Traeger Inc (NYSE:COOK) Q2 2025 Earnings Miss Estimates, Shares Plunge 22% on Weak Revenue and Guidance

Traeger Inc (NYSE:COOK) reported its second-quarter fiscal 2025 results, missing analyst estimates on both revenue and earnings per share (EPS). The company’s shares plummeted nearly 22% in after-hours trading, reflecting investor disappointment with the results and broader concerns about the company’s near-term performance.

Key Financial Results vs. Estimates

• Revenue: $145.5 million, down 13.6% year-over-year and significantly below the consensus estimate of $169.8 million.
• EPS: Adjusted net loss of $0.01 per share, compared to analyst expectations of a $0.05 profit.
• Net Loss: $7.4 million, widening from a $2.6 million loss in the prior-year quarter.

The revenue decline was driven by weaker demand across all product categories, with grill sales falling 21.9% year-over-year. While consumables (wood pellets) saw a 7.5% increase, this was not enough to offset declines in accessories and MEATER smart thermometer sales.

Market Reaction

The steep after-hours drop suggests investors were anticipating better performance, particularly given the company’s cost-cutting initiatives. The stock had already declined over 12% in the past month, indicating pre-earnings skepticism. The post-earnings sell-off reflects concerns about Traeger’s ability to navigate macroeconomic pressures, including tariffs and softer consumer demand.

Cost-Cutting Measures and Outlook

Management highlighted Project Gravity, a restructuring initiative expected to deliver $30 million in annualized cost savings. The company also reaffirmed its full-year guidance:

• Revenue: $540–$555 million (vs. analyst consensus of $604.4 million).
• Adjusted EBITDA: $66–$73 million.

The guidance suggests Traeger expects a stronger second half, but the figures remain well below Wall Street’s expectations.

Key Takeaways from the Earnings Report

• Tariff Impact: The company expects to offset 80% of its $60 million tariff exposure.
• Inventory Growth: Inventory rose to $115.8 million from $107.4 million at year-end, signaling potential demand softness.
• Cash Position: Cash reserves declined to $10.3 million from $15 million at the end of 2024.

For more detailed earnings estimates and historical performance, view Traeger’s earnings data.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making decisions.