Traeger, Inc. reported sales declined 13.8 percent in the fourth quarter, but operating earnings on an adjusted basis improved and both sales and earnings topped guidance.

Fourth Quarter Results

  • Total revenues decreased 13.8 percent to $145.4 million.
  • Grill revenues decreased 22.3 percent to $60.6 million.
  • Net loss of $17.2 million compared to $7.0 million in the prior year.
  • Adjusted EBITDA of $19.4 million, up from $18.4 million in the prior year.
  • Expanded Project Gravity Phase 2 value capture, bringing total expected annualized savings to approximately $64 million to $70 million across both phases.

 Full Year 2025 Results

  • Total revenues decreased 7.4 percent to $559.5 million.
  • Grill revenues decreased 8.2 percent to $298.0 million,
  • Net loss of $115.2 million compared to $34.0 million in the prior year, inclusive of a $74.7 million goodwill impairment.
  • Adjusted EBITDA of $70.0 million, down from $81.9 million in the prior year.

Results for the year topped guidance, calling for revenue between $540 million and $555 million and for adjusted EBITDA between $66 million and $73 million.

Jeremy Andrus, CEO of Traeger, commented, “We closed 2025 with strong execution, delivering revenue above the high end of our guidance and adjusted EBITDA in the upper half of our guidance range. More importantly, we took deliberate decisions to navigate tariff pressure, protect profitability, and simplify the business in ways that strengthen our foundation for the long term. As we look ahead, we are executing with discipline to focus the business on our highest‑return opportunities, while continuing to invest behind product innovation and brand. We believe these actions are positioning Traeger for stronger long-term performance.”

Joey Hord, CFO of Traeger, added, “We exited 2025 with a solid financial foundation, supported by the progress we’ve made under Project Gravity. As we move into 2026, our focus is on inventory alignment, cost discipline, and cash generation. We expect to generate additional free cash flow this year, providing flexibility to invest in the business, further strengthen our balance sheet, and support our long‑term growth strategy.”

Operating Results for the Fourth Quarter
Total revenues decreased by 13.8 percent to $145.4 million, compared to $168.6 million in the fourth quarter last year.

  • Grill’s revenues decreased 22.3 percent to $60.6 million, compared to $78.0 million in the fourth quarter last year. The decrease was driven by pricing impacted by a mix shift and volume impacted by price elasticity to tariff-related pricing increases, as well as a difficult comparison with the prior year due to load-in ahead of the Woodridge launch.
  • Consumables revenues increased 15.8 percent to $35.5 million, compared to $30.7 million in the fourth quarter last year. The increase was driven by higher unit volumes across both wood pellets and food consumables.
  • Accessories revenues decreased 17.9 percent to $49.2 million, compared to $60.0 million in the fourth quarter last year. This decrease was primarily driven by lower sales of Meater smart thermometers.
  • North America revenues decreased 13.0 percent in the fourth quarter compared to the prior year. Rest of World revenues decreased 21.6 percent in the fourth quarter compared to the prior year.

Gross profit decreased to $54.3 million, compared to $68.9 million in the fourth quarter last year. Gross margin was 37.4 percent in the fourth quarter, compared to 40.9 percent in the same period last year. Excluding $3.1 million of costs related to Project Gravity, adjusted gross margin was 39.5 percent.1 The decrease in gross margin was driven primarily by tariff-related costs, somewhat offset by lower promotional activity and supply chain efficiencies.

Sales and marketing expenses were $23.2 million, compared to $33.6 million in the fourth quarter last year. The decrease was driven primarily by lower demand-creation spending, as well as reductions in employee-related costs and professional fees resulting from project gravity.

General and administrative expenses were $21.8 million, compared to $26.7 million in the fourth quarter last year. The decrease in general and administrative expense was primarily driven by a $2.1 million reduction in stock-based compensation expense, as well as lower professional fees and employee-related costs resulting from Project Gravity.

Restructuring and other costs of $12.2 million were recorded in connection with Project Gravity, primarily consulting fees associated with the execution of these initiatives, as well as severance and other personnel costs and other restructuring-related costs.

Net loss was $17.2 million, or $0.13 per diluted share, as compared to a net loss of $7.0 million, or $0.05 per diluted share, in the fourth quarter last year.

