Traeger (NYSE: COOK) Q1 revenue down 34% as 2026 cash flow stays positive
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Traeger, Inc. reported first quarter 2026 revenue of $94.1 million, down 34.3% from $143.3 million a year earlier, with grill revenue falling 45.4% to $47.4 million and softer consumables and accessories sales.
Despite lower volume, net income improved to $2.9 million, or $1.08 per diluted share, from a $0.8 million loss. Gross margin rose to 45.7%, boosted by a $12.4 million IEEPA tariff refund; adjusted gross margin was 32.6%. Adjusted EBITDA was $17.3 million compared with $22.5 million.
Operating cash flow reached $17.9 million and free cash flow $14.5 million, helping lift cash to $33.7 million as inventory declined to $87.8 million. For full-year 2026, the company guides revenue of $465–$485 million, gross margin of 39.5–40.5%, adjusted EBITDA of $57–$67 million, and at least $30 million of free cash flow, reflecting roughly $50 million of expected “Project Gravity” value capture.
Positive
- Q1 2026 net income improved to $2.9 million from a $0.8 million loss, with operating cash flow of $17.9 million and free cash flow of $14.5 million.
- Cash rose to $33.7 million while inventory declined to $87.8 million, and 2026 guidance calls for $57–$67 million Adjusted EBITDA and at least $30 million free cash flow.
Negative
- Total revenue declined 34.3% year over year to $94.1 million, with grill revenue down 45.4% and Adjusted EBITDA falling to $17.3 million from $22.5 million.
- Adjusted gross margin fell to 32.6% from 41.5% after excluding a one-time $12.4 million IEEPA tariff refund that temporarily lifted reported gross margin to 45.7%.
Insights
Revenue fell sharply, but Traeger swung to profit, generated cash, and maintained constructive 2026 guidance.
Traeger saw Q1 2026 revenue drop to $94.1 million, down 34.3% year over year, led by a 45.4% decline in grill revenue as prior-year product launches and tariff-driven preorders created a tough comparison. Consumables and accessories also contracted double digits.
Profitability optics are mixed. Net income improved to $2.9 million, helped by an $12.4 million IEEPA tariff refund that lifted gross margin to 45.7%; without it, adjusted gross margin was 32.6%, down meaningfully. Adjusted EBITDA of $17.3 million trailed last year’s $22.5 million, despite lower sales and marketing and G&A under Project Gravity.
Cash generation was strong, with operating cash flow of $17.9 million and free cash flow of $14.5 million, supporting higher cash and lower inventory. Full-year 2026 guidance targets revenue of $465–$485 million, adjusted EBITDA of $57–$67 million, and at least $30 million free cash flow, incorporating about $50 million of Project Gravity value capture and the tariff refund benefit.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 revenue: $94.1 million
Q1 2026 net income: $2.9 million
Q1 2026 Adjusted EBITDA: $17.3 million
+7 more
10 metrics
Q1 2026 revenue
$94.1 million
Three months ended March 31, 2026; down 34.3% year over year
Q1 2026 net income
$2.9 million
Net income vs. $0.8 million loss in Q1 2025
Q1 2026 Adjusted EBITDA
$17.3 million
Compared with $22.5 million in Q1 2025
Reported gross margin
45.7%
Q1 2026; includes $12.4 million IEEPA tariff refund benefit
Adjusted gross margin
32.6%
Q1 2026; excludes IEEPA tariff refund
Cash balance
$33.7 million
As of March 31, 2026; up from $19.6 million at December 31, 2025
Inventory balance
$87.8 million
As of March 31, 2026; down from $98.8 million at December 31, 2025
2026 revenue guidance
$465–$485 million
Full-year fiscal 2026 outlook
2026 Adjusted EBITDA guidance
$57–$67 million
Full-year fiscal 2026 outlook
2026 free cash flow guidance
At least $30 million
Full-year fiscal 2026 outlook
Key Terms
Adjusted EBITDA, Free Cash Flow, Project Gravity, IEEPA tariff refund, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $17.3 million in the first quarter as compared to $22.5 million in the same period last year."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free Cash Flow financial
"Operating cash flow of $17.9 million and free cash flow of $14.5 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Project Gravity financial
"Project Gravity remains on track and is helping us sharpen priorities, simplify the business, and improve the durability of our profit model"
IEEPA tariff refund financial
"The increase in gross margin rate includes the $12.4 million benefit from the IEEPA tariff refund."
