Financial Performance - Revenue for Q3 2025 reached $125 million, a 2.7% increase compared to $122 million in Q3 2024[9, 22] - Gross margin was 38.7% in Q3 2025, compared to 42.3% in Q3 2024[9, 24] - Adjusted EBITDA was $13.8 million, representing an 11.0% margin, compared to $12 million and 10.1% margin in Q3 2024[9, 24] - Adjusted net loss was $7 million in Q3 2025, compared to $4 million in Q3 2024[24] Revenue Mix & Growth Pillars - Grills accounted for 61% of revenue, consumables 19%, and accessories 20%[10, 11] - Consumables revenue increased by approximately 12% in Q3 2025[13] - Accessories line realized double-digit growth[13] Project Gravity - Project Gravity aims for $50 million in annualized run-rate savings once fully implemented by the end of 2026[6, 15, 16] - Phase 1 includes a reduction in force and MEATER centralization, yielding approximately $30 million in savings[16] - Phase 2 includes channel optimization and other productivity measures, yielding approximately $20 million in savings[6, 16] Tariff Mitigation & Balance Sheet - The company is diversifying production outside of China to mitigate tariff risks, expecting a meaningful production shift by the end of 2026[14] - Liquidity at the end of Q3 2025 was $167 million, compared to $177 million in Q3 2024[18] - Net debt was $398 million, compared to $399 million in Q3 2024[18] Fiscal Year 2025 Guidance - Total revenue is projected to be between $540 million and $555 million[26] - Gross margin is expected to be between 40.5% and 41.5%[26] - Adjusted EBITDA is guided to be between $66 million and $73 million[26]

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]

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% in Q4 2024 [10][46] - For the full year 2024, adjusted EBITDA grew by 34%, and gross margin expanded by 540 basis points [12][43] Business Line Data and Key Metrics Changes - Grill revenues increased by 30% year-over-year to $78 million in Q4 2024, driven by strong sell-through during the holiday season and the launch of the Woodridge series [44][23] - 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 that the grill market is expected to grow modestly by 1% to 2% in 2025, following three years of decline [70][71] Company Strategy and Development Direction - The company aims to increase brand awareness and market share, with household penetration currently at 3.6% [14][39] - Strategic initiatives include enhancing social media engagement and partnerships with culinary brands to drive brand activation [15][17] - The company plans to focus on boots-on-the-ground sales activation efforts in 2025, including a roadshow program at Costco [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's health and consumer demand for grills, despite an uncertain macroeconomic environment [38][39] - The company is guiding for revenues of $595 to $615 million in 2025, reflecting a potential decline of 2% to growth of 2% compared to 2024 [35][51] - Management acknowledged challenges related to tariffs and their impact on the business, emphasizing proactive strategies to mitigate potential effects [36][37] 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 the seasonal nature of Meater's business [62] Question: Overall grill market outlook for 2025 - Management expects modest growth in the grill market, with Traeger gaining market share in 2024 [70][72] Question: Strategy for lower price point grills - The company plans to continue leveraging successful promotions at lower price points while introducing the Woodridge series at a premium price [76] Question: Inventory levels and tariff anticipation - The increase in inventory was primarily tied to the Woodridge launch rather than anticipatory tariffs [79] Question: Long-term leverage goals - The company aims to maintain leverage at or below three turns, with a focus on debt paydown and EBITDA growth [90][93] Question: Update on manufacturing partners in Vietnam - The company is progressing with its second global manufacturing partner in Vietnam and expects to be in mass production soon [97][98] Question: Recent trends in international sales - The decline in international sales is largely due to Meater's performance, which significantly impacts the overall numbers [109]

Financial Performance - Total revenue for Fiscal Year 2024 was $604 million, a slight decrease of 0.3% compared to $606 million in FY 2023[30] - Gross margin for FY 2024 increased to 42.3%, compared to 36.9% in FY 2023[33] - Adjusted EBITDA for FY 2024 was $81.9 million, representing 13.6% of revenue, compared to $61 million, or 10.1% of revenue, in FY 2023[33] - For the fourth quarter of 2024, total revenue increased by 3.2% to $169 million from $163 million in 4Q 2023[24] - Gross profit margin for the fourth quarter of 2024 increased to 40.9% from 36.8% in 4Q 2023[27] - Adjusted EBITDA for the fourth quarter of 2024 was $18 million, or 10.9% of revenue, compared to $13 million, or 7.9% of revenue, in 4Q 2023[27] Revenue Breakdown - Grill revenue for FY 2024 remained consistent at $299 million[30] - Consumables revenue for FY 2024 increased by 8.5% to $192 million[30] - Accessories revenue for FY 2024 decreased by 3.8% to $115 million[30] - In the fourth quarter of 2024, grill revenue increased by 30.2% to $78 million[24] - Consumables revenue for the fourth quarter of 2024 decreased by 24.1% to $25 million[24] - Accessories revenue for the fourth quarter of 2024 remained consistent at $60 million[24] 2025 Guidance - The company expects total revenue to be between $595 million and $615 million for fiscal year 2025[36] - Gross margin is expected to be between 42.2% and 42.8% for fiscal year 2025[36] - Adjusted EBITDA is projected to be between $75 million and $85 million for fiscal year 2025[36]