Traeger — Third Quarter Fiscal 2026 Earnings Summary

Financial Performance:

• Total revenue decreased 40.4% year-over-year to $74.7 million for the quarter ended September 30, 2026, compared to $125.4 million in the prior year period.
• Grill revenue decreased 48.1% year-over-year to $39.7 million.
• Consumables revenue decreased 23.1% year-over-year to $19.4 million.
• Accessories revenue decreased 34.1% year-over-year to $15.5 million.
• Net loss was $28.5 million, or $10.33 per diluted share, compared to a net loss of $89.8 million, or $33.46 per diluted share, in the prior year quarter.
• Adjusted net loss was $18.7 million, or $6.77 per diluted share, compared to $22.3 million, or $8.31 per diluted share, in the prior year quarter.
• Adjusted EBITDA was a loss of $3.3 million, compared to a profit of $13.8 million in the prior year quarter.
• Gross profit decreased to $25.0 million from $48.5 million in the prior year quarter; gross margin was 33.5% compared to 38.7%.
• Operating cash flow was $9.8 million and free cash flow was $8.4 million for the quarter.
• For the nine months ended September 30, 2026, net loss was $34.2 million compared to $98.0 million in the prior year period.
• For the nine months ended September 30, 2026, Adjusted EBITDA was $31.2 million compared to $50.6 million in the prior year period.
• Free cash flow for the nine months ended September 30, 2026, was $49.4 million compared to a negative $0.6 million in the prior year period.

Guidance and Future Outlook:

• Fiscal 2026 total revenue guidance narrowed to $440 million–$460 million from a prior range of $435 million–$465 million.
• Fiscal 2026 Adjusted EBITDA guidance narrowed to $59 million–$65 million from a prior range of $57 million–$67 million.
• Fiscal 2026 gross margin guidance remains unchanged at 40.0%–41.0%.
• Fiscal 2026 free cash flow guidance remains unchanged at at least $30 million.
• Management expects to return to revenue and Adjusted EBITDA growth in the fourth quarter of fiscal 2026.
• Management anticipates a return to profitable growth in 2027, supported by channel expansion and a stronger product portfolio.
• A national launch with Lowe's is expected in spring 2027, alongside expansion through Westwood and Irontop.

Business Segments and Product Lines:

• The decrease in grill revenue was driven by comparisons against elevated retailer purchases in the prior year, as well as product and channel actions under Project Gravity, resulting in lower average selling prices and unit volumes.
• The decrease in consumables revenue was primarily driven by lower wood pellet sales due to seasonal ordering timing and changes in retail channel dynamics.
• The decrease in accessories revenue was driven by lower sales of MEATER smart thermometers and Traeger branded accessories.
• Project Gravity has resulted in a simpler operating model and cost reductions in sales and marketing, general and administrative, and restructuring expenses.

Market and Competitive Landscape:

• Traeger is described as the creator and category leader of the wood pellet grill.
• The company entered the griddle category in 2023.
• Management believes consumer demand remains healthier than reported revenue suggests, particularly at more accessible price points.
• The company faces margin pressure in its MEATER business.

Risks and Challenges:

• Gross margin pressure was driven by the timing of trade spend, deleverage of fixed warehousing expenses on lower revenue, and continued margin pressure in the MEATER business.
• The company faces risks related to U.S. trade policies, tariffs, and the potential for refunds received to be subject to repayment.
• Risks include dependence on three major retailers and the potential for decline in demand from such retailers.
• The company relies on a limited number of third-party manufacturers and faces risks associated with supplier problems or inability to obtain raw materials.
• The company has a history of operating losses and faces risks related to product liability, warranty claims, and product recalls.

Management Commentary and Tone:

• CEO Jeremy Andrus stated that third-quarter revenue came in at the low end of the pacing outlined in the previous quarter, with some activity shifting into the fourth quarter.
• Andrus noted that Project Gravity has provided a stronger balance sheet and capacity to invest behind the consumer and retail partners.
• Management expressed confidence that broader distribution and a stronger product portfolio position Traeger to return to profitable growth in 2027.

Other Key Points:

• Cash and cash equivalents increased to $67.8 million at the end of the third quarter from $19.6 million at December 31, 2025.
• Inventory decreased to $79.5 million at the end of the third quarter from $98.8 million at December 31, 2025.
• The press release reflects the impact of a 1-for-50 reverse stock split effective March 17, 2026.
• A non-cash goodwill impairment charge of $74.7 million was included in the net loss for the third quarter of the prior year but was not present in the current quarter.
• An IEEPA tariff refund benefit partially offset margin pressure in the current quarter.
• Sales and marketing expenses decreased to $14.3 million from $20.0 million, and general and administrative expenses decreased to $19.9 million from $22.2 million, primarily due to lower employee-related costs associated with Project Gravity.
• Restructuring and other costs decreased to $1.7 million from $6.2 million, driven by reduced consulting fees and lower severance costs.