solo stove(US:DTC) Globenewswire·2025-11-06 12:30Core Insights - Solo Brands is focusing on structural cost reductions to align with current demand levels, achieving $11 million in operating cash flow for Q3 2025, marking the second consecutive quarter of positive cash flow [1][2][4] Financial Performance - Q3 2025 net sales were $53.0 million, a decrease of 43.7% from $94.1 million in Q3 2024, primarily due to reduced sales in the Solo Stove segment as retail partners worked through excess inventory [7] - Gross profit for Q3 2025 was $31.8 million, or 60.0% of net sales, down 19.0% year-over-year, while adjusted gross profit was $32.2 million, or 60.6% of net sales, reflecting a 44.9% decrease due to inventory write-downs [7] - Operating expenses decreased to $48.0 million, down 68.9% year-over-year, largely due to significant reductions in restructuring and marketing costs [7] - The net loss for Q3 2025 was $22.9 million, improving from a net loss of $111.5 million in Q3 2024, with an adjusted net loss of $11.9 million [7] Segment Performance - Solo Stove segment net sales were $30.8 million, a decline of 48.1%, while Chubbies segment net sales were $16.5 million, down 16.0% [11][26] - Chubbies segment EBITDA improved to $21.5 million, or 20.8% of net sales, compared to $12.2 million, or 13.8% of net sales in the prior year [11][26] Strategic Initiatives - The company is committed to stabilizing its business and strengthening its balance sheet while focusing on sustainable, profitable growth [4][2] - Recent product launches, such as the Summit 24" and Infinity Flame firepits, have received positive initial responses, improving sales trends in October [4] Balance Sheet and Cash Flow - As of September 30, 2025, cash and cash equivalents were $16.3 million, up from $12.0 million at the end of 2024, while inventory decreased to $84.8 million from $108.6 million [9][10] - Outstanding borrowings under the 2025 Term Loan were $247.1 million, with no balance under the 2025 Revolving Credit Facility [10][12]