Traeger 2025 Q2 Earnings Deeper Losses Amid Revenue Decline

Traeger (COOK) reported its fiscal 2025 Q2 earnings on August 8, 2025. The results fell short of expectations, with revenue and profits declining. The company maintained its full-year guidance, though with a focus on cost discipline and margin improvement amid ongoing headwinds.

Revenue

Total revenue for Traeger declined by 13.6% year-over-year to $145.48 million in Q2 2025, following a challenging market environment. Grills, the core product line, generated $74.18 million in revenue, while the Consumables segment brought in $36.36 million. Accessories contributed $34.94 million, rounding out the revenue mix. Despite the broad-based decline, the company continues to maintain a diversified product portfolio across its key categories.

Earnings/Net Income

Traeger’s earnings deteriorated sharply in Q2 2025, with the company reporting a net loss of $7.38 million, a 186.4% increase in losses compared to the $2.58 million loss in the same period in 2024. On a per-share basis, the loss widened to $0.06 from $0.02, marking a 200.0% deterioration in earnings performance. These results highlight the ongoing pressure on profitability amid macroeconomic and operational challenges.

Price Action

Traeger’s stock has shown mixed performance in the short term, with a modest 0.72% gain during the latest trading day. However, the stock has lost 13.58% over the most recent full trading week and has plummeted 28.21% month-to-date, reflecting investor concerns over the earnings report and broader market dynamics.

Post-Earnings Price Action Review

The stock's performance following the earnings report has been severely negative. A strategy of buying Traeger shares after earnings beat and selling after 30 days yielded a return of -93.65%, significantly underperforming the benchmark return of 39.38%. This led to an excess return of -133.03%, with a compound annual growth rate of -51.84%. The high maximum drawdown of 72.15% and a Sharpe ratio of -0.72 underscore the high volatility and unattractive risk-reward profile during this period.

CEO Commentary

CEO Brady Kramer emphasized Traeger’s resilience despite macroeconomic challenges, noting the company’s ability to navigate inflation and supply chain pressures while maintaining its position in the outdoor living market. He expressed confidence in the brand’s leadership in the pellet grill category and highlighted strategic investments in innovation and customer experience to drive long-term value.

Guidance

Traeger expects full-year 2025 revenue to range between $600 million and $620 million, with a focus on gross margin improvement. The company anticipates capital expenditures to remain within $25 million for the year, supporting long-term operational efficiency. While Q2 results showed a non-GAAP loss of $0.06 per share, management expects earnings per share to improve in the second half of the year through disciplined cost management and strategic innovation.

Additional News

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