Employee retention tax credits financial
"Represents the total benefit recorded associated with the refund from the Internal Revenue Service in connection with the Employee Retention Tax Credit."
Adjusted gross margin financial
"Excluding this item, gross margin was 32.6%, down 890 basis points"
Adjusted gross margin is a measure of how much profit a company makes from its sales after accounting for certain expenses or one-time costs, but before deducting other operating expenses. It helps investors see the company's core profitability more clearly by removing factors that might distort the usual profit picture, similar to a runner measuring their speed without considering obstacles or weather. This metric provides a clearer view of the company's ongoing financial health.
Earnings Snapshot
Revenue: $94.1 million · Guidance included
Q1 2026
Revenue
$94.1 million
-34.3% year over year
Net income
$2.9 million
vs. $0.8 million net loss in prior year quarter
Adjusted EBITDA
$17.3 million
vs. $22.5 million in prior year quarter
Gross margin
45.7%
up from 41.5%; includes $12.4 million IEEPA tariff refund
Free cash flow
$14.5 million
vs. -$22.7 million in prior year quarter
Guidance
For full-year 2026, Traeger expects revenue of $465–$485 million, gross margin of 39.5–40.5%, Adjusted EBITDA of $57–$67 million, and at least $30 million of free cash flow.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): May 11, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||
(Registrant’s telephone number, include area code) (801 ) 701-7180
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On May 11, 2026, Traeger, Inc. issued a press release announcing financial results for the quarter ended March 31, 2026. A copy of the press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in this Current Report on Form 8-K (including Exhibit 99.1 hereto) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press Release, dated May 11, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Traeger, Inc. | |||||||||||
Date: May 11, 2026 | By: | /s/ Michael J. Hord | |||||||||
| Michael J. Hord | |||||||||||
| Chief Financial Officer | |||||||||||
TRAEGER ANNOUNCES FIRST QUARTER FISCAL 2026 RESULTS
Raises Adjusted EBITDA and Gross Margin Outlook for Full Year 2026
Reiterates Revenue Guidance as Project Gravity Delivers on Plan
SALT LAKE CITY, UT, May 11, 2026 (BUSINESS WIRE) -- Traeger, Inc. ("Traeger" or the "Company") (NYSE: COOK), creator and category leader of the wood pellet grill, today announced its financial results for the three months ended March 31, 2026.
First Quarter 2026 Results
•Total revenues decreased 34.3% to $94.1 million
•Grill revenues decreased 45.4% to $47.4 million
•Net income of $2.9 million or $1.08 per diluted share1
•Adjusted EBITDA of $17.3 million
•Operating cash flow of $17.9 million and free cash flow of $14.5 million
Jeremy Andrus, CEO of Traeger, commented, “We entered the peak selling season with encouraging early demand signals, including year-to-date consumer sell-through tracking slightly above our expectations and continued strong engagement across the Traeger community. We’re leaning into demand creation with increased influencer investment to help translate that momentum into strong retail performance.”
“Innovation remains central to our strategy to expand household penetration, and we’re continuing to refresh our lineup to meet consumers where they are on both features and price. This includes the launch of Westwood and the recently announced Irontop, along with focused programs with our retail partners to convert interest at the point of sale and deliver an elevated consumer experience," continued Mr. Andrus.
“At the same time, Project Gravity remains on track and is helping us sharpen priorities, simplify the business, and improve the durability of our profit model, while creating capacity to invest in brand, innovation and retail execution. Based on our first quarter performance, including the recognition of an IEEPA tariff refund and what we're seeing in the marketplace, we are raising our Adjusted EBITDA and gross margin outlook for the full year while reiterating our revenue guidance. The benefit is fully reflected in our updated outlook, with partial offsets from continued MEATER competitive pressure, macro headwinds, and broader tariff uncertainty, and we expect to provide a more detailed update on the Q2 call," concluded Mr. Andrus.
