Traeger (NYSE:COOK) reported lower second-quarter revenue but higher adjusted EBITDA, as the outdoor cooking company cited softer sales at its MEATER accessories business, lower average grill selling prices and channel changes tied to its planned national rollout at Lowe’s.
Second-quarter revenue totaled $120 million, down 17% from the prior-year period. Grill revenue fell 17% to $62 million, while consumables revenue declined 10% to $33 million and accessories revenue decreased 26% to $26 million. Chief Financial Officer Joey Hord said the accessories decline was driven largely by lower MEATER sales.
MEATER softness and channel transition weigh on outlook
Chief Executive Officer Jeremy Andrus said Traeger entered 2026 expecting several pressures, including MEATER softness, price elasticity, channel inventory normalization and revenue trade-offs associated with its Project Gravity restructuring program. He said the company has seen greater-than-anticipated weakness in MEATER and more near-term channel effects from its distribution strategy.
Hord said MEATER’s promotional performance came in below expectations and represented the largest factor behind the reduced revenue outlook. He said Traeger is repositioning the business to emphasize profitability and high-return spending, including centralizing MEATER operations from the United Kingdom to Salt Lake City.
During the question-and-answer session, Andrus said the broader grill industry is approximately flat based on the data Traeger monitors, and the company’s sell-through trends are broadly in line with that environment. He said Traeger has not yet seen a meaningful normalization of replacement demand following the pandemic-era pull-forward in grill purchases.
Traeger expects full-year grill sell-in unit volumes to remain approximately flat year over year, Hord said, even as revenue remains under pressure from lower average selling prices. The company said demand has been more resilient for grills priced below $1,000, while products above $1,000 have shown softness.
Lowe’s launch to begin with fourth-quarter load-in
Traeger announced plans to expand nationally into Lowe’s, with initial product load-in activity beginning in the fourth quarter of 2026. The company plans a full spring 2027 launch of grills, griddles, accessories and consumables.
Andrus called the rollout one of the company’s most significant recent distribution expansions, saying it should broaden Traeger’s access to underpenetrated markets and new consumers. However, he also said the expansion has affected discussions with existing retail partners, including some changes in assortments, retail space and investment levels as certain exclusivity arrangements evolve.
“There’s a balancing act between number of retail partners and points of distribution and sort of shared commitment,” Andrus said during the call. He said Traeger expects the Lowe’s relationship to be a long-term growth opportunity rather than a near-term “step function” in revenue.
Hord said the Lowe’s expansion will require investments in fixtures, pellet-production capacity, field personnel and headquarters resources. He described the initiative as accretive to the company’s business with a high expected return on investment, while noting that it could affect cash flow timing.
Traeger expects about two-thirds of its remaining 2026 revenue and substantially all of its remaining adjusted EBITDA generation to occur in the fourth quarter. The outlook reflects the initial Lowe’s load-in and normal seasonal demand patterns, as well as a comparison against a large order timing shift from a strategic partner in the third quarter of 2025.
Project Gravity supports profitability and cash flow
Despite the revenue decline, Traeger’s adjusted EBITDA rose to $17 million in the second quarter from $14 million a year earlier. Adjusted net income was $1 million, or $0.53 per diluted share, compared with an adjusted net loss of $2 million, or $0.73 per diluted share, in the prior-year quarter.
Gross profit declined to $47 million from $57 million, but gross margin increased 30 basis points to 39.5%. Hord said gross margin benefited from an IEEPA tariff refund, the timing of trade spending and a higher mix of direct-import sales, partially offset by product mix.
Sales and marketing expense fell to $17 million from $25 million, while general and administrative expense declined to $22 million from $26 million. Hord attributed the reductions largely to Project Gravity actions, including lower demand-creation and employee-related costs.
The company generated $26 million in free cash flow during the quarter, including $16 million related to the IEEPA refund. Cash and cash equivalents ended the quarter at $60 million, compared with $20 million at the end of fiscal 2025. Total debt was $403 million, resulting in net debt of $344 million.
Inventory fell to $76 million, from $116 million a year earlier and $99 million at the end of 2025. Hord said the decline reflected SKU rationalization, business simplification under Project Gravity and lower MEATER inventory.
Traeger reiterated its expectation for at least $30 million in fiscal 2026 free cash flow and said it remains on track to capture $50 million of value through Project Gravity during the year. The company said it expects a larger installed base, broader distribution, streamlined operations and a more complete product lineup to support a return to profitable growth in 2027 and beyond.
About Traeger (NYSE:COOK)
Traeger, trading on the NYSE under the ticker COOK, is a designer, manufacturer and marketer of wood pellet grills and outdoor cooking appliances. The company’s core product lineup features a range of hardwood-pellet grills that combine wood-fired flavor with digital temperature control. Beyond grills, Traeger offers a suite of accessories—such as grill covers, smoking woods, meat probes and recipe rubs—as well as outdoor kitchen solutions designed to serve both consumer and light-commercial segments.
Founded in 1985 by Joe Traeger, the brand pioneered the wood-pellet grilling category.
