Solo Brands, Inc. Announces Second Quarter 2025 Results
GRAPEVINE, Texas, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Solo Brands, Inc. (NYSE:SBDS)(1) ("Solo Brands" or "the Company") a leading portfolio of lifestyle brands (Solo Stove, Chubbies, Isle and Oru) that are redefining the outdoor and apparel industries, today announced its financial results for the three and six months ended June 30, 2025.
"For the second quarter, we are pleased to mark significant milestones, including our debt refinancing, removal of the going concern disclaimer and reinstatement of the trading of our Class A common stock, trading under a new ticker symbol SBDS, on the NYSE. In addition, we are making meaningful strides in our transformation toward a more disciplined, structurally smaller, profit-driven business model," said John Larson, President and Chief Executive Officer. "We are facing expected top-line headwinds in the Solo Stove segment as we work through excessive inventory at our retailers, move away from a highly promotional model and work to re-establish our position with key retail partners. At the same time, we are encouraged by early indicators that our deliberate actions are working to drive more efficiency in our business. Chubbies delivered another very solid quarter with sales up 13.1% and Segment EBITDA up 48.3% in Q2 due to significant operating leverage and efficiency gains. Our teams remain energized and aligned around our strategy, and we're seeing progress through tighter expense control, structural cost reductions, and consolidated double-digit Adjusted EBITDA margins. Importantly, we generated nearly $11 million in operating cash flow during the quarter, highlighting our sharpened focus on cash generation and operational discipline. As we continue to reshape Solo Brands into a more resilient and focused company, we continue to invest in our future with innovative new products to drive growth and generate long-term shareholder value. We remain confident that our lifestyle brands are well-positioned to continue to resonate with consumers who value authentic experiences and community."
Consolidated Second Quarter 2025 Highlights Compared to Second Quarter 2024
Net sales of $92.3 million declined 29.9% from $131.6 million. The decline was primarily within the Solo Stove segment direct-to-consumer ("DTC") channel. The DTC channel net sales ("DTC sales") and retail channel net sales ("retail sales", "retail sales channel") increased in the Chubbies segment.
Gross profit of $56.6 million, or 61.3% of net sales, decreased by 150 basis points compared to the prior year period. Adjusted gross profit(3) of $56.9 million, or 61.7% of net sales, decreased by 190 basis points versus the prior year period.
Operating expenses decreased $14.0 million to $66.4 million, down 17.4%, primarily driven by decreases in marketing spend and distribution costs within the Solo Stove segment, partially offset by a $10.3 million expenditure related to restructuring, contract termination and impairment charges in support of operational improvement.
Net loss of $20.8 million, 22.5% of net sales, or $8.93 per basic and diluted share of Class A common stock(4), increased from net loss of $4.0 million, 3.1% of net sales, or $2.14 per basic and diluted share of Class A common stock(4) from the prior year period. Adjusted net income(3)(4) of $1.0 million, or $0.02 adjusted income per basic and diluted share of Class A common stock(3)(4), also declined from adjusted net income(3) of $6.0 million, or $1.59 adjusted income per basic and diluted share of Class A common stock(3)(4) from the prior year period.
Adjusted EBITDA(3) of $10.5 million, or 11.4% of net sales, compared to $15.5 million, or 11.7% of net sales from the prior year period.
Segment Second Quarter 2025 Highlights Compared to Second Quarter 2024(2)
Solo Stove
Net sales of $38.3 million declined 45.8%, driven primarily by declines in DTC sales, due to prioritizing pricing integrity with our retail partners over significant promotional activity.
Segment EBITDA of $3.4 million, or 8.9% of net sales, declined from $14.8 million, or 20.9% of net sales, in the prior year period.
Chubbies
Net sales of $44.5 million increased 13.1%, driven by strong performance within the retail sales channel from continued growth in the strategic retail network and sustained solid demand in DTC sales.
Segment EBITDA of $11.5 million, or 25.8% of net sales, improved from $7.7 million, or 19.7% of net sales, in the prior year period due to the growth in net sales and more efficient marketing spend.
Consolidated Six Months Ended June 30, 2025 Highlights Compared to Six Months Ended June 30, 2024
Net sales decreased $47.4 million to $169.5 million, down 21.8%, driven by declines in both retail and DTC sales within the Solo Stove segment, partially offset by strong sales results in retail and DTC for the Chubbies segment.
Gross profit of $99.2 million, or 58.5% of net sales, decreased by 290 basis points versus a year ago. Adjusted gross profit(3) of $99.7 million, or 58.8% of net sales, decreased by 320 basis points versus the prior year.
