Traeger Q3 2026 revenue falls 40.4% to $74.7M
Traeger expects fourth-quarter revenue and Adjusted EBITDA growth; its national Lowe’s launch is slated for spring 2027.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Traeger, Inc. (COOK) reported third-quarter fiscal 2026 revenue of $74.7 million, down 40.4% from $125.4 million a year earlier. Grill revenue fell 48.1% to $39.7 million. Consumables revenue declined 23.1% to $19.4 million, while accessories fell 34.1% to $15.5 million. Gross profit was $25.0 million, compared with $48.5 million, and gross margin was 33.5%, versus 38.7%. Net loss was $28.5 million, compared with $89.8 million; the prior-year loss included a $74.7 million non-cash goodwill impairment. Adjusted EBITDA was a $3.3 million loss, compared with $13.8 million a year earlier. Operating cash flow was $9.8 million and free cash flow was $8.4 million.
Cash and cash equivalents were $67.8 million at September 30, 2026, compared with $19.6 million at December 31, 2025; inventory was $79.5 million versus $98.8 million. Traeger narrowed fiscal 2026 revenue guidance to $440 million to $460 million and Adjusted EBITDA guidance to $59 million to $65 million, with both midpoints unchanged. It reiterated gross margin guidance of 40.0% to 41.0% and free cash flow guidance of at least $30 million.
1 point · 0 major0 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet loss fell to $28.5 million from $89.8 million.
Negative
- Moderate pointRevenue fell 40.4% to $74.7 million year over year.
- Minor pointAdjusted EBITDA turned to a $3.3 million loss from $13.8 million.
Filing Explained
At September 30, 2026, Traeger reported $400,449 thousand in notes payable, $67,814 thousand in cash, and 2,802,459 common shares outstanding.
The 8-K furnishes Traeger’s completed third-quarter results; its
Traeger reported that common shares issued and outstanding increased from 2,741,312 at
The release says all share and per-share amounts were retroactively adjusted for the 1-for-50 reverse split effective
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, or exhibit attachments filed with this report.
Key Figures
Revenue: $74.7 million
Net loss: $28.5 million loss
Adjusted EBITDA: $3.3 million loss
+5 more
8 metrics
Revenue
$74.7 million
Third quarter of fiscal 2026; down 40.4% from $125.4 million a year earlier
Net loss
$28.5 million loss
Third quarter of fiscal 2026; compared with $89.8 million a year earlier
Adjusted EBITDA
$3.3 million loss
Third quarter of fiscal 2026; compared with $13.8 million a year earlier
Gross margin
33.5%
Third quarter of fiscal 2026; compared with 38.7% a year earlier
Free cash flow
$8.4 million
Third quarter of fiscal 2026; $6.391 million in the third quarter of 2025
Cash and cash equivalents
$67.8 million
September 30, 2026; $19.6 million at December 31, 2025
Fiscal 2026 revenue guidance
$440 million to $460 million
Narrowed range; midpoint unchanged
Fiscal 2026 Adjusted EBITDA guidance
$59 million to $65 million
Narrowed range; midpoint unchanged
Key Terms
Adjusted EBITDA, Free Cash Flow, Adjusted gross margin, antidilutive
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA was a loss of $3.3 million"
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
"Free Cash Flow is expected to be at least $30 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.
Adjusted gross margin financial
"Adjusted gross margin"
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.
antidilutive financial
"all potentially dilutive securities were antidilutive"
Describes a potential common share — such as a convertible bond, convertible preferred, option or warrant — that would, if included in the diluted earnings-per-share calculation, increase (or fail to decrease) reported earnings per share rather than dilute it. Accounting rules require such securities to be excluded from diluted EPS because their assumed conversion would make EPS higher (or make a loss per share smaller), so they are not treated as dilutive when reporting diluted figures.
Earnings Snapshot
Total revenue: $74.7 million · Guidance included
Three months ended September 30, 2026
Total revenue
$74.7 million
Down 40.4% from $125.4 million in the third quarter of 2025
Net loss
$28.5 million loss
Compared with $89.8 million in the third quarter of 2025
Adjusted EBITDA
$3.3 million loss
Compared with $13.8 million in the third quarter of 2025
Gross margin
33.5%
Compared with 38.7% in the third quarter of 2025
Guidance
Fiscal 2026 total revenue of $440 million to $460 million; gross margin of 40.0% to 41.0%; Adjusted EBITDA of $59 million to $65 million; free cash flow of at least $30 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did COOK report in Q3 2026?
