Solo Brands cuts 2026 sales forecast to $270–290 million
Key Facts
Solo Brands cut its 2026 net sales forecast to a range of $270 million to $290 million, and its adjusted EBITDA forecast to $21–25 million, according to its third-quarter results statement filed with the U.S. Securities and Exchange Commission. The company said the update was based on nine-month results and current expectations, and included the low end of its original range. Previous guidance put sales at $280 million to $310 million and adjusted EBITDA at $24 million to $30 million, according to its second-quarter statement. The forecast cut follows declines in quarterly sales and sales for the nine months ended September 30. Its shares closed at $2.7 on November 11, according to EL7 data.
Third-quarter net sales were $43.7 million, down 17.6% from $53.0 million in the same period a year earlier. The company said the decline was mainly due to lower sales across its reportable segments. For the nine months ended September 30, sales fell 12.4% to $195.1 million from $222.5 million. Adjusted EBITDA, however, rose over the same period to $13.0 million from $8.9 million, and increased as a share of sales to 6.6% from 4.0%. The figures show a divergence between contracting revenue and improved adjusted earnings in the first nine months. Even so, the company lowered its annual adjusted EBITDA range to $21–25 million.
The performance of the two main brands remained under pressure in the third quarter. Solo Stove sales fell 19.9% to $24.7 million, with unit volumes down in its core fire pit category and weakness in the retail channel, the company said. Chief Executive John Larson said products Solo Stove launched during the previous year accounted for about half of the brand's website sales during the quarter, but added that revenue performance remained below the company's expectations. At Chubbies, sales fell 16.8% to $13.7 million, amid uneven demand across its direct-to-consumer and retail channels. Overall, the company attributed the revenue decline to lower sales across its reportable segments.
Gross margin improved despite a decline in gross profit. The margin was 63.4% of sales, compared with 60.0% a year earlier, while gross profit fell to $27.7 million from $31.8 million. The company said lower sales and a shift in channel mix affected gross profit, partly offset by lower promotional activity and tariff impacts compared with the previous period. For the nine months, adjusted EBITDA rose to $13.0 million, or 6.6% of sales, from $8.9 million, or 4.0%. The margin and adjusted profitability gains came alongside continued declines in annual and quarterly sales.
The net loss attributable to Solo Brands widened in the third quarter to $20.8 million, or $8.08 per diluted share, compared with a loss of $15.0 million, or $9.22 per share, in the year-earlier period. On liquidity, the chief executive said the company generated more than $6 million in operating cash flow during the quarter, which he described as typically the smallest quarter of the year by sales because of seasonality. Cash and cash equivalents totaled $40.2 million on September 30. Outstanding term loan borrowings totaled $264.4 million, including paid-in-kind interest, while there were no borrowings outstanding under the revolving facility. The facility had $50.3 million available for future draws, net of letters of credit.
The company statement scheduled a conference call to discuss third-quarter results for November 12, 2026, at 9:00 a.m. Eastern time. It said a replay of the recorded call would be available after the conference and remain available through November 19, 2026. The conference follows the annual forecast cut and quarterly results, which combined lower sales with an improved gross margin. It will also provide an opportunity to discuss the results on which the company based its updated sales and adjusted earnings ranges. The company specified the replay availability end date in its results statement.