Operating expenses decreased $17.6 million to $119.7 million, down 12.8%, primarily driven by the decrease in selling, general and administrative expenses, the result of a reduction in distribution and marketing expenses in line with the decline in DTC sales, offset in part by a $16.1 million expenditure related to restructuring, contract termination and impairment charges.
Net loss of $39.3 million, or 23.2% of net sales and $17.06 loss per basic and diluted share of Class A common stock(4), increased from $10.5 million, or 4.9% of net sales, in the prior year. Adjusted net loss(3)(4) of $5.2 million, or $3.15 loss per basic and diluted share of Class A common stock(3)(4), declined from the prior year.
Adjusted EBITDA(3) of $14.0 million, or 8.3% of net sales, declined from $19.7 million, or 9.1% of net sales, in the prior year period.
Segment Six Months Ended June 30, 2025 Highlights Compared to Six Months Ended June 30, 2024
Solo Stove
Net sales decreased $57.7 million to $64.4 million, down 47.3%, driven primarily by declines in DTC sales, due to prioritizing pricing integrity with our retail partners over significant promotional activity.
Segment EBITDA of $1.9 million, or 3.0% of net sales, declined from $22.4 million, or 18.4% of net sales, in the prior year period.
Chubbies
Net sales increased $18.2 million to $87.1 million, up 26.4%, driven by strong performance within the retail sales channel as a result of continued growth within our retail strategic partnerships, coupled with continued solid demand within the DTC sales channel.
Segment EBITDA of $22.8 million, or 26.1% of net sales, improved from $12.7 million, or 18.4% of net sales, in the prior year period due to the strong net sales growth and more efficient marketing spend as the strategic retail network is increasingly leveraged.
Consolidated Balance Sheet
Cash and cash equivalents were $18.1 million as of June 30, 2025 compared to $12.0 million at December 31, 2024.
Inventory was $84.1 million as of June 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 were $10.0 million under the 2025 Revolving Credit Facility (as defined herein), and $241.2 million, net of interest paid-in-kind, under the 2025 Term Loan (as defined herein) as of June 30, 2025. As of June 30, 2025, availability for future draws on the 2025 Revolving Credit Facility based on the borrowing base as of such date was $63.8 million, net of issued letters of credit.
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 accompanying Quarterly Report on Form 10-Q for the period ended June 30, 2025 ("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 has been eliminated as of the filing of its Q2 2025 Form 10-Q.
(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 the Q2 2025 Form 10-Q for additional information.
Conference Call Details
A conference call to discuss the Company's second quarter 2025 results are scheduled for August 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 August 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 6320911. 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, 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, 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 June 30,
Six Months Ended June 30,
(In thousands, except per share data)
2025
2024
2025
2024
Net sales
$
92,257
$
131,550
$
169,509
$
216,874
Cost of goods sold
35,658
48,913
70,305
83,693
Gross profit
56,599
82,637
99,204
133,181
Operating expenses
Selling, general & administrative expenses
47,686
70,808
86,676
119,218
Restructuring, contract termination and impairment charges
10,251
—
16,090
—
Depreciation and amortization expenses
6,394
6,406
13,283
12,681
Other operating expenses
2,103
3,183
3,633
5,394
Total operating expenses
66,434
80,397
119,682
137,293
Income (loss) from operations
(9,835
)
2,240
(20,478
)
(4,112
)
Non-operating (income) expense
Interest expense, net
5,989
3,563
11,559
6,669
Other non-operating (income) expense
3,267
20
2,687
241
Total non-operating (income) expense
9,256
3,583
14,246
6,910
Income (loss) before income taxes
(19,091
)
(1,343
)
(34,724
)
(11,022
)
Income tax expense (benefit)
1,676
2,694
4,620
(501
)
Net income (loss)
(20,767
)
(4,037
)
(39,344
)
(10,521
)
Less: net income (loss) attributable to noncontrolling interests
(7,299
)
(926
)
(13,684
)
(4,008
)
Net income (loss) attributable to Solo Brands, Inc.
$
(13,468
)
$
(3,111
)
$
(25,660
)
$
(6,513
)
Other comprehensive income (loss)
Foreign currency translation, net of tax
$
181
$
33
181
76
Comprehensive income (loss)
(20,586
)
(4,004
)
(39,163
)
(10,445
)
Less: other comprehensive income (loss) attributable to noncontrolling interests
64
12
64
27
Less: net income (loss) attributable to noncontrolling interests
(7,299
)
(926
)
(13,684
)
(4,008
)
Comprehensive income (loss) attributable to Solo Brands, Inc.
$
(13,351
)
$
(3,090
)
$
(25,543
)
$
(6,464
)
Net income (loss) per Class A common stock
Basic and diluted
$
(8.93
)
$
(2.14
)
$
(17.06
)
$
