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Sep 30
Solo Brands Q3 2025 Earnings Report
Solo Brands reported a challenging third quarter in 2025, marked by a significant decrease in net sales and a net loss, despite improvements in operating cash flow and gross margins.
Key Takeaways
Solo Brands experienced a challenging third quarter in 2025, with net sales plummeting by 43.7% to $53.0 million, primarily due to reduced consumer demand and excess retailer inventory in the Solo Stove segment. The company reported a net loss of $22.9 million, an improvement from the prior year's $111.5 million loss, and generated $11 million in operating cash flow, marking its second consecutive quarter of positive cash generation. Despite top-line pressures, gross profit remained stable at 60.0% of net sales, and operating expenses were significantly reduced by 68.9%.
Net sales decreased by 43.7% to $53.0 million in Q3 2025, primarily driven by lower sales in the Solo Stove segment.
The company reported a net loss of $22.9 million, an improvement from a net loss of $111.5 million in the prior year period.
Operating cash flow was $11 million, marking the second consecutive quarter of positive cash generation, reflecting stronger cost discipline.
Gross profit remained stable at $31.8 million, representing 60.0% of net sales, despite the significant decline in overall sales.
Solo Brands
Solo Brands
Solo Brands Revenue by Segment
Revenue by Segment
Solo Stove Revenue
CapyFin.comChubbies Revenue
CapyFin.com Forward Guidance
Solo Brands is focused on stabilizing the business, strengthening its balance sheet, and positioning for sustainable, profitable growth. The company plans to accelerate structural cost reductions to align with current demand levels and is encouraged by the initial positive response to recent product launches, which have improved year-over-year sales trends in October.
Positive Outlook
- Accelerating structural cost reductions to align operating model with demand.
- Initial favorable response to new product launches (Summit 24” and Infinity Flame firepits).
- Improved year-over-year sales trends in October, heading into the holiday season.
- Commitment to strengthening the balance sheet.
- Positioning the company for sustainable, profitable growth over time.
Challenges Ahead
- Continued pressure on consumer demand.
- Work needed on the top line (revenue generation).
- Rebuilding retail relationships and working through excess retailer inventory, primarily in Solo Stove.
- Challenges in the Chubbies retail channel with sales declining from the prior year period.
- Adjusted net loss and adjusted EBITDA declined compared to the prior year period.
Revenue & Expenses
Visualization of income flow from segment revenue to net income