"The third quarter was challenging, reflecting continued pressure on consumer demand while we rebuild retail relationships and work through excess retailer inventory primarily within our Solo Stove division." said John Larson, President and Chief Executive Officer. "We maintained stable gross margins and generated $11 million in operating cash flow, our second consecutive quarter of positive cash generation, demonstrating the impact of stronger cost discipline and improved working capital management.
"We recognize that we have work to do on the top line. While recent product launches are gaining momentum, current performance underscores the need to further accelerate structural cost reductions to align our operating model with demand. SG&A was reduced by 35.4% versus the same quarter last year, reflecting our ongoing commitment to drive efficiency and preserve cash.
"On a positive note, the initial response to the Summit 24" and Infinity Flame firepits has been quite favorable and has improved our year-over-year sales trends in October, which is encouraging as we head into the all-important holiday season.
"Our focus remains clear: to stabilize the business, strengthen our balance sheet, and position Solo Brands for sustainable, profitable growth over time," concluded Larson.
Consolidated Third Quarter 2025 Highlights Compared to Third Quarter 2024
Net sales of $53.0 million decreased 43.7% from $94.1 million, reflecting lower sales in the Solo Stove segment as retail partners reduced excess inventory and the Company reset promotional activity across retail and direct-to-consumer ("DTC") channels. The Chubbies segment DTC channel net sales ("DTC sales") were relatively flat, while the retail channel net sales ("retail sales", "retail sales channel") declined from the prior year period.
Gross profit of $31.8 million, or 60.0% of net sales, decreased by 19.0% compared to the prior year period. Adjusted gross profit(3) of $32.2 million, or 60.6% of net sales, decreased by 44.9% versus the prior year period as a result of the impact of the inventory write-down related to IcyBreeze in 2024.
Operating expenses were $48.0 million, down 68.9%, primarily the result of reductions of $81.7 million in year-over-year restructuring, contract termination and impairment charges, and the remainder driven by lower marketing and distribution costs across both segments. Distribution costs declined due to lower sales volume, while marketing decreased through more efficient spend deployment.
Net loss of $22.9 million, or $9.22 diluted loss per share of Class A common stock(4), improved over the net loss of $111.5 million, or $47.72 diluted loss per share of Class A common stock(4) from the prior year period. Adjusted net loss(3)(4) of $11.9 million, or $4.33 adjusted diluted loss per share of Class A common stock(3)(4), declined from adjusted net income(3) of $1.4 million, or $0.73 adjusted diluted income per share of Class A common stock(3)(4) from the prior year period.
Adjusted EBITDA(3) of $(5.1) million, compared to $6.5 million in the prior year period.
Segment Third Quarter 2025 Highlights Compared to Third Quarter 2024(2)
Solo Stove
Net sales of $30.8 million declined 48.1%, reflecting lower sales as retail partners reduced excess inventory and the Company reset promotional activity across retail and DTC channels.
Segment EBITDA of $1.4 million, or 4.4% of net sales, declined from $14.6 million, or 24.6% of net sales, in the prior year period, reflecting the implementation of strategic initiatives and operating de-leverage associated with lower sales.
Chubbies
Net sales of $16.5 million decreased 16.0%, as retail channel replenishments occurred earlier in 2025 versus the prior year. DTC sales were essentially flat year over year, supported by sustained consumer demand.
Segment EBITDA of $(1.2) million, or (7.5)% of net sales, declined from $(0.5) million, or (2.4)% of net sales, in the prior year period.
Consolidated Nine Months Ended September 30, 2025 Highlights Compared to Nine Months Ended September 30, 2024
Net sales decreased to $222.5 million, down 28.4%, driven by declines in both retail and DTC sales within the Solo Stove segment, partially offset by sales momentum in retail and DTC channels for the Chubbies segment.
Gross profit of $131.1 million, or 58.9% of net sales, decreased by 24.0% versus a year ago. Adjusted gross profit(3) of $131.9 million, or 59.3% of net sales, decreased by 31.6% versus the prior year as a result of the impact of the inventory write-down related to IcyBreeze in 2024.
Operating expenses decreased to $167.7 million, down 42.5%, primarily the result of reductions of $65.6 million in expenditures related to restructuring, contract termination and impairment charges, and the remainder driven by lower marketing spend and volume as described above.
Net loss of $62.3 million, or $26.59 diluted loss per share of Class A common stock(4), decreased from $122.0 million, or $52.38 diluted loss per share of Class A common stock(4) from the prior year. Adjusted net loss(3)(4) was $17.1 million, or $7.71 diluted loss per share of Class A common stock(3)(4), compared to adjusted net income(3)(4) of $5.2 million, or $3.53 diluted income per share of Class A common stock(3)(4) in the prior year period.
Adjusted EBITDA(3) of $8.9 million, declined from $26.2 million in the prior year period.
Segment Nine Months Ended September 30, 2025 Highlights Compared to Nine Months Ended September 30, 2024
Solo Stove
Net sales decreased to $95.2 million, down 47.5%, reflecting lower sales as retail partners reduced excess inventory and the Company reset promotional activity across retail and DTC channels.
