Traeger (COOK) Q4 2025 earnings summary

Executive summary

• Fiscal year 2025 revenue reached $560 million, above guidance but down 7.4% year-over-year, with adjusted EBITDA of $70 million and a margin of 12.5%.

• Project Gravity delivered $20 million in 2025 cost savings, with $64–$70 million in total value expected across both phases.

• Management focused on navigating tariff pressures, simplifying operations, and protecting profitability.

• Strategic actions included exiting the Costco Roadshow, winding down DTC commerce, and transitioning to a distributor model in Europe.

• MEATER business faced competitive and inventory challenges, with ongoing reset and integration efforts.

Financial highlights

• Fourth quarter 2025 revenue was $145 million, down 13.8% year-over-year; grill revenues fell 22%, consumables rose 16%, and accessories declined 18%.

• Fourth quarter gross margin was 37.4%, down 350 bps; adjusted gross margin was 39.5%.

• Net loss for 2025 was $115.2 million, impacted by a $74.7 million goodwill impairment; Q4 net loss was $17 million.

• Adjusted EBITDA for Q4 was $19 million, with a margin of 13.3%; full-year adjusted EBITDA was $70 million.

• Cash and equivalents at year-end were $20 million; net debt declined to $384 million; liquidity was $162 million.

Outlook and guidance

• Fiscal year 2026 revenue guidance: $465–$485 million; adjusted EBITDA: $50–$60 million; gross margin: 38–39%.

• Free cash flow for 2026 expected to be at least $30 million, supporting further net debt reduction.

• First quarter 2026 guidance: revenue of $92–$97 million, adjusted EBITDA of $3–$7 million.

• Guidance excludes potential impact of new tariffs.

• Sell-through expected to exceed sell-in in 2026, with inventory alignment anticipated by year-end.