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    COOK
    Earnings call· Jun 2026(Q2 FY26)

    Traeger Q2 FY26 earnings call COOK

    Aug 5, 2026 Source

    Executive summary

    Traeger Q2 FY26 — Distribution Expansion and Project Gravity Drive Profitability Amidst Revenue Headwinds

    Traeger navigated a transitional quarter marked by strategic distribution expansion and ongoing Project Gravity initiatives. While revenue faced headwinds from MEATER softness and lower ASPs, the company maintained its adjusted EBITDA guidance, showcasing strong cost discipline. The brand continues to see robust consumer engagement and is expanding its market reach with new product platforms and a significant national retail partnership.

    Highlights

    5

    • July 4th connected cooks reached an all-time high of over 267,000, reinforcing strong consumer engagement.

    • Gross profit margin increased by 30 basis points year-over-year to 39.5%, benefiting from tariff refunds and direct import sales.

    • Adjusted EBITDA increased to $17 million from $14 million in the prior year, despite lower revenue, due to Project Gravity actions and expense management.

    • Free cash flow generation was $26 million in Q2, including a $16 million IEEPA tariff refund.

    • Inventory decreased to $76 million from $116 million in Q2 FY25, reflecting progress in working capital efficiency.

    Concerns

    5

    • Total revenues decreased 17% year-over-year to $120 million, primarily due to MEATER softness and lower grill ASPs.

    • MEATER business experienced greater softness than anticipated, largely from promo performance below expectations.

    • Full-year revenue guidance was lowered to $435 million-$465 million from $465 million-$485 million.

    • Net loss for the quarter was $9 million, compared to a net loss of $7 million in Q2 FY25.

    • Near-term channel impacts associated with distribution expansion are creating additional timing variability and revenue pressure.

    Guidance & targets

    8
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $435 million to $465 million
    high materiality
    Medium
    Full-year 2026 Adjusted EBITDA
    $57 million to $67 million
    high materiality
    High
    Full-year 2026 Gross Margin
    40% to 41%
    medium materiality
    High
    Full-year 2026 Free Cash Flow
    at least $30 million
    medium materiality
    High
    Project Gravity Value Capture
    $50 million
    high materiality
    High
    Q3/Q4 2026 Revenue Pacing
    approximately 2/3 of remaining '26 revenue in Q4
    medium materiality
    High
    Q3/Q4 2026 Adjusted EBITDA Pacing
    substantially all of remaining '26 adjusted EBITDA in Q4
    medium materiality
    High
    Project Gravity Long-term Value Capture
    $64 million to $70 million
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Grills
    Revenue decreased due to lower average selling prices, which more than offset growth in unit volume. This reflects a strategic shift to more accessible price points with Westwood and Irontop, and intentional actions under Project Gravity.
    		$62 million-17%——
    Consumables
    Revenue decreased driven by seasonal ordering shifts in wood pellets and a comparison against prior year new channel load-in for food consumables.
    		$33 million-10%——
    Accessories
    Revenue decreased largely driven by lower sales at MEATER.
    		$26 million-26%——

    Operational metrics

    25
    Total Revenues
    $120 million-17% YoY
    Q2 FY26

    Driven by MEATER softness, price elasticity, channel inventory normalization, and deliberate revenue trade-offs associated with Project Gravity.

    Gross Profit
    $47 millionvs $57 million in Q2 FY25
    Q2 FY26

    Decreased from prior year due to lower revenues.

    Gross Profit Margin
    39.5%up 30 bps YoY
    Q2 FY26

    Benefited from tariff refund and direct import sales, partially offset by product mix.

    Sales and Marketing Expenses
    $17 millionvs $25 million in Q2 FY25
    Q2 FY26

    Driven by a decrease in demand creation and employee-related expenses tied to Project Gravity actions.

    General and Administrative Expenses
    $22 millionvs $26 million in Q2 FY25
    Q2 FY26

    Decrease largely from lower employee expenses tied to Project Gravity actions.

    Net Loss
    $9 millionvs $7 million in Q2 FY25
    Q2 FY26

    Increased net loss compared to prior year.

    Net Loss Per Diluted Share
    $3.12vs $2.77 in Q2 FY25
    Q2 FY26

    Increased net loss per diluted share compared to prior year.

    Adjusted Net Income
    $1 millionvs adjusted net loss of $2 million in Q2 FY25
    Q2 FY26

    Improved from an adjusted net loss in the prior year period.

    Adjusted Net Income Per Diluted Share
    $0.53vs $0.73 loss in Q2 FY25
    Q2 FY26

    Improved from an adjusted net loss per diluted share in the prior year period.