1 This press release reflects the impact of the 1-for-50 reverse stock split of the Company's common stock, par value $0.0001 per share, effective on March 17, 2026. All share and per share amounts have been retroactively adjusted to reflect the reverse stock split for all periods presented. See our Form 10-Q for the quarter ended March 31, 2026 for additional information. Additionally, there were no dilutive securities outstanding as of March 31, 2026.
1
Operating Results for the First Quarter
Total revenue decreased by 34.3% to $94.1 million, compared to $143.3 million in the first quarter last year.
•Grill revenues decreased 45.4% to $47.4 million as compared to the first quarter last year. The decrease was driven by reductions in unit volumes and average selling price. The decline in unit volumes reflects the prior year launch of the Woodridge series and retail orders placed in advance of anticipated tariff increases, as well as channel optimization actions taken under Project Gravity. Lower average selling price was driven by mix shift toward lower priced grills.
•Consumables revenues decreased 13.7% to $26.1 million as compared to the first quarter last year. The decrease was driven by lower average selling price of wood pellets and food consumables, partially offset by an increase in wood pellet unit volumes from channel expansion.
•Accessories revenues decreased 21.8% to $20.6 million as compared to the first quarter last year. This decrease was driven primarily by lower sales of MEATER smart thermometers and a decrease in the average selling price of Traeger branded accessories.
Gross profit decreased to $43.0 million, compared to $59.5 million in the first quarter last year. Gross margin was 45.7% in the first quarter, compared to 41.5% in the same period last year. The increase in gross margin rate includes the $12.4 million benefit from the IEEPA tariff refund. Excluding this item, gross margin was 32.6%, down 890 basis points, reflecting timing of trade spend, lower mix of direct import sales, tariff-related costs and MEATER fixed cost deleverage.
Sales and marketing expenses were $12.6 million, compared to $22.2 million in the first quarter last year. The decrease in sales and marketing expense was driven by lower employee-related costs, reductions in discretionary operating overhead, as well as lower demand creation costs and professional service fees, reflecting cost reduction actions associated with Project Gravity.
General and administrative expenses were $19.4 million, compared to $25.0 million in the first quarter last year. The decrease in general and administrative expense was driven by a decrease in stock-based compensation expense, as well as a decrease in employee-related costs.
Restructuring and other costs of $3.2 million were recorded in connection with Project Gravity, which primarily related to consulting fees associated with the execution of these initiatives, as well as severance and other personnel costs.
Net income was $2.9 million in the first quarter, or $1.08 per diluted share, as compared to net loss of $0.8 million in the first quarter of last year, or $0.30 per diluted share.1
Adjusted net income was $4.0 million, or $1.49 per diluted share as compared to adjusted net income of $6.6 million, or $2.54 per diluted share in the first quarter last year.2
Adjusted EBITDA was $17.3 million in the first quarter as compared to $22.5 million in the same period last year.2
1 This press release reflects the impact of the 1-for-50 reverse stock split of the Company's common stock, par value $0.0001 per share, effective on March 17, 2026. All share and per share amounts have been retroactively adjusted to reflect the reverse stock split for all periods presented. See our Form 10-Q for the quarter ended March 31, 2026 for additional information. Additionally, there were no dilutive securities outstanding as of March 31, 2026 and 2025.
2 Reconciliations of GAAP to non-GAAP financial measures, as well as definitions for the non-GAAP financial measures included in this press release and the reasons for their use, are presented below.
2
Balance Sheet
Cash and cash equivalents at the end of the first quarter totaled $33.7 million, compared to $19.6 million at December 31, 2025.
Inventory at the end of the first quarter was $87.8 million, compared to $98.8 million at December 31, 2025 and $127.2 million at March 31, 2025.
These improvements reflect continued execution under Project Gravity and support our focus on balance sheet health and liquidity.
