Executive Summary

Q2 2025 net sales were $92.3M (-29.9% YoY; +19.4% QoQ from $77.3M in Q1), gross margin 61.3% (-150bps YoY), adjusted EBITDA $10.5M (11.4% margin), and GAAP net loss of $20.8M (EPS -$8.93) as Solo Stove volume fell while Chubbies posted strong growth .
Significant balance sheet and listing milestones: $240M term loan and $90M revolver refinancing; elimination of going concern doubt; NYSE trading reinstated with ticker change to SBDS (effective July 24) .
Chubbies delivered sales +13.1% and Segment EBITDA +48.3% YoY; Solo Stove down as management prioritized pricing integrity (MAP) and de-emphasized promotions while rebuilding retail relationships .
Positive cash from operations of nearly $11M in the quarter underscores pivot to cash discipline; inventory reduced to $84.1M, aiding tariff-mitigation and supply chain optimization .

What Went Well and What Went Wrong

What Went Well

Chubbies continued strong execution: sales $44.5M (+13.1% YoY) and Segment EBITDA $11.5M (25.8% margin), driven by retail network expansion and more efficient marketing spend .
Cash discipline: nearly $11M operating cash flow in Q2 as management tightened expense control and made structural cost reductions; inventory reduced to $84.1M from $108.6M at FY-end .
Strategic milestones achieved: debt refinancing, removal of going concern, and NYSE trading reinstatement under SBDS, improving liquidity and market access .
- CEO: “We are making meaningful strides in our transformation toward a more disciplined, structurally smaller, profit-driven business model.”

What Went Wrong

Solo Stove net sales fell to $38.3M (-45.8% YoY) with Segment EBITDA $3.4M (8.9% margin) as DTC promotions were curtailed to restore pricing integrity and partner alignment .
Consolidated operating expenses were $66.4M despite lower marketing and distribution costs, reflecting $10.3M restructuring/contract termination/impairment charges in support of operational improvement .
GAAP net loss widened to $20.8M and EPS to -$8.93, pressured by lower volume, higher interest expense, and restructuring charges; adjusted net income fell to $1.0M with adjusted EPS $0.02 .

Financial Results

Consolidated Performance vs. Prior Periods and Estimates

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD)	$143.54M	$77.25M *	$92.26M
Gross Profit Margin (%)	61.1%	55.15% *	61.3%
Adjusted EBITDA ($USD)	$6.32M	$3.50M	$10.51M
Adjusted EBITDA Margin (%)	4.4%	4.5%	11.4%
Net Income ($USD)	-$58.22M	-$12.19M	-$20.77M
Diluted EPS ($USD)	-$0.63	-$8.27 *	-$8.93

Notes: Values with asterisk are retrieved from S&P Global and may lack document citations. Values retrieved from S&P Global.*

Estimate comparison (S&P Global): Q2 2025 consensus EPS and revenue were unavailable due to post-ticker-change mapping; the dataset returned actual revenue only for Q2 2025 and no consensus fields [GetEstimates: SBDS]. Values retrieved from S&P Global.*

Segment Breakdown (Q2 2025 vs Q2 2024)

Segment	Net Sales Q2 2024 ($M)	Net Sales Q2 2025 ($M)	YoY Change	Segment EBITDA Q2 2024 ($M)	Segment EBITDA Q2 2025 ($M)	Margin Q2 2024	Margin Q2 2025
Solo Stove	$70.66	$38.30	-45.8%	$14.78	$3.39	20.9%	8.9%
Chubbies	$39.30	$44.46	+13.1%	$7.74	$11.48	19.7%	25.8%

KPIs and Balance Sheet Highlights

KPI	Q2 2025	Reference
Cash & Equivalents	$18.1M
Inventory	$84.1M
Revolver Outstanding	$10.0M
Term Loan Outstanding (net of PIK)	$241.2M
Revolver Availability	$63.8M
Cash from Operations (Quarter)	nearly $11M

Guidance Changes

No numeric guidance ranges were provided for revenue, margins, OpEx, OI&E, tax rate, or segment-specific metrics in Q2 2025 materials. Management reiterated focus on profitability, pricing integrity (MAP), and cash generation while investing in product innovation and retail alignment [Internet: https://finance.yahoo.com/quote/SBDS/earnings/SBDS-Q2-2025-earnings_call-344679.html].

