Traeger (COOK) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 3.7% year-over-year to $122.1 million, led by a 32.5% increase in grill sales, offset by declines in accessories and consumables.

• Gross margin expanded by 440 basis points to 42.3%, driven by lower supply chain, freight, and logistics costs.

• Adjusted EBITDA more than doubled to $12.3 million (10.1% margin), and adjusted net loss improved to $7.4 million from $14.3 million.

• Net loss was $19.8 million ($0.15 per share), nearly flat year-over-year.

• Full-year 2024 guidance for revenue, gross margin, and Adjusted EBITDA was raised, reflecting confidence in continued margin improvement and strong Q3 performance.

Financial highlights

• Q3 2024 revenue: $122.1 million (+3.7% year-over-year); gross profit: $51.7 million (42.3% margin).

• Grill revenue: $74.9 million, up 32.5%; accessories: $24.6 million, down 31.3%; consumables: $22.5 million, down 11.2%.

• Adjusted EBITDA: $12.3 million (10.1% margin), up from $4.7 million (4.0% margin) last year.

• Net loss: $19.8 million ($0.15/share); adjusted net loss: $7.4 million ($0.06/share).

• Cash and cash equivalents: $16.9 million; inventory: $105.1 million; total liquidity: $177 million.

Outlook and guidance

• FY 2024 revenue guidance raised to $595–$605 million; gross margin expected at 41.8%–42.3%.

• Adjusted EBITDA guidance increased to $78–$81 million, reflecting 28–33% growth over prior year.

• Grill revenues expected to grow in the low single digits, offset by declines in accessories, particularly at MEATER.

• Gross margin for Q4 expected to be lower than Q3 due to product mix, holiday promotions, and absence of a one-time freight credit.

• Management expects continued cost savings and operational efficiencies to support long-term margin improvement.