Solo Brands, Inc. Issues Fiscal Year 2026 Financial Guidance
Rhea-AI Summary
Solo Brands (NYSE: SBDS) provided fiscal 2026 guidance on March 23, 2026, forecasting FY26 net sales of $280–$310 million versus FY25 net sales of $316.8 million and adjusted EBITDA of $24–$30 million versus FY25 adjusted EBITDA of $18.5 million.
The company cited a leaner cost structure, payroll reductions, restructuring actions, tariff impacts and anticipated retail re-timing as drivers of guidance, while warning assumptions are subject to change and may not be achieved.
Positive
- Adjusted EBITDA guidance to $24–$30 million (vs $18.5 million FY25)
- Cost structure improvements from payroll reductions and restructuring
- Anticipated tariff refunds and rate reductions expected to help margins
Negative
- FY26 net sales guidance below FY25: $280–$310 million vs $316.8 million
- Company expects uneven demand and Q1 net sales decline due to retail re-timing
- Guidance depends on assumptions outside company control and may change
News Market Reaction – SBDS
On the day this news was published, SBDS declined 12.62%, reflecting a significant negative market reaction. Argus tracked a trough of -14.1% from its starting point during tracking. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $1M from the company's valuation, bringing the market cap to $9.64M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
SBDS was down 5.16% ahead of the guidance. Momentum peers WNW (-10.60%) and MI (-4.72%) also traded lower, supporting a broader negative move in related internet retail names.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 06 | Q3 2025 earnings | Negative | -31.4% | Reported steep sales decline, net loss and negative adjusted EBITDA despite cost cuts. |
| Oct 21 | Earnings timing update | Neutral | -4.2% | Announced forthcoming Q3 2025 results release date and conference call logistics. |
| Aug 06 | Q2 2025 earnings | Negative | -20.0% | Detailed revenue declines and net loss alongside refinancing and cash flow progress. |
Earnings-related updates have typically been followed by negative price reactions, even when they include operational improvements.
Recent earnings releases for Solo Brands have combined ongoing revenue pressure with initiatives to improve profitability and cash flow. Q2 and Q3 2025 results highlighted sharp year-over-year sales declines and net losses, but also cost reductions and positive operating cash flow. Market reactions were notably negative, with post-earnings moves of -20% and -31.35%. Today’s FY26 guidance, which pairs lower net sales expectations with higher adjusted EBITDA targets, follows this pattern of restructuring toward a leaner, profit-focused model.
Historical Comparison
Across the last three earnings-related announcements, SBDS saw an average move of -18.52%, showing that the market has often reacted negatively to financial updates and guidance.
Earnings updates have charted a path from Q2 and Q3 2025 results, marked by revenue declines and net losses but improving cash flow and cost control, to today’s FY26 guidance, which emphasizes a structurally leaner, profit-focused model with higher adjusted EBITDA targets despite lower net sales.
Market Pulse Summary
The stock dropped -12.6% in the session following this news. A negative reaction despite the guidance would fit prior patterns, as past earnings-related news produced an average move of -18.52%. The outlook combines lower FY26 net sales of $280M–$310M versus $316.8M in FY25 with higher adjusted EBITDA of $24M–$30M from $18.5M. Pressure could reflect concerns about ongoing demand softness, tariff impacts, and execution risk around restructuring benefits.
Key Terms
adjusted EBITDA financial
GAAP financial
equity-based compensation financial
AI-generated analysis. Not financial advice.
GRAPEVINE, Texas, March 23, 2026 (GLOBE NEWSWIRE) -- Solo Brands, Inc. (NYSE: SBDS) (“Solo Brands” or “the Company”) a leading portfolio of lifestyle brands (Solo Stove, Chubbies, Isle and Oru) that are redefining the outdoor and apparel industries, today announced financial guidance for the fiscal year 2026.
“Today, ahead of an upcoming investor conference, we are providing annual guidance. We entered 2026 as a much leaner business with a significantly improved cost structure and greater visibility into our forward trajectory. Despite an anticipated year over year decline in net sales and adjusted EBITDA performance in the first quarter of 2026, due in part to some retail re-timing from late Q1 into early Q2 and marketing investment in new product launches, we are encouraged by early signs of improving demand and retail sell-ins heading into the second quarter. As we anticipate sales rates to stabilize, driven by our new product launches, we expect to deliver meaningful improvements in bottom line profitability for 2026,” said John Larson, President and Chief Executive Officer.
| In millions | FY25 Actual | FY26 Guidance | |
| Net Sales | $316.8 | ||
| Adjusted EBITDA* | $18.5 | ||
FY26 Guidance Assumes:
- Continued uneven demand environment
- Estimated tariff impacts in light of recent judicial decisions, including receipt of anticipated refunds and rate reductions
- Positive impact from existing and incremental payroll reductions and restructuring discussed on March 19, 2026, earnings conference call
The Company’s full year 2026 guidance is based on a number of assumptions that are subject to change and many of which are outside the Company’s control. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that the Company will achieve these results.
