Press Release: Traeger Announces Fourth Quarter and Full Year 2025 Results

Dow Jones03-06

Full Year 2025 Revenues Above High End of Guidance Range

Provides Guidance for 2026

SALT LAKE CITY, Utah--(BUSINESS WIRE)--March 05, 2026-- 

Traeger, Inc. ("Traeger" or the "Company") $(COOK)$, creator and category leader of the wood pellet grill, today announced its financial results for the fourth quarter and year ended December 31, 2025.

Fourth Quarter Results

   --  Total revenues decreased 13.8% to $145.4 million 
 
   --  Grill revenues decreased 22.3% to $60.6 million 
 
   --  Net loss of $17.2 million compared to $7.0 million in the prior year 
 
   --  Adjusted EBITDA of $19.4 million, up from $18.4 million in the prior 
      year 
 
   --  Expanded Project Gravity Phase 2 value capture, bringing total expected 
      annualized savings to approximately $64 million to $70 million across 
      both phases 

Full Year 2025 Results

   --  Total revenues decreased 7.4% to $559.5 million 
 
   --  Grill revenues decreased 8.2% to $298.0 million 
 
   --  Net loss of $115.2 million compared to $34.0 million in the prior year, 
      inclusive of a $74.7 million goodwill impairment 
 
   --  Adjusted EBITDA of $70.0 million, down from $81.9 million in the prior 
      year 

Jeremy Andrus, CEO of Traeger, commented, "We closed 2025 with strong execution, delivering revenue above the high end of our guidance and adjusted EBITDA in the upper half of our guidance range. More importantly, we took deliberate decisions to navigate tariff pressure, protect profitability, and simplify the business in ways that strengthen our foundation for the long term. As we look ahead, we are executing with discipline to focus the business on our highest--return opportunities, while continuing to invest behind product innovation and brand. We believe these actions are positioning Traeger for stronger long-term performance."

Joey Hord, CFO of Traeger, added, "We exited 2025 with a solid financial foundation, supported by the progress we've made under Project Gravity. As we move into 2026, our focus is on inventory alignment, cost discipline, and cash generation. We expect to generate additional free cash flow this year, providing flexibility to invest in the business, further strengthen our balance sheet, and support our long--term growth strategy."

Operating Results for the Fourth Quarter

Total revenues decreased by 13.8% to $145.4 million, compared to $168.6 million in the fourth quarter last year.

   --  Grills revenues decreased 22.3% to $60.6 million, compared to $78.0 
      million in the fourth quarter last year. The decrease was driven by 
      pricing impacted by a mix shift and volume impacted by price elasticity 
      to tariff-related pricing increases and a difficult comparison from the 
      prior year due to load-in ahead of the Woodridge launch. 
 
   --  Consumables revenues increased 15.8% to $35.5 million, compared to 
      $30.7 million in the fourth quarter last year. The increase was driven by 
      higher unit volumes across both wood pellets and food consumables. 
 
   --  Accessories revenues decreased 17.9% to $49.2 million, compared to 
      $60.0 million in the fourth quarter last year. This decrease was 
      primarily driven by lower sales of MEATER smart thermometers. 

North America revenues decreased 13.0% in the fourth quarter compared to the prior year. Rest of World revenues decreased 21.6% in the fourth quarter compared to the prior year.

Gross profit decreased to $54.3 million, compared to $68.9 million in the fourth quarter last year. Gross margin was 37.4% in the fourth quarter, compared to 40.9% in the same period last year. Excluding $3.1 million of costs related to Project Gravity, adjusted gross margin was 39.5%.(1) The decrease in gross margin was driven primarily by tariff related costs, somewhat offset by lower promotional activity and supply chain efficiencies.

Sales and marketing expenses were $23.2 million, compared to $33.6 million in the fourth quarter last year. The decrease was driven primarily by lower demand creation spending, as well as reductions in employee-related costs and professional fees as a result of Project Gravity.

