Traeger Reports Q2 Revenue Drop, $7.4M Loss Amid Tariff Challenges

Traeger, Inc. reported a challenging second quarter for fiscal 2025 with revenues declining 13.6% to $145.5 million and a net loss of $7.4 million, driven largely by tariff-related costs impacting its China-based manufacturing. Grill sales dropped 21.9% while consumables increased 7.5%, and accessories fell by 11.9%, contributing to a gross profit margin contraction to 39.2%. The company posted an adjusted earnings loss of 1 cent per share, missing Wall Street's expectations of a 5 cent profit and causing shares to fall significantly in after-hours trading. CEO Jeremy Andrus emphasized the tariff impacts on sales and profitability, announcing cost-cutting measures including job cuts, a UK office closure, and a $30 million annualized savings target through Project Gravity to improve margins. Despite these headwinds, Traeger maintained its full-year revenue guidance between $540 million and $555 million, which remains below analyst estimates. The stock has underperformed the market this year, losing about 31% amid these operational challenges and tariff pressures.