Traeger reported $74.7 million of revenue for the third quarter of fiscal 2026, down 40.4% from $125.4 million in the same quarter of 2025. Grill revenue was $39.7 million, down 48.1%.
What is COOK's fiscal 2026 revenue and EBITDA guidance?
Traeger expects total revenue of $440 million to $460 million and Adjusted EBITDA of $59 million to $65 million. It reiterated gross margin guidance of 40.0% to 41.0% and free cash flow guidance of at least $30 million.
Why did Traeger's grill revenue decline in Q3 2026?
Traeger attributed the decline to comparisons with elevated retailer purchases in the third quarter of 2025 and to product and channel actions under Project Gravity. It said these factors contributed to lower average selling prices and unit volumes than a year earlier.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): November 4, 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 November 4, 2026, Traeger, Inc. (the “Company” or “Traeger”) issued a press release announcing financial results for the quarter ended September 30, 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 Item 2.02 of 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 November 4, 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: November 4, 2026 | By: | /s/ Michael J. Hord | |||||||||
Michael J. Hord | |||||||||||
| Chief Financial Officer | |||||||||||
TRAEGER ANNOUNCES THIRD QUARTER FISCAL 2026 RESULTS
Narrows FY26 Revenue and Adjusted EBITDA Guidance Ranges with the Midpoints Unchanged, and Reiterates Gross Margin and Free Cash Flow Guidance
SALT LAKE CITY, UT, November 4, 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 September 30, 2026.
Third Quarter FY26 Results
•Total revenues decreased 40.4% to $74.7 million
•Grill revenues decreased 48.1% to $39.7 million
•Net loss of $28.5 million
•Adjusted EBITDA loss of $3.3 million
•Operating cash flow of $9.8 million and free cash flow of $8.4 million
Jeremy Andrus, CEO of Traeger, commented, "Our third-quarter revenue came in at the low end of the pacing we outlined last quarter, with some activity shifting into the fourth quarter. We believe consumer demand remains healthier than our reported revenue suggests, particularly at more accessible price points. We expect to return to revenue and Adjusted EBITDA growth in the fourth quarter, supported by channel expansion and the activity that shifted out of the third quarter."
“Looking ahead to our national Lowe’s launch in spring 2027, we believe broader distribution, together with Westwood and Irontop, will expand access to the Traeger brand and create new opportunities for household acquisition," continued Andrus.
“The work we have done through Project Gravity has given us a simpler operating model, a stronger balance sheet, and the capacity to invest behind the consumer and our retail partners. Combined with broader distribution and a stronger product portfolio, we believe these foundations position Traeger to return to profitable growth in 2027," concluded Andrus.
1
Operating Results for the Third Quarter
Total revenue decreased 40.4% to $74.7 million, compared to $125.4 million in the third quarter last year.
•Grills decreased 48.1% to $39.7 million as compared to the third quarter last year. The decrease reflects comparisons against elevated retailer purchases in the third quarter of last year, as well as product and channel actions under Project Gravity. These dynamics contributed to lower average selling prices and unit volumes compared with the third quarter of last year.
•Consumables decreased 23.1% to $19.4 million as compared to the third quarter last year. The decrease was primarily driven by lower wood pellet sales, reflecting seasonal ordering timing and changes in retail channel dynamics.
•Accessories decreased 34.1% to $15.5 million as compared to the third quarter last year. This decrease was driven primarily by lower sales of MEATER smart thermometers and Traeger branded accessories.
Gross profit decreased to $25.0 million, compared to $48.5 million in the third quarter last year. Gross margin was 33.5% in the third quarter, compared to 38.7% in the same period last year. The decrease in gross margin was driven primarily by the timing of trade spend, deleverage of fixed warehousing expenses on lower revenue, and continued margin pressure in our MEATER business, partially offset by an IEEPA tariff refund benefit.
Sales and marketing expenses were $14.3 million, compared to $20.0 million in the third quarter last year. The decrease in sales and marketing expenses was primarily due to lower employee-related costs and lower demand creation spend, reflecting cost reduction actions associated with Project Gravity.
General and administrative expenses were $19.9 million, compared to $22.2 million in the third quarter last year. The decrease in general and administrative expenses was primarily due to lower employee-related costs, reflecting cost reduction actions associated with Project Gravity.
Restructuring and other costs were $1.7 million, compared to $6.2 million in the third quarter last year. The decrease was primarily driven by reduced consulting fees, as well as lower severance and other personnel costs.