General and administrative expenses were $21.8 million, compared to $26.7 million in the fourth quarter last year. The decrease in general and administrative expense was primarily driven by a decrease in stock-based compensation expense of $2.1 million, as well as lower professional fees and employee-related costs as a result of Project Gravity.

Restructuring and other costs of $12.2 million were recorded in connection with Project Gravity, which primarily related to consulting fees associated with the execution of these initiatives, as well as severance and other personnel costs and other restructuring related costs.

Net loss was $17.2 million, or $0.13 per diluted share, as compared to a net loss of $7.0 million, or $0.05 per diluted share, in the fourth quarter last year.(2)

Adjusted net income was $1.7 million, or $0.01 per diluted share as compared to adjusted net income of $1.8 million, or $0.01 per diluted share in the fourth quarter last year.(1)

Adjusted EBITDA was $19.4 million compared to $18.4 million in the fourth quarter last year.(1)

 
__________________________________ 
(1) Reconciliations of GAAP to non-GAAP financial measures, as well as 
definitions for the non-GAAP financial measures included in this press release 
and the reasons for their use, are presented below. 
(2) There were no potentially dilutive securities outstanding as of December 
31, 2025 and 2024. 
 

Operating Results for the Full Year ended December 31, 2025

Total revenues decreased by 7.4% to $559.5 million, compared to $604.1 million last year.

   --  Grills revenues decreased 8.2% to $298.0 million, compared to $324.7 
      million last year. The decrease was driven primarily by lower pricing and 
      volumes, with pricing impacted by a mix shift and volume impacted by 
      price elasticity to tariff-related pricing increases. 
 
   --  Consumables revenues increased 6.9% to $127.5 million, compared to 
      $119.3 million last year. The increase was driven by better pricing in 
      wood pellets and expanded distribution in food consumables. 
 
   --  Accessories revenues decreased 16.3% to $134.0 million, compared to 
      $160.1 million last year. This decrease was primarily driven by lower 
      sales of MEATER smart thermometers, partially offset by an increase in 
      sales of Traeger-branded accessories. 

North America revenues decreased 5.1% compared to the prior year. Rest of World revenues decreased 27.3% compared to the prior year.

Gross profit decreased to $219.3 million, compared to $255.5 million last year. Gross profit margin was 39.2%, compared to 42.3% in the same period last year. Excluding $3.1 million of costs related to Project Gravity, adjusted gross margin was 39.8%.(1) The decrease in gross margin was driven primarily by tariff related costs, partially offset by supply chain efficiencies.

Sales and marketing expenses were $90.2 million, compared to $109.7 million last year. The decrease was primarily driven by lower demand creation spending, as well as reductions in employee-related costs and professional fees as a result of Project Gravity.

General and administrative expenses were $95.0 million, compared to $113.5 million last year. The decrease in general and administrative expenses was driven primarily driven by a decrease in stock-based compensation expense of $11.2 million, as well as lower professional fees and employee-related costs as a result of Project Gravity.

Goodwill impairment of $74.7 million was recorded, resulting from a quantitative impairment assessment in which the estimated fair value of our single reporting unit was determined to be below its carrying amount. The impairment charge is non-cash and does not impact the Company's cash position, cash flows from operating activities, compliance with debt covenants, or future operations.

Restructuring and other costs of $21.8 million were recorded in connection with Project Gravity, which primarily related to consulting fees associated with the execution of these initiatives, as well as severance and other personnel costs and other restructuring related costs.

Net loss was $115.2 million, or $0.87 per diluted share, as compared to net loss of $34.0 million, or $0.27 per diluted share, in the same period last year.(2)

Adjusted net loss was $15.9 million, or $0.12 per diluted share, as compared to adjusted net income of $6.4 million, or $0.05 per diluted share in the same period last year.(1)

Adjusted EBITDA was $70.0 million compared to $81.9 million in the same period last year.(1)

 
__________________________________ 
(1) Reconciliations of GAAP to non-GAAP financial measures, as well as 
definitions for the non-GAAP financial measures included in this press release 
and the reasons for their use, are presented below. 
(2) There were no potentially dilutive securities outstanding as of December 
31, 2025 and 2024. 
 

