Executive Summary

Q1 FY25 was broadly in line: revenue fell 1.1% YoY to $143.3M; GAAP net loss was $0.8M (-$0.01/sh); Adjusted EPS was $0.05; Adjusted EBITDA was $22.5M. Grills grew 12.8% to $86.7M, offset by Accessories (-26.6%) on MEATER weakness; gross margin compressed 170 bps to 41.5% on mix and higher promo funding, partly offset by lower warranty and supply chain savings .
Versus S&P Global consensus, revenue beat ($143.3M vs $140.6M*) and Adjusted EPS outpaced Primary EPS consensus ($0.05 vs $0.041*). S&P “EBITDA” showed an “actual” of $17.7M* vs a $22.4M* consensus, noting definition differences vs company Adjusted EBITDA of $22.5M .
Management withdrew FY25 guidance due to tariff uncertainty and fragile consumer sentiment; mitigation underway includes supply-chain savings, strategic pricing, cost reductions, and inventory pullbacks .
Demand signals remained constructive into Q2 (healthy grill sell-through; Costco roadshows up ~50% YoY; new Woodridge launch outperforming expectations), a potential near-term trading catalyst if tariff clarity and pricing pass-through hold .

What Went Well and What Went Wrong

What Went Well
- Grills growth and product momentum: “our grills business grew 13% … benefited from increased consumer demand and the launch of our new Woodridge series” .
- Healthy sell-through and field activation: “sell-through of Grills remains healthy into the second quarter… materially increase the number of selling events and product demos” .
- Cost discipline and mitigation: supply chain negotiations, diversification away from China by 2026, strategic pricing, and SG&A controls to protect EBITDA and cash flow .
What Went Wrong
- Gross margin compression: 41.5% vs 43.2% LY, driven by grill mix, increased marketplace investment, and MEATER, partly offset by lower warranty and supply chain improvements .
- Accessories/MEATER pressure: Accessories revenue -26.6% YoY on MEATER declines and lapping a Q1’24 European partnership load-in; strategy shifting mix to wholesale and reducing costs .
- Guidance withdrawn and macro/tariff overhang: FY25 guidance suspended amid a rapidly evolving tariff regime (e.g., grills produced in China face ~45% cumulative tariffs), creating forecast visibility challenges .

Financial Results

Key P&L (oldest → newest; includes consensus for current quarter)

Metric	Q1 2024	Q4 2024	Q1 2025 (Actual)	Q1 2025 (Consensus)*
Revenue ($M)	$144.9	$168.6	$143.3	$140.6*
Gross Margin (%)	43.2%	40.9%	41.5%	N/A
GAAP EPS ($)	-0.04	-0.05	-0.01	N/A
Adjusted EPS ($)	0.04	0.01	0.05	0.041*
Adjusted EBITDA ($M)	$24.4	$18.4	$22.5	N/A
S&P EBITDA ($M)	N/A	N/A	$17.7*	$22.4*

Notes: Company “Adjusted EBITDA” differs from S&P Global’s “EBITDA” definition; use care when comparing to consensus .
Asterisked values are from S&P Global consensus/actuals and may reflect differing definitions; see Estimates Context below. Values retrieved from S&P Global.*

Segment and Geography

Revenue by Category

Segment	Q1 2024 YoY	Q1 2025 ($M)	YoY %	Commentary
Grills	—	$86.7	+12.8%	Woodridge launch; positive sell-through
Consumables	—	$30.3	-6.1%	Lower pellet and food consumables units; higher pellet ASP
Accessories	—	$26.3	-26.6%	MEATER decline; lapping Q1’24 EU partnership load-in

Geography (YoY)

Region	Q1 2025 YoY
North America	+5.6%
Rest of World	-46.5%

Balance Sheet/Other KPIs (quarter-end unless noted)