Net loss was $28.5 million in the third quarter, or a loss of $10.33 per diluted share1, compared to net loss of $89.8 million in the third quarter of last year, or a loss of $33.46 per diluted share1, which included a non-cash goodwill impairment charge of $74.7 million.
Adjusted net loss was $18.7 million, or $6.77 per diluted share, compared to $22.3 million, or $8.31 per diluted share in the third quarter last year.2
Adjusted EBITDA was a loss of $3.3 million in the third quarter compared to Adjusted EBITDA of $13.8 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 September 30, 2026 for additional information. Additionally, all potentially dilutive securities were antidilutive for the periods presented and were therefore excluded from the computation of diluted net loss per share as of September 30, 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 third quarter totaled $67.8 million, compared to $19.6 million at December 31, 2025.
Inventory at the end of the third quarter was $79.5 million, compared to $98.8 million at December 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
Based on year to date performance and its outlook for the rest of the year, the Company is narrowing the ranges on its total revenue and Adjusted EBITDA guidance and reiterating its gross margin and free cash flow guidance for Fiscal 2026.
•Total revenue is expected to be between $440 million and $460 million, compared to $435 million and $465 million prior
•Gross Margin is expected to be between 40.0% and 41.0%
•Adjusted EBITDA is expected to be between $59 million and $65 million, compared to $57 million and $67 million prior
•Free Cash Flow is expected to be at least $30 million
A reconciliation of Adjusted EBITDA and Free Cash Flow guidance to Net Loss and Net cash provided by 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 provision (benefit) for income taxes, interest expense, depreciation and amortization, other (income) expense, stock-based compensation, non-routine legal expenses, wage and hour litigation expenses, goodwill impairment, restructuring and other costs and 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 third quarter results is scheduled for Wednesday, November 4, 2026, at 4:30 p.m. ET. To participate, please dial (833) 461-5787 or +1 (585) 542-9983 for international callers, conference ID 633856685. 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, 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.
4
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 organizational focus, our Project Gravity initiative and its impact on our business, including anticipated cost savings, our anticipated full year Fiscal 2026 results, including revenue, gross margin, Adjusted EBITDA and Free Cash Flow, our strategy, our upcoming product launches, consumer demand for our products, our new retail distribution partnership with Lowe’s, including the initial load-in and national launch, and the anticipated timing and benefits thereof, the expected timing of revenue and Adjusted EBITDA generation, including the expected return to revenue and Adjusted EBITDA growth in the fourth quarter of fiscal 2026, our expected return to profitable growth in 2027, our expectation of higher Adjusted EBITDA in fiscal 2027, revenue growth in fiscal 2027, our capacity to invest in our business, the timing and amount of any tariff refunds, 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, including through our partnership with Lowe’s; 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, and the timing and amount of any tariff refunds and the risk that refunds received may be subject to repayment; the impact of product liability and warranty claims and product recalls and greater than expected product returns; 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; our dependence on three major retailers and any decline in demand from such retailers; risks associated with our significant international operations; our reliance on a limited number of third-party manufacturers and problems with, or loss of, our suppliers or an inability to obtain raw materials; our ability to refinance or extend our indebtedness prior to its maturity; 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 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026. 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)
September 30, 2026 | December 31, 2025 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 67,814 | $ | 19,624 | |||||||
Accounts receivable, net | 45,299 | 82,122 | |||||||||
Inventories | 79,482 | 98,831 | |||||||||
Prepaid expenses and other current assets | 12,290 | 14,272 | |||||||||
Total current assets | 204,885 | 214,849 | |||||||||
