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Solo Brands
(OTC:SBDS)
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Rating:49Neutral
Price Target:
$3.50
▼(-12.28% Downside)
Action:Reiterated
Date:08/22/26
SBDS scores below average primarily due to weak financial performance driven by continued losses and material revenue declines, despite a notable TTM cash-flow rebound and improved leverage versus 2025. Technicals remain pressured with the stock still below key longer-term moving averages and negative MACD. The earnings call adds support through improved adjusted profitability, cost actions, and stronger liquidity, but persistent top-line softness and transitional costs keep the overall score restrained.
Positive Factors
Adjusted Profitability and Cost Discipline
Higher adjusted EBITDA and lower SG&A indicate that expense discipline and transformation efforts are improving the operating model. If sustained, these actions can support stronger margins and profitability even before consolidated revenue fully recovers.
Negative Factors
Persistent Revenue Declines
Sustained revenue contraction limits operating leverage and makes the turnaround dependent on cost reductions rather than demand recovery. Continued top-line weakness could reduce marketing efficiency, constrain product investment, and prolong the path to durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Adjusted Profitability and Cost Discipline
Higher adjusted EBITDA and lower SG&A indicate that expense discipline and transformation efforts are improving the operating model. If sustained, these actions can support stronger margins and profitability even before consolidated revenue fully recovers.
Read all positive factors
Solo Brands (SBDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.63M
Dividend YieldN/A
Average Volume (3M)69.83K
Price to Earnings (P/E)―
Beta (1Y)2.38
Revenue Growth-26.71%
EPS Growth46.58%
CountryUS
Employees327
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-53.02
Shares Outstanding2,568,010
10 Day Avg. Volume157,534
30 Day Avg. Volume69,830
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.21
Price to Sales (P/S)0.03
P/FCF Ratio-0.16
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.34
Revenue Forecast (FY)$465.89M
Solo Brands Business Overview & Revenue Model
Company Description
Solo Brands, Inc. operates as a direct-to-consumer enterprise, offering a wide array of outdoor and lifestyle merchandise throughout the United States. Its diverse product portfolio includes camp stoves under the Solo Stove Lite name and fire pits...
How the Company Makes Money
Solo Brands primarily makes money by selling branded consumer goods across its portfolio through (1) direct-to-consumer (DTC) e-commerce and (2) wholesale/retail distribution. DTC revenue is generated via sales through the brands’ websites and oth...
Solo Brands Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented meaningful progress on profitability, cash generation, cost reduction, and international expansion (adjusted EBITDA up 28.6%, >$36M operating cash flow, SG&A down 10.6%, international sales +46%, Watersports +59%), while acknowledging ongoing top-line pressure (consolidated sales -4.1%, Solo Stove -14.7%, Chubbies -8.6%), DTC softness, a modest gross margin decline (59.9% vs 61.3%), and a GAAP net loss of $4.4 million. Overall, the company emphasized disciplined cost management and structural improvements that have significantly strengthened liquidity and adjusted profitability, even as revenue recovery and DTC stabilization remain work in progress.Positive Updates
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA increased 28.6% year-over-year to $13.5 million, representing a 15.3% adjusted EBITDA margin, reflecting improved profitability from transformation and expense discipline.
Negative Updates
Consolidated Sales Decline
Consolidated net sales decreased 4.1% year-over-year to $88.5 million, reflecting ongoing top-line pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA increased 28.6% year-over-year to $13.5 million, representing a 15.3% adjusted EBITDA margin, reflecting improved profitability from transformation and expense discipline.