Adjusted net income was $1.7 million, or $0.01 per diluted share, as compared to adjusted net income of $1.8 million, or $0.01 per diluted share, in the fourth quarter last year.

Adjusted EBITDA was $19.4 million compared to $18.4 million in the fourth quarter last year.

Operating Results for the Full Year ended December 31, 2025
Total revenues decreased by 7.4 percent to $559.5 million, compared to $604.1 million last year.

  • Grill’s revenues decreased 8.2 percent to $298.0 million, compared to $324.7 million last year. The decrease was driven primarily by lower pricing and volumes, with pricing impacted by a mix shift and volume impacted by price elasticity to tariff-related pricing increases.
  • Consumables revenues increased 6.9 percent to $127.5 million, compared to $119.3 million last year. The increase was driven by better pricing in wood pellets and expanded distribution in food consumables.
  • Accessories revenues decreased 16.3 percent to $134.0 million, compared to $160.1 million last year. This decrease was primarily driven by lower Meater smart thermometer sales, partially offset by an increase in Traeger-branded accessory sales.
  • North America revenues decreased 5.1 percent compared to the prior year. Rest of World revenues decreased 27.3 percent compared to the prior year.

Gross profit decreased to $219.3 million, compared to $255.5 million last year. Gross profit margin was 39.2 percent, compared to 42.3 percent in the same period last year. Excluding $3.1 million of costs related to Project Gravity, adjusted gross margin was 39.8 percent. The decrease in gross margin was driven primarily by tariff-related costs, partially offset by supply chain efficiencies.

Sales and marketing expenses were $90.2 million, compared to $109.7 million last year. The decrease was primarily driven by lower demand-creation spending and reductions in employee-related costs and professional fees resulting from Project Gravity.

General and administrative expenses were $95.0 million, compared to $113.5 million last year. The decrease in general and administrative expenses was primarily driven by a $11.2 million reduction in stock-based compensation expense, as well as lower professional fees and employee-related costs resulting from Project Gravity.

Goodwill impairment of $74.7 million was recorded, resulting from a quantitative impairment assessment in which the estimated fair value of our single reporting unit was determined to be below its carrying amount. 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 and other costs of $21.8 million were recorded in connection with Project Gravity, primarily consulting fees associated with the execution of these initiatives, as well as severance and other personnel costs and other restructuring-related costs.

Net loss was $115.2 million, or $0.87 per diluted share, as compared to net loss of $34.0 million, or $0.27 per diluted share, in the same period last year.

Adjusted net loss was $15.9 million, or $0.12 per diluted share, as compared to adjusted net income of $6.4 million, or $0.05 per diluted share, in the same period last year.

Adjusted EBITDA was $70.0 million compared to $81.9 million in the same period last year.

Balance Sheet
Cash and cash equivalents at December 31, 2025, totaled $19.6 million, compared to $15.0 million at December 31, 2024.

Inventory at December 31, 2025, was $98.8 million, compared to $107.4 million at December 31, 2024.

Project Gravity Remains on Track with Additional Savings Identified
Project Gravity, the company’s multi-step initiative to streamline operations, simplify the business, and improve returns on invested capital, remains on track to be substantially completed by the end of 2026. Additional value capture opportunities within Phase 2 have been identified, particularly around SKU rationalization and a more strategic approach to pricing, which are expected to generate an additional $6 million to $12 million in annualized pre-tax savings, bringing the total for Project Gravity to approximately $64 million to $70 million across both phases. These actions support a structurally higher‑margin business mix and reinforce the Company’s focus on long‑term earnings power.

Guidance
The company’s guidance for Fiscal Year 2026 does not reflect the potential impact of recently implemented or proposed tariffs.

Guidance for Full-Year Fiscal 2026

  • Total revenue is expected to be between $465 million and $485 million.
  • Gross margin is expected to be between 38.0 percent and 39.0 percent.
  • Adjusted EBITDA is expected to be between $50 million and $60 million.
  • Free Cash Flow is expected to be at least $30 million.

Guidance For First Quarter 2026

  • Total revenue is expected to be between $92 million and $97 million.
  • Adjusted EBITDA is expected to be between $3 million and $7 million.

 Image courtesy Traeger