Property, plant, and equipment, net | 27,943 | 33,703 | |||||||||
Operating lease right-of-use assets | 35,351 | 38,201 | |||||||||
Intangible assets, net | 357,422 | 387,050 | |||||||||
Other non-current assets | 1,248 | 2,173 | |||||||||
Total assets | $ | 626,849 | $ | 675,976 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current Liabilities | |||||||||||
Accounts payable | $ | 9,673 | $ | 14,135 | |||||||
Accrued expenses | 49,687 | 62,668 | |||||||||
Current portion of notes payable | 250 | 250 | |||||||||
Current portion of operating lease liabilities | 1,956 | 2,650 | |||||||||
Other current liabilities | 350 | 382 | |||||||||
Total current liabilities | 61,916 | 80,085 | |||||||||
Notes payable, net of current portion | 400,449 | 399,590 | |||||||||
Operating leases liabilities, net of current portion | 21,937 | 23,040 | |||||||||
Deferred tax liability | 412 | 1,861 | |||||||||
Other non-current liabilities | 2,121 | 552 | |||||||||
Total liabilities | 486,835 | 505,128 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.0001 par value; 25,000,000 shares authorized and no shares issued or outstanding as of September 30, 2026 and December 31, 2025 | — | — | |||||||||
Common stock, $0.0001 par value; 1,000,000,000 shares authorized | |||||||||||
Issued and outstanding shares - 2,802,459 and 2,741,312 as of September 30, 2026 and December 31, 2025, respectively | — | — | |||||||||
Additional paid-in capital | 978,371 | 974,386 | |||||||||
Accumulated deficit | (838,228) | (804,066) | |||||||||
Accumulated other comprehensive income (loss) | (129) | 528 | |||||||||
Total stockholders’ equity | 140,014 | 170,848 | |||||||||
Total liabilities and stockholders’ equity | $ | 626,849 | $ | 675,976 | |||||||
6
TRAEGER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands, except share and per share amounts)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Revenue | $ | 74,682 | $ | 125,396 | $ | 288,911 | $ | 414,162 | |||||||||||||||
Cost of revenue | 49,673 | 76,850 | 173,469 | 249,157 | |||||||||||||||||||
Gross profit | 25,009 | 48,546 | 115,442 | 165,005 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing | 14,294 | 20,000 | 43,993 | 66,989 | |||||||||||||||||||
General and administrative | 19,946 | 22,164 | 61,150 | 73,215 | |||||||||||||||||||
Amortization of intangible assets | 8,813 | 8,813 | 26,438 | 26,447 | |||||||||||||||||||
Goodwill impairment | — | 74,725 | — | 74,725 | |||||||||||||||||||
Restructuring and other costs | 1,739 | 6,204 | 6,372 | 9,672 | |||||||||||||||||||
Total operating expense | 44,792 | 131,906 | 137,953 | 251,048 | |||||||||||||||||||
Loss from operations | (19,783) | (83,360) | (22,511) | (86,043) | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense | (7,904) | (7,815) | (23,787) | (23,799) | |||||||||||||||||||
Other income, net | 137 | 1,049 | 11,928 | 9,563 | |||||||||||||||||||
Total other expense | (7,767) | (6,766) | (11,859) | (14,236) | |||||||||||||||||||
Loss before provision (benefit) for income taxes | (27,550) | (90,126) | (34,370) | (100,279) | |||||||||||||||||||
Provision (benefit) for income taxes | 977 | (307) | (208) | (2,298) | |||||||||||||||||||
Net loss | $ | (28,527) | $ | (89,819) | $ | (34,162) | $ | (97,981) | |||||||||||||||
Net loss per share, basic and diluted | $ | (10.33) | $ | (33.46) | $ | (12.46) | $ | (37.03) | |||||||||||||||
Weighted average common shares outstanding, basic and diluted | 2,762,127 | 2,684,286 | 2,741,928 | 2,645,811 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustments | $ | (5) | $ | 49 | $ | (107) | $ | (102) | |||||||||||||||
Amortization of dedesignated cash flow hedge | — | (909) | (550) | (2,853) | |||||||||||||||||||
Total other comprehensive loss | (5) | (860) | (657) | (2,955) | |||||||||||||||||||
Comprehensive loss | $ | (28,532) | $ | (90,679) | $ | (34,819) | $ | (100,936) | |||||||||||||||
7
TRAEGER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Nine Months Ended September 30, | |||||||||||
2026 | 2025 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net loss | $ | (34,162) | $ | (97,981) | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation of property, plant and equipment | 7,752 | 9,363 | |||||||||
Amortization of intangible assets | 29,936 | 31,489 | |||||||||
Amortization of deferred financing costs | 1,587 | 1,474 | |||||||||
Loss (gain) on disposal of property, plant, and equipment | 155 | (84) | |||||||||
Stock-based compensation expense | 8,352 | 12,476 | |||||||||
Unrealized loss on derivative contracts | 1,185 | 3,550 | |||||||||
Amortization of dedesignated cash flow hedge | (550) | (2,853) | |||||||||
Goodwill impairment | — | 74,725 | |||||||||
Other non-cash adjustments | 158 | 1,214 | |||||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable | 36,729 | 4,649 | |||||||||
