Traeger (COOK) Q2 2026 earnings summary

Executive summary

• 2026 is a transition year focused on Project Gravity, driving business simplification, cost optimization, and long-term growth, with a significant new national distribution partnership with Lowe's announced for 2027.

• Key consumer metrics remain healthy, though revenue softness was notable in the MEATER business; influencer strategies and new product lines (Westwood, Irontop) expanded brand reach and exceeded expectations.

• The company largely exited direct-to-consumer business, redirected online sales to retail partners, and transitioned to a distributor model in certain European markets.

• Project Gravity is improving the operating model, cash generation, and flexibility for future growth, targeting $50–$70 million in value capture for 2026.

• Revenue outlook was lowered, but Adjusted EBITDA and cash flow guidance were maintained, reflecting ongoing investment in strategic initiatives.

Financial highlights

• Q2 2026 revenue was $120.2 million, down 17.4% year-over-year; grill revenues fell 17% to $61.6 million, consumables down 9.9% to $32.8 million, and accessories down 26.2% to $25.8 million.

• Gross profit was $47.4 million (down from $57 million), but gross margin improved to 39.5% from 39.2% year-over-year, aided by IEEPA tariff refunds and cost discipline.

• Net loss was $8.6 million ($3.12 per diluted share), compared to a $7.4 million loss last year; adjusted net income was $1.4 million ($0.53 per share) versus a $1.9 million adjusted net loss last year.

• Adjusted EBITDA rose 21% to $17.3 million, with margin improving to 14.4% from 9.8% year-over-year.

• Free cash flow reached $26.5 million in Q2, supported by a $16 million tariff refund; cash and equivalents at $59.7 million, total debt $403 million, and net debt $344 million.

Outlook and guidance

• Full-year 2026 revenue guidance lowered to $435–$465 million (from $465–$485 million), mainly due to MEATER softness and channel impacts from distribution expansion.

• Adjusted EBITDA guidance maintained at $57–$67 million, with gross margin guidance raised to 40–41% due to lower-than-expected tariffs.

• Free cash flow guidance reiterated at at least $30 million for the year, supported by inventory reduction and working capital efficiency.

• Two-thirds of remaining 2026 revenue and most Adjusted EBITDA expected in Q4, driven by Lowe's load-in and seasonal demand.

• Project Gravity actions are expected to be substantially completed by year-end 2026, with most cost savings realized in 2027–2028.