common stock.

Adjusted net income attributable to Solo Brands, Inc. of $3.9 million, or $1.52 adjusted diluted income per share of Class A common stock, compared to $0.0 million, or $0.02 adjusted diluted income per share of Class A common stock.

Adjusted EBITDA of $13.5 million, or 15.3 percent of net sales, compared to $10.5 million, or 11.4 percent of net sales.

John Larson concluded, “While we would like sales to be higher, our second-quarter results improved meaningfully from the first quarter, highlighted by narrowing the net loss to $4.4 million, positive adjusted EBITDA of $13.5 million, or 15.3 percent of revenue, strong operating cash flow generation, and debt reduction, including the full repayment of our revolver facility. These results reflect the progress we are making to build a leaner, more disciplined company focused on profitability, cash generation, and returns on investment.”

Balance Sheet Summary
Cash and cash equivalents were $35.4 million as of June 30, 2026 compared to $20.0 million as of December 31, 2025.

Inventory was reported at $59.6 million as of June 30, 2026, a decline from $81.6 million as of December 31, 2025, primarily reflecting continued optimization of the supply chain to meet DTC and retail channel demand as well as tariff refunds received that were recognized as a reduction of inventory.

Outstanding borrowings were $258.3 million at quarter-end, including interest paid-in-kind, under the 2025 Term Loan as of June 30, 2026, and no outstanding borrowings under the 2025 Revolving Credit Facility as of June 30, 2026. As of June 30, 2026, availability for future draws under the 2025 Revolving Credit Facility, based on the borrowing base as of such date, was $57.2 million, net of issued letters of credit.

Full Year 2026 Outlook
Solo Brands reaffirmed its 2026 financial guidance as follows:

  • Net sales are expected to be between $280 million and $310 million for 2026.
  • Adjusted EBITDA(1)(5) is expected to be between $24 million and $30 million for 2026.

Full year 2026 guidance assumes:

  • Continued uneven demand environment.
  • Estimated ongoing tariff impacts considering recent judicial decisions.
  • Positive impact from existing and incremental payroll reductions and restructuring discussed on the March 19 and May 14, 2026, earnings conference calls.

Image courtesy Our Kayak/Solo Brands, Inc.