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Solo Brands (SBDS)
NYSE:SBDS
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Solo Brands
(NYSE:SBDS)
Rating:45Neutral
Price Target:
$11.50
▼(-18.50% Downside)
Positive Factors
Negative Factors
Financial Performance
Solo Brands reported poor Q4 results, did not provide 2025 guidance, and included a going concern disclosure.
Management and Leadership
Poor Q4 and vacant CEO seat leaves more questions than answers; downgrade to HOLD, PT to $1.
Market Trading
Solo Brands expects its Class A common stock will be quoted for trading on the OTC pink market, which is more limited than the NYSE and could further reduce the trading price.
Stock Delisting
The NYSE notified Solo Brands that it would commence proceedings to delist the company's Class A common stock due to trading at abnormally low price levels.
Solo Brands (SBDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.54M
Dividend YieldN/A
Average Volume (3M)15.22K
Price to Earnings (P/E)―
Beta (1Y)2.05
Revenue Growth-17.33%
EPS Growth-3.39%
CountryUS
Employees526
SectorConsumer Cyclical
Sector Strength80
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.02
Shares Outstanding1,647,346
10 Day Avg. Volume9,565
30 Day Avg. Volume15,219
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap9.44
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit1.36
Enterprise Value/Ebitda-1.84
Forecast
1Y Price Target
$11.50Price Target Upside-18.50% Downside
Rating ConsensusHold
Number of Analyst Covering0
Solo Brands Business Overview & Revenue Model
Company DescriptionSolo Brands, Inc. is a dynamic company operating in the consumer goods sector, primarily focusing on outdoor and lifestyle products. The company is known for its direct-to-consumer model and offers a range of innovative products under notable brands such as Solo Stove, Chubbies, Oru Kayak, and ISLE. These brands are synonymous with high-quality outdoor gear and apparel, catering to enthusiasts seeking premium products for their adventures.
How the Company Makes MoneySolo Brands, Inc. generates revenue through a direct-to-consumer sales model, primarily leveraging its e-commerce platforms to reach customers directly. The company capitalizes on its strong brand portfolio, which includes Solo Stove, Chubbies, Oru Kayak, and ISLE, to drive sales of outdoor products and apparel. A significant portion of its income comes from online sales, supported by strategic marketing efforts and a robust digital presence. Additionally, Solo Brands may engage in partnerships and collaborations that enhance brand visibility and expand market reach, contributing to its overall earnings.
Solo Brands Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong growth in the Chubbies segment and a significant reduction in net loss. However, challenges such as the NYSE trading suspension, decline in Solo Stove sales, impending tariff impacts, and financial covenant issues weigh heavily on the company's outlook.Q1-2025 Updates
Positive Updates
Chubbies Segment Sales Growth
First quarter sales of the Chubbies brand grew 43.9%, with the segment EBITDA margin expanding to 26.5% of sales.
Profitability and Cash Flow Improvements
Consolidated bottom line results for February and March exceeded last year, indicating that the profitability focus is beginning to yield results.
Reduction in Net Loss
The first quarter GAAP net loss was significantly reduced to $12.2 million, down over 65% from the fourth quarter.
Cost Management Success
Selling, general and administrative expenses were reduced by $9.4 million compared to last year's first quarter, mainly due to decreased advertising, marketing spend, and lower variable costs.
Negative Updates
NYSE Trading Suspension
The company is facing a suspension from the NYSE and is working on an appeal and restructuring plan to regain compliance.
Decline in Solo Stove Sales
Sales in the Solo Stove segment declined by $25.3 million due to the elimination of extensive discounting and promotion in the DTC channel.
Tariff Impact Concerns
Tariffs are expected to impact the business starting in the second quarter, prompting the company to diversify its manufacturing footprint.
Debt and Financial Covenant Issues
The company reported noncompliance with certain financial covenants under the credit agreement and continues to report a going concern disclaimer.
