COOK · Traeger, Inc.

Traeger's first quarter fiscal 2026 results reflect a significant revenue decline of 34.3% to $94.1 million, driven by a 45.4% drop in grill revenues. The grill decline was attributed to lower unit volumes and average selling price, with the prior year benefiting from the Woodridge series launch and pre-tariff ordering, as well as channel optimization under Project Gravity. Consumables and accessories revenues also fell 13.7% and 21.8%, respectively, with accessories pressured by lower MEATER smart thermometer sales. Despite the top-line weakness, gross margin improved to 45.7% from 41.5%, largely due to a $12.4 million IEEPA tariff refund. Excluding this benefit, gross margin was 32.6%, down 890 basis points, reflecting trade spend timing, lower direct import mix, tariff costs, and MEATER deleverage. Operating expenses decreased 21.4% to $44.0 million, driven by lower sales and marketing and G&A costs from Project Gravity cost actions. Net income swung to $2.9 million from a loss of $0.8 million, aided by the tariff refund and lower expenses. Adjusted EBITDA fell to $17.3 million from $22.5 million. Management highlighted early positive consumer sell-through and the launch of new products (Westwood, Irontop). Project Gravity remains on track, and the company raised its full-year adjusted EBITDA guidance to $57-$67 million and gross margin to 39.5%-40.5%, while reiterating revenue guidance of $465-$485 million. The guidance reflects the tariff refund benefit, partially offset by MEATER competition, macro headwinds, and tariff uncertainty. Free cash flow guidance of at least $30 million excludes the tariff refund timing. The balance sheet strengthened with cash increasing to $33.7 million and inventory declining to $87.8 million.