Traeger (COOK) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue declined 34.3% year-over-year to $94.1 million, with grill revenues down 45.4% and consumables down 13.7%, but early peak season demand and brand engagement were strong.

• Net income reached $2.9 million, a turnaround from a net loss in Q1 2025, driven by cost reductions, Project Gravity, and a one-time employee retention tax credit.

• Project Gravity delivered substantial cost savings, operational discipline, and enabled further investment in brand and innovation.

• New product launches, including Westwood and Irontop, expanded reach into more accessible price tiers and broader market segments.

• Raised Adjusted EBITDA and gross margin outlook for the year, reiterating revenue guidance.

Financial highlights

• Q1 2026 revenue was $94.1 million, down from $143 million in Q1 2025; gross profit was $43 million, with gross margin at 45.7% including a $12.4 million IEEPA tariff refund (32.6% excluding it).

• Adjusted EBITDA was $17.3 million (18.4% margin), down from $22.5 million (15.7% margin) in Q1 2025.

• Net income was $2.9 million versus a net loss of $0.8–$1 million in Q1 2025; adjusted net income was $4 million, down from $7 million.

• Free cash flow was $14.5 million, supported by working capital improvements and an $11.6 million employee retention credit.

• Inventory reduced 31% year-over-year to $87.8–$88 million; cash and equivalents at $33.7–$34 million; net debt at $370 million; liquidity at $184 million.

Outlook and guidance

• Full-year 2026 revenue guidance reiterated at $465–$485 million.

• Adjusted EBITDA guidance raised to $57–$67 million, reflecting Project Gravity and IEEPA tariff refund benefits.

• Gross margin outlook increased to 39.5%–40.5%.

• Free cash flow guidance remains above $30 million, excluding the tariff refund, which is expected to convert to cash within 60–90 days.

• Guidance includes offsets for MEATER competitive pressure, macro headwinds, and tariff uncertainty.