Traeger (COOK) FY Conference Summary Company Overview - Traeger is a Salt Lake City-based company founded in 1986, specializing in premium pellet grills and cooking platforms, including flat top griddles [2][3] - The company has seen significant market share and household penetration growth since the mid-2000s, particularly during the pandemic [2] Financial Performance - The company reported a pullback in revenues due to a timing shift between Q1 and Q2, but sell-through results were satisfactory [4] - Full-year revenue is expected to decline year-over-year, primarily due to pricing adjustments in response to tariffs [5] - The management is focused on profitability, aiming to offset approximately 80% of tariff exposure [5][6] Tariff Impact and Supply Chain - Traeger faces a blended tariff rate in the low 30% range, impacting pricing and overall business operations [8] - The company is implementing a cost management initiative called Project Gravity, targeting $30 million in annual savings [9] - Currently, 80% of grills are sourced from China, with plans to diversify supply chains to Vietnam to mitigate risks [14][15] Market Dynamics - The grill industry is experiencing a downturn, with volumes below 2019 levels due to a pullback in consumer spending post-pandemic [22][27] - The company holds a 3.5% household penetration rate, indicating significant growth potential, especially in regions with lower brand awareness [25][34] Consumer Behavior - Consumer purchasing behavior has shifted towards seeking value and lower price points, impacting sales of higher-priced grills [20][30] - The company believes that the long-term outlook remains positive, as Americans continue to enjoy grilling [28][30] Product Strategy - Traeger aims to maintain a premium brand image while introducing products at more accessible price points to attract a broader consumer base [31][32] - The company is focused on education and awareness to overcome consumer hesitance regarding pellet grills [34][36] Meter Acquisition - The Meter business, acquired in 2021, has faced challenges due to increased competition but is being centralized to improve efficiency and capitalize on synergies with Traeger products [39][41] Deleveraging Strategy - Deleveraging is a priority, with plans to improve EBITDA and utilize excess free cash flow to pay down debt [44][46] Consumer Sentiment - Current consumer sentiment is cautious, particularly regarding big-ticket purchases, influenced by high interest rates and economic uncertainty [50][52] Conclusion - Traeger is positioned for long-term growth despite current challenges, with a focus on profitability, supply chain diversification, and consumer education to enhance market share and household penetration [38][48]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-40694 Traeger, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation o ...

Traeger (COOK) Q2 2025 Earnings Call August 06, 2025 04:30 PM ET Speaker0Hello, and welcome to the Traeger Second Quarter Fiscal twenty twenty five Earnings Conference Call. My name is Alex, and I'll be coordinating today's call. I'll now hand it over to Nick Bacchus to begin. Please go ahead.Speaker1Good afternoon, everyone. Thank you for joining Traeger's call to discuss its second quarter twenty twenty five results, which were released this afternoon and can be found on our website at investors.traeger.c ...

TRAEGER INVESTOR PRESENTATION SECOND QUARTER 2025 SAFE HARBOR STATEMENT This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of l995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our organizational focus, our mifigation efforts to offset the direct impact of tariffs, our Project Gravity initi ...

Core Viewpoint - The upcoming earnings season presents potential short-term trading opportunities in consumer discretionary stocks, despite the traditionally lower trading volumes in summer [1] Group 1: Topgolf Callaway Brands Corp. (MODG) - MODG stock has declined nearly 80% since peaking at approximately $37 in late 2021, currently priced at $7.82 with a 12-month price forecast of $10.30, indicating a potential upside of 31.80% [4][7] - The company plans to spin off about 80% of its Topgolf business in 2025, which may enhance the performance of both Topgolf and Callaway as separate entities [6] - Recent insider buying by director Adebayo O Ogunlesi suggests confidence in the stock's undervaluation, supported by bullish analyst sentiment [3][6] Group 2: Traeger Inc. (COOK) - COOK stock is currently priced at $1.77, with a 12-month price forecast of $2.44, indicating a potential upside of 38.10% [8] - The stock has decreased by 29% over the past year and 25% in 2025, with the company facing challenges due to high interest rates and inflation [10] - Despite being unprofitable and having net debt of $410 million, Traeger has shown expanding net margins and raised its full-year revenue and earnings guidance [10] Group 3: 1-800-FLOWERS.COM Inc. (FLWS) - FLWS stock is currently priced at $5.10, with a 12-month price forecast of $7.50, indicating a potential upside of 47.06% [12] - The stock has declined by 36.9% in 2025 and faces strong competition, but the company is investing in artificial intelligence to enhance marketing and fulfillment [12][13] - Major shareholder Fund 1 Investments has made multiple stock purchases, indicating confidence in the company's potential turnaround [13]

