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Solo Brands, Inc. (SBDS)
NYSE:SBDS
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Solo Brands
(NYSE:SBDS)
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Rating:45Neutral
Price Target:
$7.00
▼(-54.55% Downside)
Solo Brands faces significant financial and operational challenges, with declining sales and profitability issues being the most critical factors. While there are positive signs in cost management and new product launches, the overall financial health and technical indicators suggest caution. The company's strategic initiatives may provide long-term benefits, but current conditions pose substantial risks.
Positive Factors
Product Innovation
New product launches like the Summit 24 and Infinity Flame firepits indicate Solo Brands' commitment to innovation, potentially driving future growth and market expansion.
Cost Management
Significant cost reductions enhance profitability potential, indicating effective management strategies that could improve financial health over the long term.
Cash Flow Generation
Consistent positive cash flow generation reflects improved operational efficiency and financial discipline, supporting long-term sustainability.
Negative Factors
Declining Revenue
Significant decline in net sales indicates challenges in maintaining market demand, which could impact long-term growth and profitability.
High Debt Levels
High leverage poses financial risk, potentially limiting the company's ability to invest in growth opportunities and withstand economic downturns.
Profitability Challenges
Ongoing profitability issues reflect operational inefficiencies and market challenges, potentially hindering long-term financial stability.
Solo Brands (SBDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.35M
Dividend YieldN/A
Average Volume (3M)69.83K
Price to Earnings (P/E)―
Beta (1Y)2.50
Revenue Growth-23.15%
EPS Growth62.52%
CountryUS
Employees526
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-4.33
Shares Outstanding1,647,827
10 Day Avg. Volume157,534
30 Day Avg. Volume69,830
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)0.34
Price to Sales (P/S)0.15
P/FCF Ratio-16.66
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.24
Revenue Forecast (FY)$443.71M
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:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Neutral
The earnings call reflects significant challenges with a notable decline in net sales and increased net loss. However, the company is making progress in cost reduction and cash generation, with promising new product launches and improved inventory management. The company's strategic focus on profitability and efficiency is evident, but the top-line performance remains an area of concern.Q3-2025 Updates
Positive Updates
Positive Cash Flow
Generated $11 million of operating cash flow in Q3, marking the second consecutive quarter of positive cash generation, driven by stronger cost discipline and better working capital management.
Significant Cost Reduction
Selling, general and administrative expenses were reduced by 35.4% year-over-year in Q3, reflecting lower marketing spend, reduced employee-related costs, and continued structural efficiencies.
Product Innovation and Launches
Launched the all-new Summit 24 firepit and the Propane Infinity Flame firepit, showing positive consumer response and expanding into new markets like California, where 70% of the customers are new.
Inventory Management
Inventories are down 21% year-over-year, indicating improved alignment of supply with demand, particularly within the Solo Stove segment.
Negative Updates
Decline in Net Sales
Consolidated net sales were $53 million, down 43.7% from the prior year, largely due to softer retail sell-in and elevated inventory levels at retail partners, particularly within Solo Stove.
Net Loss and Adjusted EBITDA
GAAP net loss was $22.9 million, and adjusted net loss was $11.9 million for the quarter. Adjusted EBITDA was a negative $5.1 million, representing a negative 9.6% of net sales.
Interest Expense and Debt
Net interest expense increased to $7.6 million from $3.7 million last year, due to both higher average debt balance and higher average interest rates.
Chubbies Revenue Decline
Chubbies segment sales were $16.5 million, down 16% year-over-year, primarily due to the timing of retail replenishment.