Balance Sheet

Cash and cash equivalents at December 31, 2025 totaled $19.6 million, compared to $15.0 million at December 31, 2024.

Inventory at December 31, 2025 was $98.8 million, compared to $107.4 million at December 31, 2024.

Project Gravity Update: Remains on Track with Additional Savings Identified

Project Gravity, the Company's multi-step initiative to streamline operations, simplify the business, and improve returns on invested capital remains on track to be substantially completed by the end of 2026. Additional value capture opportunities within Phase 2 have been identified, particularly around SKU rationalization and a more strategic approach to pricing, which are expected to generate an additional $6 million to $12 million in annualized pre-tax savings, bringing the total for Project Gravity to approximately $64 million to $70 million across both phases.

These actions support a structurally higher--margin business mix and reinforce the Company's focus on long--term earnings power.

Guidance

The Company's guidance for Fiscal Year 2026 does not reflect the potential impact of recently implemented or proposed tariffs.

Guidance For Full Year Fiscal 2026

   --  Total revenue is expected to be between $465 million and $485 million 
 
 
   --  Gross margin is expected to be between 38.0% and 39.0% 
 
   --  Adjusted EBITDA is expected to be between $50 million and $60 million 
 
 
   --  Free Cash Flow is expected to be at least $30 million 

Guidance For First Quarter 2026

   --  Total revenue is expected to be between $92 million and $97 million 
 
   --  Adjusted EBITDA is expected to be between $3 million and $7 million 

A reconciliation of Adjusted EBITDA and Free Cash Flow guidance to Net Loss and Net cash provided by operating activities on a forward-looking basis cannot be provided without unreasonable efforts, as the Company is unable to provide reconciling information with respect to benefit for income taxes, interest expense, depreciation and amortization, other income, stock-based compensation, non-routine legal expenses, goodwill impairment, restructuring and other costs, employee retention tax credits, and purchases of property, plant, and equipment, all of which are adjustments to Adjusted EBITDA and Free Cash Flows.

Conference Call Details

A conference call to discuss the Company's fourth quarter and full year 2025 results is scheduled for Thursday, March 5, 2026, at 4:30 p.m. ET. To participate, please dial (833) 470-1428 or +1 (646) 844-6383 for international callers, conference ID 589715. The conference call will also be webcast live at https://investors.traeger.com. A recording will be available shortly after the conclusion of the call. To access the replay, please dial (866) 813-9403, conference ID 797067. A replay of the webcast will also be available approximately two hours after the conclusion of the call on the Company's website at https://investors.traeger.com.

About Traeger

Traeger Grills, headquartered in Salt Lake City, is the creator and category leader of the wood pellet grill, an outdoor cooking system that ignites all-natural hardwoods to grill, smoke, bake, roast, braise, and barbecue. In 2023, Traeger entered the griddle category, further establishing its leadership position in the outdoor cooking space. Traeger grills are versatile and easy to use, empowering cooks of all skill sets to create delicious meals with flavor that cannot be replicated. Grills are at the core of our platform and are complemented by Traeger wood pellets, rubs, sauces, accessories and MEATER smart thermometers.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our anticipated first quarter and full year fiscal 2026 results, our Project Gravity initiative, our strategy, and our financial position. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, our realization of the anticipated benefits from Project Gravity and the impact that Project Gravity may have on our business; our history of operating losses; our ability to manage our business through periods of strategic realignment; our ability to expand into additional markets; our ability to maintain and strengthen our brand to generate and maintain ongoing demand for our products; our ability to cost-effectively attract new customers and retain our existing customers; our failure to maintain product quality and product performance at an acceptable cost; United States trade policies that restrict imports or increase import tariffs, including the impact of recently implemented and proposed tariffs; the impact of product liability and warranty claims and product recalls; the highly competitive market in which we operate; the use of social media and community ambassadors affecting our reputation or subjecting us to fines or other penalties; issues in relation to sustainability and corporate responsibility matters; any decline in demand from certain retailers; risks associated with our significant international operations; our reliance on limited number of third-party manufacturers; our failure to remain in compliance with the continued listing standards of the New York Stock Exchange and the other factors discussed under the caption "Risk Factors" in our periodic and current reports filed with the Securities and Exchange Commission (the "SEC") from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2025 to be filed with the SEC. Any such forward-looking statements represent management's estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

