Solo Brands, Inc.

Good morning, everyone. Welcome to the Solo Brands Third Quarter 2025 Financial Results Conference Call. All participants will be in the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. As a reminder, this conference call is being recorded. I will now turn the call to Mark Anderson, Senior Director, Treasury and Investor Relations. Please go ahead.

Thank you, and good morning, everyone. We appreciate you joining us for the Solo Brands conference call to review the third quarter 2025 results. Joining me on the call today are the company's president and chief executive officer, John Larson, and chief financial officer, Laura Coffey. This call has been webcast and can be accessed through the investors portion of our website at investors.solobrands.com. Today's conference call will be recorded. Please be advised that any time sensitive information may no longer be accurate as of any replay or transcript reading date. I would also like to remind you that the statements in today's discussion that are not historical facts, including statements about expectations, future events, financial performance, liquidity, Turnaround efforts, strategic transformation goals, and future growth are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, by their nature, are uncertain and outside the company's control. Actual results may differ materially from those expressed or implied. Please refer to today's earnings press release for our disclosures on forward-looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Commission. Solo Brands assumes no obligation to publicly update or revise any forward-looking statements. Management will refer to non-GAAP measures and reconciliations to the nearest GAAP measures are included at the end of our earnings release. Finally, the earnings release has been furnished to the SEC on Form 8K. Now, I would like to turn the call over to the company's CEO, John Larson.

Thank you, Mark, and good morning all. Thank you for your interest in solo brands. Today, Laura and I will discuss third quarter results and share our progress on strategic initiatives, then open the call to analyst questions. The third quarter sales environment was challenging, reflecting continued pressure on consumer demand while we worked through excess retailer inventory and rebuilding our retail relationships, primarily in the solo stove division. That said, Our approach remains measured and disciplined. We maintain stable gross margins and generated $11 million of operating cash flow, our second consecutive quarter of positive cash generation, driven by stronger cost discipline and better working capital management. Net sales for solo brands were $53 million, down from $94 million last year, with softness in both DTC and retail. At Solo Stove, while working through excess inventory at our retail partners, we deliberately align promotional activity and pricing integrity across channels to rebuild retail partnerships. We also face the reality that uncertainty and temporary delisting earlier this year set us back on future planning with some retail partners. That's on us to repair, and we're doing exactly that by coordinating promotional calendars with partners rather than competing with them. Now we are beginning to deliver on our core initiative of launching innovative new products. At Chubbies, revenue declined 16% year-over-year, primarily due to timing of retail replenishment after a very strong first half of 2025. DTC was essentially flat for the quarter, signaling stable consumer demand for Chubbies. We recognize we have work to do on the top line. Recent product launches are gaining momentum, but we are committed to further accelerating structural cost reductions beyond the reduction in SG&A of 35.4% year over year in Q3 to better align our operating model with today's baseline demand and to allow future gains in top-line performance to flow directly to the bottom line. Let me step back and frame how we are running the business. We are focused on profitability first and building a cost structure to match current demand. We're simplifying the organization, taking permanent costs out, and holding the line on marketing efficiency. SCNA declined 35.4% year-over-year in Q3. That discipline is not a one-time action. It's how we operate. Cash discipline is equally central. We ended the quarter with $16.3 million in cash and cash equivalents, no outstanding borrowings on our revolver, and inventories down 21% year over year. Across Q2 and Q3 combined, we generated $22 million in operating cash flow. Liquidity is stable, and we're allocating capital with care. We are product-led, but we are not chasing volume for its own sake. Our launches must be differentiated and margin accretive. supported by pricing integrity and coordinated promotions with our partners. The recent launch of the all-new Summit 24 fire pit in late September and the Propane Infinity Flame fire pit in late October are showing positive signs in Q4. Finally, we're keeping it simple. fewer distractions, faster execution, and a sharp focus on the customer, on partnerships, on launching products that matter, with profitability and cash being our measure of success. Q3 was not where we want revenue, and I won't dress that up, but we are addressing head-on with a plan to win, which includes further accelerating our structural cost right-sizing. With that, I'll hand it to Laura for the financials.