Traeger, Inc.

First-quarter revenue declined 34% year over year to $94 million. Gross profit was $43 million versus $59 million in Q1 2025, and gross margin was 45.7%, up 420 basis points year over year; excluding the $12.4 million IEEPA tariff refund benefit, gross margin would have been 32.6%, down 890 basis points. Net income was $3 million, or $1.08 per diluted share, versus a net loss of $1 million, or $(0.30) per diluted share, last year; adjusted net income was $4 million, or $1.49 per diluted share, versus $7 million, or $2.54 per diluted share. Adjusted EBITDA was $17 million versus $23 million a year ago, including the $12.4 million tariff refund benefit. For the full year, Traeger reiterated revenue guidance of $465 million to $485 million, raised adjusted EBITDA guidance to $57 million to $67 million, increased gross margin guidance to 39.5% to 40.5%, and kept free cash flow guidance at greater than $30 million.

Jeremy Andrus framed the quarter around underlying demand, brand momentum, and new product launches rather than the reported revenue decline. He said sell-through is the clearest demand signal and noted it was slightly above expectations, with no sign yet of a broad macro-driven slowdown. His tone was cautiously optimistic, emphasizing Westwood and Irontop as important expansion points into lower price tiers and highlighting Project Gravity as a long-term discipline that should improve margins, cash generation, and operating leverage.

Joey Hord emphasized execution on Project Gravity, citing $15 million of year-over-year opex reduction, a 31% reduction in inventory, and $14.5 million of free cash flow in Q1. He explained that the quarter included a $12.4 million IEEPA tariff refund benefit to gross profit and adjusted EBITDA, a $3.2 million reduction in inventory carrying cost, and a $15.6 million receivable; excluding the refund, Q1 adjusted EBITDA would have been near the midpoint of guidance. He also reiterated that cash and cash equivalents were $34 million, total debt was $403 million, net debt was $370 million, and liquidity was $184 million, while saying the company does not expect to use its $112.5 million revolver this year.

Analysts focused on the tariff refund, fuel costs, sell-through trends, consumables demand, inventory, margin phasing, price tiers, and China diversification. Management said the expected IEEPA refund totals about $15.5 million overall, with roughly $1.5 million expected in FY26 beyond the $12.4 million booked in Q1, and cash timing is expected within 60 to 90 days. They also said higher fuel costs add about $1 million this year, consumables sell-through is tracking according to or above plan, inventory is at a healthy level, gross margin should trough in Q1 and rebound in Q2, and tariff-related sourcing diversification will continue but more strategically now that country tariff rates have moved closer together.