 
                             TRAEGER, INC. 
                      CONSOLIDATED BALANCE SHEETS 
           (in thousands, except share and per share amounts) 
 
                                                    December 31, 
                                             --------------------------- 
                                                   2025        2024 
                                                 --------    -------- 
                                              (unaudited) 
ASSETS 
Current Assets 
   Cash and cash equivalents                  $    19,624   $  14,981 
   Accounts receivable, net                        82,122      85,331 
   Inventories                                     98,831     107,367 
   Prepaid expenses and other current 
    assets                                         14,272      35,444 
                                                 --------    -------- 
      Total current assets                        214,849     243,123 
Property, plant, and equipment, net                33,703      36,949 
Operating lease right-of-use assets                38,201      44,370 
Goodwill                                               --      74,725 
Intangible assets, net                            387,050     428,536 
Other long-term assets                              2,173       2,974 
                                                 --------    -------- 
Total assets                                  $   675,976   $ 830,677 
                                                 ========    ======== 
 
LIABILITIES AND STOCKHOLDERS' EQUITY 
Current Liabilities 
   Accounts payable                           $    14,135   $  27,701 
   Accrued expenses                                62,668      82,143 
   Line of credit                                      --       5,000 
   Current portion of notes payable                   250         250 
   Current portion of operating lease 
    liabilities                                     2,650       3,790 
   Other current liabilities                          382       3,357 
                                                 --------    -------- 
      Total current liabilities                    80,085     122,241 
Notes payable, net of current portion             399,590     398,445 
Operating lease liabilities, net of current 
 portion                                           23,040      26,646 
Deferred tax liability                              1,861       6,376 
Other non-current liabilities                         552         539 
                                                 --------    -------- 
Total liabilities                                 505,128     554,247 
                                                 --------    -------- 
 
Stockholders' equity 
   Preferred stock, $0.0001 par value; 
   25,000,000 shares authorized and no 
   shares issued or outstanding as of 
   December 31, 2025 and 2024                          --          -- 
   Common stock, $0.0001 par value; 
   1,000,000,000 shares authorized 
      Issued and outstanding shares - 
       137,068,259 and 130,648,819 as of 
       December 31, 2025 and 2024                      14          13 
   Additional paid-in capital                     974,372     960,966 
   Accumulated deficit                           (804,066)   (688,885) 
   Accumulated other comprehensive income             528       4,336 
                                                 --------    -------- 
Total stockholders' equity                        170,848     276,430 
                                                 --------    -------- 
Total liabilities and stockholders' equity    $   675,976   $ 830,677 
                                                 ========    ======== 
 
 
                                 TRAEGER, INC. 
          CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS 
                                  (unaudited) 
               (in thousands, except share and per share amounts) 
 