* The Company has not provided a quantitative reconciliation of forecasted adjusted EBITDA to forecasted GAAP net income (loss) within this press release because the Company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to, equity-based compensation with respect to future grants and forfeitures, which could materially affect the computation of forward-looking GAAP net income, and are inherently uncertain and depend on various factors, some of which are outside of the Company’s control.
About Solo Brands, Inc.
Solo Brands, headquartered in Grapevine, TX, is a leading omnichannel lifestyle brand company. Leveraging e-commerce, strategic retail relationships and physical retail stores, Solo Brands offers innovative products to consumers through five lifestyle brands – Solo Stove and TerraFlame, known for firepits, stoves, and accessories; Chubbies, a premium casual apparel and activewear brand; ISLE, maker of inflatable and hard paddle boards and accessories; and Oru Kayak, innovator of origami folding kayaks.
Contacts:
Mark Anderson, Senior Director of Treasury & Investor Relations
Investors@solobrands.com
Three Part Advisors, LLC
Sandy Martin: smartin@threepa.com, 214-616-2207
Steven Hooser: shooser@threepa.com, 214-872-2710
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our future financial results and financial condition, transformation efforts, product launches and anticipated demand, retail partnerships, anticipated tariffs and tariff refunds, our future ability to continue as a going concern, our liquidity, and the expected benefits of operational improvements and restructuring efforts. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “guidance,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. These statements are neither promises nor guarantees, and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our future ability to continue as a going concern; our ability to realize expected benefits from our strategic plans; our ability to implement any restructuring and cost-reduction efforts; our limited liquidity; our ability to mitigate the impact of new and increased tariffs and similar restrictions on our business; our reliance on third-party manufacturers, which operate mostly outside of the U.S., and problems with, or the loss of, our suppliers or an inability to obtain raw materials; our dependence on cash generated from operations to support our business and our growth initiatives; our continued ability to comply with the listing standards of the NYSE; risks associated with fluctuations in the price of our Class A common stock; risks associated with our indebtedness, including the limits imposed by our indebtedness to invest in the ongoing needs of our business; our ability to maintain and strengthen our brand to generate and maintain ongoing demand for our products; our ability to design, develop and introduce new products; our ability to manage our future growth effectively; our ability to expand into additional markets; risks associated with our international operations; our inability to sustain historic growth rates; our ability to cost-effectively attract new customers and retain our existing customers; the highly competitive market in which we operate; our failure to maintain product quality and product performance at an acceptable cost; the impact of product liability and warranty claims and product recalls, including write-offs; geopolitical actions, natural disasters, or pandemics; the ability of our largest stockholders to influence corporate matters. These and other important factors discussed under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, as will be updated in our Annual Report on Form 10-K for the year ended December 31, 2025, and any subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, or other filings we make with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Forward-looking statements speak only as of the date the statements are made and are based on information available to Solo Brands at the time those statements are made and/or management's good faith belief as of that time with respect to future events. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Availability of Information on Solo Brands’ Website and Social Media Profiles
Investors and others should note that Solo Brands routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Solo Brands investors website at https://investors.solobrands.com. We also intend to use the social media profiles listed below as a means of disclosing information about us to our customers, investors and the public. While not all of the information that the Company posts to the Solo Brands investors website or to social media profiles is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Solo Brands to review the information that it shares at the “Investors” link located at the top of the page on https://solobrands.com and to regularly follow our social media profiles. Users may automatically receive email alerts and other information about Solo Brands when enrolling an email address by visiting "Investor Email Alerts" in the "Resources" section of Solo Brands investor website at https://investors.solobrands.com.
Social Media Profiles:
https://linkedin.com/company/solo-brands/
https://instagram.com/solobrands/
https://www.facebook.com/groups/368095467245044/
Non-GAAP Financial Measures
We report our financial results in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”); however, management believes that certain non-GAAP financial measures provide users of our financial information with useful supplemental information that enables a better comparison of our performance across periods. We use adjusted EBITDA as a non-GAAP financial measure, because we believe it is a useful indicator of our operating performance. Our management uses this non-GAAP measure principally as measures of our operating performance and believes that it is useful to our investors because it is frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies in industries similar to ours. Our management also uses adjusted EBITDA for planning purposes, including the preparation of our annual operating budget and financial projections.
Adjusted EBITDA is not a measurement of financial performance under U.S. GAAP. It should not be considered in isolation or as a substitute for a measure of our liquidity or operating performance prepared in accordance with U.S. GAAP and is not indicative of net income (loss) as determined under U.S. GAAP. In addition, the exclusion of certain gains or losses in the calculation of non-GAAP financial measures should not be construed as an inference that these items are unusual or infrequent as they may recur in the future, nor should it be construed that our future results will be unaffected by unusual or non-recurring items. Adjusted EBITDA has limitations that should be considered before using it to evaluate our liquidity or financial performance. Some of these limitations are as follows.
