Traeger Inc. reported sales slumped 17 percent in the second quarter and slightly lowered its sales outlook for the year due to soft sales in its meat thermometers business. Adjusted EBITDA improved 21.0 percent on improved margins and Traeger was able to maintain its earnings guidance for the year. the Salt Lake City-based company also announced a new distribution partnership with Lowe’s.

Second Quarter FY26 Results

  • Total revenues decreased 17.4 percent to $120.2 million
  • Grill revenues decreased 17.0 percent to $61.6 million
  • Net loss of $8.6 million, up 16.0 percent from $7.4 million in the prior year
  • Adjusted EBITDA of $17.3 million, up 21.0 percent from $14.3 million in the prior year
  • Operating cash flow of $27.1 million and free cash flow of $26.5 million

Jeremy Andrus, CEO of Traeger, commented, “As we’ve discussed throughout 2026, this is a transition period for Traeger as we execute Project Gravity and build a stronger, more focused company for the long term. Core elements of our thesis remain intact: consumer engagement is strong, key consumer metrics remain healthier than reported revenue trends would suggest, and our confidence in the long-term opportunity remains unchanged. While we’ve seen greater softness in the Meater business and increased near-term channel impacts associated with our distribution strategy, those factors do not change our long-term outlook.”

“Today, we’re also announcing one of the most meaningful distribution expansions in Traeger’s recent history through a new partnership with Lowe’s. Combined with the encouraging early performance of Westwood and Irontop, we believe this expansion broadens access to the brand, strengthens our position in underpenetrated markets and creates a powerful platform for long-term household acquisition and growth,” continued Andrus.

“Importantly, despite lowering our revenue outlook, we are maintaining our adjusted EBITDA guidance while continuing to invest behind the initiatives that matter most. Project Gravity continues to strengthen our operating model, improve cash generation and create greater flexibility to invest in growth. As we enter 2027, we expect to benefit from a larger installed base, broader distribution footprint, a more complete product architecture and a simpler operating model, reinforcing our confidence in Traeger’s ability to return to profitable growth,” concluded Andrus.

Operating Results for the Second Quarter
Total revenue decreased by 17.4 percent to $120.2 million, compared to $145.5 million in the second quarter last year.

  • Grills decreased 17.0 percent to $61.6 million as compared to the second quarter last year. The decrease was primarily driven by lower average selling prices, reflecting a shift in product mix towards more accessible price points, as well as pricing and channel actions under Project Gravity. These factors were partially offset by higher unit volumes associated with new product launches.
  • Consumables decreased 9.9 percent to $32.8 million as compared to the second quarter last year. The decrease was driven by lower wood pellet sales, reflecting seasonal ordering timing, and a decrease in food consumables sales reflecting prior year channel expansion.
  • Accessories decreased 26.2 percent to $25.8 million as compared to the second quarter last year. This decrease was driven primarily by lower sales of MEATER smart thermometers.

Gross profit decreased to $47.4 million, compared to $57.0 million in the second quarter last year. Gross profit margin was 39.5 percent in the second quarter, compared to 39.2 percent in the same period last year. The increase in gross margin was primarily driven by the benefit from the IEEPA tariff refund, timing of trade spend, and higher mix of direct import sales, partially offset by product mix.

Sales and marketing expenses were $17.1 million, compared to $24.8 million in the second quarter last year. The decrease in sales and marketing expense was driven by lower employee-related costs and reduced demand creation spend, reflecting cost reduction actions associated with Project Gravity.

General and administrative expenses were $21.8 million, compared to $26.0 million in the second quarter last year. The decrease in general and administrative expense was driven by lower employee-related costs, reflecting cost reduction actions associated with Project Gravity.

Restructuring and other costs were $1.5 million, compared to $3.5 million in the second quarter last year. The decrease was primarily driven by lower severance and other personnel costs, as well as reduced consulting fees.

Net loss was $8.6 million in the second quarter, or $3.12 per diluted share, as compared to a net loss of $7.4 million in the second quarter of last year, or $2.77 per diluted share.

Adjusted net income was $1.4 million, or $0.53 per diluted share as compared to adjusted net loss of $1.9 million, or $0.73 per diluted share in the second quarter last year.

Adjusted EBITDA was $17.3 million in the second quarter as compared to $14.3 million in the same period last year despite lower revenue, reflecting the benefit of Project Gravity actions, disciplined expense management and continued focus on profitability.

Balance Sheet

  • Cash and cash equivalents at the end of the second quarter totaled $59.7 million, compared to $19.6 million at December 31, 2025.
  • Inventory at the end of the second quarter was $76.3 million, compared to $98.8 million at December 31, 2025.
  • These improvements reflect continued execution under Project Gravity and support our focus on balance sheet health and liquidity.

Guidance For Full Year Fiscal 2026
This updated outlook reflects the continued execution of Project Gravity, including approximately $50 million of value capture in fiscal 2026. The reduction in revenue guidance is primarily due to additional softness in the Meater business and anticipated near-term channel offsets associated with the company’s distribution expansion strategy, revising our previously issued revenue guidance range of $465 million to $485 million. Adjusted EBITDA guidance is unchanged despite lower revenue expectations, and gross margin guidance has been increased to reflect favorable tariff assumptions relative to prior expectations, revising our previously issued gross margin guidance range of 39.5 percent to 40.5 percent. Free Cash Flow guidance reflects continued progress on working capital efficiency and inventory reduction initiatives.

  • Total revenue is now expected to be between $435 million and $465 million ($465 million and $485 million previously)
  • Gross Margin is now expected to be between 40.0 percent and 41.0 percent (Between 39.5 percent and 40.5 percent previously)
  • Adjusted EBITDA is still expected to be between $57 million and $67 million 
  • Free Cash Flow is still expected to be at least $30 million

Image courtesy Traeger