Traeger (COOK) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue declined 34.3% year-over-year to $94.1 million, driven by lower grill, accessory, and consumable sales, but early peak season demand and brand engagement were strong.

• Project Gravity delivered significant cost reductions, operational simplification, and restructuring, supporting improved profitability and enabling further brand and innovation investment.

• Product innovation included the launch of Westwood grills and Irontop griddles, targeting accessible price points and expanding household reach.

• Net income improved to $2.9 million from a net loss of $0.8–$1 million in Q1 2025, aided by cost actions and a one-time employee retention tax credit.

• Raised adjusted EBITDA and gross margin outlook for the year, reiterating revenue guidance.

Financial highlights

• Q1 revenue was $94.1 million, down from $143 million in Q1 2025.

• Gross profit was $43 million, down from $59–$59.5 million; gross margin improved to 45.7% (including a $12.4 million IEEPA tariff refund), or 32.6% excluding the refund.

• Adjusted EBITDA was $17.3 million (18.4% margin), including the $12.4 million tariff refund benefit.

• Free cash flow was $14.5 million, supported by working capital improvements and an $11.6 million employee retention credit.

• Cash and equivalents were $33.7–$34 million; total debt was $403 million, with net debt at $370 million.

Outlook and guidance

• Full-year 2026 revenue guidance reiterated at $465–$485 million.

• Adjusted EBITDA guidance raised to $57–$67 million, reflecting Project Gravity and IEEPA tariff refund benefits.

• Gross margin outlook increased to 39.5%–40.5% for the year.

• Free cash flow guidance remains at greater than $30 million, excluding the tariff refund, which is expected to convert to cash within 60–90 days.

• Guidance incorporates continued macro headwinds, MEATER competitive pressure, and transportation cost increases.