Q4 Results Expected to Generate 3rd Consecutive Quarter of Positive Operating Cash Flow GRAPEVINE, Texas, Jan. 26, 2026 (GLOBE NEWSWIRE) -- Solo Brands, Inc. (NYSE: SBDS) (“Solo Brands” or “the Company”) a leading portfolio of lifestyle brands (Solo Stove, Chubbies, Isle and Oru) that are redefining the outdoor and apparel industries, announces preliminary unaudited selective financial information for the fourth quarter ended December 31, 2025. The Company also plans to release its full financial results on ...

Core Viewpoint - Solo Brands, Inc. is simplifying its organizational structure to align with shareholder interests and expects significant cash savings from these strategic actions [1][2][6] Group 1: Organizational Changes - The company is eliminating its umbrella partnership C corporation (Up-C) structure to limit material liability for potential cash payments under its Tax Receivable Agreement (TRA) [1][6] - Outstanding shares of Solo Brands Class B common stock held by former TRA parties will be cancelled, and corresponding units of Solo Stove Holdings, LLC will be exchanged for shares of Solo Brands Class A common stock on a one-for-one basis [3] Group 2: Financial Implications - The simplification of the corporate structure is expected to reduce future cash tax payments by an estimated $10 million over the next five years [6] - Solo Brands anticipates realizing approximately $0.5 million in annual savings from reduced compliance and financial reporting costs associated with having a single class of common stock outstanding [6] Group 3: Company Overview - Solo Brands is headquartered in Grapevine, TX, and operates a portfolio of lifestyle brands including Solo Stove, Chubbies, Isle, and Oru, focusing on innovative products in the outdoor and apparel industries [4]

Core 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]

Core Viewpoint - Solo Brands, Inc. is actively engaging with investors by participating in the 16th Annual Midwest IDEAS Investor Conference, showcasing its commitment to investor relations and transparency [1][2]. Company Overview - Solo Brands, headquartered in Grapevine, TX, operates as a leading omnichannel lifestyle brand company, offering innovative products through five lifestyle brands: Solo Stove, TerraFlame, Chubbies, ISLE, and Oru Kayak [3]. - The company specializes in outdoor and apparel industries, with products including firepits, stoves, casual apparel, paddle boards, and origami folding kayaks [3]. Investor Engagement - The company will host one-on-one investor meetings and has scheduled a presentation on August 27, 2025, from 10:45 to 11:20 AM CT [2]. - Key executives, including the CEO, CFO, and Senior Director of Treasury & IR, will represent Solo Brands at the conference [2]. - The presentation will be available via live webcast, with a replay accessible shortly after the event [2].

Core Insights - Solo Brands, Inc. reported a significant focus on transforming into a smaller, profit-driven business model, achieving nearly $11 million in cash from operations for Q2 2025 [2][3] - The company faced challenges in the Solo Stove segment due to excessive inventory and a shift away from a promotional sales strategy, while Chubbies showed strong growth with a 13.1% increase in sales [2][5] - The company successfully refinanced its debt, eliminated the going concern disclaimer, and reinstated trading of its Class A common stock under the new ticker symbol SBDS [2][12] Financial Performance - For Q2 2025, net sales decreased to $92.3 million, down 29.9% from $131.6 million in Q2 2024, primarily due to declines in the Solo Stove segment [5][9] - Gross profit for Q2 2025 was $56.6 million, representing 61.3% of net sales, a decrease of 150 basis points compared to the prior year [5][9] - Operating expenses decreased by $14.0 million to $66.4 million, a reduction of 17.4%, mainly due to lower marketing and distribution costs [5][9] Segment Performance - Solo Stove segment net sales fell to $38.3 million, a decline of 45.8%, primarily due to reduced direct-to-consumer sales [5][9] - Chubbies segment net sales increased to $44.5 million, up 13.1%, with segment EBITDA improving to $11.5 million, or 25.8% of net sales [9][25] - Adjusted EBITDA for the company was $10.5 million, or 11.4% of net sales, compared to $15.5 million, or 11.7% of net sales in the prior year [5][9] Balance Sheet and Cash Flow - As of June 30, 2025, cash and cash equivalents were $18.1 million, up from $12.0 million at the end of 2024, while inventory decreased to $84.1 million from $108.6 million [8][27] - The company reported a net loss of $20.8 million for Q2 2025, compared to a net loss of $4.0 million in Q2 2024 [5][9] - Total liabilities included $10.0 million in borrowings under the revolving credit facility and $241.2 million under the term loan as of June 30, 2025 [10][11]

Core Insights - Solo Brands, Inc. has appointed Mr. John P. Larson as the permanent President and CEO, effective immediately, indicating a strong leadership transition [1] - The company has successfully completed a comprehensive debt restructuring, enhancing its financial flexibility and supporting its strategic transformation plans [2][3] Financial Restructuring - The Amendment to the Credit Agreement, effective June 13, 2025, includes a revolving credit facility of $90 million and a new term loan facility of $240 million [5] - The company has paid down $136.5 million of revolving loans and $32.5 million of existing term loans, resulting in total outstanding debt of $19.7 million under the revolving facility and $240 million under the new term loan as of June 13, 2025 [5] - The maturity of the revolving loans and new term loans has been extended to June 30, 2028, providing a longer financial runway for the company [5] Strategic Vision - The company aims to leverage its strong brand recognition and turnaround efforts to stabilize and transform its business, supported by a well-aligned team and board [4] - The successful debt restructuring is viewed as a significant step forward in executing the company's multi-year transformational growth strategy [3]

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]

Core Viewpoint - Solo Brands, Inc. plans to report its fiscal 2025 first quarter financial results on May 12, 2025, before the market opens, and will hold a conference call to discuss its strategy and financial results [1]. Group 1 - The conference call is scheduled to begin at 9:00 a.m. ET, and investors and analysts can join by dialing the provided numbers [2]. - A recorded replay of the call will be available shortly after its conclusion and will remain accessible until May 19, 2025 [3]. Group 2 - Solo Brands is headquartered in Grapevine, TX, and operates as an omnichannel lifestyle brand company, offering products through five brands: Solo Stove, TerraFlame, Chubbies, ISLE, and Oru Kayak [4].

Core Viewpoint - Solo Brands, Inc. is appealing the NYSE Regulation's decision to delist its Class A common stock due to "abnormally low" price levels, with the aim of restoring compliance with NYSE listing standards [1][2][4]. Group 1: Company Actions and Status - The NYSE Regulation staff determined that Solo Brands' Class A common stock was unsuitable for listing, leading to a trading halt and current quotation on the OTC Pink Market under the symbol "DTCB" [2][3]. - The company plans to continue operating in compliance with SEC regulations and NYSE listing requirements during the appeal period [5]. - If the appeal is successful, trading of the Class A common stock may resume on the NYSE [3]. Group 2: Company Perspective - The interim President and CEO of Solo Brands stated that the current trading price and market capitalization do not reflect the company's value, prompting the appeal [4]. - The company is committed to executing action plans, including a reverse stock split, to restore compliance with NYSE standards [4]. Group 3: Company Overview - Solo Brands is headquartered in Grapevine, TX, and operates a portfolio of lifestyle brands, including Solo Stove, Chubbies, Isle, and Oru, focusing on innovative outdoor and apparel products [6].