Traeger, Inc. 2026 Q2 Earnings Call

Thank you for joining Traeger's call to discuss its second quarter 2026 results, which were released this afternoon and can be found on our website at investors.traeger.com. I'm Stephanie Read, Vice President of Finance, Strategy, and Investor Relations at Traeger. With me on the call today are Jeremy Andrus, our Chief Executive Officer, and Joey Hord, our Chief Financial Officer. Before we begin, let me remind you that participants on this call will make forward-looking statements based on current expectations, and those statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed in Traeger's reports filed with the SEC.

This call also contains certain non-GAAP financial measures, including Adjusted EBITDA, adjusted net income or loss, adjusted net income or loss per share, adjusted gross margin, Free Cash Flow, and Net Debt, which we believe are useful supplemental measures. The most comparable GAAP financial measures and reconciliation of the non-GAAP measures contained herein to such GAAP measures are included in our earnings release and investor presentation, which are available on the investor relations portion of our website at investors.traeger.com. Now I'd like to turn the call over to Jeremy Andrus, Chief Executive Officer of Traeger.

Jeremy? Thanks, Steph, and thank you all for joining our second quarter earnings call.

As we've discussed throughout the year, 2026 is a transition period for Traeger. Through Project Gravity, we're simplifying the business and building a stronger, more focused company for the long term. Several of the core themes we've discussed throughout the year remain intact. Consumer engagement remains strong. Key consumer metrics remain healthier than reported revenue trends would suggest, and we're continuing to expand our long-term growth platform, including a significant distribution announcement we're sharing today. As we enter 2026, we expected to navigate several revenue headwinds, including MEATER softness, price elasticity, channel inventory normalization, and deliberate revenue trade-offs associated with Project Gravity. Those dynamics were contemplated in our original outlook.

Relative to those assumptions, the primary changes we've seen are greater softness in the MEATER business and increased near-term channel dynamics associated with our distribution expansion strategy, both of which are reflected in our updated revenue outlook. I'll come back to guidance later in the call. Looking beyond the near-term environment, we're continuing to invest in and advance initiatives that meaningfully strengthen Traeger's long-term growth trajectory. Today I'll cover the strength of the Traeger brand and consumer engagement trends, what we're learning from consumers and how that's shaping our product strategy, a significant new channel partner we will launch nationally in spring of 2027, and how we're balancing long-term investment with financial discipline in our updated guidance. I'll hand the call over to Joey for the financials. Let me turn to the consumer and the brand.

We're encouraged by the health of the Traeger brand and the engagement we're seeing across both existing owners and prospective new consumers. Starting with our installed base, engagement remains exceptionally strong. July 4th is our second-largest cooking day of the year, and this year we recorded more than 267,000 connected cooks, setting an all-time high. That level of activity reinforces what we continue to see across the platform. Consumers remain highly engaged with the Traeger ecosystem and are using our products regularly. We're also making meaningful progress expanding our reach with new consumers. Our influencer strategy is focused on introducing Traeger to new audiences through authentic creators who educate consumers on the benefits of wood-fired cooking. During the quarter, this newer cohort of influencers more than doubled impressions versus last year, helping us reach consumers who may not have previously considered Traeger.

We're also partnering closely with our retail partners to convert that awareness into purchase. By leveraging consumer insights, targeted media, and joint marketing programs, we're seeing encouraging improvements in key performance indicators, including growth in the new-to-brand customer acquisition rates at several key accounts. Taken together, these signals give us confidence that the brand remains healthy and that we're continuing to attract and engage new consumers. Let me turn to what we're learning from consumers and how that's shaping our product strategy. Innovation remains central to Traeger, but the current environment is reinforcing the importance of delivering compelling innovation across a broader range of offerings as we see demand increasingly shifting to more accessible price points. While that dynamic creates near-term pressure on average selling prices, it is also expanding the Traeger installed base and creating incremental opportunities for fuel, accessories, and future upgrades over time.