Segment EBITDA of $3.3 million, or 3.4% of net sales, declined from $37.0 million, or 20.4% of net sales, in the prior year period, reflecting the implementation of strategic initiatives and operating de-leverage associated with lower sales.
Chubbies
Net sales increased $15.1 million to $103.6 million, up 17.0%, driven by strong growth through retail strategic partnerships, coupled with solid demand within the DTC sales channel.
Segment EBITDA of $21.5 million, or 20.8% of net sales, improved from $12.2 million, or 13.8% of net sales, in the prior year period due to the sustained net sales growth and more efficient marketing spend as the strategic retail network is increasingly leveraged.
Consolidated Balance Sheet
Cash and cash equivalents were $16.3 million as of September 30, 2025 compared to $12.0 million at December 31, 2024.
Inventory was $84.8 million as of September 30, 2025 compared to $108.6 million at December 31, 2024, as a result of the reduction in inventory balances to meet DTC and retail channel demand and optimize our supply chain to mitigate tariff impacts.
Outstanding borrowings(5) were $247.1 million, net of interest paid-in-kind, under the 2025 Term Loan (as defined herein) as of September 30, 2025, with no outstanding balance under the 2025 Revolving Credit Facility (as defined herein) for the same period. As of September 30, 2025, availability for future draws on the 2025 Revolving Credit Facility based on the borrowing base as of such date was $60.6 million, net of issued letters of credit.
(1) On July 14, 2025, we issued a press release announcing the NYSE's decision to lift the trading suspension of the Company's Class A common stock on the NYSE. In connection with the resumption of trading of our Class A common stock on the NYSE, we announced our ticker symbol change to "SBDS" from "DTC" effective July 24, 2025. Our Class A common stock continues to be listed on the NYSE.(2) During the fourth quarter of 2024, we changed the presentation of our reportable segments, with Solo Stove and Chubbies being presented as our reportable segments. Prior periods are presented on this new basis for comparability purposes.(3) This press release includes references to non-GAAP financial measures. Refer to "Non-GAAP Financial Measures" later in this press release for the definitions of the non-GAAP financial measures presented and a reconciliation of these measures to their closest comparable GAAP measures.(4) This press release reflects the impacts of the 1-for-40 reverse stock split (the "Reverse Stock Split") of our Class A common stock, par value $0.001 per share, and Class B common stock, par value $0.001 per share (together, the "Common Stock"). See our Quarterly Report on Form 10-Q for the period ended June 30, 2025 ("Q2 2025 Form 10-Q") for additional information.(5) On June 13, 2025, the Company entered into an amendment (the "2025 Refinancing Amendment") to its existing credit agreement, which provided for (i) the refinancing of its existing term loans, with an aggregate principal amount of $240.0 million ("2025 Term Loan") and (ii) a revolving credit facility with an initial committed amount of $90.0 million ("2025 Revolving Credit Facility"). The 2025 Revolving Credit Facility includes (i) a sub-limit of $10.0 million for swing line loans and (ii) a separate sub-limit of $20.0 million for the issuance of letters of credit. See our Q2 2025 Form 10-Q for additional details regarding the 2025 Refinancing Amendment. As a result of entering into the 2025 Refinancing Amendment, the substantial doubt about the Company's ability to continue as a going concern was eliminated as of the filing of its Q2 2025 Form 10-Q.
Conference Call Details
A conference call to discuss the Company's third quarter 2025 results is scheduled for November 6, 2025, at 9:00 a.m. ET. Investors and analysts who wish to participate in the call are invited to dial 1-866-652-5200 (international callers, please dial 1-412-317-6060) approximately 10 minutes prior to the start of the call. A live webcast of the conference call will be available in the investor relations section of SBDS's website, https://investors.solobrands.com, where accompanying materials will be posted prior to the conference call.
A recorded replay of the call will be available shortly after the conclusion of the call and remain available until November 13, 2025. To access the telephone replay, dial 1-877-344-7259 (international callers, please dial 1-412-317-0088). The access code for the replay is 6658843. A replay of the webcast will also be available within two hours of the conclusion of the call and will remain available on the website, https://investors.solobrands.com, for one year.
About Solo Brands, Inc.
Solo Brands, headquartered in Grapevine, TX, is a leading omnichannel lifestyle brand company. Leveraging e-commerce, strategic retail relationships and physical retail stores, Solo Brands offers innovative products to consumers through five lifestyle brands, Solo Stove and TerraFlame, known for firepits, stoves, and accessories; Chubbies, a premium casual apparel and activewear brand; ISLE, maker of inflatable and hard paddle boards and accessories; and Oru Kayak, innovator of origami folding kayaks.