KPI	Q4 2024	Q1 2025
Cash & Equivalents ($M)	$15.0	$12.0
Inventory ($M)	$107.4	$127.2
Line of Credit Draw ($M)	$5.0	$25.0
Total Liquidity ($M)	—	$168 (management)
Net Debt ($M)	—	$416 (incl. $25M receivables facility)

Guidance Changes

Metric	Period	Previous Guidance (3/6/25)	Current (5/1/25)	Change
Total Revenue	FY 2025	$595–$615M	Withdrawn	Withdrawn
Gross Margin	FY 2025	42.2%–42.8%	Withdrawn	Withdrawn
Adjusted EBITDA	FY 2025	$75–$85M	Withdrawn	Withdrawn

Management cited rapidly evolving trade policy and fragile consumer sentiment for suspending guidance, with updates to be provided as visibility improves .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24 and Q4’24)	Current Period (Q1’25)	Trend
Tariffs/Macro	Q3: Raised FY24 outlook; margin expansion from logistics . Q4: FY25 guidance explicitly did not include potential tariff impacts .	Detailed tariff exposure (grills China ~45% cumulative; Vietnam ~25%); price increases; cost reductions; supply-chain diversification; guidance withdrawn .	Deteriorating visibility; aggressive mitigation.
Product performance	Q3: Grills +32.5% YoY; strategic pricing . Q4: Woodridge load-in; strong grill demand .	Woodridge launched in Jan; outperforming with 4.8-star reviews; Flatrock 2 Zone griddle introduced in April .	Improving innovation cadence; positive consumer reception.
MEATER/accessories	Q3: Accessories down on MEATER . Q4: Accessories -24.1% on MEATER .	Accessories -26.6% YoY; shifting MEATER mix to wholesale; cost actions; lapping EU partnership load-in from Q1’24 .	Still pressured; repositioning in progress.
Supply chain	Q3/Q4: Margin gains from freight/logistics .	Negotiating supplier savings; diversify out of China; 2026 target for materially lower China production mix .	Ongoing structural mitigation.
Retail/sell-through	Q3: Strong grill sell-through drove replenishment . Q4: Healthy retail demand .	Positive grill sell-through continues into Q2; Costco roadshows +~50% YoY; more demos planned .	Stable-to-improving field execution.
Marketing mix	—	Shift to sales activation (in-store, demos); less top-of-funnel; marketplace investments (some through COGS) .	Rebalanced toward near-term ROI.
Regional trends	Q3: NA up 10.4%, RoW down 40.1% . Q4: NA up 11.2%, RoW down 38.6% .	NA +5.6%; RoW -46.5% (MEATER drag) .	Consistent pattern.
Legal/non-routine	Q4: Non-routine legal costs in non-GAAP adjustments .	Non-routine legal expenses included again in non-GAAP reconciliation .	Ongoing but lower than prior periods.

Management Commentary

“Our first quarter results were largely inline with our expectations… grills business grew 13%… launch of our new Woodridge series… Offsetting the growth in grills was pressure on our accessories revenues due to continued challenges at MEATER.” — Jeremy Andrus, CEO .
“We are fully committed to shifting production away from China and are planning to materially reduce the portion of our production that occurs in China by 2026… [and] have implemented strategic pricing increases.” — Jeremy Andrus .
“Given the tremendous economic uncertainty related to trade policy… we are withdrawing our forward guidance for fiscal year 2025… [and] planning inventory conservatively and have significantly reduced purchase orders.” — Dominic Blosil, CFO .
“Sell-through of Grills remains healthy into the second quarter… we increased the number of [Costco] road shows by nearly 50%.” — Jeremy Andrus .

