Traeger, Inc. said it would launch an extensive cost-cutting program involving layoffs and the closure of its Meater office in Leicester, UK, as Q2 results missed plan due to the impact of tariffs. Sales fell 13.6 percent, well short of analyst estimates.

Second Quarter FY25 Highlights

  • Total revenues decreased 13.6 percent to $145.5 million compared to analysts’ consensus target of $166.5 million.
  • Net loss of $7.4 million. Adjusted net loss was $1.9 million, or 1 cent, compared to analysts’ consensus target of earnings of 6 cents.
  • Adjusted EBITDA of $14.3 million
  • Expects to offset approximately 80 percent of FY25 unmitigated tariff impact
  • Targeting $30 million in annualized cost savings with Phase 1 of Project Gravity
  • Traeger reinstated its full-year guidance that is below guidance initiated at the start of the year.

Jeremy Andrus, CEO of Traeger, commented, “Our second quarter results reflect tariff related dynamics which impacted both sales and adjusted EBITDA performance in the quarter. During the quarter, our team worked diligently to implement measures to mitigate our exposure to tariffs. These actions are expected to drive improvement to second half 2025 adjusted EBITDA performance as compared to what we experienced in the second quarter.”

“Given the uncertain macroeconomic backdrop, our focus this year is to protect profitability and cash flow. Our outlook for the Fiscal Year demonstrates our efforts in these areas, as we are expecting to offset approximately 80 percent of our $60 million of unmitigated tariff exposure,” continued Andrus.

“Today, we are sharing details on our multi-step streamlining effort, Project Gravity, which I believe will unlock significant efficiencies and value at Traeger over time. The first phase of Project Gravity is expected to drive $30 million of annualized cost savings once fully implemented, with additional savings anticipated as we continue to develop and execute Phase 2 of the plan. I look forward to providing more details on Project Gravity in future updates,” concluded Andrus.

Operating Results for the Second Quarter
Total revenue decreased by 13.6 percent to $145.5 million, compared to $168.5 million in the second quarter last year.

  • Grills decreased 21.9 percent to $74.2 million as compared to the second quarter last year. The decrease was primarily driven by a decline in unit volume, partially offset by an increase in average selling price.
  • Consumables increased 7.5 percent to $36.4 million as compared to the second quarter last year. The increase was driven by growth in wood pellet sales offset by a decline in food consumables sales.
  • Accessories decreased 11.9 percent to $34.9 million as compared to the second quarter last year. This decrease was driven primarily by lower sales of Meater smart thermometers.
  • North America revenue declined 11.5 percent in the second quarter compared to the prior year. Rest of World revenues declined 32.0 percent in the second quarter compared to the prior year.

Profitability and Expenses
Gross profit decreased to $57.0 million, compared to $72.3 million in the second quarter last year. Gross profit margin was 39.2 percent in the second quarter, compared to 42.9 percent in the same period last year. The decrease in gross margin was driven primarily by a shift in product fulfillment mix, tariff related costs and increased funding for promotional activities, partially offset by favorability in pellet margins.

Sales and marketing expenses were $24.8 million, compared to $28.2 million in the second quarter last year. The decrease in sales and marketing expense was driven by decreased demand creation and employee expenses.

General and administrative expenses were $26.0 million, compared to $30.5 million in the second quarter last year. The decrease in general and administrative expense was driven by lower stock-based compensation expense and lower costs related to legal matters, partially offset by higher employee costs.

Net loss was $7.4 million in the second quarter, or 6 cents per diluted share, as compared to a net loss of $2.6 million in the second quarter of last year, or 2 cents per diluted share.

Adjusted net loss was $1.9 million, or 1 cent per diluted share as compared to adjusted net income of $7.3 million, or 6 cents per diluted share in the second quarter last year.

Adjusted EBITDA was $14.3 million in the second quarter as compared to $26.8 million in the same period last year.2

Balance Sheet
Cash and cash equivalents at the end of the second quarter totaled $10.3 million, compared to $15.0 million at December 31, 2024.

Inventory at the end of the second quarter was $115.8 million, compared to $107.4 million at December 31, 2024.

Amendment to the Revolving Credit Facility was executed on August 5, 2025, extending the maturity date of an $82.5 million tranche to December 29, 2027, with a second tranche of $30.0 million maintaining the original maturity date of June 29, 2026.

Project Gravity
The company is providing details on Project Gravity, a comprehensive strategic enterprise initiative designed to streamline operations, enhance organizational efficiency, and simplify the business. This initiative is expected to strengthen the company’s financial foundation, improve profitability, and support continued investment in its core growth pillars. Project Gravity will be implemented through the end of 2026 and is a multi-step plan that is structured in two phases.

Phase 1 includes actions already implemented or currently in progress. As part of this Phase, the company executed a reduction in force in the second quarter of 2025. In addition, the company is integrating Meater’s operations into Traeger’s broader infrastructure, including a reduction in force of Meater personnel and the closure of its Leicester, UK office. These actions are expected to deliver annualized cost savings of $30 million once fully implemented. Traeger acquired Meater, a wireless meat thermometer company, in July 2021.

Phase 2 consists of a comprehensive evaluation of the company’s operations to identify additional opportunities for simplification and efficiency. The review is currently underway, and management expects to provide further updates as the strategic plan evolves.

Guidance For Full Year Fiscal 2025
Based on the year-to-date performance and its outlook for the rest of the year, the company is reinstating its total revenue, gross margin and adjusted EBITDA guidance for Fiscal 2025. Traeger pulled its guidance when it announced first-quarter results due to the uncertainty caused by the proposed tariffs.

The updated guidance for the year calls for:

  • Total revenue is expected to be 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 be between $66 million and $73 million

When it released fourth-quarter results, guidance had called for total revenue to be between $595 million and $615 million, gross margin to be between 42.2 percent and 42.8 percent; and adjusted EBITDA to be between $75 million and $85 million.

Imager courtesy Traeger, Inc.