Sep 30, 2022

Solo Brands Q3 2022 Earnings Report

Announced strong results, exceeding third quarter expectations with strong revenue growth and healthy gross margins.

Key Takeaways

Solo Brands reported a 47.1% increase in net sales to $102.2 million compared to Q3 2021. However, the company experienced a net loss of $4.0 million and a decrease in adjusted net income and adjusted EBITDA.

Net sales increased by 47.1% to $102.2 million.

Net loss was $4.0 million.

Adjusted net income decreased by 52.1% to $7.6 million.

Adjusted EBITDA decreased by 38.1% to $11.2 million.

Total Revenue
$102M
Previous year: $69.4M
+47.1%
EPS
$0.15
Previous year: $0.04
+275.0%
Adjusted EBITDA
$11.2M
Previous year: $18.2M
-38.2%
Adjusted Gross Margin
63.3%
Previous year: 67%
-5.5%
Gross Profit
$64.7M
Previous year: $41M
+57.7%
Cash and Equivalents
$17.2M
Previous year: $9.53M
+80.3%
Free Cash Flow
-$26.3M
Previous year: -$48M
-45.1%
Total Assets
$897M
Previous year: $826M
+8.7%

Solo Brands

Solo Brands

Forward Guidance

The company revised its full year revenue guidance and reaffirming its previous guidance for adjusted gross margin and adjusted EBITDA margin.

Positive Outlook

  • Adjusted gross margin is planned to be above 60% of total revenue.
  • Adjusted EBITDA margin is expected to be in the mid-teens as a percentage of total revenue.

Challenges Ahead

  • Total revenue is expected to grow 15% to 20% versus our prior guidance of a mid-20% range.
  • Guidance is based on a number of assumptions that are subject to change and many of which are outside the Company’s control.
  • If actual results vary from these assumptions, the Company’s expectations may change.
  • There can be no assurance that the Company will achieve these results.