Executive Summary

Q4 revenue grew 3.2% to $168.6M with gross margin up 410 bps to 40.9%; grills +30% and consumables +25% offset MEATER-driven accessories decline; adjusted EBITDA rose 41% to $18.4M, capping FY24 margin/EBITDA outperformance vs initial guidance .
FY25 guide: revenue $595–$615M (≈ down 2% to up 2% YoY), gross margin 42.2%–42.8%, adjusted EBITDA $75–$85M; guidance excludes potential tariff impacts, with mitigation plans (supply chain efficiencies, vendor negotiations, pricing) underway .
Positive demand and brand momentum: Woodridge launch load-in supported Q4 grills; Black Friday was among the biggest sell-through days in Traeger history; Walmart added pellet/rub distribution; Costco roadshows to more than double in 2025 .
Key overhangs: MEATER softness (competition, lower ROAS, category slowing) and tariff uncertainty (≈50% of sales tied to China-sourced goods) add near-term visibility risk and Q1 pacing headwind despite healthy channel inventories .

What Went Well and What Went Wrong

What Went Well
- Grills and consumables strength: Q4 grills +30.2% to $78.0M on load-in and strong retail sell-through; consumables +24.9% to $30.7M with Walmart distribution and seasonal pellet demand .
- Margin execution: Gross margin +410 bps YoY to 40.9% on freight/logistics, supply chain efficiencies, and lower warranty costs; FY24 GM +540 bps YoY, driving 34% adjusted EBITDA growth .
- Brand/launch momentum: “Black Friday 2024 was one of the biggest sell-through days in our history” and Woodridge “was the best launch in our history,” generating ~1.2B impressions and strong early sell-through .
What Went Wrong
- Accessories/MEATER pressure: Q4 accessories -24.1% YoY; higher marketing spend failed to lift demand as ROAS fell amid competition and category slowdown; international performance dragged by MEATER .
- Tariff uncertainty clouding quarterly pacing: FY25 guidance excludes tariffs; DI order timing and pricing dynamics complicate Q1 and intra-year revenue recognition .
- Mix/headwinds to margin: Q4 margin tailwinds were partially offset by unfavorable product mix (shift to lower-margin grills) and lower ASPs from promotional strategy .

Financial Results

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($M)	$168.5	$122.1	$168.6
Gross Profit ($M)	$72.3	$51.7	$68.9
Gross Margin %	42.9%	42.3%	40.9%
Net Income ($M)	$(2.6)	$(19.8)	$(7.0)
Diluted EPS ($)	$(0.02)	$(0.15)	$(0.05)
Adjusted EBITDA ($M)	$26.8	$12.3	$18.4
Adjusted EBITDA Margin %	15.9%	10.1%	10.9%

Segment breakdown

Segment ($M)	Q2 2024	Q3 2024	Q4 2024
Grills Revenue	$95.0 (+2.0% YoY)	$74.9 (+32.5% YoY)	$78.0 (+30.2% YoY)
Consumables Revenue	$33.8 (−3.1% YoY)	$22.5 (−11.2% YoY)	$30.7 (+24.9% YoY)
Accessories Revenue	$39.7 (−8.8% YoY)	$24.6 (−31.3% YoY)	$60.0 (−24.1% YoY)

Geography (YoY growth)

Region	Q2 2024	Q3 2024	Q4 2024
North America	−4.6%	+10.4%	+11.2%
Rest of World	+31.9%	−40.1%	−38.6%

KPIs and balance sheet highlights

KPI ($M)	Q2 2024	Q3 2024	Q4 2024
Cash & Cash Equivalents	$18.0	$16.9	$15.0
Accounts Receivable (Net)	$89.2	$70.8	$85.3
Inventories	$91.0	$105.1	$107.4
Line of Credit	$23.5	$12.0	$5.0
Notes Payable (LT)	$397.9	$398.2	$398.4

Estimate comparisons

Metric	Actual (Q4 2024)	S&P Global Consensus	Beat/Miss
Revenue	$168.6M	N/A	N/A
Diluted EPS	$(0.05)	N/A	N/A
Adjusted EBITDA	$18.4M	N/A	N/A

Note: S&P Global consensus data was unavailable at the time of analysis due to an access limit; therefore, beat/miss vs estimates cannot be assessed.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	FY 2025	N/A (initial)	$595M–$615M	New
Gross Margin %	FY 2025	N/A (initial)	42.2%–42.8%	New
Adjusted EBITDA	FY 2025	N/A (initial)	$75M–$85M	New
Employee Cash Comp (OpEx detail)	FY 2025	N/A	≈+$7M YoY impact to adjusted EBITDA due to comp mix shift	New
Tariffs	FY 2025	—	Excluded from guidance; mitigation strategies underway	Disclosure

