Solo Brands (DTC) Q2 2026 earnings summary

Executive summary

• Consolidated net sales declined 4.1% year-over-year to $88.5M in Q2 2026, mainly due to lower Solo Stove and Chubbies sales, partially offset by 59% growth in Watersports and international expansion.

• Operating income improved to $3.5M from a $9.8M loss, with adjusted EBITDA up 28.6% to $13.5M (15.3% margin), driven by cost controls, restructuring, and tariff refunds.

• Net loss narrowed to $4.4M in Q2 2026, with adjusted net income of $3.9M, and positive operating cash flow exceeding $36M.

• Corporate simplification completed, merging Solo Stove Holdings into the parent and eliminating Class B shares.

• Leadership team strengthened in sales and digital, with a focus on demand improvement and disciplined expense management.

Financial highlights

• Q2 2026 net sales: $88.5M (down 4.1% YoY); six-month net sales: $151.3M (down 10.7%).

• Q2 gross profit: $53.0M (59.9% margin); adjusted gross profit: $54.7M (61.8% margin).

• Adjusted EBITDA: $13.5M (15.3% margin) in Q2; $15.1M (10.0% margin) for six months.

• Net loss attributable to the company: $4.4M in Q2; $9.9M for six months; adjusted net income: $3.9M in Q2.

• Operating expenses down 25.5% in Q2 and 27.2% for six months, driven by lower compensation and restructuring.

Outlook and guidance

• 2026 net sales expected between $280M and $310M; adjusted EBITDA forecasted at $24M–$30M.

• Management expects covenant compliance and sufficient liquidity for at least the next twelve months, supported by cost reductions and tariff refunds.

• Product pipeline for fall and holiday season is robust, with new launches planned across all brands.

• International expansion and retail partnerships are key growth drivers.