Traeger, Inc.

What they do

Traeger designs and sells wood pellet grills, which use hardwood pellets to grill, smoke, bake, and roast, with Wi-Fi-connected models controlled via the Traeger app. The company also sells consumables (wood pellets, rubs, sauces) and accessories (MEATER thermometers, grill covers, tools). Distribution is primarily through retail partners like Ace Hardware, The Home Depot, Amazon, Best Buy, and now Lowe's, with a small direct-to-consumer presence for MEATER.

Revenue drivers

• Grills — Largest revenue segment; $61.6M in Q2 2026 (17.0% decrease YoY). Sales are driven by product mix and pricing, with new launches (Westwood, Irontop) partially offsetting lower average selling prices.
• Consumables — $32.8M in Q2 2026 (9.9% decrease YoY). Includes wood pellets, rubs, and sauces; decline driven by lower pellet sales and food consumables.
• Accessories — $25.8M in Q2 2026 (26.2% decrease YoY). Includes MEATER smart thermometers and grill accessories; decrease primarily due to lower MEATER sales.
• Traeger app and DTC — The app had 2.8 million active users in 2025, driving engagement and recurring consumable purchases. DTC is being redirected to retail, but MEATER remains on DTC.

Recent performance

For Q2 2026, total revenue decreased 17.4% to $120.2M, with net loss of $8.6M (diluted EPS -$3.12). Adjusted EBITDA rose 21.0% to $17.3M. For fiscal year 2025, revenue was $559.5M, down from $604.1M in 2024, with net loss of $115.2M. The company generated $27.1M operating cash flow in Q2 2026.

Strategy

Project Gravity (launched May 2025) is the key strategic initiative: a restructuring to streamline operations, reduce costs, and improve profitability. Actions include reducing headcount, centralizing MEATER, exiting the Costco roadshow program, redirecting Traeger.com traffic to retail partners, transitioning European markets to distributors, and consolidating pellet mills. Expected annualized savings of $58M, with additional SKU rationalization and pricing actions to add $6-12M more in 2027-2028. New partnership with Lowe's expands distribution, and new grill lines (Westwood, Irontop) target underpenetrated markets.

Risks

• Project Gravity execution risk — Restructuring may disrupt operations, cause loss of key personnel, and fail to deliver expected savings, impacting product quality and retailer relationships.
• Revenue decline — Total revenue has fallen for four consecutive years, and Q2 2026 showed a 17.4% decline, indicating persistent demand softness.
• Channel transition risks — Exiting DTC and moving to distributor models in Europe could reduce sales and cause short-term channel disruption, with some transitions ongoing through fiscal 2026.
• Product mix and pricing pressure — Shift to more accessible price points is reducing average selling prices, pressuring grill revenue despite higher volumes.

Outlook

Management maintains FY26 Adjusted EBITDA guidance despite lowering revenue outlook. They expect the majority of Project Gravity to be complete by end of fiscal 2026, with benefits from a larger installed base and broader distribution in 2027. They anticipate returning to profitable growth in 2027.