3
Guidance For Full Year Fiscal 2026
This outlook fully reflects the anticipated benefits from Project Gravity in 2026, including approximately $50 million of value capture. Adjusted EBITDA and gross margin guidance reflect the flow-through of the IEEPA tariff refund benefit recognized in Q1, with an offset to account for continued MEATER competitive pressure, macro headwinds, and broader tariff uncertainty. Free Cash Flow guidance does not reflect the impact of the tariff refund given uncertainty around the timing of cash realization.
•Total revenue is expected to be between $465 million and $485 million
•Gross margin is expected to be between 39.5% and 40.5%
•Adjusted EBITDA is expected to be between $57 million and $67 million
•Free Cash Flow is expected to be at least $30 million
A reconciliation of Adjusted EBITDA and Free Cash Flow guidance to Net Income (Loss) and Net cash provided by (used in) operating activities on a forward-looking basis cannot be provided without unreasonable efforts, as the Company is unable to provide reconciling information with respect to, in the case of Adjusted EBITDA, adjustments for benefit for income taxes, interest expense, depreciation and amortization, other (income) expense, stock-based compensation, non-routine legal expenses, restructuring and other costs, employee retention tax credits, and, in the case of Free Cash Flow, adjustments for purchases of property, plant, and equipment.
Conference Call Details
A conference call to discuss the Company's first quarter results is scheduled for Monday, May 11, 2026, at 4:30 p.m. ET. To participate, please dial (833) 461-5787 or +1 (585) 542-9983 for international callers, conference ID 832752707. The conference call will also be webcast live at https://investors.traeger.com. A replay of the webcast will also be available approximately two hours after the conclusion of the call on the Company's website at https://investors.traeger.com. A supplemental presentation has also been posted to the Company's website at https://investors.traeger.com.
About Traeger
Traeger Grills, headquartered in Salt Lake City, is the creator and category leader of the wood pellet grill, an outdoor cooking system that ignites all-natural hardwoods to grill, smoke, bake, roast, braise, and barbecue. In 2023, Traeger entered the griddle category, further establishing its leadership position in the outdoor cooking space. Traeger grills are versatile and easy to use, empowering cooks of all skill sets to create delicious meals with flavor that cannot be replicated. Grills are at the core of our platform and are complemented by Traeger wood pellets, rubs, sauces, accessories, and MEATER smart thermometers.
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 anticipated full year fiscal 2026 results, our Project Gravity initiative, our strategy, our upcoming product launches, consumer demand for our products, and our financial position. These statements are neither promises nor guarantees, but 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, our realization of the anticipated benefits from Project Gravity and the impact that Project Gravity may have on our business; our history of operating losses; our ability to manage our business through periods of strategic realignment; our ability to expand into additional markets; our ability to maintain and strengthen our brand to generate and maintain ongoing demand for our products; our ability to cost-effectively attract new customers and retain our existing customers; our failure to maintain product quality and product performance at an acceptable cost; U.S. trade policies, tariffs, antidumping and countervailing duty proceedings on our business; the impact of product liability and warranty claims and
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product recalls; the highly competitive market in which we operate; the use of social media and community ambassadors affecting our reputation or subjecting us to fines or other penalties; issues in relation to sustainability and corporate responsibility matters; any decline in demand from certain retailers; risks associated with our significant international operations; our reliance on a limited number of third-party manufacturers; and the other factors discussed under the caption "Risk Factors" in our periodic and current reports filed with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2025. Any such forward-looking statements represent management's estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
CONTACT:
Investors:
Stephanie Read
Traeger, Inc.