Company Guidance
During the Solo Brands Third Quarter 2025 Financial Results Conference Call, the company provided detailed guidance on its financial performance and strategic initiatives. The third quarter saw net sales of $53 million, a 43.7% decline from the previous year, largely due to inventory rebalancing by retail partners, particularly affecting the Solo Stove division. Despite this, the company maintained a stable gross margin of 60.6% and generated $11 million in operating cash flow, marking its second consecutive quarter of positive cash generation. Cost discipline was emphasized with a 35.4% reduction in SG&A expenses year-over-year. The company ended the quarter with $16.3 million in cash, no outstanding borrowings on its $90 million revolving credit facility, and a debt structure including a $240 million term loan. Solo Brands is focusing on profitability, cash generation, and strategic transformation, launching new products like the Summit 24 and Infinity Flame firepits, which have shown promising initial results. The company is optimistic about the upcoming holiday season and continues to align its operations with current demand while preparing for future growth.Solo Brands Financial Statement Overview
Summary
Solo Brands is facing significant financial challenges, with declining revenues, high leverage, and negative profitability metrics. While the gross profit margin remains strong, the company struggles with operating losses and cash flow issues. The high debt levels pose a risk to financial stability, and the negative growth trends indicate potential difficulties in achieving future profitability.Income Statement
Solo Brands has experienced declining revenue over the TTM period with a negative revenue growth rate of -10.09%. The company is facing profitability challenges, as indicated by negative net profit and EBIT margins. The gross profit margin remains relatively strong at 55.57%, but the overall profitability is hampered by high operating losses.45
Neutral
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of 2.34, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is not explicitly calculated, but the high leverage suggests a lower proportion of equity in the capital structure.40
Negative
Cash Flow
Cash flow analysis reveals negative operating cash flow, indicating potential liquidity issues. However, the free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net losses. The free cash flow growth rate is negative, highlighting challenges in maintaining cash flow stability.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 366.08M | 454.55M | 494.78M | 517.63M | 403.72M | 133.43M |
| Gross Profit | 218.81M | 260.26M | 302.15M | 318.18M | 258.91M | 86.97M |
| EBITDA | -69.39M | -149.44M | 48.47M | 58.45M | 87.09M | -15.22M |
| Net Income | -117.20M | -113.36M | -111.35M | -7.62M | 48.65M | -24.20M |
Balance Sheet | ||||||
| Total Assets | 431.05M | 495.06M | 659.32M | 862.35M | 837.74M | 542.41M |
| Cash, Cash Equivalents and Short-Term Investments | 16.33M | 11.98M | 19.84M | 23.29M | 25.10M | 32.75M |
| Total Debt | 17.50M | 30.70M | 182.48M | 113.38M | 128.15M | 73.35M |
| Total Liabilities | 297.24M | 301.70M | 287.06M | 287.35M | 263.57M | 210.31M |
| Stockholders Equity | 133.81M | 193.36M | 241.26M | 363.43M | 360.88M | 332.10M |
Cash Flow | ||||||
| Free Cash Flow | -43.03M | -4.00M | 53.33M | 23.15M | -20.89M | 31.72M |
| Operating Cash Flow | -40.03M | 10.52M | 62.42M | 32.40M | -10.25M | 32.68M |
| Investing Cash Flow | -12.59M | -14.51M | -53.08M | -10.02M | -143.89M | -274.10M |
| Financing Cash Flow | 56.31M | -3.66M | -12.87M | -23.54M | 146.48M | 281.07M |
Solo Brands Technical Analysis
Negative
15.40
Price Trends
10.72
Negative
12.06
Negative
10.30
Negative
Market Momentum
-0.92
Positive
38.22
Neutral
10.16
Positive
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 8.22, above the 50-day MA of 10.72, and above the 200-day MA of 10.30, indicating a bearish trend. The MACD of -0.92 indicates Positive momentum. The RSI at 38.22 is Neutral, neither overbought nor oversold. The STOCH value of 10.16 is Positive, 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% | |
48 Neutral | $37.53M | -311.27 | -0.38% | 24.54% | -5.07% | -115.50% | |
47 Neutral | $30.95M | -0.45 | -67.30% | ― | -8.35% | -74.31% | |
47 Neutral | $44.32M | 7.90 | ― | ― | -34.42% | ― | |
45 Neutral | $17.35M | -0.12 | -58.14% | ― | -23.15% | 62.52% | |
41 Neutral | $26.73M | -1.05 | ― | ― | -10.64% | 37.38% |
* Consumer Cyclical Sector Average
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Solo Brands Corporate Events
M&A TransactionsBusiness Operations and Strategy
Solo Brands Announces Merger Agreement for Simplification
Neutral
Dec 17, 2025
Solo Brands, Inc. announced that it entered into a Merger Agreement on December 17, 2025, with plans to complete the merger effective January 1, 2026. The merger aims to simplify the company’s organizational structure by eliminating its umbrella partnership-C corporation (UP-C) structure. Upon completion, Solo Stove Holdings, LLC will become a wholly-owned subsidiary of Solo Brands, Inc., thus streamlining governance. This corporate simplification includes measures such as converting limited liability company units into Class A common stock, retiring all Class B common stock, and modifying ownership arrangements. While these changes restructure Solo Brands’ equity and governance system, the obligations under its previously established Tax Receivable Agreement remain unaffected, ensuring continuity in tax-related commitments.
Executive/Board Changes
Solo Brands Amends CEO Employment Agreement
Neutral
Nov 17, 2025
On November 11, 2025, Solo Brands, Inc. amended its employment agreement with CEO John Larson, removing a contingency related to a 25% equity pool. As a result, Larson received a one-time equity award of 6% of the company’s fully diluted outstanding equity, with a portion vested immediately and the remainder vesting quarterly until fully vested by June 23, 2028.
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.