                    Three Months Ended December 
                                31,                  Year-ended December 31, 
                    ----------------------------  ------------------------------ 
                        2025           2024           2025           2024 
                     -----------    -----------    -----------    ----------- 
Revenue             $    145,358   $    168,637   $    559,520   $    604,072 
Cost of revenue           91,017         99,747        340,174        348,603 
                     -----------    -----------    -----------    ----------- 
Gross profit              54,341         68,890        219,346        255,469 
Operating expense: 
   Sales and 
    marketing             23,228         33,591         90,217        109,656 
   General and 
    administrative        21,816         26,719         95,031        113,483 
   Amortization of 
    intangible 
    assets                 8,813          8,818         35,260         35,274 
   Goodwill 
   impairment                 --             --         74,725             -- 
   Restructuring 
    and other 
    costs                 12,168             --         21,840             -- 
                     -----------    -----------    -----------    ----------- 
      Total 
       operating 
       expense            66,025         69,128        317,073        258,413 
                     -----------    -----------    -----------    ----------- 
Loss from 
 operations              (11,684)          (238)       (97,727)        (2,944) 
Other income 
(expense): 
   Interest 
    expense               (7,551)        (8,192)       (31,350)       (33,500) 
   Other income, 
    net                      192           (513)         9,755            480 
                     -----------    -----------    -----------    ----------- 
   Total other 
    expense               (7,359)        (8,705)       (21,595)       (33,020) 
                     -----------    -----------    -----------    ----------- 
      Loss before 
       benefit 
       from income 
       taxes             (19,043)        (8,943)      (119,322)       (35,964) 
Benefit from 
 income taxes             (1,843)        (1,985)        (4,141)        (1,956) 
                     -----------    -----------    -----------    ----------- 
      Net loss      $    (17,200)  $     (6,958)  $   (115,181)  $    (34,008) 
                     ===========    ===========    ===========    =========== 
Net loss per 
 share, basic and 
 diluted            $      (0.13)  $      (0.05)  $      (0.87)  $      (0.27) 
                     ===========    ===========    ===========    =========== 
Weighted-average 
 common shares 
 outstanding, 
 basic and 
 diluted             135,321,683    129,174,440    133,095,964    127,443,657 
                     ===========    ===========    ===========    =========== 
Other 
comprehensive 
income (loss): 
   Foreign 
    currency 
    translation 
    adjustments     $         34   $        (49)  $        (68)  $         62 
   Amortization of 
    dedesignated 
    cash flow 
    hedge                   (887)        (1,160)        (3,740)        (6,666) 
                     -----------    -----------    -----------    ----------- 
Total other 
 comprehensive 
 loss                       (853)        (1,209)        (3,808)        (6,604) 
                     -----------    -----------    -----------    ----------- 
Comprehensive loss  $    (18,053)  $     (8,167)  $   (118,989)  $    (40,612) 
                     ===========    ===========    ===========    =========== 
 
 
                         TRAEGER, INC. 
             CONSOLIDATED STATEMENTS OF CASH FLOWS 
                          (unaudited) 
                         (in thousands) 
 
                                   Year-ended December 31, 
                             ----------------------------------- 
                                2025       2024        2023 
                              --------    -------    -------- 
CASH FLOWS FROM OPERATING 
ACTIVITIES 
   Net loss                  $(115,181)  $(34,008)  $ (84,402) 
      Adjustments to 
      reconcile net loss to 
      net cash provided by 
      operating 
      activities: 
         Depreciation of 
          property, plant, 
          and equipment         12,143     13,870      15,011 
         Amortization of 
          intangible 
          assets                41,992     42,458      42,770 
         Amortization of 
          deferred 
          financing costs        2,028      1,977       2,016 
         Loss (gain) on 
          disposal of 
          property, plant, 
          and equipment            (83)       649       2,188 
         Stock-based 
          compensation 
          expense               15,254     27,901      53,203 
         Unrealized loss on 
          derivative 
          contracts              5,095      9,971       3,997 
         Amortization of 
          dedesignated cash 
          flow hedge            (3,740)    (6,666)    (10,364) 
         Change in 
          contingent 
          consideration             --    (15,000)      4,478 
         Goodwill 
         impairment             74,725         --          -- 
         Other non-cash 
          adjustments           (2,690)      (233)     (2,022) 
         Change in 
         operating assets 
         and liabilities: 
            Accounts 
             receivable          3,150    (25,396)    (17,735) 
            Inventories          8,536    (11,192)     57,295 
            Prepaid 
             expenses and 
             other current 
             assets             14,355     (7,573)     (4,199) 
            Other 
             non-current 
             assets                114        148        (568) 
            Accounts 
             payable and 
             accrued 
             expenses          (35,178)    26,982       2,374 
                              --------    -------    -------- 
               Net cash 
                provided by 
                operating 
                activities      20,520     23,888      64,042 
                              --------    -------    -------- 
CASH FLOWS FROM INVESTING 
ACTIVITIES 
   Purchase of property, 
    plant, and equipment        (6,934)   (11,996)    (19,946) 
   Capitalization of patent 
    costs                         (506)      (448)       (460) 
   Proceeds from sale of 
    property, plant, and 
    equipment                      108        113       3,028 
                              --------    -------    -------- 
               Net cash 
                used in 
                investing 
                activities      (7,332)   (12,331)    (17,378) 
                              --------    -------    -------- 
CASH FLOWS FROM FINANCING 
ACTIVITIES 
   Proceeds from line of 
    credit                      59,000     63,000     115,900 
   Repayments on line of 
    credit                     (64,000)   (86,400)   (171,209) 
   Repayments of long-term 
    debt                          (250)      (250)       (250) 
   Payment of deferred 
    financing costs               (904)      (119)         -- 
   Principal payments on 
    finance lease 
    liabilities                   (543)      (521)       (514) 
   Payments of acquisition 
    related contingent 
    consideration                   --         --     (12,225) 
   Taxes paid related to 
    net share settlement of 
    equity awards               (1,848)    (2,207)         -- 
                              --------    -------    -------- 
               Net cash 
                used in 
                financing 
                activities      (8,545)   (26,497)    (68,298) 
                              --------    -------    -------- 
Net increase (decrease) in 
 cash and cash equivalents       4,643    (14,940)    (21,634) 
Cash and cash equivalents 
 at beginning of period         14,981     29,921      51,555 
                              --------    -------    -------- 
CASH AND CASH EQUIVALENTS 
 AT END OF PERIOD            $  19,624   $ 14,981   $  29,921 
                              ========    =======    ======== 
 
