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Jun 30
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.
Traeger
Traeger
Traeger Revenue by Segment
Traeger Revenue by Geographic Location
Revenue by Segment
Grills Revenue
CapyFin.comConsumables Revenue
CapyFin.comAccessories Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comRest of World Revenue
CapyFin.com 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.
- Phase 2 of Project Gravity is still under evaluation, with no immediate details on additional savings.
- The company is unable to provide a reconciliation of Adjusted EBITDA guidance to Net Loss without unreasonable efforts.
- The full implementation of Project Gravity is expected through the end of 2026, meaning benefits will be realized over time.
Revenue & Expenses
Visualization of income flow from segment revenue to net income