Inventories | 19,349 | (7,259) | |||||||||
Prepaid expenses and other current assets | 797 | 15,591 | |||||||||
Other non-current assets | 646 | 95 | |||||||||
Accounts payable and accrued expenses | (17,095) | (41,440) | |||||||||
Net cash provided by operating activities | 54,839 | 5,009 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Purchase of property, plant, and equipment | (5,412) | (5,614) | |||||||||
Capitalization of patent costs | (308) | (357) | |||||||||
Proceeds from sale of property, plant, and equipment | 143 | 108 | |||||||||
Net cash used in investing activities | (5,577) | (5,863) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from line of credit | — | 47,000 | |||||||||
Repayments of line of credit | — | (52,000) | |||||||||
Repayments of long-term debt | (188) | (188) | |||||||||
Payment of deferred financing costs | — | (820) | |||||||||
Principal payments of finance lease obligations | (296) | (418) | |||||||||
Taxes paid related to net share settlement of equity awards | (588) | (1,835) | |||||||||
Net cash used in financing activities | (1,072) | (8,261) | |||||||||
Net increase (decrease) in cash and cash equivalents | 48,190 | (9,115) | |||||||||
Cash and cash equivalents at beginning of period | 19,624 | 14,981 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 67,814 | $ | 5,866 | |||||||
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TRAEGER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
(Continued) | Nine Months Ended September 30, | ||||||||||
2026 | 2025 | ||||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||||||
Cash paid during the period for interest | $ | 22,789 | $ | 25,324 | |||||||
Income taxes (received) paid, net of refunds | $ | (36) | $ | 1,426 | |||||||
NON-CASH FINANCING AND INVESTING ACTIVITIES | |||||||||||
Equipment purchased under finance leases | $ | 346 | $ | 314 | |||||||
Property, plant, and equipment included in accounts payable and accrued expenses | $ | 3 | $ | 928 | |||||||
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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 over multiple periods, identifying trends affecting our business, formulating business plans and making strategic decisions.
Each of Adjusted EBITDA, Adjusted Net Loss, Adjusted Net Loss per share, Adjusted EBITDA Margin, Adjusted Net Loss Margin, and Adjusted Gross Margin are key performance measures that our management uses to assess our financial performance and is also used for internal planning and forecasting purposes. We believe that these non-GAAP financial measures are useful to investors and other interested parties in analyzing our financial performance 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 Loss, together with a reconciliation of Net Loss to each such measure, and providing Adjusted Net Loss per share, together with a reconciliation of Net Loss per share to such measure, and Adjusted EBITDA Margin, Adjusted Net Loss Margin, and Adjusted Gross Margin, together with a reconciliation of Net 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 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 Loss, Adjusted Net Loss per share, Adjusted EBITDA Margin, Adjusted Net Loss 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. Period-to-period comparisons of Adjusted EBITDA, Adjusted Net Loss, and Adjusted Net Loss per share, Adjusted EBITDA Margin, Adjusted Net Loss 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 Loss or Net 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 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 Loss, Adjusted Net Loss per share, Adjusted EBITDA Margin, Adjusted Net Loss Margin, and Adjusted Gross Margin have 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Gross margin | 33.5 | % | 38.7 | % | 40.0 | % | 39.8 | % | |||||||||||||||
Less: Impact of IEEPA tariff refund benefit recorded in current period attributable to prior year cost of revenue | — | % | — | % | (3.2) | % | — | % | |||||||||||||||
Adjusted gross margin | 33.5 | % | 38.7 | % | 36.8 | % | 39.8 | % | |||||||||||||||
The following table presents a reconciliation of Net cash provided by 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 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Net cash provided by operating activities | $ | 9,837 | $ | 7,554 | $ | 54,839 | $ | 5,009 | |||||||||||||||
Less: Purchase of property, plant, and equipment | (1,390) | (1,163) | (5,412) | (5,614) | |||||||||||||||||||
Free cash flow | $ | 8,447 | $ | 6,391 | $ | 49,427 | $ | (605) | |||||||||||||||
