Solo Brands’ Q1 Sales Slump 19 Percent

Solo Brands, Inc., the parent of Solo Stove, Chubbies, Isle and Oru, delivered positive EBITDA in the first quarter as a result of cost-cutting efforts, but sales fell 18.6 percent, with a decline of 38.7 percent at its Solo Stove brand and 14.1 percent at its Chubbies apparel business. The company reaffirmed guidance for the year.

Solo Brands also owns  Oru, a maker of folding kayaks and Isle paddleboards.

“The first quarter reflects meaningful progress in our transformation as we operate Solo Brands with a leaner cost structure, stronger cash discipline, and a sharper focus on profitability,” said John Larson, president and chief executive officer. “While top-line performance remained challenged, particularly within Solo Stove, the decisive actions we’ve taken over the past year have significantly reduced expenses, improved our year-over-year loss profile, and delivered positive adjusted EBITDA. As we build on this foundation and exit the quarter with improving trends, we are reaffirming our full-year outlook.

“Consumer demand remained uneven during the quarter, and certain retailer orders shifted from the first quarter into the second quarter relative to the prior year. Encouragingly, we are seeing positive year-over-year sales growth in April, and the momentum has carried into early May following our successful launch of four new Solo Stove products in March and the introduction of new Watersports products at Costco,” Larson concluded.

Consolidated First Quarter 2026 Highlights Compared to First Quarter 2025

• Net sales of $62.9 million decreased 18.6 percent from $77.3 million, primarily the result of the decline in both direct-to-consumer (“DTC”) and retail channel net sales within the Solo Stove segment, and, to a lesser extent, declines in both channels within the Chubbies segment.
• Gross profit of $32.9 million, or 52.3 percent of net sales, compared to 55.2 percent a year ago. Adjusted gross profit of $33.1 million, or 52.7 percent of net sales, compared to 55.4 percent a year ago. These declines were primarily due to the impact of tariffs, and to a lesser degree, sales mix during the first quarter of 2026.
• Operating expenses of $37.6 million decreased 29.3 percent from $53.2 million.
• Selling, general & administrative expenses of $33.2 million decreased 14.8 percent from $39.0 million, primarily based on lower employee-based compensation company-wide and lower marketing costs within the Solo Stove segment, both reflective of disciplined, efficiency-driven spend management and ongoing payroll reduction efforts.
• Restructuring, contract termination and impairment charges were $0.3 million compared to $5.8 million.
• Net loss attributable to Solo Brands, Inc. of $5.5 million, or $2.18 per share, improved over the net loss of $12.2 million, or $8.27, a year ago. Adjusted net loss of $7.5 million, or $2.98, compared to an adjusted of $4.7 million, or $3.18, from the prior period.
• Adjusted EBITDA of $1.6 million, or 2.5 percent of net sales, compared to $3.5 million, or 4.5 percent of net sales.

Segment First Quarter 2026 Highlights Compared to First Quarter 2025

Solo Stove

• Net sales of $16.0 million declined 38.7 percent, reflecting lower unit volumes driven by the company’s continued focus on pricing and promotional discipline within the DTC channel, as well as softness in the retail channel as partners work through elevated legacy inventory levels ahead of new product introductions.
• Segment EBITDA of $(1.7) million, or (10.5) percent of net sales, compared to $(1.5) million, or (5.7) percent of net sales reflecting the benefit of ongoing cost reduction initiatives amid lower net sales.

Chubbies

• Net sales of $36.7 million decreased 14.1 percent, reflecting lower DTC channel sales, and timing of retail shipments within the retail channel.
• Segment EBITDA of $7.3 million, or 20.0 percent of net sales, declined from $11.3 million, or 26.5 percent of net sales.

Consolidated Balance Sheet

• Cash and cash equivalents were $16.5 million as of March 31, 2026 compared to $20.0 million at December 31, 2025.
• Inventory was $82.9 million as of March 31, 2026 relatively flat compared to $81.6 million at December 31, 2025 despite tariff impacts.
• Outstanding borrowings were $258.9 million, including interest paid-in-kind, under the 2025 Term Loan (as defined herein) as of March 31, 2026, and $15.0 million under the 2025 Revolving Credit Facility (as defined herein) for the same period. As of March 31, 2026, availability for future draws under the 2025 Revolving Credit Facility, based on the borrowing base as of such date, was $63.6 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 is expected to be between $24 million and $30 million for 2026.
• Full year 2026 guidance assumes:
• Continued uneven demand environment.
• Estimated tariff impacts considering recent judicial decisions, including receipt of anticipated refunds and rate reductions.

Image courtesy Solo  Stove