 
                            TRAEGER, INC. 
                CONSOLIDATED STATEMENTS OF CASH FLOWS 
                             (unaudited) 
                            (in thousands) 
 
              (Continued)                   Year-ended December 31, 
                                         ----------------------------- 
                                            2025       2024     2023 
                                         -----------  -------  ------- 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW 
INFORMATION: 
      Cash paid during the period for 
       interest                           $   33,220  $38,512  $40,060 
NON-CASH FINANCING AND INVESTING 
ACTIVITIES 
      Equipment purchased under finance 
       leases                             $      450  $   292  $   460 
      Property, plant, and equipment 
       included in accounts payable and 
       accrued expenses                   $    2,748  $   678  $ 3,975 
 

TRAEGER, INC.

RECONCILIATIONS OF AND OTHER INFORMATION REGARDING NON-GAAP FINANCIAL MEASURES

(unaudited)

In addition to our results and measures of performance determined in accordance with U.S. GAAP, we believe that certain non-GAAP financial measures are useful in evaluating and comparing our financial and operational performance over multiple periods, identifying trends affecting our business, formulating business plans and making strategic decisions.

Each of Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per share, Adjusted EBITDA Margin, Adjusted Net Income (Loss) Margin, Adjusted Gross Margin, and Free Cash Flow are key performance measures that our management uses to assess our financial performance and are also used for internal planning and forecasting purposes. We believe that these non-GAAP financial measures are useful to investors and other interested parties in analyzing our financial performance because they provide a comparable overview of our operations across historical periods. In addition, we believe that providing each of Adjusted EBITDA and Adjusted Net Income (Loss), together with a reconciliation of Net Loss to each such measure, and providing Adjusted Net Income (Loss) per share, together with a reconciliation of Net Loss per share to such measure, and Adjusted EBITDA Margin, Adjusted Net Income (Loss) Margin, and Adjusted Gross Margin together with a reconciliation of Net Loss Margin and Gross Margin to such measures, and Free Cash Flow, together with a reconciliation of Net cash provided

by operating activities to such measures, helps investors make comparisons between our company and other companies that may have different capital structures, different tax rates, and/or different forms of employee compensation. For example, due to finite-lived intangible assets included on our balance sheet following our corporate reorganization in 2017, we have significant non-cash amortization expense attributable to the nature of our capital structure.