Q&A Highlights

Pricing strategy and elasticity: Broad-based price increases set SKU-by-SKU based on elasticity, features, competitive position; prices reset over weeks; expect competitors to raise prices too .
MEATER strategy: Shift mix from online/DTC to wholesale channels; centralize operations; cost reductions to stabilize profitability before reaccelerating growth .
Retail inventory posture: No reluctance to take inventory; interim shift from direct import to domestic fulfillment to manage tariff assessment mechanics .
Tariff stacking clarity: China grills ~45% (20% IEEPA + 25% Section 232); Vietnam grills ~25% (reciprocal not stacked over 232); accessories vary (many at 10%; some China-sourced items can be much higher), prompting sourcing moves .
Marketing mix and ROI: Less top-of-funnel, more in-store activation and marketplace programs (some recognized in COGS); focus on high-return initiatives .
Inventory/POs: Using pre-tariff inventory near term; pulling back POs until better demand signals through peak season; iterative weekly demand planning with retail partners .

Estimates Context

Q1 2025 vs S&P Global consensus: revenue $143.3M vs $140.6M*; Primary EPS $0.05 vs $0.041*; S&P EBITDA “actual” $17.7M* vs $22.4M* consensus, while company-reported Adjusted EBITDA was $22.5M (definitions differ) . Values retrieved from S&P Global.*
Forward quarters (snapshot): S&P shows consensus Revenue of $135.4M* (Q4’25) and $134.0M* (Q1’26), and Primary EPS of $0.0075* (Q4’25) and $0.044* (Q1’26). Values retrieved from S&P Global.*
Implications: Estimates may need to incorporate higher price realization, MEATER headwinds, and gross margin pressure from mix/promotions and tariffs, with company mitigation (pricing, supply-chain savings, SG&A controls) offsetting a “majority” of tariff impact per management .

Financial Detail Tables

Q1 2025 Operational Drivers (YoY components of gross margin)

Driver	Impact (bps)
Grill mix (unfavorable)	-180
Marketplace/promotional funding (higher)	-140
MEATER (unfavorable)	-30
Warranty expense (lower)	+110
Supply chain improvements	+50
Other	+20

Cash Flow (3 months ended 3/31)

Metric	Q1 2024	Q1 2025
Net Cash from Operating Activities ($M)	$(12.6)	$(20.8)
Capex ($M)	$(5.7)	$(1.8)
Net Cash from Financing ($M)	$12.0	$19.8
End Cash ($M)	$23.6	$12.0

Product/Launches (Q1 2025 context)

Launch/Program	Detail
Woodridge pellet grills	January launch; outperformed expectations; 4.8-star average across DTC/retail .
Costco roadshows	~50% more events YoY in Q1; brand awareness driver .
Flatrock 2 Zone griddle	Announced April 3 at $699, compact two-zone design .

Key Quotes

“We believe we can offset a majority of the tariff impact via our mitigation initiatives with the largest unknown factor being consumer demand and behavior going forward.” — CEO .
“Our inventory on hand is sufficient to serve near-term demand… we have ample liquidity… currently undrawn on our $125 million revolver.” — CFO .
“Woodridge… brings significant innovation at a more attainable price point… demand outperforming our expectations.” — CEO .

Key Takeaways for Investors

Revenue and Adjusted EPS outperformed S&P Global consensus; gross margin compressed on mix/promotions but remained >41%, supported by supply-chain and warranty tailwinds .
Guidance withdrawal elevates uncertainty; near-term stock narrative hinges on tariff clarity, pricing pass-through, and proof that mitigation offsets most cost headwinds .
Grills momentum (Woodridge) and strong field execution (sell-through, demos, Costco roadshows) provide a buffer against macro softness .
MEATER remains a drag; management is pivoting to wholesale channels and cutting costs—watch for stabilization signals over coming quarters .
Balance sheet/liquidity appear adequate (liquidity ~$168M; undrawn revolver), and inventory is being tightly managed with PO reductions to preserve cash .
Estimate models should reflect higher pricing, continued NA strength vs RoW weakness, and potential EBITDA definition mismatches vs company-reported Adjusted EBITDA .
Catalysts: tariff policy developments, consumer elasticity to pricing, summer sell-through data, and potential guidance reinstatement in 2H.

Asterisked values are from S&P Global consensus/actuals and may reflect differing metric definitions. Values retrieved from S&P Global.*

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