Executive Summary

Q1 2025 net sales declined 9.5% year over year to $77.3M as Solo Stove contracted, while Chubbies delivered strong double‑digit growth; gross margin fell 400 bps to 55.2% on mix shift to retail; GAAP net loss widened to $18.6M (−$0.21 per Class A share) and adjusted EBITDA was $3.5M (4.5% margin) .
Chubbies segment sales grew 43.9% with 26.5% segment EBITDA margin, evidencing traction in the apparel portfolio; Solo Stove sales fell 49.2% due to reduced DTC promotions, lower marketing, fewer new products, and lower retail replenishment .
Liquidity and capital structure are acute focus: all $427.9M of debt reclassified to current due to expected covenant non‑compliance; company disclosed substantial doubt about going concern and is evaluating refinancing/restructuring, waivers, or Chapter 11 as potential paths .
Trading on NYSE is suspended; shares are quoted on OTC Pink as “DTCB,” and the company has appealed the NYSE delisting determination—this and going‑concern disclosure are key stock catalysts .
No formal guidance or consensus estimate comparison provided; S&P Global consensus data unavailable for DTCB (tool returned missing mapping), so beat/miss vs Street could not be determined (consensus unavailable).

What Went Well and What Went Wrong

What Went Well
- Chubbies momentum: Sales +43.9% YoY to $42.7M with 26.5% segment EBITDA margin, driven by retail network growth and higher DTC demand .
- Cost actions gaining traction: Operating expenses -6.4% YoY on lower Solo Stove marketing and distribution costs; management cites “disciplined execution” with profitability improvements in February and March vs prior year .
- Mix evidence of portfolio resilience: Retail channel grew 26.8% YoY and DTC in Chubbies increased, partially offsetting Solo Stove softness .
What Went Wrong
- Solo Stove reset: Net sales −49.2% YoY to $26.1M on promotion pullbacks, reduced marketing, lack of new products, and lower retail replenishment; segment EBITDA swung to −$1.5M .
- Margin compression: Gross margin fell 400 bps to 55.2% primarily due to a mix shift toward retail (lower margin than DTC) .
- Balance sheet stress: Interest expense rose to $5.6M; total debt $427.9M with no revolver availability; expected covenant breaches triggered reclassification to current and substantial doubt about going concern .

Financial Results

Consolidated performance vs prior year

Metric	Q1 2024	Q1 2025
Net Sales ($M)	$85.32	$77.25
Gross Profit ($M)	$50.54	$42.61
Gross Margin (%)	59.2%	55.2%
GAAP Net Income (Loss) ($M)	$(6.48)	$(18.58)
Net Income (Loss) Attrib. to Solo Brands, Inc. ($M)	$(3.40)	$(12.19)
GAAP Diluted EPS (Class A)	$(0.06)	$(0.21)
Adjusted Net Income (Loss) ($M)	$1.67	$(6.20)
Adjusted EPS (Class A)	$0.03	$(0.08)
Adjusted EBITDA ($M)	$4.30	$3.48
Adjusted EBITDA Margin (%)	5.0%	4.5%

Estimates comparison
- Wall Street consensus (S&P Global) for revenue/EPS/EBITDA for Q1 2025 was unavailable; therefore, beat/miss vs Street cannot be determined (consensus unavailable).
Segment breakdown

Segment	Q1 2024 Net Sales ($M)	Q1 2025 Net Sales ($M)	YoY %	Q1 2024 Segment EBITDA ($M)	Q1 2025 Segment EBITDA ($M)	Q1 2024 EBITDA Margin	Q1 2025 EBITDA Margin
Solo Stove	$51.48	$26.13	(49.2%)	$7.65	$(1.49)	14.9%	(5.7%)
Chubbies	$29.66	$42.69	43.9%	$4.93	$11.30	16.6%	26.5%

Channel mix and select KPIs

KPI	Q1 2024	Q1 2025
DTC Net Sales ($M)	$51.04	$33.80
Retail Net Sales ($M)	$34.28	$43.45
Cash & Equivalents ($M)	$11.98 (12/31/24)	$206.39 (3/31/25)
Inventory ($M)	$108.58 (12/31/24)	$103.07 (3/31/25)
Total Debt, Net ($M)	$150.69 (12/31/24)	$427.89 (3/31/25)
Cash from Operations ($M)	$(18.53)	$(75.19)
Interest Expense, Net ($M)	$3.11	$5.57
Weighted Avg Class A Shares (M)	58.07	58.99

Notes: Q4 2024 and Q3 2024 earnings press releases/transcripts were not found in the document set, limiting sequential comparisons. We searched for 8‑K 2.02, press releases, and transcripts in 2024‑H2 and early 2025 and did not find prior-quarter earnings documents for DTCB in the corpus.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q2 2025	Not provided	Not provided	Maintained (no guidance)
Gross Margin	FY/Q2 2025	Not provided	Not provided	Maintained (no guidance)
Adjusted EBITDA	FY/Q2 2025	Not provided	Not provided	Maintained (no guidance)
OpEx / Restructuring	FY 2025	N/A	Management continuing cost‑savings and restructuring; ongoing consultant engagements	N/A
Liquidity/Capital Structure	2025	N/A	Evaluating refinancing/restructuring, waivers/forbearance, or Chapter 11; substantial doubt about going concern	N/A

No formal numerical guidance was issued in the Q1 materials; transformation and capital structure actions were discussed qualitatively .

