Solo Brands (SBDS)
OTHER OTC:SBDS
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Solo Brands
(OTC:SBDS)
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Rating:44Neutral
Price Target:
$5.50
▼(-64.29% Downside)
Action:ReiteratedDate:04/12/26
The score is held down primarily by deteriorated financial performance (shrinking revenue, deep losses, and negative 2025 operating/free cash flow) and a still-weak long-term technical trend. This is partially offset by improving adjusted profitability/cash-flow momentum and cost actions discussed on the earnings call, but valuation support is limited while earnings remain negative.
Positive Factors
Strong gross margins
Sustained high gross margins (≈59–61%) indicate durable product-level profitability driven by brand pricing and DTC channel capture. This margin headroom supports margin recovery, funds SG&A rationalization, and provides capacity to invest selectively in innovation without immediate reliance on top-line growth.
Negative Factors
Multi-year revenue decline and deep losses
Persistent top-line contraction and sharply negative margins show demand and structural profitability issues. Continued revenue erosion reduces fixed-cost absorption, drives operating losses that erode equity, and makes sustainable earnings recovery contingent on both durable revenue stabilization and continued margin discipline.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong gross margins
Sustained high gross margins (≈59–61%) indicate durable product-level profitability driven by brand pricing and DTC channel capture. This margin headroom supports margin recovery, funds SG&A rationalization, and provides capacity to invest selectively in innovation without immediate reliance on top-line growth.
Read all positive factors
Solo Brands (SBDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.00M
Dividend YieldN/A
Average Volume (3M)69.83K
Price to Earnings (P/E)―
Beta (1Y)2.75
Revenue Growth-23.15%
EPS Growth62.52%
CountryUS
Employees526
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.27
Shares Outstanding2,562,567
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 Cap13.90
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit1.54
Enterprise Value/Ebitda-20.08
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 (SBDS) is a consumer-focused company specializing in outdoor and lifestyle products that enhance the experience of outdoor enthusiasts. The company operates in various sectors, including outdoor recreation, camping, and lifestyle acces...
How the Company Makes Money
Solo Brands primarily makes money by selling branded consumer products across its portfolio of outdoor and lifestyle brands. The company’s core revenue stream is product sales, led by Solo Stove’s fire pits and accessories, complemented by sales f...
Solo Brands Earnings Call Summary
Earnings Call Date:Mar 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
The call conveyed a mix of meaningful operational progress and persistent near-term challenges. Positives include substantial cost reductions (>30% SG&A), three consecutive quarters of positive operating cash flow, a significant (52%) improvement in Q4 adjusted EBITDA, inventory reductions (~25%), and Chubbies’ 9.1% annual growth plus strong new-product momentum and third‑party recognition. Offsetting these gains are large year‑over‑year sales declines (Q4 down 34.5%), a sizeable Q4 net loss driven by $74.1M of non‑cash impairments and $75.5M of restructuring charges, ongoing Solo Stove unit share pressure, and a leveraged balance sheet (term loan ~$253M) with planned short‑term revolver usage. Overall, the narrative is one of restructuring pain but clear operational leverage and cash‑generation improvements that position the company to recover, making the tone balanced between progress and continued risk.Positive Updates
Sustained Positive Operating Cash Flow
Management reported positive operating cash flow for the third consecutive quarter; beyond the first quarter they aggregated roughly $28.6 million of operating cash flow and noted an early balance-sheet reset that drove ~ $75 million of operational cash flow primarily to settle legacy payables.
Negative Updates
Steep Year‑Over‑Year Sales Decline in Q4
Consolidated fourth-quarter sales were $94 million, down 34.5% versus the prior-year quarter, driven by declines in DTC and retail channels, particularly within the Solo Stove segment; management narrowed the YoY decline sequentially but the reduction remains large.
Read all updates
Q4-2025 Updates
Positive
Negative
Sustained Positive Operating Cash Flow
Management reported positive operating cash flow for the third consecutive quarter; beyond the first quarter they aggregated roughly $28.6 million of operating cash flow and noted an early balance-sheet reset that drove ~ $75 million of operational cash flow primarily to settle legacy payables.