investor@traeger.com
Media:
The Brand Amp
Traeger@thebrandamp.com
The Brand Amp
Traeger@thebrandamp.com
5
TRAEGER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
March 31, 2026 | December 31, 2025 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 33,687 | $ | 19,624 | |||||||
Accounts receivable, net | 64,354 | 82,122 | |||||||||
Inventories | 87,774 | 98,831 | |||||||||
Prepaid expenses and other current assets | 28,364 | 14,272 | |||||||||
Total current assets | 214,179 | 214,849 | |||||||||
Property, plant, and equipment, net | 31,931 | 33,703 | |||||||||
Operating lease right-of-use assets | 36,978 | 38,201 | |||||||||
Intangible assets, net | 376,677 | 387,050 | |||||||||
Other non-current assets | 1,885 | 2,173 | |||||||||
Total assets | $ | 661,650 | $ | 675,976 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current Liabilities | |||||||||||
Accounts payable | $ | 8,941 | $ | 14,135 | |||||||
Accrued expenses | 51,240 | 62,668 | |||||||||
Current portion of notes payable | 250 | 250 | |||||||||
Current portion of operating lease liabilities | 2,212 | 2,650 | |||||||||
Other current liabilities | 363 | 382 | |||||||||
Total current liabilities | 63,006 | 80,085 | |||||||||
Notes payable, net of current portion | 399,876 | 399,590 | |||||||||
Operating lease liabilities, net of current portion | 22,595 | 23,040 | |||||||||
Deferred tax liability | 658 | 1,861 | |||||||||
Other non-current liabilities | 715 | 552 | |||||||||
Total liabilities | 486,850 | 505,128 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.0001 par value; 25,000,000 shares authorized and no shares issued or outstanding as of March 31, 2026 and December 31, 2025 | — | — | |||||||||
Common stock, $0.0001 par value; 1,000,000,000 shares authorized | |||||||||||
Issued and outstanding shares - 2,745,361 and 2,741,312 as of March 31, 2026 and December 31, 2025 | — | — | |||||||||
Additional paid-in capital | 975,967 | 974,386 | |||||||||
Accumulated deficit | (801,138) | (804,066) | |||||||||
Accumulated other comprehensive income (loss) | (29) | 528 | |||||||||
Total stockholders’ equity | 174,800 | 170,848 | |||||||||
Total liabilities and stockholders’ equity | $ | 661,650 | $ | 675,976 | |||||||
6
TRAEGER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(unaudited)
(in thousands, except share and per share amounts)
Three Months Ended March 31, | |||||||||||
2026 | 2025 | ||||||||||
Revenue | $ | 94,066 | $ | 143,283 | |||||||
Cost of revenue | 51,051 | 83,824 | |||||||||
Gross profit | 43,015 | 59,459 | |||||||||
Operating expenses: | |||||||||||
Sales and marketing | 12,632 | 22,210 | |||||||||
General and administrative | 19,413 | 25,019 | |||||||||
Amortization of intangible assets | 8,813 | 8,818 | |||||||||
Restructuring and other costs | 3,180 | — | |||||||||
Total operating expense | 44,038 | 56,047 | |||||||||
Income (loss) from operations | (1,023) | 3,412 | |||||||||
Other income (expense): | |||||||||||
Interest expense | (7,610) | (7,893) | |||||||||
Other income, net | 11,285 | 2,103 | |||||||||
Total other income (expense) | 3,675 | (5,790) | |||||||||
Income (loss) before benefit for income taxes | 2,652 | (2,378) | |||||||||
Benefit for income taxes | (276) | (1,600) | |||||||||
Net income (loss) | $ | 2,928 | $ | (778) | |||||||
Net income (loss) per share, basic and diluted | $ | 1.08 | $ | (0.30) | |||||||
Weighted average common shares outstanding, basic and diluted | 2,714,306 | 2,585,908 | |||||||||
Other comprehensive loss: | |||||||||||
Foreign currency translation adjustments | $ | (7) | $ | (272) | |||||||
Amortization of dedesignated cash flow hedge | (550) | (1,006) | |||||||||
Total other comprehensive loss | (557) | (1,278) | |||||||||
Comprehensive income (loss) | $ | 2,371 | $ | (2,056) | |||||||
7
TRAEGER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Three Months Ended March 31, | |||||||||||
2026 | 2025 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income (loss) | $ | 2,928 | $ | (778) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation of property, plant and equipment | 2,676 | 3,749 | |||||||||
Amortization of intangible assets | 10,505 | 10,492 | |||||||||
Amortization of deferred financing costs | 563 | 477 | |||||||||
Loss on disposal of property, plant and equipment | 11 | 14 | |||||||||
Stock-based compensation expense | 1,755 | 5,176 | |||||||||
Unrealized loss on derivative contracts | 1,040 | 332 | |||||||||