Adjusted EBITDA excludes certain tax payments that may require a reduction in cash available to us; does not reflect our cash expenditures, or future requirements, for capital expenditures (including capitalized software developmental costs) or contractual commitments; does not reflect changes in, or cash requirements for, our working capital needs; does not reflect the cash requirements necessary to service interest or principal payments on our debt; excludes certain purchase accounting adjustments related to acquisitions; and excludes equity-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy.
In addition, other companies may define and calculate Adjusted EBITDA differently than us, thereby limiting the usefulness of this non-GAAP financial measure as a comparative tool. Because of these and other limitations, you should consider Adjusted EBITDA only as supplemental to other U.S. GAAP-based financial performance measures.
Adjusted EBITDA
We calculate adjusted EBITDA as net income (loss) before interest expense, income taxes, depreciation and amortization expenses, restructuring, contract termination and impairment charges, equity-based compensation expense, and other costs that are believed by management to be non-operating in nature and not representative of the Company’s core operating performance, as listed below under “Non-GAAP Adjustments”.
Non-GAAP Adjustments
In addition to the costs specifically noted under the non-GAAP metrics above, the Company believes that evaluation of its financial performance can be enhanced by a supplemental presentation of results that exclude costs believed by management to be non-operating in nature and not representative of the Company’s core operating performance. These costs are excluded in order to enhance consistency and comparability with results in prior periods that do not include such items and to provide a basis for evaluating operating results in future periods.
- Restructuring, contract termination, impairment and related charges - For 2025, represents charges related to impairment of long lived assets, cost saving initiatives, such as the reduction in force, closure of distribution centers, owned retail store lease terminations, impairments and modifications, termination of underperforming licensing arrangements and other contracts, retention payments to key personnel, as well as costs related to the engagement of strategic consulting firms for operational planning, legal entity reorganizations, additional cost saving initiative identification and internal management reporting optimization. Amortization expense - Represents the non-cash amortization of the following:
- intangible assets related to the reorganization transactions in 2020 and the 2021 and 2023 acquisitions and additions to patents in regard to their defense;
- website development costs; and
- capitalized software.
- Depreciation expense - Represents the non-cash depreciation of the following:
- property and equipment; and
- tooling depreciation - tooling used in the manufacturing process that is recognized within cost of goods sold.
- Business optimization and expansion expenses - Includes the loss recognized from the transaction with the former sellers of TerraFlame in 2025 as well as software implementation fees related to the optimization and enhancement of our information technology infrastructure.
- Costs associated with the refinancing amendment - Represents strategic consulting engagement expenses incurred in conjunction with the 2025 Refinancing Amendment, specific to the 2025 Revolving Credit Facility.
- Equity-based compensation expense - Represents the non-cash expense related to the incentive units, restricted stock units, options, performance stock units, special performance stock units, executive performance stock units and employee stock purchases, with vesting occurring over time and settled with the Company’s Class A common stock. Forfeitures are recognized in the period incurred and reflected as a reduction of the non-cash expense previously recognized for awards not yet vested.
- Transaction costs - Represents costs for professional service fees incurred in connection with potential and completed registered securities offerings and merger and acquisition activities.
- Management transition costs - Represents costs primarily related to executive transition costs for executive search fees and related costs for the transition of certain members of management, such as severance costs.
- Inventory fair value write-ups - Represents the recognition of fair market value write-ups of inventory accounted for under ASC 805 related to prior period acquisitions.
- Sales tax audit expense - Represents a one-time sales tax assessment related to prior periods.
- Changes in fair value of contingent earn-out liability - Represents the charge to mark the contingent earn-out consideration to fair value in connection with the prior period acquisitions.
Adjusted EBITDA
The following table reconciles consolidated net income (loss) to adjusted EBITDA for the periods presented:
| Year Ended December 31, | |||||
| (dollars in thousands) | 2025 | ||||
| Net income (loss) | $ | (145,437 | ) | ||
| Interest expense | 26,560 | ||||
| Income tax (benefit) expense | 3,422 | ||||
| Depreciation and amortization expense | 28,542 | ||||
| EBITDA | $ | (86,913 | ) | ||
| Restructuring, contract termination, impairment and related charges | 93,495 | ||||
| Business optimization and expansion expense | 5,741 | ||||
| Equity-based compensation expense | 2,087 | ||||
| Changes in fair value of contingent earn-out liability | (787 | ) | |||
| Management transition costs | 190 | ||||
| Transaction costs | 325 | ||||
| Costs associated with the refinancing amendment | 4,341 | ||||
| Inventory fair value write-ups | — | ||||
| Sales tax audit expense | — | ||||
| Adjusted EBITDA | $ | 18,479 | |||
FAQ
What fiscal 2026 revenue guidance did Solo Brands (SBDS) issue on March 23, 2026?
How does Solo Brands (SBDS) expect adjusted EBITDA for fiscal 2026 to perform?
Why did Solo Brands (SBDS) say Q1 2026 sales may decline year over year?
What assumptions underlie Solo Brands (SBDS) fiscal 2026 guidance issued March 23, 2026?
What risks did Solo Brands (SBDS) highlight with its FY26 guidance on March 23, 2026?