Group 1 - Economic uncertainty can present significant investment opportunities, particularly in the oil and natural gas sector [1] - Crude Value Insights focuses on cash flow and identifies companies with strong value and growth prospects [1] - The service offers a model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live sector discussions for subscribers [2] Group 2 - A two-week free trial is available for new subscribers, providing access to insights in the oil and gas industry [3]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for the first quarter of 2025 [ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)](index=6&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) This section presents the unaudited condensed consolidated financial statements for Traeger, Inc. for the quarterly period ended March 31, 2025, including balance sheets, statements of operations, statements of stockholders' equity, and statements of cash flows [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, Traeger's total assets slightly decreased to $825.6 million, while total liabilities also decreased to $546.1 million, resulting in a slight increase in total stockholders' equity to $279.6 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$825,600** | **$830,677** | | Cash and cash equivalents | $12,034 | $14,981 | | Inventories | $127,236 | $107,367 | | **Total Liabilities** | **$546,050** | **$554,247** | | Line of credit | $25,000 | $5,000 | | Notes payable, net | $398,732 | $398,445 | | **Total Stockholders' Equity** | **$279,550** | **$276,430** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For Q1 2025, Traeger reported a slight revenue decrease to $143.3 million, but a significant reduction in general and administrative expenses led to a net loss improvement to $0.8 million from $4.7 million in the prior year Q1 2025 vs. Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $143,283 | $144,914 | | Gross Profit | $59,459 | $62,563 | | Income (loss) from operations | $3,412 | $(73) | | Net Loss | $(778) | $(4,683) | | Net Loss Per Share (basic and diluted) | $(0.01) | $(0.04) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash used in operating activities increased to $20.8 million due to strategic inventory build, while net cash used in investing activities decreased, and net cash provided by financing activities increased, resulting in a $2.9 million overall decrease in cash and cash equivalents Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(20,837) | $(12,598) | | Net cash used in investing activities | $(1,902) | $(5,752) | | Net cash provided by financing activities | $19,792 | $12,049 | | **Net decrease in cash and cash equivalents** | **$(2,947)** | **$(6,301)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed financial disclosures, including revenue disaggregation showing increased grill sales offset by declines in consumables and accessories, significant customer concentration, a $15.0 million product liability settlement, and $1.1 million in incremental stock-based compensation expense from modified awards - The company has significant customer concentration risk. In Q1 2025, three major retail customers (A, B, and C) accounted for **33%**, **12%**, and **11%** of net sales, respectively. This is a shift from Q1 2024 where they accounted for **23%**, **19%**, and **9%**[34](index=34&type=chunk) Revenue by Product Category (in thousands) | Product Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Grills | $86,685 | $76,819 | | Consumables | $30,288 | $32,259 | | Accessories | $26,310 | $35,836 | | **Total Revenue** | **$143,283** | **$144,914** | - In February 2025, a product liability matter was settled for **$15.0 million**, which was covered by the company's insurance policies[72](index=72&type=chunk) - In March 2025, the company modified outstanding Performance Shares and PSUs, resulting in an incremental stock-based compensation expense of **$1.1 million** for the quarter[79](index=79&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, highlighting a 1.1% revenue decrease driven by lower accessories and consumables sales, partially offset by increased grill revenue, and a significant 22.2% reduction in G&A expenses that improved the net loss to $0.8 million Q1 2025 vs. Q1 2024 Key Operational Results (in thousands) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $143,283 | $144,914 | (1.1)% | | Gross Profit | $59,459 | $62,563 | (5.0)% | | General and administrative | $25,019 | $32,138 | (22.2)% | | Net Loss | $(778) | $(4,683) | (83.4)% | - The company is navigating macroeconomic uncertainty, including