Traeger(US:COOK)2025-11-06 00:26Revenue Performance - Revenue for the three months ended September 30, 2025, was $125.4 million, a 2.7% increase from $122.1 million in the same period of 2024[120][121] - Revenue for the nine months ended September 30, 2025, was $414.2 million, a 4.9% decrease from $435.4 million in the same period of 2024[121] - The company derives substantially all of its revenue from the sale of grills, consumables, and accessories in North America[126] - Seasonal fluctuations in revenue typically result in higher sales of grills in the first and second quarters, while accessory sales peak in the fourth quarter[127][128] - Total revenue decreased by $21.3 million, or 4.9%, to $414.2 million for the nine months ended September 30, 2025, compared to $435.4 million for the same period in 2024[156] Profitability and Loss - The company recorded a net loss of $89.8 million for the three months ended September 30, 2025, compared to a net loss of $19.8 million for the same period in 2024[121] - The company experienced a net loss of $89.8 million for the three months ended September 30, 2025, compared to a net loss of $19.8 million in the same period of 2024, reflecting a 353.9% increase in losses[144] - Gross profit decreased by $3.1 million, or 6.1%, to $48.5 million for the three months ended September 30, 2025, with a gross margin of 38.7%, down from 42.3% in the prior year[149] - Gross profit decreased by $21.6 million, or 11.6%, to $165.0 million, with gross margin declining to 39.8% from 42.8%[161] - A non-cash goodwill impairment charge of $74.7 million was recorded for the three months ended September 30, 2025, due to a sustained decrease in stock price and market capitalization[153] - A non-cash goodwill impairment of $74.7 million was recorded for the nine months ended September 30, 2025, compared to no impairment in the prior year[164] Expenses - Research and development expenses were $3.1 million for the three months ended September 30, 2025, down from $3.3 million in the same period of 2024[133] - Sales and marketing expenses decreased by $6.2 million, or 23.6%, to $20.0 million, representing 15.9% of revenue for the three months ended September 30, 2025[151] - Sales and marketing expenses decreased by $9.1 million, or 11.9%, to $67.0 million, representing 16.2% of revenue[162] - General and administrative expenses decreased by $13.5 million, or 15.6%, to $73.2 million, accounting for 17.7% of revenue[163] - Total operating expenses surged by 123.1% to $131.9 million for the three months ended September 30, 2025, compared to $59.1 million in the prior year[144] Cost Management - The company has implemented cost-saving initiatives, including a reduction in force and centralization of the MEATER business, to improve operational efficiency[125] - The company expects continued cost savings to improve operating results in the long term, despite uncertainties in the macroeconomic environment[125] - The company anticipates fluctuations in sales and marketing expenses as a percentage of revenue based on the timing of sales and marketing function expansions[131] Revenue Breakdown - Revenue from consumables increased by $2.8 million, or 12.3%, to $25.3 million, driven by a mid-double digit increase in wood pellet sales[147] - Revenue from grills increased by $1.6 million, or 2.2%, to $76.6 million, primarily due to a low-double digit increase in average selling price[146] - Revenue from grills decreased by $9.3 million, or 3.8%, to $237.4 million, primarily due to a mid-single digit reduction in average selling price[157] - Revenue from consumables increased by $3.3 million, or 3.7%, to $91.9 million, driven by a mid-single digit increase in wood pellet sales[158] Financial Position - Cash and cash equivalents as of September 30, 2025, were $5.9 million, with no outstanding loan amounts under the Revolving Credit Facility and Receivables Financing Agreement[169] - Net cash provided by operating activities decreased to $5.0 million for the nine months ended September 30, 2025, compared to $16.4 million in the prior year[171] - The First Lien Term Loan Facility has a principal amount outstanding of $403.4 million as of September 30, 2025, down from $403.6 million as of December 31, 2024[178] - The Revolving Credit Facility has been reduced by 10% to $112.5 million, split into two tranches: $30.0 million expiring on June 29, 2026, and $82.5 million expiring on December 29, 2027[180] - The interest rate for the First Lien Term Loan Facility ranges from 3.00% to 3.25% per annum based on the company's Public Debt Rating[178] - The Receivables Financing Agreement allows for a maximum borrowing capacity between $30.0 million and $75.0 million, with a fixed interest rate of 2.5% on outstanding cash advances[184] - The company is required to maintain a minimum liquidity of at least $15.0 million, tested monthly, under the Extended Revolving Facility[182] - As of September 30, 2025, the company had no outstanding loan amounts under the Revolving Credit Facility[180] - The fixed interest rate on outstanding cash advances under the Receivables Financing Agreement was approximately 2.6% after the amendment on August 6, 2024[185] - The First Lien Net Leverage Ratio covenant is set at 6.20 to 1.00, applicable if the utilization of the Revolving Credit Facility exceeds a specified threshold[182] - The company had drawn down $5.0 million under the Receivables Financing Agreement for general corporate and working capital purposes as of September 30, 2025[186]