Each of Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per share, Adjusted EBITDA Margin, Adjusted Net Income (Loss) Margin, and Adjusted Gross Margin are used by our management team as an additional measure of our performance for purposes of business decision-making, including managing expenditures, and evaluating potential acquisitions. Period-to-period comparisons of Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per share, Adjusted EBITDA Margin, Adjusted Net Income (Loss) Margin, and Adjusted Gross Margin help our management identify additional trends in our financial results that may not be shown solely by period-to-period comparisons of Net Loss or Loss from Continuing Operations or Net Loss per share or Net Loss Margin or Gross Margin. In addition, we may use Adjusted EBITDA in the incentive compensation programs applicable to some of our employees. Each of Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per share, Adjusted EBITDA Margin, Adjusted Net Income (Loss) Margin and Adjusted Gross Margin has inherent limitations because of the excluded items, and may not be directly comparable to similarly titled metrics used by other companies.

The following table presents a reconciliation of Gross Margin, the most directly comparable financial measure calculated in accordance with U.S. GAAP, to Adjusted Gross Margin on a consolidated basis. A reconciliation of Adjusted Gross Margin guidance to Gross Margin on a forward-looking basis cannot be provided without unreasonable efforts, as the Company is unable to provide reconciling information with respect to the impact of restructuring costs recorded in cost of revenue which is an adjustment to Adjusted Gross Margin.

 
                                  Three Months Ended        Year-ended 
                                   December 31, 2025      December 31, 2025 
                                 ---------------------  -------------------- 
Gross margin                              37.4%                 39.2% 
      Add: Impact of 
       restructuring costs 
       recorded in cost of 
       revenue                             2.1%                  0.6% 
                                 -------------   -----  ------------ ----- 
Adjusted gross margin                     39.5%                 39.8% 
                                 =============   =====  ============ ===== 
 

The following table presents a reconciliation of Net cash provided by operating activities, the most directly comparable financial measure calculated in accordance with U.S. GAAP, to Free Cash Flow on a consolidated basis. A reconciliation of Free Cash Flow guidance to Net cash provided by operating activities on a forward-looking basis cannot be provided without unreasonable efforts, as the Company is unable to provide reconciling information with respect to the impact for the purchase of property, plant and equipment, which is an adjustment to Free Cash Flow.

 
                                    Year-ended December 31, 
                                -------------------------------- 
                                  2025      2024       2023 
                                 ------    -------    ------- 
Net cash provided by operating 
 activities                     $20,520   $ 23,888   $ 64,042 
   Less: Purchase of property, 
    plant, and equipment         (6,934)   (11,996)   (19,946) 
                                 ------    -------    ------- 
Free cash flow                  $13,586   $ 11,892   $ 44,096 
                                 ======    =======    ======= 
 

The following table presents a reconciliation of Net Loss, Net Loss Margin and Net Loss per share, the most directly comparable financial measures calculated in accordance with U.S. GAAP, to Adjusted Net Income (Loss), Adjusted EBITDA, Adjusted EBITDA Margin Adjusted Net Income (Loss) Margin and Adjusted Net Income (Loss) per share, respectively, on a consolidated basis.

 
                             Three Months Ended December 31,         Year-ended December 31, 
                            ----------------------------------  ---------------------------------- 
                                2025              2024              2025              2024 
                             -----------       -----------       -----------       ----------- 
 
                                  (dollars in thousands, except share and per share amounts) 
Net loss                    $    (17,200)     $     (6,958)     $   (115,181)     $    (34,008) 
      Adjustments: 
            Other income 
             (1)                  (1,355)           (1,149)           (8,833)           (8,280) 
            Stock-based 
             compensation          2,778             4,837            15,254            27,901 
            Non-routine 
             legal 
             expenses (2)              1                13                25             1,794 
            Amortization 
             of 
             acquisition 
             intangibles 
             (3)                   8,111             8,112            32,444            32,868 
            Goodwill 
            impairment                --                --            74,725                -- 
            Restructuring 
             and other 
             costs (4)            15,270                --            24,942                -- 
            Employee 
             retention tax 
             credit (5)               --                --            (6,049) 
            Tax impact of 
             adjusting 
             items (6)            (5,866)           (3,033)          (33,259)          (13,914) 
                             -----------       -----------       -----------       ----------- 
Adjusted net income (loss)  $      1,739      $      1,822      $    (15,932)     $      6,361 
                             ===========       ===========       ===========       =========== 
 