tariffs and inflation, by using promotional activity and strategic pricing. This led to grill unit volume growth **over 40%**, offset by an average selling price reduction of **over 20%** in Q1 2025[100](index=100&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) In Q1 2025, total revenue decreased by 1.1% to $143.3 million, with grill revenue growing 12.8% due to unit volume growth from new products and seasonal sales, while consumables and accessories declined, and gross margin contracted to 41.5% due to product mix and promotions, offset by a 10.5% decrease in operating expenses Revenue Breakdown Q1 2025 vs Q1 2024 (in thousands) | Category | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Grills | $86,685 | $76,819 | $9,866 | 12.8% | | Consumables | $30,288 | $32,259 | $(1,971) | (6.1)% | | Accessories | $26,310 | $35,836 | $(9,526) | (26.6)% | | **Total Revenue** | **$143,283** | **$144,914** | **$(1,631)** | **(1.1)%** | - Gross margin decreased to **41.5%** in Q1 2025 from **43.2%** in Q1 2024, primarily due to unfavorable product mix and increased promotional funding[121](index=121&type=chunk) - General and administrative expenses decreased by **$7.1 million (22.2%)**, driven by a **$4.6 million** reduction in stock-based compensation expense and lower legal costs[124](index=124&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, Traeger had $12.0 million in cash and cash equivalents, supported by a $125.0 million revolving credit facility and a receivables financing agreement with $30.5 million capacity, with management confident in sufficient liquidity for the next twelve months Liquidity Position as of March 31, 2025 (in millions) | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $12.0 | | Revolving Credit Facility Capacity | $125.0 | | Receivables Financing Agreement Capacity | $30.5 | | First Lien Term Loan Outstanding | $403.5 | - The increase in cash used in operating activities in Q1 2025 was primarily due to strategic inventory management ahead of the warmer seasons, partially offset by better accounts receivable collections[130](index=130&type=chunk) - The company extended its Receivables Financing Agreement to August 6, 2027[141](index=141&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes to its disclosures regarding exposure to market risk since its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the company's market risk disclosures from those described in the Annual Report on Form 10-K[147](index=147&type=chunk) [Controls and Procedures](index=30&type=section&id=Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of March 31, 2025, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at the reasonable assurance level[149](index=149&type=chunk) - No changes occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[150](index=150&type=chunk) [PART II. OTHER INFORMATION](index=30&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, and other required disclosures for the reporting period [Legal Proceedings](index=30&type=section&id=Legal%20Proceedings) The company is subject to various legal proceedings and claims in the ordinary course of business, which management does not expect to have a material adverse effect on the business - The company is involved in various legal proceedings arising in the ordinary course of business, which are not expected to have a material adverse effect. A specific product liability matter was settled in February 2025 (see Note 10)[152](index=152&type=chunk)[72](index=72&type=chunk) [Risk Factors](index=31&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have occurred with respect to the risk factors previously disclosed in the Annual Report on Form 10-K[153](index=153&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no recent sales of unregistered securities and no purchases of equity securities by the issuer or affiliated purchasers during the period - There were no unregistered sales of equity securities or use of proceeds to report for the period[154](index=154&type=chunk)[155](index=155&type=chunk) [Other Information](index=31&type=section&id=ITEM%205.%20Other%20Information) The company reported no material changes to the procedures for security holder nominations to the board, and no director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2025 - During Q1 2025, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement[159](index=159&type=chunk) [Exhibits](index=31&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including employment and separation agreements, forms of stock unit agreements, and certification documents from the CEO and CFO

