Traeger, Inc. (COOK) · Nov 4, 2026 · Earnings
Miss — Revenue $74.7M vs ~$79.4M consensus; adjusted EPS -$6.77 vs ~$-4.54
Traeger earnings show a deeper Q3 revenue decline than expected, with adjusted EBITDA turning negative despite cost cuts and stronger cash flow.
Traeger is in the middle of Project Gravity: simplifying its operating model, exiting or redirecting lower-return channels, and shifting toward broader retail distribution, including Lowe’s. The strategy was already expected to depress near-term revenue while improving cash generation and margins over time.
The transition produced a clear Q3 earnings miss. Revenue fell 40.4% year over year to $74.7 million, below the published consensus of roughly $79.4 million, while adjusted EPS was a $6.77 loss versus an expected loss of about $4.54. Management itself said revenue landed at the low end of its prior pacing, with activity shifting into Q4. 〔0〕
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Revenue (Income Statement) | $74.7M (-40.4%) | $125.4M | ~$79.4M |
| Adjusted EPS (Adjusted metrics) | $(6.77) | $(8.31) | ~$(4.54) |
| Adjusted EBITDA (Adjusted metrics) | $(3.3M) | $13.8M | |
| Gross margin (Financial Highlights) | 33.5% | 38.7% | |
| Free cash flow (Cash Flow) | $8.4M | $6.4M |
The operating deterioration was broader than the headline revenue miss. Grills, consumables, and accessories all declined sharply, gross margin fell to 33.5%, and adjusted EBITDA swung to a $3.3 million loss from a $13.8 million profit. Cost reductions are working below the revenue line, but not enough to offset channel disruption, lower pricing and volumes, and continued MEATER weakness. 〔1〕
Cash flow is the main offset, not a reversal of the business trend. Year-to-date free cash flow reached $49.4 million and cash rose to $67.8 million, helped by working-capital releases and lower inventory. That gives Traeger more room to complete the transition, but it does not yet demonstrate that the underlying demand engine has stabilized; nine-month revenue is still down nearly 30% and adjusted EBITDA is down to $31.2 million from $50.6 million.
Management kept the recovery narrative alive, but the proof point moved to Q4 and 2027. The company narrowed its full-year revenue and adjusted EBITDA ranges while reiterating gross-margin and free-cash-flow guidance; the filing does not provide the new numerical ranges in the supplied text. Prior guidance had already called for $435 million-$465 million of 2026 revenue and $57 million-$67 million of adjusted EBITDA, so the key test is whether the promised Q4 return to growth arrives without another guidance reset.
Bottom line: Traeger is still generating cash and cutting costs, but Q3 shows the channel transition is hurting revenue and profitability more than expected. The recovery story remains intact only as a forward-looking bet on Q4 execution and the spring 2027 Lowe’s rollout.
Q4 report and national Lowe’s launch in spring 2027
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