Traeger, Inc. (NYSE: COOK) announced a 1‑for‑50 reverse stock split of its common stock, with the split becoming effective at 5:00 p.m. Eastern Time on March 17, 2026. Split‑adjusted trading will begin on March 18, 2026. The move was taken to bring the share price back above the $1.00 minimum required for continued listing on the New York Stock Exchange after the company received a notice of non‑compliance on March 5, 2026 for an average closing price below $1.00 over a 30‑day period ending March 4.
Traeger’s most recent quarterly results, released on March 5, 2025, showed a 13.8% decline in total revenue to $559.5 million for the full year and a net loss of $115.2 million, up from a $34.0 million loss in 2024. The company’s gross margin contracted to 37.4% in Q4 2025, a 350‑basis‑point drop from the prior year, largely due to tariff‑related costs, pricing pressure, and a shift in product mix. Adjusted EBITDA for Q4 2025 was $19.4 million, slightly higher than the $18.4 million reported a year earlier, but full‑year adjusted EBITDA fell to $70.0 million from $81.9 million.
For 2026, Traeger is guiding revenue of $465 million to $485 million and adjusted EBITDA of $50 million to $60 million, a significant miss relative to analyst consensus estimates. Management framed the outlook as a “transitional reset, accepting near‑term revenue pressure in exchange for cleaner channels, higher structural margins, and stronger cash generation heading into 2027 and beyond.” The guidance reflects the company’s focus on inventory alignment, cost discipline, and the ongoing Project Gravity cost‑saving initiative, which is expected to deliver $64 million to $70 million in annualized pre‑tax savings.
"We closed 2025 with strong execution, delivering revenue above the high end of our guidance and adjusted EBITDA in the upper half of our guidance range. More importantly, we took deliberate decisions to navigate tariff pressure, protect profitability, and simplify the business in ways that strengthen our foundation for the long term," said CEO Jeremy Andrus. "As we look ahead, we are executing with discipline to focus the business on our highest‑return opportunities, while continuing to invest behind product innovation and brand. We believe these actions are positioning Traeger for stronger long‑term performance," he added. CFO Joey Hord noted, "We exited 2025 with a solid financial foundation, supported by the progress we've made under Project Gravity. As we move into 2026, our focus is on inventory alignment, cost discipline, and cash generation."
Analysts have responded to the reverse split and the 2026 guidance with caution. While the split is viewed as a necessary compliance measure, the guidance miss and the company’s continued revenue decline have prompted analysts to lower their price targets and express concerns about the company’s near‑term profitability trajectory. The market’s reaction underscores the importance of the company’s strategic reset and its impact on investor expectations.
Traeger’s reverse stock split and the accompanying guidance signal a company in transition, prioritizing compliance, cost discipline, and channel simplification over short‑term revenue growth. The move reflects the broader challenges the company faces from tariff pressures, a weakening consumer discretionary environment, and the need to strengthen its balance sheet. Investors will likely view the reverse split as a compliance fix, while the guidance and management commentary suggest a focus on long‑term structural improvements rather than immediate revenue expansion.
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