Solo Brands, Inc., which owns the Solo Stove, TerraFlame, Chubbies, Isle, and Oru brands, pointed to progress in the second quarter related to debt refinancing, removal of the going concern disclaimer on the NYSE and reinstatement of the trading of its Class A common stock, trading under a new ticker symbol SBDS, on the NYSE, with company President and CEO John Larson calling each out as “significant milestones” for the period while the company makes “meaningful strides” in its transformation toward a more disciplined, structurally smaller, profit-driven business model.

“We are facing expected top-line headwinds in the Solo Stove segment as we work through excessive inventory at our retailers, move away from a highly promotional model, and work to re-establish our position with key retail partners,” offered Larson. “At the same time, we are encouraged by early indicators that our deliberate actions are working to drive more efficiency in our business.

During the fourth quarter of 2024, the company changed the presentation of its reportable segments, with Solo Stove and Chubbies being presented as the two reportable segments. Prior periods are presented on this new basis for comparability purposes.

Consolidated second quarter net sales amounted to $92.3 million, a 29.9 percent decline from $131.6 million in the year-ago Q2 period. The decline was reportedly primarily within the Solo Stove segment’s direct-to-consumer (DTC) channel. The DTC (direct-to-consumer) channel and retail channel net sales increased in the Chubbies segment.

Solo Stove Segment
Net sales of $38.3 million declined 45.8 percent, primarily driven by a decrease in DTC sales, as the company prioritized pricing integrity with retail partners over significant promotional activity.

Segment EBITDA of $3.4 million, or 8.9 percent of net sales, declined from $14.8 million, or 20.9 percent of net sales, in the prior-year period.

The Solo Stove segment now includes Solo Stove and TerraFlame, known for firepits, stoves and accessories.

Chubbies Segment
Net sales of $44.5 million increased 13.1 percent, driven by strong performance within the retail sales channel from continued growth in the strategic retail network and sustained solid demand in DTC sales.

Segment EBITDA of $11.5 million, or 25.8 percent of net sales, improved from $7.7 million, or 19.7 percent of net sales, in the prior year period due to the growth in net sales and more efficient marketing spend.

“Chubbies delivered another very solid quarter with sales up 13.1 percent and Segment EBITDA up 48.3 percent in Q2 due to significant operating leverage and efficiency gains, added Larson.

The Chubbies segment now includes Chubbies, the casual apparel and activewear brand; Isle, the maker of inflatable and hard paddleboards and accessories; and Oru Kayak, the maker of origami-folding kayaks.

Profitability and Expenses
Second quarter gross profit was $56.6 million, or 61.3 percent of net sales, a decrease of 150 basis points compared to the prior-year Q2 period. Adjusted gross profit was $56.9 million, or 61.7 percent of net sales, a 190 basis-point decrease versus the prior-year Q2 period.

Operating expenses decreased by $14.0 million to $66.4 million, a 17.4 percent decrease, primarily driven by decreases in marketing spend and distribution costs within the Solo Stove segment, partially offset by a $10.3 million expenditure related to restructuring, contract termination, and impairment charges in support of operational improvements.

“Our teams remain energized and aligned around our strategy, and we’re seeing progress through tighter expense control, structural cost reductions, and consolidated double-digit Adjusted EBITDA margins,” Larson shared.

The net loss for the quarter was $20.8 million, or negative 22.5 percent of net sales, compared to a net loss of $4.0 million, or negative 3.1 percent of net sales, in the 2024 Q2 period. The $8.93 loss per basic and diluted share of Class A common stock increased from a loss of $2.14 per basic and diluted share of Class A common stock from the prior-year Q2 period.

Adjusted net income of $1.0 million, or 2 cents per basic and diluted share of Class A common stock, also declined from adjusted net income of $6.0 million, or $1.59 Adjusted income per basic and diluted share of Class A common stock, from the 2024 Q2 period.

Adjusted EBITDA of $10.5 million, or 11.4 percent of net sales, compared to $15.5 million, or 11.7 percent of net sales from the prior-year Q2 period.

“Importantly, we generated nearly $11 million in operating cash flow during the quarter, highlighting our sharpened focus on cash generation and operational discipline,” Larson added.

Balance Sheet Summary
Cash and cash equivalents were $18.1 million as of June 30, 2025, compared to $12.0 million at December 31, 2024.

Inventory was $84.1 million as of June 30, 2025, compared to $108.6 million as of December 31, 2024, due to a reduction in inventory balances to meet demand from the DTC and retail channels, and to optimize our supply chain and mitigate tariff impacts.

Outstanding borrowings were $10.0 million under a 2025 Revolving Credit Facility, and $241.2 million, net of interest paid-in-kind, under a 2025 Term Loan as of June 30, 2025. As of June 30, 2025, the availability for future draws on the 2025 Revolving Credit Facility, based on the borrowing base as of such date, was $63.8 million, net of issued letters of credit.

On June 13, 2025, the company entered into a 2025 Refinancing Amendment to its existing credit agreement, which provided for the refinancing of its existing term loans, with an aggregate principal amount of $240.0 million, and a revolving credit facility with an initial committed amount of $90.0 million. The 2025 Revolving Credit Facility includes (i) a sub-limit of $10.0 million for swing line loans and (ii) a separate sub-limit of $20.0 million for the issuance of letters of credit. As a result of entering into the 2025 Refinancing Amendment, the substantial doubt about the company’s ability to continue as a going concern has been eliminated as of the filing of its Q2 2025 Form 10-Q.

“As we continue to reshape Solo Brands into a more resilient and focused company, we continue to invest in our future with innovative new products to drive growth and generate long-term shareholder value,” Larson said. “We remain confident that our lifestyle brands are well-positioned to continue to resonate with consumers who value authentic experiences and community.”

On July 14, 2025, Solo Brands issued a statement regarding the NYSE’s decision to lift the trading suspension of the company’s Class A common stock on the NYSE. In connection with the resumption of trading of its Class A common stock on the NYSE, the company announced a ticker symbol change to “SBDS” from “DTC,” effective July 24, 2025. The company’s Class A common stock remains listed on the NYSE.

Image courtesy Chubbies / Solo Brands, Inc.