Solo Brands (DTC) 16th Annual Midwest Ideas Conference summary

Leadership and organizational changes

• Interim CEO appointed after previous CEO's departure; focus on turnaround began in early 2024.

• Board and management team restructured, with key leaders retained and headcount reduced by about 20%.

• Emphasis on creating a structurally smaller, profit-driven business model.

• Enterprise-wide centers of expertise established to drive efficiency across divisions.

• Company rebranded from DTC to SBDS after relisting on NYSE.

Financial performance and restructuring

• Revenue for the last 12 months was about $400 million, with $27 million in EBITDA.

• Fourth quarter results in 2024 were significantly below expectations, leading to a going concern disclaimer and NYSE trading suspension.

• Debt successfully refinanced, providing runway through 2028 and removal of the going concern disclaimer.

• SG&A reduced by $23 million, helping maintain profitability despite a $40 million drop in top-line sales.

• Operating cash flow of $11 million delivered in Q2, with a clean balance sheet post-restructuring.

Brand and product strategy

• Solo Stove and Chubbies account for roughly 90% of revenue; water sports division makes up the remaining 10%.

• Solo Stove and Chubbies have industry-leading NPS scores of 73 and 54, respectively.

• Chubbies experienced strong first-half growth, with new product launches and retail expansion.

• Solo Stove faced a sales hangover due to retailer overstock and prior DTC discounting, but is now realigning with retail partners.

• Water sports brands Oru and ISLE continue to innovate, with new product launches planned.