Amortization of dedesignated cash flow hedge | (550) | (1,006) | |||||||||
Other non-cash adjustments | (1,155) | 398 | |||||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable | 17,768 | (9,627) | |||||||||
Inventories | 11,057 | (19,869) | |||||||||
Prepaid expenses and other current assets | (15,133) | 15,917 | |||||||||
Other non-current assets | 373 | 207 | |||||||||
Accounts payable and accrued expenses | (13,942) | (26,319) | |||||||||
Net cash provided by (used in) operating activities | 17,896 | (20,837) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Purchase of property, plant, and equipment | (3,392) | (1,826) | |||||||||
Capitalization of patent costs | (131) | (85) | |||||||||
Proceeds from sale of property, plant, and equipment | 33 | 9 | |||||||||
Net cash used in investing activities | (3,490) | (1,902) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds on line of credit | — | 25,000 | |||||||||
Repayments on line of credit | — | (5,000) | |||||||||
Repayments of long-term debt | (63) | (63) | |||||||||
Principal payments on finance lease obligations | (106) | (145) | |||||||||
Taxes paid related to net share settlement of equity awards | (174) | — | |||||||||
Net cash provided by (used in) financing activities | (343) | 19,792 | |||||||||
Net increase (decrease) in cash and cash equivalents | 14,063 | (2,947) | |||||||||
Cash and cash equivalents at beginning of period | 19,624 | 14,981 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 33,687 | $ | 12,034 | |||||||
8
TRAEGER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
(Continued) | Three Months Ended March 31, | ||||||||||
2026 | 2025 | ||||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||
Cash paid during the period for interest | $ | 7,604 | $ | 8,367 | |||||||
Income taxes paid, net of refunds | $ | 150 | $ | 764 | |||||||
NON-CASH FINANCING AND INVESTING ACTIVITIES | |||||||||||
Equipment purchased under finance leases | $ | 251 | $ | 347 | |||||||
Property, plant, and equipment included in accounts payable and accrued expenses | $ | 61 | $ | 944 | |||||||
9
TRAEGER, INC.
RECONCILIATIONS OF AND OTHER INFORMATION REGARDING NON-GAAP FINANCIAL MEASURES
(unaudited)
In addition to our results and measures of performance determined in accordance with U.S. GAAP, we believe that certain non-GAAP financial measures are useful in evaluating and comparing our financial and operational performance and liquidity over multiple periods, identifying trends affecting our business, formulating business plans and making strategic decisions.
Each of Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per share, Adjusted EBITDA Margin, Adjusted Net Income Margin, and Adjusted Gross Margin are key performance measures that our management uses to assess our financial performance and are also used for internal planning and forecasting purposes. Free Cash Flow is a key liquidity measure that our management uses to assess our ability to generate cash and fund our operations, capital expenditures, and other obligations. We believe that these non-GAAP financial measures are useful to investors and other interested parties in analyzing our financial performance (and in the case of free cash flow, our liquidity) because they provide a comparable overview of our operations across historical periods. In addition, we believe that providing each of Adjusted EBITDA and Adjusted Net Income, together with a reconciliation of Net Income (Loss) to each such measure, and providing Adjusted Net Income per share, together with a reconciliation of Net Income (Loss) per share to such measure, Adjusted EBITDA Margin, Adjusted Net Income Margin, and Adjusted Gross Margin, and together with a reconciliation of Net Income (Loss) Margin and Gross Margin to such measures, helps investors make comparisons between our company and other companies that may have different capital structures, different tax rates, and/or different forms of employee compensation. We also believe that providing Free Cash Flow, together with a reconciliation of Net cash provided by (used in) operating activities to such measure, helps investors assess our liquidity and our ability to generate cash from operations. For example, due to finite-lived intangible assets included on our balance sheet following our corporate reorganization in 2017, we have significant non-cash amortization expense attributable to the nature of our capital structure.
