Q2 2026 Traeger Inc Earnings Call Transcript
Key Points
- Consumer engagement remains exceptionally strong, with a record 267,000 connected cooks on July 4th, indicating a highly active installed base.
- New product lines Westwood and Irontop are exceeding sell-through expectations and receiving 4.8 to 5-star reviews, expanding Traeger's addressable market.
- Announced a significant distribution expansion with Lowe's, which is expected to be a major long-term growth driver and broaden access to new consumers.
- Project Gravity continues to deliver cost savings and operational efficiencies, enabling the company to maintain its adjusted EBITDA guidance despite lower revenue.
- Gross margin guidance was raised to 40%-41%, benefiting from lower tariff costs on MEATER products and improved cost management.
- Inventory levels were significantly reduced to $76 million from $116 million year-over-year, improving working capital efficiency and cash generation.
- The company maintains a strong liquidity position of $188 million with credit facilities undrawn, providing financial flexibility.
- Second quarter revenue declined 17% year-over-year to $120 million, driven by lower average selling prices and softness in the MEATER business.
- Full-year revenue guidance was lowered to $435-$465 million from $465-$485 million, primarily due to continued softness in MEATER and channel dynamics from distribution expansion.
- Average selling prices for grills continue to decline, pressured by consumer preference for lower-priced models and the strategic shift to more accessible price points.
- The Lowe's expansion has caused some existing retail partners to reduce their assortment and investment in the Traeger brand, creating near-term revenue offsets.
- The MEATER business is underperforming, with promotional activities falling below expectations and contributing to the revenue shortfall.
- The company faces ongoing tariff-related cost pressures, with higher input costs for transportation and materials, though partially offset by refunds.
- The replacement cycle for grills has not yet normalized, with higher prices from tariffs dampening unit volumes and delaying expected demand recovery.
Hello, everyone. Thank you for joining us, and welcome to the Traeger's Second Quarter 2026 Earnings Conference Call. (Operator Instructions) I will now hand the conference over to Stephanie Read, Vice President of Finance, Strategy and Investor Relations. Stephanie, please go ahead.
Good afternoon, everyone. 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
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