Key Highlights

  • Total Revenue fell 40.4% to USD 74.7 million in the third quarter, against USD 125.4 million a year earlier, with grill revenue down 48.1% to USD 39.7 million.
  • Net loss was USD 28.5 million, or USD 10.33 a diluted share, versus a USD 89.8 million loss a year ago that included a USD 74.7 million Goodwill impairment.
  • Adjusted EBITDA was a loss of USD 3.3 million, compared with positive USD 13.8 million in the prior-year quarter, as gross Margin slipped to 33.5% from 38.7%.
  • Cash rose to USD 67.8 million from USD 19.6 million at December 31, 2025, while inventory fell to USD 79.5 million from USD 98.8 million.

A 40.4% Revenue Drop Against a Tough Comparison

Traeger (NYSE:COOK) announced third quarter fiscal 2026 results on November 4, 2026, showing total revenue of USD 74.7 million, down 40.4% from USD 125.4 million. The company makes wood pellet grills and sells pellets, accessories and MEATER smart thermometers. Grills fell 48.1% to USD 39.7 million, which management tied to comparisons against elevated retailer purchases in the prior-year quarter and to product and channel actions under its Project Gravity restructuring. Consumables dropped 23.1% to USD 19.4 million on lower pellet sales, and accessories fell 34.1% to USD 15.5 million, led by weaker MEATER and branded accessory sales. The chief executive said revenue landed at the low end of the pacing outlined last quarter, with some activity shifting into the fourth quarter.

Margin Squeeze, Per-Share Loss and Reverse Split Effects

Gross profit was USD 25.0 million versus USD 48.5 million. Gross margin of 33.5% compared with 38.7%, pressured by trade spend timing, fixed Warehousing costs spread over lower sales and continued MEATER margin pressure, partly offset by an IEEPA Tariff refund benefit. Sales and Marketing costs fell to USD 14.3 million from USD 20.0 million and general and administrative costs fell to USD 19.9 million from USD 22.2 million. Net loss was USD 28.5 million, or USD 10.33 per diluted share, while adjusted net loss was USD 18.7 million, or USD 6.77 a share, versus USD 22.3 million, or USD 8.31. Per-share figures are restated for the 1-for-50 Reverse Stock Split effective March 17, 2026, so they are not comparable with older quotes.

Narrowed Guidance and the Lowe's Launch Ahead

Traeger (NYSE:COOK) narrowed full-year fiscal 2026 revenue guidance to USD 440 million to USD 460 million from USD 435 million to USD 465 million, and adjusted EBITDA to USD 59 million to USD 65 million from USD 57 million to USD 67 million. Gross margin guidance of 40.0% to 41.0% and free Cash Flow of at least USD 30 million were reiterated. Management expects a return to revenue and adjusted EBITDA growth in the fourth quarter, then a national Lowe's launch in spring 2027. Operating Cash Flow was USD 9.8 million and free cash flow USD 8.4 million in the quarter. Risks include the reliance on a fourth-quarter rebound and a full-year margin target well above the third-quarter level.

Where Things Stand

The decline reflects a prior-year comparison inflated by retailer purchases plus deliberate channel changes, not a single cause. Traeger (NYSE:COOK) cut third quarter revenue by 40.4% and swung to an adjusted EBITDA loss, yet narrowed guidance around unchanged midpoints and improved cash and inventory. The test now is whether the fourth quarter delivers the growth management describes, whether gross margin moves back toward the full-year range, and how the Lowe's launch in spring 2027 contributes.