Each of Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per share, Adjusted EBITDA Margin, Adjusted Net Income Margin, and Adjusted Gross Margin are used by our management team as an additional measure of our performance for purposes of business decision-making, including managing expenditures, and evaluating potential acquisitions. Free Cash Flow is used by our management team as an additional measure of liquidity for purposes of business decision-making, including managing expenditures, and evaluating potential acquisitions. Period-to-period comparisons of Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per share, Adjusted EBITDA Margin, Adjusted Net Income Margin, and Adjusted Gross Margin help our management identify additional trends in our financial results that may not be shown solely by period-to-period comparisons of Net Income (Loss) or Income (Loss) from Operations or Net Income (Loss) per share. Period-to-period comparisons of Free Cash Flow help our management identify additional trends in our liquidity that may not be shown solely by period-to-period comparisons of Net cash provided by (used in) operating activities. In addition, we may use Adjusted EBITDA in the incentive compensation programs applicable to some of our employees. Each of Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per share has inherent limitations because of the excluded items, and may not be directly comparable to similarly titled metrics used by other companies.
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The following table presents a reconciliation of Gross Margin, the most directly comparable financial measure calculated in accordance with U.S. GAAP, to Adjusted Gross Margin on a consolidated basis.
Three Months Ended March 31, | |||||||||||
2026 | 2025 | ||||||||||
Gross margin | 45.7 | % | 41.5 | % | |||||||
Less: Impact of IEEPA tariff refund recorded in cost of revenue | (13.1) | % | — | % | |||||||
Adjusted gross margin | 32.6 | % | 41.5 | % | |||||||
The following table presents a reconciliation of Net cash provided by (used in) operating activities, the most directly comparable financial measure calculated in accordance with U.S. GAAP, to Free Cash Flow on a consolidated basis. A reconciliation of Free Cash Flow guidance to Net cash provided by (used in) operating activities on a forward-looking basis cannot be provided without unreasonable efforts, as the Company is unable to provide reconciling information with respect to the impact for the purchases of property, plant and equipment, which is an adjustment to Free Cash Flow.
Three Months Ended March 31, | |||||||||||
2026 | 2025 | ||||||||||
Net cash provided by (used in) operating activities | $ | 17,896 | $ | (20,837) | |||||||
Less: Purchase of property, plant, and equipment | (3,392) | (1,826) | |||||||||
Free cash flow | $ | 14,504 | $ | (22,663) | |||||||
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The following table presents a reconciliation of Net Income (Loss), Income (Loss) from Operations, Net Income (Loss) Margin, Income (Loss) from Operations Margin, and Net Income (Loss) per share, the most directly comparable financial measures calculated in accordance with U.S. GAAP, to Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income Margin and Adjusted Net Income per share, respectively, on a condensed consolidated basis.
