Traeger (COOK) Earnings Date & Reports

Key Takeaways

• Traeger reported third quarter fiscal 2026 revenue of $74.7 million, down 40% year over year and below the roughly $79.4 million consensus estimate.
• Adjusted net loss came in at $6.77 per share, wider than the consensus estimate of a $4.54 per share loss.
• Adjusted EBITDA swung to a $3 million loss from $14 million of income a year earlier, reflecting revenue timing that shifted into the fourth quarter.
• Management narrowed full-year 2026 guidance while holding midpoints steady, pointing to a return to year-over-year revenue growth in Q4.
• Gross margin contracted 5.2 percentage points to 33.5%, pressured by trade-spend timing and softer MEATER smart thermometer sales.
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Earnings Context and Why It Matters

Traeger, the category leader in wood pellet grills, has spent 2026 reshaping its business under "Project Gravity," a multiyear effort to simplify operations, cut costs, and build a more durable profit model. Investors were watching this report closely to see whether those restructuring savings could offset a steep top-line decline and ongoing competitive pressure in its MEATER smart thermometer segment. The quarter arrived as the company works through deliberate channel changes, softer grill demand, and tariff-related uncertainty, making the results a key gauge of whether Traeger's turnaround is tracking toward a more profitable 2027.

Reported Results

Traeger reported third quarter fiscal 2026 revenue of $74.7 million, down 40% from $125.4 million in the year-ago period and below the consensus estimate of roughly $79.4 million. Net loss narrowed to $28.5 million, or $10.33 per diluted share, from a net loss of $89.8 million, or $33.46 per diluted share, a year earlier — a period that included a $75 million non-cash goodwill impairment.

Adjusted net loss was $19 million, or $6.77 per diluted share, wider than the consensus estimate of a $4.54 per share loss and compared with an adjusted net loss of $22 million, or $8.31 per share, a year ago. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) swung to a $3 million loss from $14 million of income in the prior-year quarter, as management said certain shipments and promotional activity shifted from Q3 into Q4.

By segment, grill revenue fell 48% to $40 million, consumables revenue declined 23% to $19 million, and accessories revenue dropped 34% to $16 million, driven largely by lower MEATER sales. Gross margin contracted 5.2 percentage points to 33.5%.

Traeger narrowed its full-year 2026 outlook, guiding revenue to $440 million to $460 million (previously $435 million to $465 million) and adjusted EBITDA to $59 million to $65 million (previously $57 million to $67 million), while keeping gross margin guidance at 40% to 41%.

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Market Reaction and Investor Sentiment

Heading into the report, sentiment around Traeger was cautious, with the stock having declined roughly 19% over the prior three months. The quarter's miss on both revenue and adjusted earnings per share reinforced concerns about soft demand and MEATER competition, while the swing to a negative adjusted EBITDA highlighted how much of the company's profitability is now backloaded into the fourth quarter. At the same time, the narrowed guidance ranges with unchanged midpoints signaled that management still expects a year-over-year revenue rebound in Q4, helping temper the reaction to the headline shortfall.

Forward Outlook and Key Factors to Monitor

Traeger's guidance implies a return to year-over-year revenue growth in the fourth quarter, driven by the recovery of shipments that slipped out of Q3 and the ramp of its Lowe's channel expansion. Investors will be watching whether that revenue materializes as projected and whether gross margin improves sequentially on better warehousing and trade-spend leverage.

Beyond Q4, the durability of Project Gravity's cost savings, the trajectory of MEATER amid competitive pressure, and the impact of tariffs and transportation costs remain key swing factors. With total debt of $403 million and net debt of $335 million, balance-sheet health and free cash flow generation will also stay in focus as the company works toward a structurally higher-margin business into 2027 and 2028.

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