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Jun 30, 2025
Traeger Q2 2025 Earnings Report
Traeger announced its second quarter fiscal 2025 results, reporting a decrease in total revenues and a net loss, while also detailing a new streamlining plan, Project Gravity, aimed at achieving significant cost savings.
Key Takeaways
Traeger experienced a challenging second quarter in fiscal year 2025, with total revenues decreasing by 13.6% to $145.5 million and a net loss of $7.4 million. The company's Adjusted EBITDA also saw a significant decline to $14.3 million. These results were primarily impacted by tariff-related dynamics. In response, Traeger initiated 'Project Gravity,' a strategic streamlining effort targeting $30 million in annualized cost savings, aiming to protect profitability and cash flow amidst an uncertain macroeconomic environment.
Total revenues for Q2 FY25 decreased by 13.6% to $145.5 million compared to the same period last year, primarily due to tariff impacts.
The company reported a net loss of $7.4 million and an Adjusted EBITDA of $14.3 million, both significantly lower than the previous year.
Traeger launched 'Project Gravity,' a multi-step streamlining initiative, with Phase 1 expected to deliver $30 million in annualized cost savings through operational efficiencies and workforce reductions.
Despite the Q2 performance, the company reinstated its full-year FY25 guidance, expecting to offset approximately 80% of its $60 million unmitigated tariff exposure.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Traeger reinstated its full-year fiscal 2025 guidance, expecting total revenue between $540 million and $555 million, gross margin between 40.5% and 41.5%, and Adjusted EBITDA between $66 million and $73 million. The company anticipates offsetting approximately 80% of its $60 million unmitigated tariff exposure.
Positive Outlook
- Reinstated full-year FY25 guidance, indicating confidence in future performance.
- Project Gravity Phase 1 is expected to deliver $30 million in annualized cost savings once fully implemented.
- Anticipates offsetting approximately 80% of the $60 million unmitigated tariff exposure for FY25.
- Focus on protecting profitability and cash flow in an uncertain macroeconomic environment.
- Continued efforts to integrate MEATER's operations into Traeger's broader infrastructure for efficiency.
Challenges Ahead
- Tariff-related dynamics significantly impacted Q2 FY25 sales and Adjusted EBITDA performance.
- The macroeconomic backdrop remains uncertain, posing ongoing challenges.
Revenue & Expenses
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Avg. Return Before/After Earnings
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