Earnings Call Themes & Trends

Note: The Q1 2025 call was scheduled on May 12, 2025, but a transcript was not found in the corpus. Prepared remarks timing and webcast details were disclosed in the press release .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q1 2025)	Trend
Capital structure/going concern	Not available in corpus	Substantial doubt about going concern; all debt reclassified to current; exploring refinancing/restructuring/waivers/Chapter 11	Deteriorating/liquidity stress
Marketing & promo strategy	Not available in corpus	Solo Stove pivot away from heavy DTC discounting; reduced marketing to align with retail partners	Strategic reset
Product innovation cadence	Not available in corpus	Lack of significant new product launches cited as a headwind for Solo Stove	Needs improvement
Channel mix	Not available in corpus	Retail up 26.8% YoY; DTC down 33.8% YoY; mix shift pressured gross margin	Shift toward retail
Tariffs & supply chain	Not available in corpus	Tariffs expected to increase COGS in future periods; pursuing supplier diversification and pricing strategies	Emerging headwind
Segment performance	Not available in corpus	Chubbies growth and profitability; Solo Stove contraction	Divergent

Management Commentary

“First quarter’s performance reflected strong sales from the Chubbies segment, up 44% from a year ago, generating segment EBITDA of 26.5% of net sales… Solo Stove first quarter sales were down versus a year ago, as expected, to realign our DTC promotional strategies… The team’s disciplined execution of cost reduction initiatives generated solid evidence of profitability improvements in both February and March compared to the prior year.” — John Larson, Interim CEO .
“We are highly focused on addressing our existing debt structure to deliver financial flexibility as we transform and stabilize the business this year… improving marketing effectiveness… building pricing strategies… creating a product innovation culture… right‑sizing the cost structure, including an acceleration of tariff‑related manufacturing diversification and contingency plans.” — John Larson, Interim CEO .

Q&A Highlights

A Q1 2025 earnings call transcript was not available in the document set; therefore, Q&A themes and any guidance clarifications could not be analyzed. The company disclosed call scheduling and replay details only .

Estimates Context

We attempted to retrieve S&P Global consensus for Q1 2025 (revenue, EPS, EBITDA), but no mapping was available for DTCB in the S&P Global dataset; as a result, Street consensus and beat/miss cannot be shown (consensus unavailable).
Implication: Absent consensus, investors should focus on management’s qualitative transformation milestones and the quantifiable YoY changes reported in GAAP and non‑GAAP results .

Key Takeaways for Investors

Liquidity and solvency risk are front and center: expected covenant breaches, reclassification of $427.9M debt to current, and explicit going‑concern language make capital structure outcomes the dominant near‑term stock driver .
Portfolio divergence: Chubbies is a bright spot (sales +43.9%, 26.5% EBITDA margin) and could anchor value, but Solo Stove requires product innovation and calibrated promotions to stabilize sales and restore margins .
Margin headwinds: Mix shift toward retail compressed gross margin by 400 bps; further tariff pressure could weigh on COGS unless mitigations (supplier diversification, pricing) materialize .
Cash burn and interest burden: Operating cash outflow of $75.2M in Q1 and higher interest expense ($5.6M) underscore the urgency of refinancing or restructuring .
Execution watch‑items: cost reductions, marketing effectiveness, pricing discipline, and innovation cadence are the controllable levers near term .
Trading and liquidity of shares: NYSE suspension and OTC Pink quotation may amplify volatility and constrain institutional participation until listing status is resolved .
Absent Street estimates, monitor internal KPIs (segment EBITDA, mix, inventory turns, working capital) and disclosures on lender negotiations for directional updates .

Non‑GAAP context

Key adjustments in Q1 2025 included $5.8M restructuring/contract termination/impairment charges, $5.0M amortization, and business optimization costs, partially offset by an equity‑based compensation benefit; adjusted EBITDA was $3.5M (4.5% margin) vs $4.3M (5.0%) last year .

Prior‑quarter materials

We did not find Q4 2024 or Q3 2024 earnings press releases or transcripts in the corpus despite targeted searches for 8‑K 2.02, press releases, and transcripts across late 2024 and early 2025, limiting sequential trend analysis. The Q1 2025 10‑Q and furnished press release were used for this recap .

Solo Brands, Inc. (DTCB)·Q1 2025 Earnings Summary