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Solo Brands (SBDS)
OTHER OTC:SBDS
US Market
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Solo Brands (SBDS) AI Stock Analysis

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SBDS

Solo Brands

(OTC:SBDS)

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Neutral 50 (OpenAI - 5.2)
Rating:50Neutral
Price Target:
$4.00
▲(0.25% Upside)
Action:Reiterated
Date:07/18/26
The score is held back primarily by weak financial performance, with shrinking revenue and substantial losses plus a stressed equity base, only partly offset by improved (but volatile) cash generation. Earnings-call signals are moderately supportive due to reaffirmed guidance, cost reductions, and expected tariff refunds, but are tempered by the large YoY sales decline, margin pressure, high interest expense, and listing-related risk. Technically, the stock shows modest near-term stabilization but remains in a weaker longer-term trend, while valuation is constrained by negative earnings and no indicated dividend.
Positive Factors
Brand strength & loyalty
Deep customer advocacy and a large engaged community give Solo durable brand equity that supports premium pricing, repeat purchases, and stronger DTC economics. This reduces customer acquisition costs over time and helps the company sustain retail partnerships and new-product acceptance during a multi-quarter recovery.
Negative Factors
Shrinking revenue & volatile profits
Ongoing top-line declines and deeply negative margins indicate persistent demand or mix problems and a structural earnings deficit. This reduces internal reinvestment capacity and raises execution risk; until revenue stabilizes sustainably, profitability and cash generation remain fragile over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Brand strength & loyalty
Deep customer advocacy and a large engaged community give Solo durable brand equity that supports premium pricing, repeat purchases, and stronger DTC economics. This reduces customer acquisition costs over time and helps the company sustain retail partnerships and new-product acceptance during a multi-quarter recovery.
Read all positive factors

Solo Brands (SBDS) vs. SPDR S&P 500 ETF (SPY)

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:May 14, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: solid execution on cost reduction, product launches, brand strength and early signs of improving sales momentum (including April YoY growth), and the achievement of positive adjusted EBITDA in a seasonally small quarter. However, material challenges remain, including an 18.6% year-over-year revenue decline in Q1, weaker adjusted EBITDA versus prior year, tariff-related costs (~$2 million) that compressed gross margin, elevated interest expense, and a NYSE delisting notice (now trading on OTCQB). Management has clear remediation steps (cost savings, tariff refunds expected ~$10 million, narrowed sales decline trend, reaffirmed guidance), but near-term results were still impacted by timing and macro variability.
Positive Updates
Positive Adjusted EBITDA in Seasonally Small Quarter
Adjusted EBITDA was $1.6 million in Q1 2026 (positive), demonstrating operating leverage despite seasonality and a challenging comparability period.
Negative Updates
Revenue Decline
Consolidated net sales were $62.9 million, down 18.6% year-over-year, driven primarily by declines in Direct-to-Consumer and retail channels, particularly at Solo Stove and to a lesser extent Chubby's (partially offset by water sports).
Read all updates
Q1-2026 Updates
Negative
Positive Adjusted EBITDA in Seasonally Small Quarter
Adjusted EBITDA was $1.6 million in Q1 2026 (positive), demonstrating operating leverage despite seasonality and a challenging comparability period.
Read all positive updates
Company Guidance
Management reaffirmed its full‑year 2026 outlook and emphasized progress toward profitable, cash‑generative growth, reporting Q1 consolidated net sales of $62.9M (down 18.6% YoY but ~16 percentage points better than Q4), gross margin 52.3% (vs 55.2% prior), SG&A $33.2M (down 14.8%), adjusted EBITDA $1.6M (vs $3.5M), net loss $5.5M (vs $12.2M), adjusted net loss $7.5M (vs $4.7M), cash of $16.5M, 2.5M weighted average shares outstanding, and capital structure of a $240M term loan and $90M revolver ( $15M drawn) with weighted rates of 9.07% and 6.99% respectively and no material maturities until 2028; they expect ~ $8M in annualized payroll savings (≈$10M fully burdened), ~ $3.5M in annual distribution/fulfillment savings, a ~$10M tariff refund for the year ( $1.5M received to date and ≈$2M tariff cost in Q1), plan $3–4M of growth capital spend, remain covenant‑compliant, and believe seasonal strength in Q2/Q4 and recent product and retail momentum support their reaffirmed guidance.

Solo Brands Financial Statement Overview

Summary
Income statement trends are weak with contracting revenue and deeply negative operating/net margins, indicating ongoing profitability challenges and volatility versus prior profitable periods. The balance sheet shows eroded equity and elevated debt-to-equity, reducing downside buffer despite manageable absolute debt. Cash flow is a relative positive with TTM operating cash flow and free cash flow turning positive, but history is inconsistent and sustainability is not yet proven.
Income Statement
23
Negative
Balance Sheet
46
Neutral
Cash Flow
55
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue302.21M316.58M454.55M494.78M517.63M403.72M
Gross Profit148.60M162.41M260.26M302.15M318.18M258.91M
EBITDA-8.64M7.77M-149.44M48.47M58.45M87.09M
Net Income-102.50M-145.44M-113.36M-111.35M-7.62M48.65M
Balance Sheet
Total Assets362.68M360.34M495.06M659.32M862.35M837.74M
Cash, Cash Equivalents and Short-Term Investments16.46M20.03M11.98M19.84M23.29M25.10M
Total Debt282.36M262.27M30.70M182.48M113.38M128.15M
Total Liabilities316.38M308.94M301.70M287.06M287.35M263.57M
Stockholders Equity46.29M46.00M193.36M241.26M363.43M360.88M
Cash Flow
Free Cash Flow10.96M-58.65M-4.00M53.33M23.15M-20.89M
Operating Cash Flow12.52M-46.60M10.52M62.42M32.40M-10.25M
Investing Cash Flow-11.15M-12.05M-14.51M-53.08M-10.02M-143.89M
Financing Cash Flow-191.37M66.55M-3.66M-12.87M-23.54M146.48M

Solo Brands Risk Analysis

Solo Brands disclosed 55 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
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
58
Neutral
$58.39M3.40-151.13%-0.60%548.86%
50
Neutral
$9.98M>-0.01-134.59%-32.31%33.58%
44
Neutral
$43.73M-0.87-61.91%-6.64%29.96%
44
Neutral
$14.67M-11.51-4.88%31.58%-14.38%-615.84%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SBDS
Solo Brands
4.00
-11.00
-73.33%
PRTS
CarParts.com Inc
5.55
-2.95
-34.71%
LITB
LightInTheBox
3.27
2.00
157.48%
NHTC
Natural Health Trends
1.80
-2.47
-57.85%
JBDI
JBDI Holdings Limited
1.46
-0.46
-23.96%

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.Date of analysis: Jul 18, 2026