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Jun 30
Solo Brands Q2 2025 Earnings Report
Solo Brands reported a significant decline in net sales and a larger net loss in Q2 2025, primarily due to headwinds in the Solo Stove segment, while Chubbies showed growth.
Key Takeaways
Solo Brands experienced a challenging second quarter in 2025, with consolidated net sales decreasing by 29.9% to $92.3 million and a net loss of $20.8 million, compared to a net loss of $4.0 million in the prior year. The decline was largely driven by the Solo Stove segment's reduced direct-to-consumer sales due to inventory issues and a shift away from promotional activities. However, the Chubbies segment demonstrated strong performance with a 13.1% increase in net sales and a 48.3% rise in Segment EBITDA, showcasing operational leverage and efficiency gains.
Consolidated net sales for Q2 2025 were $92.3 million, a 29.9% decrease from $131.6 million in Q2 2024.
The company reported a net loss of $20.8 million, or $8.93 per basic and diluted share, significantly wider than the $4.0 million net loss in the prior year.
Adjusted EBITDA was $10.5 million, down from $15.5 million in Q2 2024, with an adjusted EBITDA margin of 11.4%.
Chubbies segment net sales grew by 13.1% to $44.5 million, and its Segment EBITDA increased by 48.3% to $11.5 million, offsetting some of the Solo Stove segment's decline.
Solo Brands
Solo Brands
Solo Brands Revenue by Segment
Revenue by Segment
Solo Stove Revenue
CapyFin.comChubbies Revenue
CapyFin.com Forward Guidance
The company is focused on a strategic transformation towards a more disciplined, structurally smaller, profit-driven business model, despite facing top-line headwinds in the Solo Stove segment.
Positive Outlook
- Successful debt refinancing and removal of going concern disclaimer.
- Reinstatement of Class A common stock trading on NYSE under new ticker SBDS.
- Chubbies segment continues to deliver solid performance with sales and EBITDA growth.
- Meaningful strides in transformation towards a profit-driven business model.
- Generated nearly $11 million in operating cash flow during the quarter.
Challenges Ahead
- Expected top-line headwinds in the Solo Stove segment due to excessive retailer inventory.
- Moving away from a highly promotional model for Solo Stove may impact sales.
- Need to re-establish position with key retail partners for Solo Stove.
- Significant restructuring, contract termination, and impairment charges incurred.
- Overall net sales declined significantly compared to the prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income