Group 1 - Traeger reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.04 per share, and showing an earnings surprise of 25% [1] - The company posted revenues of $143.28 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.29%, although this represents a decline from year-ago revenues of $144.91 million [2] - Traeger has surpassed consensus revenue estimates four times over the last four quarters, but has only beaten consensus EPS estimates once in the same period [2] Group 2 - Traeger shares have declined approximately 38.9% since the beginning of the year, contrasting with the S&P 500's decline of 5.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.07 on revenues of $168.72 million, and $0.13 on revenues of $602.5 million for the current fiscal year [7] Group 3 - The Zacks Industry Rank indicates that the Consumer Products - Discretionary sector is currently in the bottom 22% of over 250 Zacks industries, which may negatively impact stock performance [8] - Central Garden, another company in the same industry, is expected to report quarterly earnings of $0.94 per share, reflecting a year-over-year change of -5.1%, with revenues anticipated to be $875.2 million, down 2.8% from the previous year [9][10]

Financial Data and Key Metrics Changes - First quarter revenues declined by 1% to $143 million compared to the same period in 2024, with adjusted EBITDA of $23 million, down from $24 million year-over-year [27][30][8] - Net loss for the first quarter was $1 million, an improvement from a net loss of $5 million in the first quarter of 2024 [30] - Adjusted net income increased to $7 million or $0.05 per diluted share, compared to $5 million or $0.04 per diluted share in the same period last year [30] Business Line Data and Key Metrics Changes - Grill sales increased by 13% year-over-year, benefiting from the launch of the new Woodridge series [17][20] - Consumables revenues decreased by 6% to $30 million, largely in line with expectations [27] - Accessories revenue fell by 27% to $26 million, primarily due to challenges faced by the Meter product line [27][24] Market Data and Key Metrics Changes - North American revenues rose by 6%, while revenues from the rest of the world dropped by 47%, significantly impacted by Meter's performance [28] - The first quarter typically experiences slower sales in the outdoor cooking industry, but sell-through for grills remained positive compared to the previous year [18] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts through cost reductions, sourcing diversification, and strategic pricing increases [11][12][13] - Plans to reduce production in China significantly by 2026 while enhancing relationships with manufacturing partners [13] - The company has suspended forward guidance for fiscal 2025 due to uncertainties in the macroeconomic environment and consumer demand [16][34] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by tariffs and declining consumer sentiment, emphasizing the need for strategic navigation through the current macroeconomic landscape [9][10] - The company remains optimistic about its ability to offset tariff impacts and is committed to long-term growth strategies despite short-term challenges [26][36] Other Important Information - The Woodridge series received strong consumer reception, achieving an average rating of 4.8 stars, marking the highest rating for a product launch in the company's history [21] - The company is actively managing inventory levels and has reduced purchase orders to avoid overstocking amid uncertain demand [35][55] Q&A Session Summary Question: Can you provide some color around strategic price increases across your product portfolio? - Management indicated that pricing decisions were made based on historical sell-through data and product elasticity, with a focus on premium positioning and innovation [38][39] Question: Can you talk about the Meter segment and capital allocation going forward? - Management acknowledged short-term challenges in the Meter segment but emphasized a long-term strategy focused on wholesale channels and operational efficiency [44][46] Question: Have you sensed a shift in retailer willingness to take on inventory? - Management noted no significant reluctance from retailers to take inventory, but there has been a shift towards domestic fulfillment due to tariff implications [50][52] Question: Can you clarify the tariff situation regarding products from China? - Management confirmed that grills from China are subject to a total tariff of 45%, while accessories vary based on sourcing [58][60] Question: What is the approach to marketing this year? - The company is focusing on sales activation activities and in-store marketing, while top-of-funnel marketing has been deprioritized due to the uncertain environment [89][90]

Financial Data and Key Metrics Changes - First quarter revenues declined by 1% to $143 million compared to the same period in 2024, with adjusted EBITDA of $23 million, down from $24 million year-over-year [6][24][27] - Net loss for the first quarter was $1 million, an improvement from a net loss of $5 million in the first quarter of 2024 [27] - Adjusted net income increased to $7 million or $0.05 per diluted share, compared to $5 million or $0.04 per diluted share in the same period last year [27] Business Line Data and Key Metrics Changes - Grill sales increased by 13% year-over-year, benefiting from the launch of the new Woodridge series [15][24] - Consumables revenues decreased by 6% to $30 million, in line with expectations, due to a reduction in wood pellet and soup consumables [21][24] - Accessories revenue fell by 27% to $26 million, primarily due to challenges faced by Meter in the smart thermometer category [22][24] Market Data and Key Metrics Changes - North American revenues rose by 6%, while revenues from the rest of the world dropped by 47%, largely due to Meter's performance [25] - The first quarter typically experiences slower sales in the outdoor cooking industry, but sell-through for grills remained healthy into the second quarter [16][24] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts through cost reductions, sourcing diversification, and strategic pricing increases [10][12][14] - Plans to reduce production in China significantly by 2026 while enhancing relationships with manufacturing partners [11][12] - The company has suspended forward guidance for fiscal 2025 due to uncertainties in the macroeconomic environment and consumer demand [14][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs and declining consumer sentiment, emphasizing the importance of navigating the current macroeconomic climate [7][8] - The company is optimistic about its ability to offset tariff impacts through various mitigation strategies, although consumer demand remains a significant unknown [10][29] - Management expressed confidence in the long-term value of the Meter brand despite short-term pressures [42][44] Other Important Information - The Woodridge series received strong consumer reception, achieving an average rating of 4.8 stars across various platforms [19][20] - The company is actively managing inventory levels and has reduced purchase orders to avoid overstocking amid uncertain demand [32][53] Q&A Session Summary Question: Can you provide insights on strategic price increases across your product portfolio? - Management indicated that pricing decisions were made based on historical sell-through data and product elasticity, with a focus on premium positioning [35][36] Question: How is the Meter segment performing and what are the capital allocation plans? - Management acknowledged short-term challenges for Meter but emphasized a long-term strategy focused on wholesale channels and cost structure optimization [42][43] Question: Has there been a shift in retailer willingness to take on inventory? - Management noted no significant reluctance from retailers but mentioned a shift towards domestic fulfillment due to tariff implications [48][49] Question: Can you clarify the tariff situation for products sourced from China? - Management confirmed that grills from China are subject to a total tariff of 45%, while accessories vary based on sourcing [57][64] Question: What is the current status of the Walmart pellet rollout? - Management expressed excitement about the partnership with Walmart, noting it meets consumer demand for convenience [68][69]