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Mar 31
Solo Brands Q1 2025 Earnings Report
Reported financial results for the first quarter ended March 31, 2025
Key Takeaways
Solo Brands, Inc. announced its first quarter 2025 results, showing a decline in overall net sales driven by the Solo Stove segment, while the Chubbies segment experienced significant growth. The company reported a net loss and adjusted net loss for the quarter, and highlighted ongoing efforts to address debt structure and improve profitability.
Net sales decreased 9.5% to $77.3 million compared to the first quarter of 2024.
Chubbies segment net sales increased 43.9% to $42.7 million, with Segment EBITDA of 26.5%.
Solo Stove segment net sales declined 49.2% to $26.1 million, with Segment EBITDA of -5.7%.
Net loss was $18.6 million, or $0.21 per basic and diluted share, compared to a net loss of $6.5 million in the prior year period.
Solo Brands
Solo Brands
Solo Brands Revenue by Segment
Revenue by Segment
Solo Stove Revenue
CapyFin.comChubbies Revenue
CapyFin.com Forward Guidance
The report mentions the company is highly focused on addressing the existing debt structure to deliver financial flexibility and is working on transforming and stabilizing the business with a focus on improving marketing effectiveness, building pricing strategies, creating a product innovation culture, and right-sizing the cost structure.
Positive Outlook
- Highly focused on addressing existing debt structure.
- Aiming to deliver financial flexibility.
- Transforming and stabilizing the business this year.
- Focus on improving marketing effectiveness under new interim CMO.
- Working on building pricing strategies to align channels.
Challenges Ahead
- Substantial doubt about the ability to continue as a going concern.
- Likely required to report non-compliance with financial covenants under the credit agreement.
- Outstanding borrowings reclassified to current as of March 31, 2025.
- Need to right-size the cost structure.
- Risk associated with non-compliance with covenants under the credit agreement.
Revenue & Expenses
Visualization of income flow from segment revenue to net income