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Solo Brands (SBDS)
NYSE:SBDS
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Solo Brands
(NYSE:SBDS)
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Rating:47Neutral
Price Target:
$4.00
▼(-74.03% Downside)
Action:ReiteratedDate:03/20/26
The score is held back primarily by deteriorated financial performance (shrinking revenue, heavy losses, and cash burn) and a strongly bearish price trend versus key moving averages. The latest earnings call adds some support via demonstrated cost reductions and improved adjusted profitability/cash flow, but large sales declines and leverage-related liquidity timing risk keep the overall profile below average.
Positive Factors
Cost structure reductions
Deep, structural SG&A cuts and payroll reductions materially lower fixed operating cost. This improves operating leverage, supports margin stability even with slower top-line growth, extends runway vs. cash burn, and creates capacity to reinvest selectively into higher-return product initiatives over coming quarters.
Sustained operating cash flow
Consecutive quarters of positive operating cash flow indicate sustainable improvement in core cash generation and working-capital discipline. This reduces near-term financing dependence, helps manage covenant and term-loan serviceability, and provides a firmer base to fund inventory, marketing, and targeted growth investments.
Product innovation & Chubbies growth
Consistent new-product introductions and Chubbies' organic growth show portfolio diversification and demand traction beyond core Solo Stove. High share of sales from recent SKUs plus third-party recognition signal durable product-market fit potential and a pathway to rebuild top-line through innovation and retail/online partnerships.
Negative Factors
Multi-year revenue decline
Sustained, multi-year revenue decline reflects persistent demand challenges and weaker unit trends in core Solo Stove products. Prolonged top-line contraction undermines operating leverage, limits the payoff from cost cuts, and raises execution risk for returning to normalized growth without clear, scalable demand drivers.
Cash burn and negative free cash flow
Reversal to negative operating and free cash flow weakens self-funding capacity, increasing reliance on external liquidity. Persistent cash consumption constrains reinvestment, elevates refinancing and covenant risk, and reduces flexibility to fund marketing or inventory ahead of seasonal selling periods.
High leverage & interest burden
A large term loan balance with elevated interest rates increases fixed financial obligations and sensitivity to margins. Seasonal revolver use and near-term liquidity timing risk raise refinance and covenant pressure, limiting strategic optionality and amplifying downside if revenue recovery proves slower than planned.
Solo Brands (SBDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.38M
Dividend YieldN/A
Average Volume (3M)69.83K
Price to Earnings (P/E)―
Beta (1Y)2.62
Revenue Growth-23.15%
EPS Growth62.52%
CountryUS
Employees526
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)1.27
Shares Outstanding1,647,827
10 Day Avg. Volume157,534
30 Day Avg. Volume69,830
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.19
Price to Sales (P/S)0.03
P/FCF Ratio-0.16
Enterprise Value/Market Cap0.24
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.01
Enterprise Value/Ebitda0.39
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 DescriptionSolo 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 accessories. Its core products include portable fire pits, outdoor cooking equipment, and a range of branded gear designed for convenience and enjoyment in outdoor settings.
How the Company Makes MoneySolo Brands generates revenue primarily through the sale of its products across multiple channels, including direct-to-consumer (DTC) online sales and retail partnerships. The company benefits from a strong online presence, leveraging e-commerce platforms to reach customers directly. Key revenue streams include direct sales from its branded websites, wholesale distribution agreements with retailers, and seasonal promotions that drive volume during peak outdoor activity periods. Additionally, partnerships with influencers and outdoor events help to enhance brand visibility and drive customer engagement, contributing positively to overall earnings.
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.Q4-2025 Updates
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.
Material SG&A and Cost Structure Reductions
Company consolidated run-rate SG&A was cut by more than 30% during the year; fourth-quarter SG&A decreased 38.8% year over year and payroll was down ~27% year over year in Q4, reflecting structural cost reductions and ongoing rightsizing.
Significant Improvement in Adjusted EBITDA
Full-year adjusted EBITDA was roughly $19 million; fourth-quarter adjusted EBITDA was $9.6 million (10.2% of sales), a 52% year-over-year improvement and a sequential reversal from negative EBITDA in Q3.
Stable and Improving Gross Margin
Adjusted gross margin in Q4 was 61%, essentially flat versus a year ago and up ~40 basis points sequentially from Q3, with management expecting further margin stability in 2026 due to disciplined pricing and promotions.
Inventory and Balance Sheet Discipline
Inventory balances were reduced nearly 25% year over year; the company ended the year with $20 million in cash and no outstanding revolver balance, remained in compliance with covenants, and has no significant debt maturities until 2028.
Chubbies Growth and Strong Product Momentum
Chubbies delivered full-year sales of $122.9 million, representing 9.1% year-over-year growth driven by online demand and strategic partnerships; management launched five new products in 2025 and reported that ~25% of Q4 sales were from new products, with recent launches quickly becoming top-selling SKUs.