    Adjusted EBITDA
    $17 millionvs $14 million in Q2 FY25
    Q2 FY26

    Increased despite lower revenue, reflecting benefits of Project Gravity actions, disciplined expense management, and focus on profitability.

    Cash and Cash Equivalents
    $60 millionvs $20 million at end of FY25
    Q2 FY26

    Increased cash balance compared to the end of the previous fiscal year.

    Total Debt
    $403 million
    Q2 FY26

    Total debt outstanding at quarter-end.

    Net Debt
    $344 million
    Q2 FY26

    Calculated as total debt minus cash and cash equivalents.

    Liquidity Position
    $188 millionslight increase from Q1
    Q2 FY26

    Healthy liquidity position at quarter-end.

    Revolver Capacity
    $82.5 millionreduced by $30 million from Q1
    Q2 FY26

    Credit facilities remain completely undrawn, providing additional flexibility.

    Inventory
    $76 millionvs $99 million at FY25 end, vs $116 million at Q2 FY25 end
    Q2 FY26

    Large reduction primarily driven by SKU rationalization, business simplification (Project Gravity), and lower MEATER inventory levels, reflecting improved working capital efficiency.

    Connected Cooks
    267,000+all-time high
    July 4th

    Reinforces strong consumer engagement with the Traeger ecosystem.

    Influencer Impressions
    more than doubledvs last year
    Q2 FY26

    Newer cohort of influencers helping reach new audiences for wood-fired cooking.

    New-to-Brand Customer Acquisition Rates
    encouraging improvements
    Q2 FY26

    Improvements seen at several key accounts through targeted media and joint marketing programs.

    Grill Sell-in Unit Volumes
    approximately flatYoY
    FY26

    Assumed in revenue outlook, indicating continued momentum in household penetration at lower average selling prices.

    Grill Replacement Cycle
    5 years
    Long-term

    Based on consumer research, expectation for when a Traeger Grill is replaced or upgraded. Gas Grills are closer to 7 years.

    Westwood and Irontop Sell-through
    exceeded expectations
    Q2 FY26

    Early results reinforce belief that these products meet consumer needs, expand addressable market, and create new pathways into the brand.

    MEATER Business Profitability Repositioning
    —
    FY26

    Repositioning MEATER to focus on profitability this year within the portfolio, taking costs out of the P&L and focusing on high ROI attached costs. Centralized operations from the U.K. to Salt Lake City for fixed cost synergies.

    Tariff Rate
    approximately 25%
    Current

    Current implied tariff rate, with some tariffs bleeding off and new ones coming into space, resulting in a forecasted rate approximately flat to prior forecasts.

    Grill Price Point Performance
    softness above $1,000, resilience below $1,000
    H2 FY26

    Continuing trend from the first half of the year, reflecting higher prices and consumer sentiment.

    Industry KPIs

    4
    MetricValueDetails
    Tariff refunds duties$16 millionUSD
    Tariff trade impact by segment$16 millionUSD
    Monthly active users engagement267,000+cooks
    Segment revenue operating income mixGrills: $62 million, Consumables: $33 million, Accessories: $26 millionUSD

    Product announcements

    2
    ProductTypeDetails
    Westwood Grill Platformlaunch
    Irontop Griddle Platformlaunch

    Deals & partnerships

    1
    Lowe'sNational distribution expansion for grills, griddles, accessories, and consumables.Long-term

    Initial load-in activity begins in Q4 FY26, with a full national launch planned for spring 2027. This broadens access to the brand, strengthens presence in underpenetrated markets, and creates a new platform for growth. It will require investments in enablement, fixtures, and pellet capacity.

    Risks & headwinds

    5
    MEATER business softnessNear-term (Q2 FY26 and beyond)

    Primary driver of revenue outlook reduction; promo performance below expectations.

    Mitigation: Repositioning MEATER to focus on profitability, taking costs out of P&L, centralizing operations to Salt Lake City for fixed cost synergies.

    Price elasticity and lower average selling prices (ASPs)Ongoing

    Grill revenues down 17% due to lower ASPs; demand increasingly shifting to more accessible price points.

    Mitigation: Expanding product offerings at accessible price points (Westwood, Irontop) to meet consumer demand and expand installed base; balancing elasticity at various price points to find optimal intersection of unit volume, revenue, and profit.

    Near-term channel impacts from distribution expansionNear-term (Q4 FY26 and beyond)

    Greater near-term revenue pressure and timing variability than originally contemplated, contributing to revised revenue outlook.

    Mitigation: Anticipated as part of transition; company views Lowe's expansion as a long-term growth opportunity that will allow greater investment in the brand across the marketplace, including existing partners. Focus on proving incremental distribution is additive.