Earnings Call Themes & Trends

Topic	Q2 2024 (Prior-2)	Q3 2024 (Prior-1)	Q4 2024 (Current)	Trend
Gross margin/costs	GM 42.9% (+600 bps YoY), freight/logistics tailwinds	GM 42.3% (+440 bps YoY), supply chain gains	GM 40.9% (+410 bps YoY), freight/logistics, lower warranty costs; mix headwind	Sustained structural gains; mix drag emerging
Grills demand & promotions	Grills +2% YoY; promotions/price action supported volume	Grills +32.5% YoY; promotional sell-through strength	Grills +30.2% YoY; Woodridge load-in; Black Friday among biggest ever	Strong momentum; innovation adds support
Consumables channel	Consumables −3.1% YoY	−11.2% YoY (seasonal ordering shifts)	+24.9% YoY; Walmart pellet/rub distribution; seasonal pellet strength	Improving with distribution gains
Accessories/MEATER	−8.8% YoY, MEATER weakness	−31.3% YoY, MEATER underperformance	−24.1% YoY; ROAS pressure, competition; cautious FY25 outlook	Ongoing headwind; remediation in progress
Tariffs/macro	—	—	FY25 guide excludes tariffs; ~50% sales sourced from China; offsets planned	New uncertainty; mitigation active
Manufacturing diversification	—	Pursuing Vietnam partner [implied prior commentary]	25% of grills already in Vietnam; mass production scaling with 2nd partner	Diversification advancing
Retail activation	—	—	Costco roadshows to >2x in 2025; retail training at ACE/Home Depot	Acceleration planned

Management Commentary

“Our grill revenues were better than expected… and we again saw significant gross margin expansion” supporting FY24 adjusted EBITDA beat .
Woodridge launch: “best launch in our history… 10,000 hours of cooking [tests]… ~1.2 billion impressions… early sell-through strong” .
Promotions/price points: Sub-$500 Pro 22 promotional success highlights demand elasticity; Woodridge positioned at $799–$1,599 to enable trade-up .
Tariffs: “With approximately 50% of our sales driven by goods imported… from China… we’re working aggressively on strategies to offset,” including supply chain efficiencies, vendor negotiations, potential price increases; consumables largely U.S.-made .
Margin drivers: Q4 GM +410 bps YoY from ~+360 bps supply chain, +110 bps warranty, +90 bps dilution, +20 bps other, partially offset by −170 bps mix .
Balance sheet/FCF: Net debt down ~$9M YoY to $394M; 2025 FCF expected similar to slightly down vs 2024 given normalized working capital; debt paydown remains priority .
Leadership: CFO transition to Joey Hord after Q1 10-Q filing; terms summarized in 8-K .

Q&A Highlights

Accessories/MEATER: 2025 outlook set conservatively; levers include retail expansion and org changes; improvement expected to take time given category slowdown and competitive intensity .
Q1 sequencing: Expect YoY decline in revenue and adjusted EBITDA due to order pacing and DI timing amid tariff uncertainty; full-year view ex-tariffs intact .
Grill market view: Industry appears to have bottomed in 2023; 2025 expected modestly flat to +1–2% ex-tariffs; Traeger gained share in 2024 .
Price architecture: Continuing sub-$500 promotions (Pro 22) while positioning Woodridge as accessible premium; strategy addresses broader TAM and trade-up .
Supply chain: ~25% of grills produced in Vietnam; scaling with additional partner to diversify sourcing .

Estimates Context

We attempted to retrieve S&P Global consensus for Q4 2024 revenue/EPS/EBITDA and forward quarter comparisons but data was unavailable due to an S&P Global access limit at the time of analysis. As a result, we cannot quantify beats/misses versus consensus for this quarter. We will update when access is restored.

Key Takeaways for Investors

Solid Q4 execution with strong grills/consumables and continued structural margin gains; FY24 exit velocity supported by Woodridge launch and promotional elasticity at lower price points .
Accessories/MEATER remains the primary earnings drag; turnaround actions underway but guidance prudently embeds continued softness in 2025 .
FY25 guide is balanced and ex-tariffs; watch for tariff trajectory and Traeger’s mitigation (supply chain, pricing) as key stock catalysts for estimate revisions and multiple risk .
Near-term quarterly cadence likely choppy due to DI/tariff-driven order timing; focus on full-year delivery and channel health signals (Walmart consumables, Costco roadshows) .
Manufacturing diversification (Vietnam) and sustained cost discipline underpin margin durability; mix to lower-margin grills is a watch item for GM .
Liquidity and deleveraging progressing; FCF similar to slightly down in 2025 as working capital normalizes; debt reduction remains capital allocation priority .

Citations: Q4 8-K press release and financials ; Q4 press release mirror ; Q4 earnings call transcript –; Q3 2024 8-K ; Q2 2024 8-K ; Q4 reporting date PR .

Traeger, Inc. (COOK)·Q4 2024 Earnings Summary