Solo Brands, Inc. Announces First Quarter 2025 Results

Core Insights - Solo Brands, Inc. reported a net loss of $18.6 million for Q1 2025, a significant increase from a net loss of $6.5 million in Q1 2024, reflecting challenges in the Solo Stove segment and overall financial performance [7][19][46] - The Chubbies segment showed strong performance with a 44% increase in sales year-over-year, contributing positively to the company's overall results [2][7] - The company is focusing on restructuring its debt and improving marketing effectiveness while addressing operational challenges [3][9] Financial Performance - Net sales for Q1 2025 were $77.3 million, down 9.5% from $85.3 million in Q1 2024, primarily due to a decline in the Solo Stove segment [7][19] - Gross profit decreased to $42.6 million, or 55.2% of net sales, down 400 basis points compared to the prior year [7][19] - Adjusted EBITDA for Q1 2025 was $3.5 million, representing 4.5% of net sales, a decline from $4.3 million or 5.0% of net sales in Q1 2024 [7][46] Segment Performance - Solo Stove segment net sales were $26.1 million, a decline of 49.2% year-over-year, attributed to reduced promotional activities and lack of new products [7][20] - Chubbies segment net sales increased to $42.7 million, up 43.9%, driven by growth in retail and direct-to-consumer channels [7][20] Balance Sheet and Cash Flow - Cash and cash equivalents increased to $206.4 million as of March 31, 2025, compared to $12.0 million at the end of 2024, primarily due to net drawdowns on the Revolving Credit Facility [8][22] - Outstanding borrowings totaled $346.3 million under the Revolving Credit Facility and $82.5 million under the Term Loan as of March 31, 2025 [9][22] Stock Market and Trading Status - The company's Class A common stock has been suspended from trading on the NYSE and is currently quoted on the OTC Pink Market under the symbol "DTCB" [10]