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 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]