5/14/2026

speaker
Operator
Conference Operator

Good morning, everyone. Welcome to the Solo Brands first quarter fiscal 2026 financial results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touchstone phone. To withdraw your question, please press star, and then two. Please note this event is being recorded. I will now turn the call to Mark Anderson, Senior Director, Treasury and Investor Relations. Please go ahead.

speaker
Mark Anderson
Senior Director, Treasury and Investor Relations

Thank you and good morning, everyone. We appreciate you joining us for the Solo Brands conference call to review the 2026 first quarter 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 is being 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 future financial and operating performance, including guidance, liquidity and cash flows, covenant compliance, business strategy, including product innovation, cost savings, benefits of technological advances, receipt of tariff refunds, trends in seasonality, international expansion, and our delisting appeal with the NYSE are forward-looking statements that 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 of 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 except as required by law. 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 8-K. Now, I would like to turn the call over to John Larson.

speaker
John Larson
President and Chief Executive Officer

Thanks, Mark, and thank you all for joining us today. After our prepared remarks, we will open the call to analyst and investor questions. Our first quarter reflects continued measurable progress in our transformation. We intend to continue to build a more focused, higher quality business supported by a leaner cost structure, disciplined cash management, and a clear path towards sustainable profitability. Let me highlight a few drivers of the quarter and the momentum we saw exiting Q1 that is continuing into the second quarter. The macro environment remains dynamic with uneven consumer demand. We navigated difficult Q1 comparisons in Chubbies driven partially by some retail order timing versus the prior year. Most importantly, underlying sales trends strengthened as we exited the quarter. Late in the quarter, we saw improving trends of that momentum continuing into April, where we delivered year-over-year sales growth for solo brands. Our March product launches have performed well at Stove Division, with the all-new Steel Fire 22 Griddle and Summit 27 Fire Pit now in the top five selling products for DTC, while also improving our average order values. We have also received very positive sell-through reports for Chubbies this spring, and the news significantly increased expanded water sport assortments at Costco are off to a good start. Based on this momentum, we are reaffirming our full year 2026 outlook. We continue to invest selectively, prioritizing innovation and differentiation where we can drive durable margin accretive growth. At the same time, we made a deliberate decision last year to realign pricing and promotional activity at solo stoves. While this impacted near-term sales, we believe it positioned the business for more sustainable, profitable growth. In addition, we have been making strides focusing on high-opportunity international markets, which I'll cover in detail in a moment. From a financial perspective, we generate a positive adjusted EBITDA in a seasonally smaller quarter, further demonstrating the operating leverage embedded in our model. Stepping back, our focus is very straightforward. Build differentiated product-led brands strengthen retail and customer partnerships, operate with speed, accountability, and capital efficiency, and ultimately drive profitable growth and cash generation. Every product we launch is held to a high bar. It must offer unique, innovative features, align with our partners, and drive long-term value, not just short-term gains. Simply put, we are focused on building a stronger business with improving margins, disciplined execution, and sustainable cash flow generation. Finally, we began trading on the OTCQB in early April under the same ticker, SBDS, following the New York Stock Exchange delisting notice, which we are currently appealing. Importantly, this does not change our strategy. Our focus remains on execution, operational improvement, and maintaining transparency. Overall, we believe we are building a business with improving momentum, expanding operating leverage, and increasing visibility into long-term value creation. With that, I'll hand it to Laura for the financials.

Disclaimer

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