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Introduction & Market Context
Traeger Inc (NYSE:COOK) revealed significant revenue and profitability challenges in its second quarter 2025 investor presentation, as the outdoor cooking company grapples with the impact of tariffs on its predominantly China-based manufacturing operations. The company’s stock closed at $1.65 on August 6, 2025, up 4.85% from the previous close, but still trading near its 52-week low of $1.28 and well below its 52-week high of $3.97.
The presentation highlights Traeger’s efforts to mitigate tariff impacts through a comprehensive cost-cutting initiative while maintaining its full-year guidance despite the headwinds. This follows a first quarter where the company exceeded EPS expectations but showed early signs of revenue pressure.
Quarterly Performance Highlights
Traeger reported total revenue of $145 million for Q2 2025, representing a 13.6% decline compared to $168 million in the same period last year. The revenue mix consisted of 51% from grills, 25% from consumables, and 24% from accessories.
As shown in the following chart of quarterly revenue results:
The most significant decline came from the company’s core grill segment, which fell 21.9% year-over-year to $74 million from $95 million in Q2 2024. Accessories revenue also decreased by 11.9% to $35 million. The consumables category was the only bright spot, growing 7.5% to $36 million from $34 million in the prior year period.
Profitability metrics showed similar downward trends across the board, as illustrated in this chart:
Gross profit decreased to $57 million from $72 million in Q2 2024, with gross margin contracting to 39.2% from 42.9%. Adjusted EBITDA fell to $14 million from $27 million, resulting in an Adjusted EBITDA margin of 9.8% compared to 15.9% in the prior year. The company reported an Adjusted Net Loss of $2 million, down from a profit of $7 million in Q2 2024.
The following slide provides a comprehensive overview of the quarter’s performance:
Strategic Initiatives
CEO Jeremy Andrus highlighted the significant impact of tariffs on the company’s performance while emphasizing mitigation efforts. "We expect to offset approximately 80% of the $60 million unmitigated tariff exposure," Andrus stated in the presentation.
The company’s tariff mitigation strategy encompasses multiple areas:
A centerpiece of Traeger’s response to current challenges is "Project Gravity," a comprehensive cost-cutting initiative designed to streamline operations and improve profitability:
Phase 1 of Project Gravity includes a reduction in workforce implemented in Q2 2025, centralizing MEATER’s business into Traeger’s Salt Lake City infrastructure, and closing MEATER’s UK office. This phase is expected to yield approximately $30 million in annualized cost savings, with up to $13 million to be realized in fiscal year 2025. Phase 2 will involve additional efficiency initiatives, with savings targets yet to be determined.
Despite the challenges, Traeger continues to pursue its growth strategy across four key pillars:
The company reported progress in brand awareness through social media growth and partnerships with major brands like Budweiser/Bud Light and Pepsi/Frito Lay. Product innovation included the launch of Meat Church pellets and Flatrock Two Zone products, while international expansion showed strong results in Canada.
Forward-Looking Statements
Despite the Q2 challenges, Traeger maintained its full-year fiscal 2025 guidance:
The company expects total revenue between $540 million and $555 million, gross margin between 40.5% and 41.5%, and Adjusted EBITDA between $66 million and $73 million. These projections assume declining grill revenues, increased consumables revenues, and declining accessories revenues for the remainder of the year.
From a balance sheet perspective, Traeger reported quarter-end liquidity of $180 million, slightly improved from $175 million in Q2 2024. Net debt stood at $402 million, down from $409 million in the prior year period. The company also secured an amendment to its Revolving Credit Facility, extending the maturity date of an $82.5 million tranche.
The guidance represents a shift from the company’s position after Q1 2025, when it had withdrawn financial guidance to focus on tariff mitigation strategies. The reinstated guidance suggests management has gained more visibility into the impact of tariffs and the effectiveness of its mitigation efforts.
As Traeger navigates these challenges, the success of Project Gravity and the company’s ability to offset tariff impacts will be critical factors for investors to monitor in the coming quarters.
Full presentation:
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