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Sep 30
Traeger Q3 2025 Earnings Report
Traeger reported its third quarter fiscal 2025 results, showing growth in revenues and Adjusted EBITDA, alongside a significant goodwill impairment.
Key Takeaways
Traeger delivered a mixed performance in Q3 2025, with total revenues increasing by 2.7% to $125.4 million and Adjusted EBITDA rising by 11.8% to $13.8 million. However, the company reported a substantial net loss of $89.8 million, primarily due to a $74.7 million goodwill impairment charge. The company also updated its Project Gravity cost savings target to $50 million annually.
Total revenues increased by 2.7% to $125.4 million compared to the prior year.
Net loss significantly widened to $89.8 million, inclusive of a $74.7 million goodwill impairment.
Adjusted EBITDA grew by 11.8% to $13.8 million, demonstrating operational improvement.
The company updated its Project Gravity annualized cost savings target to $50 million, an increase of $20 million from previous targets.
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 reiterated its full-year fiscal 2025 guidance for total revenue, gross margin, and Adjusted EBITDA, reflecting confidence in its strategic initiatives despite current macroeconomic challenges.
Positive Outlook
- Reiterated full-year revenue guidance between $540 million and $555 million.
- Reiterated full-year gross margin guidance between 40.5% and 41.5%.
- Reiterated full-year Adjusted EBITDA guidance between $66 million and $73 million.
- Project Gravity Phase 2 is expected to deliver an additional $20 million in annualized cost savings.
- Total annualized cost savings from Project Gravity are now targeted at $50 million.
Challenges Ahead
- The company did not provide forward-looking reconciliation for Adjusted EBITDA to Net Loss due to unreasonable efforts.
- Project Gravity initiatives are expected to be largely implemented by the end of 2026, indicating a longer-term realization of full benefits.
- Discontinuing the Costco roadshow program may impact certain sales channels.
- Exiting the Traeger direct-to-consumer business by redirecting customers to retail partners could shift sales dynamics.
- Transitioning to a distributor model in European markets may introduce new operational complexities.
Revenue & Expenses
Visualization of income flow from segment revenue to net income