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Dec 31, 2025
Traeger Q4 2025 Earnings Report
Traeger reported a decrease in Q4 revenue but improved Adjusted EBITDA as it navigated tariff pressures and implemented its Project Gravity cost-saving initiative.
Key Takeaways
Traeger's Q4 2025 results were characterized by a 13.8% revenue decline driven by high-end grill sales volume and pricing shifts, though the company managed to grow Adjusted EBITDA by 5.5% year-over-year. The company is heavily focused on its 'Project Gravity' restructuring, which is expected to yield up to $70 million in annualized savings. Despite beating the high end of their full-year revenue guidance, the company faces headwinds from tariffs and is forecasting a significant revenue decline for the upcoming fiscal year 2026.
Q4 revenue fell 13.8% to $145.4 million, impacted by lower grill and accessory sales, though consumables saw 15.8% growth.
Adjusted EBITDA increased to $19.4 million despite lower revenues, reflecting cost discipline under the Project Gravity initiative.
The company identified additional Phase 2 savings for Project Gravity, raising total expected annualized savings to $64M-$70M.
Fiscal Year 2026 guidance suggests a cautious outlook with expected revenue between $465M-$485M, excluding potential impacts from new tariffs.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Traeger expects a challenging fiscal year 2026 with declining revenues and Adjusted EBITDA compared to 2025, though they aim for positive free cash flow.
Positive Outlook
- Expected positive Free Cash Flow of at least $30 million.
- Identified higher annualized savings from Project Gravity of up to $70 million.
- Focus on SKU rationalization and strategic pricing to improve long-term margins.
- Continued investment in product innovation and brand.
- Progress in inventory alignment and cost discipline.
Challenges Ahead
- Full year revenue guidance of $465M-$485M is significantly lower than FY25 revenue.
- Guidance does not reflect potential impact of proposed or recently implemented tariffs.
- Expected Adjusted EBITDA for FY26 is down to $50M-$60M from $70M in FY25.
- Gross margin expected to remain under pressure in the 38%-39% range.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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