Market Recognition and Product Innovation
Management highlighted product innovation including the all-new Summit 24 smokeless fire pit being named Forbes’ best choice in the category, multiple new Solo Stove and Chubbies SKUs launched (including the new women’s swim brand Cheeky's), and continued investment in new product pipeline (~$34 million planned growth capital for the year).
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.
Large Non‑Cash Impairment and Restructuring Charges
Restructuring and impairment charges totaled $75.5 million in Q4 (of which $74.1 million was a non‑cash impairment), contributing to a GAAP net loss of $83.2 million for the quarter.
Solo Stove Sales and Unit Market Share Pressure
Solo Stove experienced a material sales decline; management said units are down and unit market share is lower (despite higher average order value), citing increased low-end competition and knock-offs on marketplaces as a headwind.
High Leverage and Interest Expense
At year-end the term loan had $253.1 million outstanding; the weighted average interest rate on the term loan was 8.97% for the year (company-wide weighted average interest rate noted at 6.63%), and management expects to utilize the revolving credit facility in Q1 due to seasonality.
Significant GAAP Loss Despite Adjusted Improvements
Despite adjusted EBITDA improvement, GAAP results showed a large quarterly net loss ($83.2M) primarily tied to non-cash impairment and restructuring; adjusted net income was modest at $2.3 million and only flat year over year.
Seasonality and Near‑Term Liquidity Needs
Management reiterated that the first quarter is seasonally light and retail sell‑ins and related cash receipts occur in Q2, requiring expected revolver usage in Q1 and introducing near-term liquidity timing risk.
Operational and Market Risks Persist
Company called out consumer-market uncertainty and geopolitical/tariff exposure (monitoring refunds and diversified sourcing), and acknowledged ongoing risk that Solo Stove revenue decline must be stemmed despite new product introductions.
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
Fundamentals remain weak: multi-year revenue decline, deeply negative profitability and margins, and a return to cash burn (negative operating cash flow and free cash flow). Balance-sheet leverage is modest, but equity has eroded sharply, reducing the cushion for continued losses.Income Statement
Revenue has been shrinking for three straight years (down ~14% in 2025 vs. 2024), and profitability has deteriorated sharply. While gross margin remains relatively strong (~59% in 2025), operating performance is deeply negative (EBITDA margin ~-28% in 2025) and net losses widened materially (net margin ~-46% in 2025). Earlier profitability in 2021–2022 has not been sustained, indicating meaningful execution and/or demand headwinds.24
Negative
Balance Sheet
Leverage is currently modest (debt-to-equity ~0.31 in 2025 and total debt down sharply from 2023), which helps financial flexibility. However, equity has fallen substantially (to ~$51M in 2025 from ~$193M in 2024), and returns on equity are extremely negative in 2025, reflecting heavy losses and a weakened capital base. Overall balance-sheet risk is moderated by low debt, but the shrinking equity cushion is a key concern.43
Neutral
Cash Flow
Cash generation has weakened significantly: operating cash flow turned negative in 2025 (~-$47M) and free cash flow was also negative (~-$59M), reversing the positive cash generation seen in 2022–2023. Although free cash flow decline improved versus the prior year (positive growth rate in 2025 off a weaker base), the company is currently consuming cash, which increases reliance on liquidity and limits reinvestment capacity.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 | 51.40M | 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
Negative
15.40
Price Trends
6.61
Negative
7.87
Negative
10.69
Negative
Market Momentum
-0.32
Positive
30.83
Neutral
28.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBDS, the sentiment is Negative. The current price of 15.4 is above the 20-day moving average (MA) of 6.76, above the 50-day MA of 6.61, and above the 200-day MA of 10.69, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 30.83 is Neutral, neither overbought nor oversold. The STOCH value of 28.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
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% | |
54 Neutral | $44.32M | 2.18 | -49.38% | ― | -34.42% | ― | |
51 Neutral | $24.10M | -15.12 | -3.23% | 25.20% | -5.07% | -115.50% | |
47 Neutral | $9.38M | -0.07 | -58.14% | ― | -23.15% | 62.52% | |
47 Neutral | $55.59M | -0.61 | -67.30% | ― | -8.35% | -74.31% | |
44 Neutral | $21.56M | -2.29 | ― | ― | -10.64% | 37.38% |
* Consumer Cyclical Sector Average
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Solo Brands Corporate Events
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 noting that his departure was not due to any disagreement over operations, policies, or practices. The company expressed appreciation for Dennison’s service and indicated it expects to appoint director Peter Laurinaitis to the Board’s Audit Committee to fill the resulting vacancy before the resignation becomes effective, signaling an orderly transition in its board and committee leadership structure.
The most recent analyst rating on (SBDS) stock is a Sell with a $8.50 price target. To see the full list of analyst forecasts on Solo Brands stock, see the SBDS Stock Forecast page.
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.