Financial Performance - Revenue for 2Q 2025 was $145 million, a decrease of 13.6% compared to $168 million in 2Q 2024[10, 24] - Gross margin was 39.2% in 2Q 2025, compared to 42.9% in 2Q 2024[10, 27] - Adjusted EBITDA was $14 million in 2Q 2025, compared to $27 million in 2Q 2024, with a margin of 9.8% versus 15.9%[10, 27] - Adjusted net loss was $1.936 million, compared to an income of $7.269 million in 2Q 2024[27, 42] Revenue Mix & Growth Pillars - Grills accounted for 51% of revenue, consumables 24%, and accessories 25%[12, 13] - Consumables revenue increased by approximately 7% in 2Q 2025[15] Tariff Mitigation & Project Gravity - The company expects to offset approximately 80% of the $60 million unmitigated tariff exposure for Fiscal Year 2025[6, 16] - Project Gravity is expected to drive $30 million of annualized cost savings once fully implemented, with realized savings expected to be up to $13 million in FY 2025[7, 18] Liquidity & Debt - The company had $180 million in liquidity at the end of 2Q 2025, compared to $175 million in 2Q 2024[20] - Net debt was $402 million in 2Q 2025, compared to $409 million in 2Q 2024[20] Fiscal Year 2025 Guidance - Total revenue is projected to be between $540 million and $555 million[29] - Gross margin is expected to be between 40.5% and 41.5%[29] - Adjusted EBITDA is projected to be between $66 million and $73 million[29]

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]

Core Insights - Traeger, Inc. has launched the Flatrock 2 Zone Griddle, expanding its griddle lineup with a compact design that maintains high performance similar to the Flatrock 3 Zone [1][2][3] - The Flatrock 2 Zone features a two-zone cooking system and streamlined ignition process, enhancing the outdoor cooking experience by providing versatility and efficiency [2][3] - The product is priced at $699 and will be available on Traeger.com and select retailers in the U.S. and Canada [4] Company Overview - Traeger Grills, based in Salt Lake City, is a leader in the wood pellet grill market, known for its innovative outdoor cooking systems that allow for various cooking methods [5] - The company has recently entered the griddle category, further solidifying its position in the outdoor cooking space with versatile cooking options [5] Product Features - The Flatrock 2 Zone includes two distinct cooking zones for precise heat control, ensuring even cooking without hot or cold spots [6] - It incorporates wind-blocking technology for consistent heat coverage and U-shaped burners for reliable cooking performance [6] - The design features EZ-CLEAN™ grease management for easy cleanup and a slimmed-down size suitable for smaller spaces [6] - Customizable cookspace options are available with the Pop-And-Lock™ accessory rail and folding side shelves [6]