Traeger, Inc. reported Wednesday that total third quarter revenue increased 2.7 percent year-over-year (y/y) to $125.4 million, compared to $122.1 million in the third quarter last year. North America revenues increased 2.1 percent y/y in Q3 and Rest of World revenues increased 9.9 percent y/y in the period.

  • Grills increased 2.2 percent y/y to $76.6 million in Q3, said to be primarily driven by growth in average selling price, partially offset by a reduction in unit volume.
  • Consumables increased 12.3 percent y/y to $25.3 million. The increase was said to be primarily driven by growth in wood pellet sales, partially offset by a reduction in food consumables.
  • Accessories decreased 4.3 percent y/y to $23.5 million in Q3. The decrease was reportedly driven by lower sales of MEATER smart thermometers.

Profitability and Expenses
Gross profit decreased to $48.5 million, or 38.7 percent of revenue, in Q3, compared to $51.7 million, or 42.3 percent of revenue, in the year-ago quarter. The decrease in gross margin was reportedly driven primarily by tariff related costs, partially offset by favorability from pricing shifts, supply chain efficiencies, and strategic alignment with wholesale partners.

Sales & Marketing expenses were $20.0 million in Q3, compared to $26.2 million in the third quarter last year. The decrease in sales and marketing expenses was said to be primarily due to cost reduction actions associated with Project Gravity and lower advertising expenses.

General & Administrative (G&A) expenses were $22.2 million in Q3, compared to $24.1 million in Q3 last year. The decrease in G&A expenses was reportedly due primarily to lower stock-based compensation expense, partially offset by a legal settlement in the prior period.

Goodwill impairment of $74.7 million was recorded in the quarter, said to be primarily driven by a sustained decrease in the company’s 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 & 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, or a loss of 67 cents per diluted share, in the third quarter compared to net loss of $19.8 million, or a loss of 15 cents per diluted share, in the third quarter last year.

Adjusted net loss was $22.3 million, or 17 cents per diluted share, compared to $7.4 million, or 6 cents 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.

Balance Sheet Summary
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.

Traeger Announces Phase 2 Cost Savings Target
While reporting third quarter revenues and earnings, the company also provided 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,” Traeger said in its earnings release. “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.

“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,” detailed company CEO Jeremy 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 Andrus.

Guidance For Full Year Fiscal 2025
Based on year-to-date performance and its outlook for the rest of the year, the company reiterated its total revenue, gross margin and Adjusted EBITDA guidance for Fiscal 2025.

  • Total revenue is expected deliver total between $540 million and $555 million.
  • Gross Margin is expected to be between 40.5 percent and 41.5 percent.
  • Adjusted EBITDA is expected to come in between $66 million and $73 million.