Financial Data and Key Metrics Changes - The company reported second quarter revenues of $145 million, a decline of 14% year-over-year, with adjusted EBITDA of $14 million compared to $27 million in the same period of 2024 [23][28]. - The net loss for the second quarter was $7 million, compared to a net loss of $3 million in 2024, with adjusted net loss of $2 million or $0.01 per diluted share compared to adjusted net income of $7 million or $0.06 per diluted share in the same period in 2024 [27][28]. - Gross profit decreased to $57 million from $72 million in 2024, with a gross margin of 39.2%, down 380 basis points year-over-year [25][26]. Business Line Data and Key Metrics Changes - Grill revenues decreased by 22% to $74 million, impacted by revenue pacing shifts and lower unit volumes of higher-priced grills [23][24]. - Consumables revenues grew by 7% to $36 million, driven by strong sell-through of wood pellets and expanded distribution [20][24]. - Accessories revenues decreased by 12% to $35 million, largely due to declines at Meter, although the rate of decline improved sequentially [21][24]. Market Data and Key Metrics Changes - North America revenues were down 12%, while revenues from the rest of the world decreased by 32% [25]. - The company noted a shift in consumer demand towards lower-priced grill offerings, with strong performance in grills priced under $1,000 [18][19]. Company Strategy and Development Direction - The company is executing Project Gravity, a major initiative aimed at driving efficiencies and improving margins, with an expected $30 million in run-rate cost savings from Phase One [10][12][30]. - The company is diversifying its manufacturing mix away from China, aiming for a significant reduction in production in China by 2026 [8][46]. - The strategic focus is on enhancing profitability and cash flow while navigating tariff impacts and market challenges [32][34]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the brand's strength and consumer appetite for grills, despite macroeconomic challenges and tariff pressures [22]. - The company reinstated guidance for fiscal year 2025, projecting revenues of $540 million to $555 million, down 8% to 11% year-over-year, and adjusted EBITDA of $66 million to $73 million [15][31]. - Management highlighted the expectation for a return to a more normalized mix of direct import fulfillment in the second half of the year, benefiting from tariff mitigation efforts [17][34]. Other Important Information - The company incurred tariff expenses of over $3 million in the quarter, which pressured gross margins [17]. - The company ended the quarter with $412 million in total net debt and a liquidity position of $180 million [28]. Q&A Session Summary Question: Can you talk about the reaction to the price increases, particularly in the wholesale channel? - Management noted that sell-through was robust relative to expectations, despite pacing dynamics affecting revenue recognition [38][40]. Question: Can you provide color on the progress expected in diversifying away from China? - Management indicated that they have been diversifying for a couple of years and expect to be almost entirely outside of China by 2026 [46][48]. Question: What is the outlook for the Meter business given the significant year-over-year declines? - Management acknowledged competitive pressures and high prices but expressed confidence in Meter's long-term potential and integration into the Traeger infrastructure [62][66]. Question: What is the company's view on the investment merits and the outlook for the back half of the year? - Management believes that the worst may be behind them and emphasized the brand's strength and commitment to long-term growth [70][72]. Question: How are the new products like Woodbridge performing? - Management reported strong initial reception for Woodbridge, with positive consumer feedback, despite tariff-related price increases [78][80].

Financial Data and Key Metrics Changes - The company reported a 3% revenue growth in Q4 2024, with adjusted EBITDA of $18 million, up 41% from Q4 2023 [10][11][48] - Gross margin improved by 410 basis points year-over-year, reaching 40.9% [10][46] - For the full year 2024, adjusted EBITDA grew by 34%, and gross margin expanded by 540 basis points [12][44] Business Line Data and Key Metrics Changes - Grill revenues increased by 30% year-over-year to $78 million in Q4, driven by strong sell-through during the holiday season and the launch of the Woodridge series [23][44] - Consumables revenue grew by 25% to $31 million, supported by increased replenishment and new distribution at Walmart [27][44] - Accessories revenue declined by 24% to $60 million, primarily due to underperformance at Meater [30][44] Market Data and Key Metrics Changes - North America revenues increased by 11%, while revenues from the rest of the world declined by 39%, largely influenced by Meater's performance [45][109] - The company noted a significant demand for lower-priced grills, confirming the strategy to focus on accessible price points [24][76] Company Strategy and Development Direction - The company aims to increase brand awareness, with household penetration at only 3.6%, indicating a significant long-term growth opportunity [14] - Strategic partnerships and brand activation efforts, including collaborations with culinary brands, are part of the growth strategy [17][26] - The company plans to double its roadshow program at Costco in 2025 to enhance consumer education and brand awareness [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's health despite macroeconomic uncertainties, with expectations for modest growth in the grill market in 2025 [38][70] - The company is preparing for potential impacts from tariffs, with ongoing strategies to mitigate risks [36][37] - For fiscal year 2025, the company is guiding revenues of $595 to $615 million, reflecting a potential decline or slight growth compared to 2024 [35][51] Other Important Information - Dom Blosil, the CFO, announced his transition out of the role, with Joey Hord set to take over [40][41] - The company ended 2024 with $15 million in cash and cash equivalents and $409 million in total debt [48][49] Q&A Session Summary Question: Expectations for the accessories business in 2025 - Management is conservatively forecasting Meater's performance and believes there are opportunities for improvement through retail expansion [60] Question: Impact of advertising spend on Meater's performance - Management noted that Q1 insights may not be indicative of future performance due to Meater's revenue concentration in Q4 [62] Question: Overall grill market expectations for 2025 - Management expects modest growth in the grill market, with a potential increase in prices and a return to a more normalized replacement cycle [70][71] Question: Strategy for lower price point grills - The company plans to continue leveraging the success of lower-priced models while introducing the Woodridge series at a premium price point [76] Question: Inventory levels and tariff anticipation - The increase in inventory was primarily due to the Woodridge launch, not specifically for tariff anticipation [79] Question: Long-term leverage goals and free cash flow expectations - The long-term goal is to maintain leverage at or below three turns, with free cash flow expected to be similar to 2024 [90][91]