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q3 2025	None disclosed	None disclosed	Maintained (no guidance)
Gross Margin	FY/Q3 2025	None disclosed	None disclosed	Maintained (no guidance)
Adjusted EBITDA	FY/Q3 2025	None disclosed	None disclosed	Maintained (no guidance)
Tax Rate	FY/Q3 2025	None disclosed	None disclosed	Maintained (no guidance)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Pricing integrity/MAP alignment	Q1: Revised promotional calendar; align DTC with retail to resolve channel conflicts	Reiterated prioritizing pricing integrity over heavy DTC promos; Solo Stove volume impacted near term [Internet: https://finance.yahoo.com/quote/SBDS/earnings/SBDS-Q2-2025-earnings_call-344679.html]	Consistent execution; near-term headwind, long-term brand equity
Tariffs & supply chain	Q1: Diversify manufacturing footprint; explore near-shore/U.S. production; early mitigation steps	Inventory optimization cited to mitigate tariff impacts	Active mitigation; operational progress
Cost discipline/marketing efficiency	Q1: Cut SG&A; focus ROAS and contribution margin; eliminate unprofitable sponsorships	Consolidated adjusted EBITDA margins double-digit despite lower sales; tighter expense control	Improving efficiency, margin resilience
Product innovation	Q1: Five new Solo Stove launches starting with Windchill 47; ramp through summer, visible in Q4	Continued investment in new products to drive growth; less promotional, exclusive retail newness	Pipeline building; benefits skew to H2
Balance sheet/liquidity	Q4: Going concern disclosed; plan to refinance	Refinancing completed; going concern removed; NYSE relisting under SBDS	Material de-risking of liquidity
Segment mix (Chubbies strength)	Q1: Chubbies +43.9% sales; 26.5% segment EBITDA margin	Chubbies +13.1% sales; 25.8% segment EBITDA; retail expansion and efficient marketing	Sustained strength

Management Commentary

CEO: “We are making meaningful strides in our transformation toward a more disciplined, structurally smaller, profit-driven business model… we generated nearly $11 million in operating cash flow during the quarter” .
CEO on Chubbies: “Chubbies delivered another very solid quarter with sales up 13.1% and Segment EBITDA up 48.3% in Q2 due to significant operating leverage and efficiency gains” .
CFO (Q1) on tariffs and mitigation: “We are diversifying our manufacturing footprint… exploring near-shore options and U.S. production… taking pricing actions” .
CEO (Q1) on marketing and pricing: “We revised our promotional calendar so that our DTC channel and retail partners are fully aligned… eliminating unprofitable sponsorships” .

Q&A Highlights

Topics included transformation progress, marketing efficiency, and retail alignment; management emphasized MAP compliance, profitability focus, and evidence-based updates each quarter [Internet: https://seekingalpha.com/article/4816054-solo-brands-inc-sbds-q2-2025-earnings-call-transcript].
CEO reiterated confidence in lifestyle brands’ resonance and plans for investor outreach (IDEAS Conference on Aug 27) [Internet: https://seekingalpha.com/article/4816054-solo-brands-inc-sbds-q2-2025-earnings-call-transcript].

Estimates Context

S&P Global consensus fields for SBDS/DTC Q2 2025 were unavailable following ticker change; the feed returned only actual revenue for Q2 2025 and no consensus EPS or estimate counts. As a result, we cannot assess beats/misses versus Street for EPS or revenue this quarter based on S&P Global [GetEstimates: SBDS]. Values retrieved from S&P Global.*

Key Takeaways for Investors

Near-term headwinds in Solo Stove are deliberate (MAP/pricing integrity) to rebuild retail trust; expect lower DTC volume but healthier margins and brand equity over time .
Chubbies is proving to be the stabilizer with strong retail momentum and marketing efficiency, supporting consolidated double-digit adjusted EBITDA margins despite sales declines .
Liquidity risk has improved materially post-refinancing and going concern removal; NYSE relisting under SBDS should broaden investor access and could reduce trading friction .
Cash generation focus is tangible (nearly $11M operating cash flow in Q2); continued inventory reduction supports tariff mitigation and working capital efficiency .
Watch Q3/Q4 for product launch impacts and whether margin discipline persists as marketing ramps; management guided to less promotional launches and select retail exclusives .
With no formal guidance, monitor quarterly evidence on KPIs (Chubbies growth, Solo Stove recovery, cash from operations) and any estimate revisions once S&P Global consensus mapping normalizes [GetEstimates: SBDS].
Non-GAAP adjustments (restructuring, consulting, refinancing-related costs) were substantial; understanding the path to lower adjustments is key to translating margin resilience into GAAP profitability .

Sources: Q2 2025 8-K press release and exhibits ; Q1 2025 call transcript ; Q4 2024 8-K ; External Q2 2025 call transcript references .

Solo Brands, Inc. (DTC)·Q2 2025 Earnings Summary