It is also exactly why our evolving product architecture matters. Westwood extends Traeger innovation into a more accessible grill platform, while Irontop expands our relevance in griddle occasions and more frequent everyday cooking. In the doors where these products were available, sell-through exceeded our expectations and both product lines are generating 4.8 to 5-star reviews across traeger.com, The Home Depot, and Ace Hardware. Those early results reinforce our belief that Westwood and Irontop are meeting important consumer needs, expanding our addressable market, and creating new pathways into the Traeger brand. Having the right products is critical, but so is making sure consumers can find them where they shop. That's why I'm excited to announce that Traeger will expand distribution into Lowe's nationally with initial load-in activity beginning in Q4 of this year and a full launch of grills, griddles, accessories, and consumables planned for spring 2027.

This is one of the most meaningful distribution expansions in Traeger's recent history and broadens access to the brand, strengthens our presence in under-penetrated markets, and creates a powerful new platform for household acquisition and long-term growth. While the Lowe's load-in contributes to 2026 revenue, we also expect offsets within our existing partners as certain exclusive arrangements evolve. These offsets were anticipated as part of the transition and do not change the strategic importance of our longstanding retail relationships. Importantly, broader distribution increases our ability to invest behind the Traeger brand across the marketplace. As we scale the business, we can support more retail media, merchandising, and consumer activation programs that strengthen our retail partnerships and improve the consumer experience. This quarter alone at The Home Depot, we expanded pellet racks, invested in three-bay displays, and supported more than 9,000 in-store event days through our RSS program.

At Ace Hardware, we launched an exclusive Meat Church collaboration and will continue to invest across the marketplace to fuel premium retail experiences for our consumers wherever they purchase. Over time, we expect this expansion to become an increasingly meaningful contributor to household acquisition and growth. Turning to guidance, as I mentioned earlier, the primary change versus our original expectations has been continued softness in the MEATER business. We are also seeing greater near-term channel impacts associated with our distribution expansion strategy. We're updating our full-year revenue outlook to $435 million-$465 million, compared to our original outlook of $465 million-$485 million. While these distribution-related dynamics are consistent with our long-term strategy and support a much larger growth opportunity ahead, they are contributing to our revised revenue outlook and creating additional timing variability, which is reflected in the wider guidance range for 2026.

Despite the reduction in our revenue guidance, we're maintaining our Adjusted EBITDA guidance of $57 million-$67 million. Importantly, nothing about an updated outlook changes the strategic priorities we're pursuing or our confidence in the long-term opportunity. Through Project Gravity, we're improving the operating model and creating capacity to invest behind the initiatives that matter most: brand strength, product innovation, retail excellence, and channel expansion. We're also investing in how we educate consumers on product differentiation and the value of our premium offerings through more targeted consumer segmentation, content, and retail partner marketing programs. We believe those efforts will help improve product mix over time while continuing to bring new consumers into the category. At the same time, we're broadening access to the brand through new platforms like Westwood and Irontop and through meaningful distribution expansion with Lowe's.

Taken together, these efforts are expanding our addressable market, strengthening our competitive position, and creating a credible path to sustainable growth. As we enter 2027, we'll benefit from a larger installed base, broader distribution, a more complete product architecture, and a simpler operating model. As sell-in and sell-through normalize and these investments mature, I'm confident Traeger is well positioned to resume profitable growth in 2027 and beyond. With that, I'll turn the call over to Joey. Joey? Thanks, Jeremy, and good afternoon, everyone.

Before I walk through the numbers, I'd like to highlight three themes from the quarter that reinforce our confidence in the business and the progress we're making through this transition year. First, many of the retail and consumer indicators we monitor remain more stable than reported revenue trends alone would suggest. Year-to-date sell-through is performing largely as we expected coming into the year, with flatter sell-through across our four largest retail partners. Second, our revenue outlook assumes grill sell and unit volumes remain approximately flat year-over-year, indicating continued momentum in household penetration at lower average selling prices. We're reaching more consumers, growing our installed base, and creating a larger foundation for future fuel accessories and upgrade opportunities. Finally, Project Gravity continues to deliver.