Read all positive updates
Company Guidance
The company guided to a profit‑and cash‑focused 2026, reiterating that Q1 is seasonally light and that it will temporarily draw on (and then repay) the $90M revolving credit facility, while continuing to invest about $34M in growth capital for new product innovation; management expects further margin stability after Q4 adjusted gross margin of 61% (flat YoY, +40 bps QoQ) and plans additional SG&A cuts after reducing run‑rate SG&A by >30% in 2025 and Q4 SG&A by 38.8% YoY (payroll down ~27% YoY in Q4). They highlighted the operating leverage already visible — three consecutive quarters of positive operating cash flow (aggregating ~$28.6M), Q4 adjusted EBITDA of $9.6M (10.2% of sales, +52% YoY) and non‑GAAP adjusted net income of $2.3M — and emphasized disciplined capital allocation, a $20M year‑end cash balance, nearly 25% lower inventory YoY, and a debt package (a $240M term loan and $90M revolver, term loan outstanding ~$253.1M) maturing in 2028 as they pursue disciplined, margin‑accretive growth.Solo Brands Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
43
Neutral
Cash Flow
28
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 316.58M | 454.55M | 494.78M | 517.63M | 403.72M |
| Gross Profit | 162.41M | 260.26M | 302.15M | 318.18M | 258.91M |
| EBITDA | 5.69M | -149.44M | 48.47M | 58.45M | 87.09M |
| Net Income | -145.44M | -113.36M | -111.35M | -7.62M | 48.65M |
Balance Sheet | |||||
| Total Assets | 360.34M | 495.06M | 659.32M | 862.35M | 837.74M |
| Cash, Cash Equivalents and Short-Term Investments | 20.03M | 11.98M | 19.84M | 23.29M | 25.10M |
| Total Debt | 15.69M | 30.70M | 182.48M | 113.38M | 128.15M |
| Total Liabilities | 308.94M | 301.70M | 287.06M | 287.35M | 263.57M |
| Stockholders Equity | 46.00M | 193.36M | 241.26M | 363.43M | 360.88M |
Cash Flow | |||||
| Free Cash Flow | -58.65M | -4.00M | 53.33M | 23.15M | -20.89M |
| Operating Cash Flow | -46.60M | 10.52M | 62.42M | 32.40M | -10.25M |
| Investing Cash Flow | -12.05M | -14.51M | -53.08M | -10.02M | -143.89M |
| Financing Cash Flow | 66.55M | -3.66M | -12.87M | -23.54M | 146.48M |
Solo Brands Technical Analysis
Neutral
15.40
Price Trends
5.85
Negative
6.66
Negative
10.43
Negative
Market Momentum
-0.57
Negative
55.00
Neutral
57.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBDS, the sentiment is Neutral. The current price of 15.4 is above the 20-day moving average (MA) of 4.52, above the 50-day MA of 5.85, and above the 200-day MA of 10.43, indicating a neutral trend. The MACD of -0.57 indicates Negative momentum. The RSI at 55.00 is Neutral, neither overbought nor oversold. The STOCH value of 57.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SBDS.
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 | $40.70M | 2.47 | -95.47% | ― | -34.42% | ― | |
51 Neutral | $24.62M | -15.12 | -3.23% | 25.20% | -5.07% | -115.50% | |
50 Neutral | $54.48M | -0.61 | -67.30% | ― | -8.35% | -74.31% | |
44 Neutral | $18.00M | -0.07 | -58.14% | ― | -23.15% | 62.52% |
* Consumer Cyclical Sector Average
SBDS
Solo Brands
5.56
-0.20
-3.47%
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0.44
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-1.59
-35.72%
JBDI
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-29.23%
Solo Brands Corporate Events
Executive/Board Changes
Solo Brands Appoints New Chief Accounting Officer
Positive
Apr 6, 2026
On April 6, 2026, Solo Brands, Inc. announced that its board appointed Paul Seeds as Chief Accounting Officer and principal accounting officer, effective May 2, 2026, following the March 31, 2026 resignation of current Chief Accounting Officer Dav...
Business Operations and StrategyExecutive/Board Changes
Solo Brands Rebalances Board Classes to Enhance Governance
Neutral
Mar 23, 2026
On March 21, 2026, Solo Brands, Inc. adjusted the composition of its classified Board, moving director Peter Laurinaitis from Class III, whose term was set to expire at the 2027 annual meeting, to Class II, with a term now expiring at the 2026 ann...
Business Operations and StrategyFinancial Disclosures
Solo Brands Issues 2026 Profitability-Focused Financial Guidance
Neutral
Mar 23, 2026
On March 23, 2026, Solo Brands, Inc., a portfolio of outdoor and lifestyle brands including Solo Stove and Chubbies, issued financial guidance for fiscal 2026, signalling a strategic focus on profitability despite soft top-line trends. Management ...
Executive/Board Changes
Solo Brands Announces Lead Independent Director Resignation, Transition
Neutral
Jan 30, 2026
On January 26, 2026, Solo Brands, Inc. announced that board member and Lead Independent Director Michael Dennison had tendered his resignation from the Board, its committees, and his leadership role, effective March 3, 2026, with the company notin...
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.