Read all positive updates
Company Guidance
The call’s guidance emphasized disciplined, capital‑efficient growth and profitability with a handful of concrete metrics: management expects to invest approximately $2–3 million in growth capital this year (primarily product innovation), will continue to prioritize accelerating top‑line growth, expanding profitability, generating cash and allocating capital with discipline, and noted no material debt maturities until 2028; the Q2 backdrop they’re guiding from included consolidated net sales of $88.5 million (down 4.1%), gross margin of 59.9% (vs. 61.3% prior), adjusted EBITDA of $13.5 million (15.3% margin, up 28.6% y/y), adjusted net income of $3.9 million (GAAP net loss $4.4 million), SG&A of $42.6 million (down 10.6% y/y), operating cash flow of more than $36 million, cash of $35.4 million and a fully repaid revolver; segment and other metrics cited as context for the plan included Solo Stove sales down 14.7%, Chubbies down 8.6% (retail up), Watersports up 59%, international sales up 46% to $9.8 million, a $2.4 million tariff refund benefit (final $600k received in July), a $1.4 million raw material write‑off tied to the Mexico Oru shutdown, $1.9 million of restructuring/impairment charges, $7.9 million of net interest expense, and a $600k initial term‑loan amortization—alongside operational actions (closure of two facilities and reducing U.S. distribution from five to one beginning in Q4, moving Oru to a sourcing/fulfillment model) intended to improve margins and cash generation.Solo Brands Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
34
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 298.41M | 316.58M | 454.55M | 494.78M | 517.63M | 403.72M |
| Gross Profit | 166.36M | 162.41M | 260.26M | 302.15M | 318.18M | 258.91M |
| EBITDA | 8.60M | 7.77M | -149.44M | 48.47M | 55.55M | 87.09M |
| Net Income | -85.52M | -101.32M | -113.36M | -111.35M | -4.95M | 48.65M |
Balance Sheet | ||||||
| Total Assets | 343.01M | 360.34M | 495.06M | 659.32M | 862.35M | 837.74M |
| Cash, Cash Equivalents and Short-Term Investments | 35.45M | 20.03M | 11.98M | 19.84M | 23.29M | 25.10M |
| Total Debt | 265.60M | 262.27M | 182.83M | 182.48M | 149.41M | 128.15M |
| Total Liabilities | 300.67M | 308.94M | 301.70M | 287.06M | 287.35M | 263.57M |
| Stockholders Equity | 42.34M | 46.00M | 133.71M | 241.26M | 363.43M | 360.88M |
Cash Flow | ||||||
| Free Cash Flow | 37.98M | -58.65M | -4.00M | 53.33M | 23.15M | -20.89M |
| Operating Cash Flow | 37.66M | -46.60M | 10.52M | 62.42M | 32.40M | -10.25M |
| Investing Cash Flow | -9.27M | -12.05M | -14.51M | -53.08M | -10.02M | -143.89M |
| Financing Cash Flow | -10.80M | 66.55M | -3.66M | -12.87M | -23.54M | 146.48M |
Solo Brands Risk Analysis
Solo Brands disclosed 54 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $52.82M | 2.84 | -151.13% | ― | -0.60% | 548.86% | |
51 Neutral | $52.99M | -1.50 | -47.19% | ― | -10.70% | 54.77% | |
49 Neutral | $9.63M | -0.07 | -134.59% | ― | -26.71% | 46.58% | |
47 Neutral | $15.01M | -11.78 | -4.88% | 31.58% | -14.38% | -615.84% |
* Consumer Cyclical Sector Average
SBDS
Solo Brands
3.51
-7.99
-69.46%
PRTS
CarParts.com Inc
6.38
-1.15
-15.27%
LITB
LightInTheBox
3.09
1.85
148.79%
NHTC
Natural Health Trends
1.76
-2.15
-55.02%
JBDI
JBDI Holdings Limited
1.37
-0.65
-32.18%
Solo Brands Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Solo Brands Shareholders Approve Directors and Incentive Plan
Positive
May 27, 2026
On May 22, 2026, Solo Brands, Inc. held its 2026 Annual Meeting of Stockholders, where a quorum of holders of 2,005,034 shares of Class A common stock was present in person or by proxy. At the meeting, stockholders elected two Class II directors, ...
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.