    Macroeconomic environment and consumer sentimentOngoing

    Consumer sentiment soft over last 18 months; higher proportion of spending on necessities, smaller on discretionary. Higher price point grills (above $1,000) showing softness.

    Mitigation: Developing product line architecture to meet consumers at various price points (e.g., Westwood at $699-$799) and creating clear step-up stories; focusing on the resilience of the outdoor cooking category.

    Rising transportation and input costsOngoing

    Increased input costs regarding transportation.

    Mitigation: Reflected in outlook; gross margin benefits from IEEPA tariff refund and direct import sales help offset these pressures. Building product strategy and margin profile around new cost structure.

    What to watch in Q3 FY26

    5

    Lowe's Load-in Revenue Contribution

    Q4 FY26
    CurrentInitial load-in in Q4 FY26
    TargetQuantified revenue contribution from Lowe's

    Why it matters

    This will indicate the initial success and scale of the new national distribution partnership, impacting Q4 revenue and setting the stage for 2027 growth.

    As a result, we expect approximately 2/3 of our remaining '26 revenue and substantially all of our remaining adjusted EBITDA generation to occur in the fourth quarter, driven by initial Lowe's load-in activity and normalized seasonal demand patterns.

    Q&A highlights

    6

    Where are we in the broader grill cycle, and how much will the Lowe's load-in benefit revenue, especially for the core business ex-Lowe's? Also, how will Project Gravity's cost benefits sustain into 2027?

    The grill industry is roughly flat, with Traeger's sell-through in line. The replacement cycle, typically 5 years for Traeger, hasn't normalized post-pandemic due to price volatility. Lowe's expansion is a long-term strategic move, accretive and profitable, but with near-term timing and channel dynamics. Project Gravity's cost management allowed maintaining EBITDA guidance despite lower revenue, with $50M value capture in FY26 and a long-term target of $64M-$70M, ensuring profitable growth.

    “We're not giving specifics on the load-in amount per se. However, at the same time, it is meaningful. It is accretive. It is profitable. There is some load-in dynamics around timing and just overall channel dynamics that we're working through, which is why we're lowering guidance along with MEATER.”

    asked by Randal Konik · answered by Joey Hord

    2 min read6 chapters

    Detailed Narrative

    01

    Project Gravity and Business Transition

    2026 is a transition period for Traeger, focused on simplifying the business and building a stronger, more focused company through Project Gravity. This initiative aims to improve the operating model, create capacity for investment in key areas like brand strength and product innovation, and ultimately drive profitable growth in 2027 and beyond. The company is on track to deliver $50 million in value capture from Project Gravity in FY26.

    02

    Consumer Engagement and Brand Health

    Consumer engagement with the Traeger brand remains strong, evidenced by an all-time high of over 267,000 connected cooks on July 4th. The company is expanding its reach with new consumers through an influencer strategy that more than doubled impressions year-over-year. Retail partnerships are also seeing improvements in new-to-brand customer acquisition rates, indicating a healthy brand and growing installed base.

    03

    Product Strategy and Innovation

    Innovation remains central, with a focus on delivering compelling offerings across a broader range of accessible price points. The Westwood platform extends innovation into a more accessible grill, while Irontop expands relevance in griddle cooking. Both products have exceeded sell-through expectations and received high customer reviews, expanding the addressable market and creating new entry points for the Traeger brand.

    04

    National Distribution Expansion with Lowe's

    Traeger announced a significant national distribution expansion into Lowe's, with initial load-in activity beginning in Q4 FY26 and a full launch of grills, griddles, accessories, and consumables planned for spring 2027. This move is expected to broaden access to the brand, strengthen presence in underpenetrated markets, and serve as a powerful platform for household acquisition and long-term growth, despite anticipated near-term channel dynamics with existing partners.

    05

    Updated Guidance and Profitability Focus

    The company updated its full-year revenue outlook downwards due to greater softness in the MEATER business and increased near-term channel impacts from the Lowe's expansion. However, adjusted EBITDA guidance was maintained, and gross margin guidance was raised. This reflects disciplined expense management, profitability initiatives, and lower tariff costs, demonstrating the benefits of Project Gravity and a focus on profitable growth.

    06

    Balance Sheet and Liquidity

    Traeger generated $26 million in free cash flow in Q2, including a $16 million IEEPA tariff refund. Cash and cash equivalents totaled $60 million, and the company ended the quarter with a healthy liquidity position of $188 million, with credit facilities remaining undrawn. Inventory was significantly reduced to $76 million, reflecting SKU rationalization and improved working capital efficiency.

    AI-generated summary of the company’s earnings call. Not investment advice.