Contacts:Mark Anderson, Senior Director of Treasury & Investor
Three Part Advisors, LLCSandy Martin: 214-616-2207Steven Hooser: 214-872-2710
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our future financial position, turnaround efforts, including rebuilding retail relationships, strategic transformation goals, cost efficiency initiatives, future growth and brand investments, and shareholder value, our future ability to continue as a going concern, our liquidity, the expected benefits of operational improvements and restructuring efforts, restocking trends, continued momentum with our product launches, including our Summit 24 and Infinity Flame firepits, and seasonal trends. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "guidance," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. These statements are neither promises nor guarantees, and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: our future ability to continue as a going concern; our ability to realize expected benefits from our strategic plans; our ability to implement any restructuring and cost-reduction efforts; our limited liquidity; our ability to mitigate the impact of new and increased tariffs and similar restrictions on our business; our reliance on third-party manufacturers, which operate mostly outside of the U.S., and problems with, or the loss of, our suppliers or an inability to obtain raw materials; our dependence on cash generated from operations to support our business and our growth initiatives; our continued ability to comply with the listing standards of the NYSE; the effects of the reverse stock split effected in July 2025 on the trading of our Class A common stock; risks associated with fluctuations in the price of our Class A common stock; risks associated with our indebtedness, including the limits imposed by our indebtedness to invest in the ongoing needs of our business; our ability to maintain and strengthen our brand to generate and maintain ongoing demand for our products; our ability to design, develop and introduce new products; our ability to manage our future growth effectively; our ability to expand into additional markets; risks associated with our international operations; our inability to sustain historic growth rates; our ability to cost-effectively attract new customers and retain our existing customers; the highly competitive market in which we operate; our failure to maintain product quality and product performance at an acceptable cost; the impact of product liability and warranty claims and product recalls, including write-offs; geopolitical actions, natural disasters, or pandemics; the ability of our largest stockholders to influence corporate matters. These and other important factors discussed under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, and any subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, or other filings we make with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Forward-looking statements speak only as of the date the statements are made and are based on information available to Solo Brands at the time those statements are made and/or management's good faith belief as of that time with respect to future events. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Availability of Information on Solo Brands' Website and Social Media Profiles
Investors and others should note that Solo Brands routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Solo Brands investors website at https://investors.solobrands.com. We also intend to use the social media profiles listed below as a means of disclosing information about us to our customers, investors and the public. While not all of the information that the Company posts to the Solo Brands investors website or to social media profiles is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Solo Brands to review the information that it shares at the "Investors" link located at the top of the page on https://solobrands.com and to regularly follow our social media profiles. Users may automatically receive email alerts and other information about Solo Brands when enrolling an email address by visiting "Investor Email Alerts" in the "Resources" section of Solo Brands investor website at https://investors.solobrands.com.
Social Media Profiles:https://linkedin.com/company/solo-brands/https://instagram.com/solobrands/https://www.facebook.com/groups/368095467245044/
SOLO BRANDS, INC.Consolidated Statements of Operations and Comprehensive Income (Loss)(Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
(In thousands, except per share data)
2025
2024
2025
2024
Net sales
$
53,038
$
94,139
$
222,547
$
311,013
Cost of goods sold
21,192
54,820
91,497
138,513
Gross profit
31,846
39,319
131,050
172,500
Operating expenses
Selling, general & administrative expenses
39,495
61,119
126,171
180,337
Depreciation and amortization expenses
5,824
6,574
19,107
19,255
Restructuring, contract termination and impairment charges
1,940
83,618
18,030
83,618
Other operating expenses
764
3,294
4,397
8,688
Total operating expenses
48,023
154,605
167,705
291,898
Income (loss) from operations
(16,177
)
(115,286
)
(36,655
)
(119,398
)
Non-operating (income) expense
Interest expense, net
7,556
3,683
19,115
10,352
Other non-operating (income) expense
(255
)
(619
)
2,432
(378
)
Total non-operating (income) expense
7,301
3,064
21,547
9,974
Income (loss) before income taxes
(23,478
)
(118,350
)
(58,202
)
(129,372
)
Income tax expense (benefit)
(552
)
(6,897
)
4,068
(7,398
)
Net income (loss)
(22,926
)
(111,453
)
(62,270
)
(121,974
)
Less: net income (loss) attributable to noncontrolling interests
(7,900
)
(41,589
)
(21,584
)
(45,597
)
Net income (loss) attributable to Solo Brands, Inc.
$
(15,026
)
$
(69,864
)
$
(40,686
)
$
(76,377
)
Other comprehensive income (loss)
Foreign currency translation, net of tax
$
7
$
82
188
6
Comprehensive income (loss)
(22,919
)
(111,371
)
(62,082
)
(121,968
)
Less: other comprehensive income (loss) attributable to noncontrolling interests
(7
)
(24
)
57
3
Less: net income (loss) attributable to noncontrolling interests
(7,900
)
(41,589
)
(21,584
)
(45,597
)
Comprehensive income (loss) attributable to Solo Brands, Inc.
$
(15,012
)
$
(69,758
)
$
(40,555
)
$
(76,374
)
Net income (loss) per Class A common stock
Basic and diluted
$
(9.22
)
$
(47.72
)
$
(26.59
)
$
(52.38
)
Weighted-average Class A common stock outstanding
Basic and diluted
1,629
1,464
1,530