Three Months Ended March 31, | |||||||||||
2026 | 2025 | ||||||||||
(dollars in thousands, except share and per share amounts) | |||||||||||
Net income (loss) | $ | 2,928 | $ | (778) | |||||||
Adjustments: | |||||||||||
Other (income) expense (1) | 12 | (3,417) | |||||||||
Stock-based compensation | 1,755 | 5,176 | |||||||||
Non-routine legal expenses (2) | 3 | 8 | |||||||||
Amortization of acquisition intangibles (3) | 8,111 | 8,112 | |||||||||
Restructuring and other costs (4) | 3,180 | — | |||||||||
Employee retention tax credits (5) | (11,603) | — | |||||||||
Tax impact of adjusting items (6) | (341) | (2,534) | |||||||||
Adjusted net income | $ | 4,045 | $ | 6,567 | |||||||
Net income (loss) | $ | 2,928 | $ | (778) | |||||||
Adjustments: | |||||||||||
Benefit for income taxes | (276) | (1,600) | |||||||||
Interest expense | 7,610 | 7,893 | |||||||||
Depreciation and amortization | 13,181 | 14,242 | |||||||||
Other (income) expense (7) | 562 | (2,411) | |||||||||
Stock-based compensation | 1,755 | 5,176 | |||||||||
Non-routine legal expenses (2) | 3 | 8 | |||||||||
Restructuring and other costs (4) | 3,180 | — | |||||||||
Employee retention tax credits (5) | (11,603) | — | |||||||||
Adjusted EBITDA | $ | 17,340 | $ | 22,530 | |||||||
Revenue | $ | 94,066 | $ | 143,283 | |||||||
Net income (loss) margin | 3.1 | % | (0.5) | % | |||||||
Adjusted net income margin | 4.3 | % | 4.6 | % | |||||||
Adjusted EBITDA margin | 18.4 | % | 15.7 | % | |||||||
Net income (loss) per diluted share | $ | 1.08 | $ | (0.30) | |||||||
Adjusted net income per diluted share | $ | 1.49 | $ | 2.54 | |||||||
Weighted average common shares outstanding - diluted | 2,714,306 | 2,585,908 | |||||||||
(1)Represents realized and unrealized (gains) losses on the interest rate swap, including amortization of dedesignated cash flow hedge, (gains) losses on the disposal of property, plant, and equipment, and unrealized (gains) losses from foreign currency transactions and derivatives.
(2)Represents external legal expenses incurred in connection with the defense of a class action lawsuit and intellectual property litigation.
(3)Represents the amortization expense associated with intangible assets recorded in connection with the 2017 acquisition of Traeger Pellet Grills Holdings LLC.
(4)Represents restructuring and other costs in connection with Project Gravity primarily related to consulting fees and severance and other personnel costs.
(5)Represents the total benefit recorded associated with the refund from the Internal Revenue Service in connection with the Employee Retention Tax Credit.
(6)Represents the tax effect of non-GAAP adjustments calculated at an estimated blended statutory tax rate of 24.8% and 25.7% for the three months ended March 31, 2026 and 2025, respectively.
(7)Represents realized and unrealized (gains) losses on the interest rate swap, (gains) losses on the disposal of property, plant, and equipment, and unrealized (gains) losses from foreign currency transactions and derivatives.
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FAQ
How did Traeger (COOK) perform financially in Q1 2026?
Traeger reported Q1 2026 revenue of $94.1 million, down 34.3% year over year, and net income of $2.9 million. Adjusted EBITDA was $17.3 million, reflecting lower sales but cost savings under Project Gravity and a one-time tariff refund benefit.
What drove Traeger’s revenue decline in the first quarter of 2026?
Total revenue fell 34.3% to $94.1 million, mainly from a 45.4% drop in grill revenue to $47.4 million. Management cited lower unit volumes, a shift toward lower-priced grills, prior-year product launches, and tariff-related pull-forward orders plus channel optimization actions.
How profitable was Traeger in Q1 2026 after the IEEPA tariff refund?
Traeger’s gross margin reached 45.7% in Q1 2026, boosted by a $12.4 million IEEPA tariff refund. Excluding this item, adjusted gross margin was 32.6%. Net income was $2.9 million, while Adjusted EBITDA came in at $17.3 million.
What is Traeger’s full-year 2026 guidance for revenue and profitability?
For full-year 2026, Traeger expects total revenue between $465 million and $485 million, gross margin of 39.5–40.5%, and Adjusted EBITDA of $57–$67 million. The company also targets at least $30 million in free cash flow for the year.
How did Traeger’s cash flow and balance sheet change in Q1 2026?
Operating cash flow was $17.9 million and free cash flow $14.5 million in Q1 2026. Cash and cash equivalents increased to $33.7 million from $19.6 million, while inventory declined to $87.8 million, supporting improved liquidity and balance sheet health.
What is Project Gravity and how did it affect Traeger’s Q1 2026 results?
Project Gravity is Traeger’s cost and efficiency initiative, expected to capture about $50 million of value in 2026. In Q1 2026, it contributed to lower sales and marketing and G&A expenses, reduced inventory, and restructuring costs of $3.2 million recorded in the quarter.