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The following table presents a reconciliation of Net Loss, Net Loss Margin and Net Loss per share, the most directly comparable financial measures calculated in accordance with U.S. GAAP, to Adjusted Net Loss, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Net Loss per share, respectively, on a consolidated basis.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
(dollars in thousands, except share and per share amounts) | |||||||||||||||||||||||
Net loss | $ | (28,527) | $ | (89,819) | $ | (34,162) | $ | (97,981) | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Other (income) expense (1) | 85 | (1,376) | 378 | (7,478) | |||||||||||||||||||
Stock-based compensation | 3,070 | 3,331 | 8,352 | 12,476 | |||||||||||||||||||
Non-routine legal expenses (2) | 2 | 5 | 5 | 24 | |||||||||||||||||||
Wage and hour litigation expenses (3) | 121 | — | 121 | — | |||||||||||||||||||
Amortization of acquisition intangibles (4) | 8,111 | 8,111 | 24,333 | 24,333 | |||||||||||||||||||
Goodwill impairment | — | 74,725 | — | 74,725 | |||||||||||||||||||
Restructuring and other costs (5) | 1,739 | 6,204 | 6,372 | 9,672 | |||||||||||||||||||
Employee retention tax credit (6) | — | (982) | (11,603) | (6,049) | |||||||||||||||||||
Tax impact of adjusting items (7) | (3,297) | (22,501) | (7,000) | (27,393) | |||||||||||||||||||
Adjusted net loss | $ | (18,696) | $ | (22,302) | $ | (13,204) | $ | (17,671) | |||||||||||||||
Net loss | $ | (28,527) | $ | (89,819) | $ | (34,162) | $ | (97,981) | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Provision (benefit) for income taxes | 977 | (307) | (208) | (2,298) | |||||||||||||||||||
Interest expense | 7,904 | 7,815 | 23,787 | 23,799 | |||||||||||||||||||
Depreciation and amortization | 11,316 | 13,302 | 37,689 | 40,852 | |||||||||||||||||||
Other (income) expense (8) | 85 | (467) | 824 | (4,625) | |||||||||||||||||||
Stock-based compensation | 3,070 | 3,331 | 8,352 | 12,476 | |||||||||||||||||||
Non-routine legal expenses (2) | 2 | 5 | 5 | 24 | |||||||||||||||||||
Wage and hour litigation expenses (3) | 121 | — | 121 | — | |||||||||||||||||||
Goodwill impairment | — | 74,725 | — | 74,725 | |||||||||||||||||||
Restructuring and other costs (5) | 1,739 | 6,204 | 6,372 | 9,672 | |||||||||||||||||||
Employee retention tax credit (6) | — | (982) | (11,603) | (6,049) | |||||||||||||||||||
Adjusted EBITDA | $ | (3,313) | $ | 13,807 | $ | 31,177 | $ | 50,595 | |||||||||||||||
Revenue | $ | 74,682 | $ | 125,396 | $ | 288,911 | $ | 414,162 | |||||||||||||||
Net loss margin | (38.2) | % | (71.6) | % | (11.8) | % | (23.7) | % | |||||||||||||||
Adjusted net loss margin | (25.0) | % | (17.8) | % | (4.6) | % | (4.3) | % | |||||||||||||||
Adjusted EBITDA margin | (4.4) | % | 11.0 | % | 10.8 | % | 12.2 | % | |||||||||||||||
Net loss per diluted share | $ | (10.33) | $ | (33.46) | $ | (12.46) | $ | (37.03) | |||||||||||||||
Adjusted net loss per diluted share | $ | (6.77) | $ | (8.31) | $ | (4.82) | $ | (6.68) | |||||||||||||||
Weighted average common shares outstanding - diluted | 2,762,127 | 2,684,286 | 2,741,928 | 2,645,811 | |||||||||||||||||||
(1)Represents realized and unrealized (gains) losses from foreign currency transactions and derivatives, realized and unrealized (gains) losses on the interest rate swap, including amortization of dedesignated cash flow hedge, and (gains) losses on the disposal of property, plant, and equipment.
(2)Represents external legal expenses incurred in connection with the defense of a class action lawsuit and intellectual property litigation.
(3)Represents external legal expenses incurred in connection with the defense of a wage and hour collection class action lawsuit.
(4)Represents the amortization expense associated with intangible assets recorded in connection with the 2017 acquisition of Traeger Pellet Grills Holdings LLC.
(5)Represents restructuring and other costs in connection with Project Gravity primarily related to consulting fees, severance and other personnel costs, and other restructuring related costs.
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(6)Represents the total benefit recorded associated with the refund from the Internal Revenue Service in connection with the Employee Retention Tax Credit.
(7)Represents the tax effect of non-GAAP adjustments calculated at an estimated blended statutory tax rate of 25.1% for both the three and nine months ended September 30, 2026 and 25.4% for both the three and nine months ended September 30, 2025, respectively.
(8)Represents realized and unrealized (gains) losses from foreign currency transactions and derivatives, realized and unrealized (gains) losses on the interest rate swap, and (gains) losses on the disposal of property, plant, and equipment.
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