Solo Brands, Inc.

Second quarter consolidated net sales were $88.5 million, down 4.1% year over year. Gross margin was 59.9% versus 61.3% in the prior-year period. SG&A was $42.6 million, down 10.6%, and adjusted EBITDA was $13.5 million versus $10.5 million a year ago, a 28.6% increase and a 15.3% margin. Net loss attributable to Solo Brands was $4.4 million versus $13.5 million last year, while adjusted net income was $3.9 million versus essentially break-even. Management did not give formal next-quarter or full-year sales/EPS guidance on the call; it said growth capital is expected to be approximately $2 million to $3 million for the year, and it expects tighter SG&A on a run-rate basis until the 2025 actions anniversary next year.

John Larson framed the quarter as a mix of softer top-line results and clear progress on the business transformation. He highlighted new product launches, award-winning Solo Stove products, expanding retail and international channels, and a more disciplined operating model as the foundation for future growth. His tone was optimistic but measured, emphasizing that international expansion, product innovation, and channel mix improvement should drive the next phase of growth, even though he acknowledged sales softened in June and continued to trend softly through July.

Laura Coffey focused on the cost structure and cash profile. She noted the company recorded approximately $2.4 million of out-of-quarter IEEPA tariff refunds in gross margin, took a $1.4 million raw-material inventory write-off tied to the Mexico manufacturing shutdown, and reduced SG&A to $42.6 million. She said operating cash flow exceeded $36 million, the revolver was fully repaid, cash and cash equivalents ended at $35.4 million, and there are no material debt maturities until 2028; she also said the company plans to invest about $2 million to $3 million in growth capital this year.

In Q&A, Mitchell Sacks pressed for clarity on gross profit adjustments, and management explained that the main items were the tariff refund benefit and the Mexico inventory write-off, which largely offset each other. He also asked about international strategy and margin implications; John Larson said the company sees international as a meaningful underpenetrated opportunity, with new distributors in Europe, the U.K., Asia, India, and other markets, and said shipping directly into some markets can be favorable for gross margin because it avoids some U.S. tariff exposure. Management also said international results can be lumpy as new partners ramp.