Company Guidance
In the Solo Brands First Quarter 2025 Financial Results Conference Call, the company provided guidance on various strategic initiatives and financial metrics. The Chubbies segment showed strong performance with sales growth of 43.9% and an EBITDA margin of 26.5%, while the Solo Stove segment experienced a decline due to a reduction in discounting and promotional activities. Overall, the total net sales for the quarter were $77.3 million, marking a 9.5% decrease from the previous year. The company reported an adjusted gross profit of $42.8 million, translating to 55.4% of net sales, compared to 59.5% in the prior year. Selling, general, and administrative expenses were reduced to $39 million, contributing to a significant reduction in the GAAP net loss to $12.2 million. Adjusted net loss was $4.7 million, while adjusted EBITDA was $3.5 million, representing a margin of 4.5% of net sales. The company is also taking steps to diversify its manufacturing footprint and implement pricing strategies in response to tariff impacts. Additionally, Solo Brands is focusing on product innovation with plans to launch five new products in the Solo Stove division, starting with the Windchill 47 cooler. These initiatives are part of a broader transformation plan aimed at enhancing profitability and cash flow improvements.Solo Brands Financial Statement Overview
Summary
Solo Brands is facing financial challenges with declining revenue, negative profitability margins, and increased leverage. Significant cash flow difficulties exacerbate these issues, reflecting a need for strategic adjustments to improve financial health.Income Statement
Solo Brands has experienced declining revenue and profitability. The TTM (Trailing-Twelve-Months) period showed a decrease in total revenue and negative EBIT and EBITDA margins, indicating operational difficulties. The net profit margin has also worsened due to increasing net losses. Overall, the company is facing challenges in maintaining profitability and revenue growth.45
Neutral
Balance Sheet
The company's balance sheet highlights increasing leverage with a rising debt-to-equity ratio. Stockholders' equity has decreased due to accumulating losses, impacting the equity ratio negatively. While total assets have increased, the company's financial stability is weakened by higher debt levels and lower equity.50
Neutral
Cash Flow
Cash flow analysis indicates negative free cash flow and operating cash flow for the TTM period, reflecting cash management challenges. The operating cash flow to net income ratio is unfavorable due to net losses, and free cash flow growth is negative, suggesting potential liquidity issues.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 407.19M | 454.55M | 494.78M | 517.63M | 403.72M | 133.43M |
| Gross Profit | 226.29M | 260.26M | 302.15M | 318.18M | 258.91M | 86.97M |
| EBITDA | -166.65M | -148.51M | -193.20M | 55.55M | 87.09M | -15.22M |
| Net Income | -132.50M | -113.36M | -111.35M | -4.95M | 48.65M | -24.20M |
Balance Sheet | ||||||
| Total Assets | 459.70M | 495.06M | 659.32M | 862.35M | 837.74M | 542.41M |
| Cash, Cash Equivalents and Short-Term Investments | 18.12M | 11.98M | 19.84M | 23.29M | 25.10M | 32.75M |
| Total Debt | 264.75M | 182.83M | 182.48M | 149.41M | 128.15M | 73.35M |
| Total Liabilities | 303.84M | 301.70M | 287.06M | 287.35M | 263.57M | 210.31M |
| Stockholders Equity | 113.18M | 133.71M | 241.26M | 363.43M | 360.88M | 332.10M |
Cash Flow | ||||||
| Free Cash Flow | -66.59M | -4.00M | 53.33M | 23.15M | -20.89M | 31.72M |
| Operating Cash Flow | -50.89M | 10.52M | 62.42M | 32.40M | -10.25M | 32.68M |
| Investing Cash Flow | -15.70M | -14.51M | -53.08M | -10.02M | -143.89M | -274.10M |
| Financing Cash Flow | 64.73M | -3.66M | -12.87M | -23.54M | 146.48M | 281.07M |
Solo Brands Technical Analysis
Positive
14.11
Price Trends
14.00
Positive
9.47
Positive
20.75
Negative
Market Momentum
0.10
Negative
58.50
Neutral
86.38
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBDS, the sentiment is Positive. The current price of 14.11 is above the 20-day moving average (MA) of 11.29, above the 50-day MA of 14.00, and below the 200-day MA of 20.75, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 58.50 is Neutral, neither overbought nor oversold. The STOCH value of 86.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBDS.
Solo Brands Risk Analysis
Solo Brands disclosed 66 risk factors in its most recent earnings report. Solo Brands reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Solo Brands Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $17.93B | 15.62 | 37.37% | 2.10% | 2.70% | 4.58% | |
72 Outperform | $3.39B | 9.53 | 18.42% | 0.98% | -2.20% | -17.95% | |
70 Outperform | $17.33B | 47.16 | 34.48% | ― | 7.64% | 369.79% | |
61 Neutral | $18.02B | 12.77 | -0.74% | 3.01% | 1.30% | -13.03% | |
52 Neutral | $121.83M | ― | -16.56% | ― | -2.92% | -8.22% | |
49 Neutral | $32.77M | ― | -51.44% | 3.55% | -8.04% | -263.28% | |
45 Neutral | $32.54M | ― | -75.73% | ― | -17.33% | -3.39% |
* Consumer Cyclical Sector Average
Performance Comparison
SBDS
Solo Brands
14.11
-41.49
-74.62%
BGFV
Big 5 Sporting Goods
1.42
-0.47
-24.87%
DKS
Dick's Sporting Goods
220.27
16.63
8.17%
SPWH
Sportsman's Warehouse
2.98
0.44
17.32%
CHWY
Chewy
35.11
4.87
16.10%
ASO
Academy Sports and Outdoors
48.21
-6.00
-11.07%
Solo Brands Corporate Events
Delistings and Listing ChangesPrivate Placements and Financing
Solo Brands Resumes NYSE Trading After Suspension
Positive
Aug 27, 2025
In August 2025, Solo Brands will engage in meetings with investors and analysts, sharing presentation materials that are available on their Investor Relations website. The company has recently overcome significant challenges, including elevated cost structures and a temporary NYSE trading suspension, by achieving key milestones such as debt refinancing through June 2028 and reinstatement of their Class A common stock trading on the NYSE.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.