Traeger 2025 Q3 Earnings Beats Revenue Estimates Amid Wider Net Loss

Traeger (COOK) reported Q3 2025 earnings with a 2.7% revenue increase to $125.4 million, outperforming analyst expectations, but net losses widened significantly. The company reiterated FY2025 guidance despite a $74.7 million goodwill impairment charge driving a $89.8 million net loss.

Revenue

Traeger’s Q3 revenue grew 2.7% year-over-year, driven by stronger performance in grills and consumables. Grills revenue rose 2.2% to $76.6 million, supported by higher average selling prices, while consumables surged 12.3% to $25.3 million, fueled by robust wood pellet sales. Accessories revenue, however, declined 4.3% to $23.5 million, primarily due to reduced MEATER smart thermometer sales. North America remained the core market, with 2.1% growth, while Rest of World revenue expanded 9.9%.

Earnings/Net Income

Traeger’s losses deepened to $0.67 per share, a 346.7% increase in loss compared to 2024 Q3. The net loss of $89.8 million was driven by a $74.7 million goodwill impairment charge and restructuring costs, underscoring operational challenges despite revenue growth.

Post-Earnings Price Action Review

The strategy of buying Traeger shares following a revenue beat announcement has underperformed over three years, with a -25.2% return compared to -14.4% for the SPY ETF. While the stock initially rose 2.4% on the announcement, it fell 7.6% over the next 30 days, eroding gains. The prolonged underperformance suggests limited investor confidence in post-earnings recovery.

CEO Commentary

CEO Jeremy Andrus highlighted 2.7% revenue growth and 11.8% Adjusted EBITDA increase, crediting operational resilience. He emphasized Project Gravity’s $50 million annualized cost savings by 2026, calling it “transformational” for growth investments. Despite a $74.7 million goodwill impairment, Traeger reaffirmed FY2025 guidance, targeting $540–555 million in revenue and 40.5–41.5% gross margin.

Guidance

Traeger maintained FY2025 guidance for total revenue ($540–555 million), gross margin (40.5–41.5%), and Adjusted EBITDA ($66–73 million). The company excluded non-cash adjustments like impairment and restructuring costs, focusing on operational metrics. Project Gravity’s Phase 2 initiatives, including channel optimization and supply chain efficiencies, are expected to contribute $20 million in savings by 2026.

Additional News

Traeger’s $74.7 million goodwill impairment charge, tied to a 62.1% stock decline year-to-date, drew attention from analysts. Zacks Investment Research assigned a #4 Sell rating, citing unfavorable estimate revisions and industry weakness in the Consumer Products - Discretionary sector. Meanwhile, the company announced $50 million in cost savings through Project Gravity, including workforce reductions and operational centralization, as part of its FY2025 strategic priorities.