GRAPEVINE, Texas, March 19, 2026 (GLOBE NEWSWIRE) -- Solo Brands, Inc. $(SBDS)$ ("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 twelve months ended December 31, 2025.
"Fiscal 2025 was a year of significant change for Solo Brands. We took decisive actions to simplify the organization, better align our channel strategy with key retail partners, reduce our cost base, and sharpen our focus on profitability and cash generation," said John Larson, President and Chief Executive Officer. "Despite a substantial revenue decline, particularly at Solo Stove, management actions drove a 39% reduction in fourth quarter SG&A, a significant improvement in Adjusted EBITDA, and positive operating cash flow for the third consecutive quarter."
"Looking ahead to 2026, we are continuing to advance a more efficient organizational model and focusing on channel, market, and product-level profitability to guide growth decisions. We continue to invest in innovation, launching a new fire pit series and griddle and cooler offerings within Solo Stove; Cheekies, a new women's swimwear line from Chubbies; and an expanded watersports lineup through our Costco partnership, while pursuing select international opportunities where we believe returns justify the investment. Our objective is to convert future revenue growth more efficiently into earnings and cash flow," concluded Larson.
Consolidated Fourth Quarter 2025 Highlights Compared to Fourth Quarter 2024
-- Net sales of $94.0 million decreased 34.5% from $143.5 million, primarily
the result of the decline in both direct-to-consumer ("DTC") and retail
channel net sales within the Solo Stove segment, and, to a lesser extent,
declines in both channels within the Chubbies segment.
-- Gross profit of $57.0 million, or 60.6% of net sales, a 50 basis point
decrease as a percentage of net sales versus a year ago. Adjusted gross
profit(1) of $57.4 million, or 61.0% of net sales, which was flat as a
percentage of net sales versus a year ago.
-- Operating expenses of $133.9 million decreased 6.4% from $143.0 million.
-- Selling, general & administrative of $50.1 million decreased 38.8%
from $81.8 million, primarily based on lower marketing and
distribution costs across both segments. Distribution costs
declined in line with lower sales volume, and marketing and other
operating expenses declined through disciplined, efficiency-driven
spend management.
-- Restructuring, contract termination and impairment charges were
$75.5 million compared to $52.5 million.
-- Net loss of $83.2 million, or (88.4)% of net sales, compared to a net
loss of $58.2 million, or (40.6)% of net sales. Adjusted net income(1) of
$2.3 million, which was flat versus a year ago.
-- Adjusted EBITDA(1) of $9.6 million, or 10.2% of net sales, improved from
$6.3 million, or 4.4% of net sales.
Segment Fourth Quarter 2025 Highlights Compared to Fourth Quarter 2024
Solo Stove
-- Net sales of $72.0 million declined 38.3%, reflecting lower unit volumes
as the Company maintained pricing and promotional discipline within the
DTC channel and as retail partners worked through excess inventory.
-- Segment EBITDA of $14.6 million, or 20.3% of net sales, increased from
$6.1 million, or 5.2% of net sales, reflecting the implementation of
strategic cost-saving initiatives undertaken during 2025.
Chubbies
-- Net sales of $19.3 million decreased 20.0%, reflecting lower
replenishment activity versus the prior year period. DTC sales declined
due to reduced website traffic.
-- Segment EBITDA of $0.9 million, or 4.5% of net sales, declined from $3.3
million, or 13.7% of net sales.
Consolidated Year Ended December 31, 2025 Highlights Compared to Year Ended December 31, 2024
-- Net sales decreased to $316.6 million, down 30.4%, driven by declines in
both retail and DTC sales within the Solo Stove segment, partially offset
by sales momentum in retail and DTC channels during the first half of the
year for the Chubbies segment.
-- Gross profit of $188.1 million declined on lower sales, and gross profit
margin grew to 59.4% of net sales compared to 57.3% of net sales in the
prior year. Adjusted gross profit(1) of $189.2 million, which primarily
excludes the impact of the inventory write-down in the prior year, was
59.8% of net sales, compared to 61.7% in the prior year.
-- Operating expenses of $301.6 million decreased by 30.7% from $434.9
million.
-- Selling, general & administrative of $176.2 million decreased
32.8% from $262.2 million, primarily due to lower sales volume and
disciplined, efficiency-driven spend management.
-- Restructuring, contract termination, and impairment charges were
$93.5 million compared to $136.1 million.
-- Net loss of $145.4 million, or (45.9)% of net sales, improved from a net
loss of $180.2 million, or (39.6)% of net sales. Adjusted net loss(1) was
$14.7 million, compared to adjusted net income(1) of $11.4 million.
-- Adjusted EBITDA(1) of $18.5 million, or 5.8% of net sales, declined from
$32.6 million, or 7.2% of net sales.
Segment Year Ended December 31, 2025 Highlights Compared to Year Ended December 31, 2024
Solo Stove
-- Net sales decreased to $167.2 million, down 43.8%, reflecting lower unit
volumes resulting from the Company maintaining pricing and promotional
discipline within the DTC channel and as retail partners worked through
excess inventory.
-- Segment EBITDA of $17.9 million, or 10.7% of net sales, declined from
$45.9 million, or 15.4% of net sales, reflecting the implementation of
strategic cost-saving initiatives and operating de-leverage associated
with lower sales.
Chubbies
-- Net sales increased $10.2 million to $122.9 million, up 9.1%, driven by
growth in retail strategic partnerships, coupled with solid demand within
the DTC sales channel.
-- Segment EBITDA of $22.4 million, or 18.2% of net sales, improved from
$15.8 million, or 14.0% of net sales, due to the net sales growth and
more efficient marketing spend as the strategic retail network is
increasingly leveraged.
Consolidated Balance Sheet
Cash and cash equivalents were $20.0 million as of December 31, 2025 compared to $12.0 million at December 31, 2024.
Inventory was $81.6 million as of December 31, 2025 compared to $108.6 million at December 31, 2024, due to reductions in inventory balances to meet DTC and retail channel demand and to optimize our supply chain and mitigate tariff impacts.
Outstanding borrowings(2) were $253.1 million, including interest paid-in-kind, under the 2025 Term Loan (as defined herein) as of December 31, 2025, with no outstanding balance under the 2025 Revolving Credit Facility (as defined herein) for the same period. As of December 31, 2025, availability for future draws under the 2025 Revolving Credit Facility, based on the borrowing base as of such date, was $54.9 million, net of issued letters of credit.
(1) 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.
(2) 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 and our 2025 Form 10-K, once filed, for additional details regarding the 2025 Refinancing Amendment.
Conference Call Details
A conference call to discuss the Company's fourth quarter and full year 2025 results is scheduled for March 19, 2026, 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 Solo Brands' 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 March 26, 2026. To access the telephone replay, dial 1-855-669-9658 (international callers, please dial 1-412-317-0088). The access code for the replay is 8228530. 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.
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