Net loss                    $    (17,200)     $     (6,958)     $   (115,181)     $    (34,008) 
      Adjustments: 
            Benefit for 
             income taxes         (1,843)           (1,985)           (4,141)           (1,956) 
            Interest 
             expense               7,551             8,192            31,350            33,500 
            Depreciation 
             and 
             amortization         13,285            14,251            54,137            56,327 
            Other (income) 
             expense (7)            (468)               11            (5,093)           (1,614) 
            Stock-based 
             compensation          2,778             4,837            15,254            27,901 
            Non-routine 
             legal 
             expenses (2)              1                13                25             1,794 
            Goodwill 
            impairment                --                --            74,725                -- 
            Restructuring 
             and other 
             costs (4)            15,270                --            24,942                -- 
            Employee 
             retention tax 
             credit (5)               --                --            (6,049)               -- 
                             -----------       -----------       -----------       ----------- 
Adjusted EBITDA             $     19,374      $     18,361      $     69,969      $     81,944 
                             ===========       ===========       ===========       =========== 
 
Revenue                     $    145,358      $    168,637      $    559,520      $    604,072 
            Net loss 
             margin                (11.8)%            (4.1)%           (20.6)%            (5.6)% 
            Adjusted net 
             income (loss) 
             margin                  1.2%              1.1%             (2.8)%             1.1% 
            Adjusted 
             EBITDA 
             margin                 13.3%             10.9%             12.5%             13.6% 
 
            Net loss per 
             diluted 
             share          $      (0.13)     $      (0.05)     $      (0.87)     $      (0.27) 
            Adjusted net 
             income (loss) 
             per diluted 
             share          $       0.01      $       0.01      $      (0.12)     $       0.05 
            Weighted 
             average 
             common shares 
             outstanding - 
             diluted         135,321,683       129,174,440       133,095,964       127,443,657 
 
 
(1)   Represents realized and unrealized (gains) losses on the interest rate 
      swap, including amortization of dedesignated cash flow hedge, (gains) 
      losses on the disposal of property, plant, and equipment, and unrealized 
      (gains) losses from foreign currency transactions and derivatives. 
(2)   Represents external legal expenses incurred in connection with the 
      defense of a class action lawsuit and intellectual property 
      litigation.. 
(3)   Represents the amortization expense associated with intangible assets 
      recorded in connection with the 2017 acquisition of Traeger Pellet 
      Grills Holdings LLC. 
(4)   Represents restructuring and other costs in connection with Project 
      Gravity primarily related to consulting fees, severance and other 
      personnel costs, supplier settlement costs and other restructuring 
      related costs. 
(5)   Represents the total benefit recorded associated with the refund from 
      the Internal Revenue Service in connection with the Employee Retention 
      Tax Credit. 
(6)   Represents the tax effect of non-GAAP adjustments calculated at an 
      estimated blended statutory tax rate of 23.8% and 25.1% for the three 
      months and year ended December 31, 2025, respectively, and 25.3% and 
      25.5% for the three months and year ended December 31, 2024, 
      respectively. 
(7)   Represents realized and unrealized (gains) losses on the interest rate 
      swap, (gains) losses on the disposal of property, plant, and equipment, 
      and unrealized (gains) losses from foreign currency transactions and 
      derivatives. 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260305856572/en/

 
    CONTACT:    Investors: 

Stephanie Read

Traeger, Inc.

investor@traeger.com

Media:

The Brand Amp

Traeger@thebrandamp.com

 
 

(END) Dow Jones Newswires

March 05, 2026 16:05 ET (21:05 GMT)

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