Solo Brands (DTC) Q4 2024 earnings summary

Executive summary

• 2024 net sales were $454.6 million, down 8.1% year-over-year, with Q4 net sales of $143.5 million, down 13.2% from the prior year.

• Adjusted EBITDA for 2024 was $32.6 million (7.2% of net sales); Q4 adjusted EBITDA was $6.3 million (4.4% margin).

• A comprehensive turnaround plan for 2025 is underway, with 30+ value-accretive initiatives and external advisors engaged.

• Leadership transition occurred in February, with an interim CEO and interim CMO appointed to maintain momentum.

Financial highlights

• Adjusted gross profit margin for 2024 was 61.7%, up 30 basis points year-over-year; Q4 adjusted gross margin was 61.1%, up 280 basis points.

• GAAP net loss for 2024 was $180.2 million, an improvement from a $195.3 million loss in 2023.

• Adjusted net income for 2024 was $11.4 million (EPS $0.12); Q4 adjusted net income was $2.3 million (EPS $0.03).

• Adjusted EBITDA for 2024 was $32.6 million (7.2% margin), down from $70.2 million (14.2%) in 2023.

• SG&A expenses in Q4 were $81.8 million, down from $84.3 million, aided by early termination of a legacy ad agreement.

Outlook and guidance

• Financial guidance is paused due to a challenging consumer environment and tariff uncertainty.

• Profitability improvement is targeted for 2025, with major initiatives expected to ramp up in the second half.

• Substantial doubt exists about ability to continue as a going concern; management is evaluating debt refinancing and operational improvements.

• Tariff impacts are expected to be significant before mitigation; production is being shifted to alternative countries.