Traeger 2025 Q3 Earnings Beats Revenue Estimates Despite Widened Loss

Traeger (COOK) reported fiscal 2025 Q3 earnings on Nov 7, 2025, with revenue rising 2.7% year-over-year to $125.4 million, surpassing the Zacks Consensus Estimate by 11.39%. However, the company’s net loss deepened to $89.8 million, or $0.67 per share, compared to a $19.8 million loss in 2024 Q3. The CEO reiterated confidence in FY25 guidance while highlighting cost-cutting initiatives under Project Gravity.

Revenue

Traeger’s total revenue increased by 2.7% year-over-year to $125.4 million in Q3 2025, driven by higher sales of grills and consumables. Grills revenue rose 2.2% to $76.6 million, bolstered by a 2.3% increase in average selling price, despite a reduction in unit volume. Consumables revenue surged 12.3% to $25.3 million, fueled by strong demand for wood pellets. Conversely, accessories revenue declined 4.3% to $23.5 million, primarily due to lower sales of MEATER smart thermometers. North America remained the largest market, with a 2.1% year-over-year revenue increase, while Rest of World markets grew 9.9%.

Earnings/Net Income

Traeger’s net loss widened to $89.8 million, or $0.67 per share, in Q3 2025, a 353.9% increase from the $19.8 million, or $0.15 per share, loss in the prior-year period. Adjusted net loss was $22.3 million, or $0.17 per share, compared to $7.4 million, or $0.06 per share, in 2024 Q3. The significant loss was driven by a $74.7 million goodwill impairment charge and restructuring costs. The EPS performance, while reflecting operational challenges, underscored the company’s need to address profitability amid macroeconomic pressures.

Post-Earnings Price Action Review

The strategy of buying Traeger shares on the date of its revenue raise and holding for 30 days yielded mixed results over the past three years. In Q3 2025, the stock price surged 11.45% following the revenue beat, suggesting positive short-term momentum. However, historical quarters like Q3 2023 and 2024 saw potential losses due to declining stock prices post-earnings. Over three years, Traeger’s stock exhibited volatility, with a 15.3% decline over the past month versus the S&P 500’s +1%. This volatility highlights the risks of post-earnings strategies, as market conditions and company fundamentals can significantly impact outcomes.

CEO Commentary

CEO Jeremy Andrus emphasized Traeger’s ability to navigate a dynamic macroeconomic environment, reiterating FY25 guidance for revenue of $540–$555 million and gross margins of 40.5%–41.5%. He highlighted Project Gravity’s progress, including $50 million in annualized cost savings from Phase 2 initiatives, such as pellet mill consolidation and channel optimization. Andrus noted that the goodwill impairment charge was non-cash and would not affect liquidity, reiterating confidence in long-term growth pillars like household penetration and product innovation.

Guidance

Traeger reaffirmed FY25 revenue guidance of $540–$555 million, with gross margin targets of 40.5%–41.5% and Adjusted EBITDA of $66–$73 million. The company also outlined $50 million in total annualized cost savings from Project Gravity by 2026, including $30 million from Phase 1 and $20 million from Phase 2. These savings are expected to strengthen operational efficiency and support future investments in growth initiatives.

Additional News

Traeger announced $50 million in annualized cost savings under Project Gravity, including pellet mill consolidation and a shift to a distributor model in European markets. The CEO highlighted these measures as “transformational” to the business. Additionally, the company reported a $74.7 million goodwill impairment charge due to a sustained decline in stock price and market capitalization. Traeger also outlined plans to exit the direct-to-consumer business by redirecting Traeger.com traffic to retail partners and discontinuing the Costco roadshow program. These strategic shifts aim to streamline operations and improve profitability amid competitive pressures.