Solo Brands (SBDS) AI Stock Analysis

• Market Cap: $29.78M
• Dividend Yield: N/A
• Average Volume (3M): 8.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.45
• Revenue Growth: -23.15%
• EPS Growth: 62.52%
• Country: US
• Employees: 526
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -4.33
• Shares Outstanding: 1,647,827
• 10 Day Avg. Volume: 10,125
• 30 Day Avg. Volume: 8,821
• PEG Ratio: -0.03
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -5.32
• Enterprise Value/Market Cap: 10.13
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 1.38
• Enterprise Value/Ebitda: -4.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $11.50 ▼(-25.32% Downside)

Solo Brands faces substantial financial and operational challenges, with declining revenues and high leverage posing significant risks. The technical indicators suggest bearish momentum, and the valuation metrics are unattractive due to negative profitability. While the earnings call provided some positive insights into cost management and product innovation, the overall outlook remains cautious due to weak sales performance and financial instability.

Positive Factors

Product Innovation

Introducing new products like the Summit 24 and Infinity Flame firepits indicates Solo Brands' commitment to innovation, potentially driving future growth by attracting new customers and expanding market presence.

Cost Management

Effective cost management through significant SG&A reductions enhances profitability potential, allowing Solo Brands to better navigate financial challenges and invest in strategic initiatives.

Cash Generation

Consistent positive cash flow generation demonstrates improved financial discipline and operational efficiency, providing Solo Brands with resources to fund growth and manage debt.

Negative Factors

Declining Revenue

A significant decline in net sales reflects challenges in demand and inventory management, potentially impacting Solo Brands' ability to sustain revenue growth and market competitiveness.

High Leverage

High leverage poses financial risks, limiting Solo Brands' flexibility to invest in growth opportunities and increasing vulnerability to economic downturns or interest rate hikes.

Profitability Challenges

Ongoing profitability challenges, despite a strong gross margin, indicate operational inefficiencies and cost pressures that may hinder long-term financial sustainability.

Solo Brands Business Overview & Revenue Model

Company Description

Solo Brands (SBDS) is a consumer-focused company that specializes in outdoor and lifestyle products, primarily known for its innovative and high-quality camping gear, including portable fire pits, outdoor cooking equipment, and related accessories. The company operates through various brands, catering to outdoor enthusiasts and individuals seeking premium recreational products. Solo Brands emphasizes sustainability and durability in its product offerings, making it a preferred choice for eco-conscious consumers.

How the Company Makes Money

Solo Brands generates revenue through multiple streams, primarily by selling its products directly to consumers via its e-commerce platform and retail partnerships. The company also benefits from wholesale agreements with retailers that distribute its products in physical stores. Key revenue sources include the sale of its flagship fire pits and outdoor cooking equipment, which contribute significantly to its earnings. Additionally, Solo Brands may engage in promotional partnerships and collaborations with outdoor lifestyle influencers and brands, enhancing its market reach and driving sales. The company's focus on direct-to-consumer sales allows for higher profit margins compared to traditional retail channels, contributing positively to its overall financial performance.

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.

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.

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.

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	-68.60M	-148.51M	-193.20M	55.55M	87.09M	7.78M
Net Income	-77.67M	-113.36M	-111.35M	-4.95M	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	251.47M	182.83M	182.48M	149.41M	128.15M	73.35M
Total Liabilities	297.24M	301.70M	287.06M	287.35M	263.57M	210.31M
Stockholders Equity	99.14M	133.71M	241.26M	363.43M	360.88M	332.10M
Cash Flow
Free Cash Flow	-47.63M	-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

• Technical Analysis Sentiment: Negative
• Last Price: 15.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 13.31, above the 50-day MA of 14.49, and above the 200-day MA of 13.93, indicating a bearish trend. The MACD of -1.07 indicates Positive momentum. The RSI at 44.50 is Neutral, neither overbought nor oversold. The STOCH value of 37.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SBDS.

Solo Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LITB	52 Neutral	$61.79M	21.57	―	―	-48.70%	―
NHTC	48 Neutral	$50.43M	144.55	-0.38%	31.75%	-5.07%	-115.50%
SBDS	44 Neutral	$29.78M	―	-58.14%	―	-23.15%	62.52%
TBHC	42 Neutral	$33.24M	-0.98	―	―	-8.63%	5.62%
PRTS	42 Neutral	$37.16M	-0.66	-67.30%	―	-8.35%	-74.31%

Solo Brands Corporate Events

Solo Brands Faces Challenges Amid Strategic Shifts

The recent earnings call for Solo Brands, Inc. Class A highlighted a challenging quarter marked by a significant decline in net sales and an increased net loss. Despite these hurdles, the company is making strides in cost reduction and cash generation, buoyed by promising new product launches and improved inventory management. The strategic focus on profitability and efficiency is clear, though top-line performance remains a concern.

Solo Brands Reports Q3 2025 Financial Results

Solo Brands, Inc., headquartered in Grapevine, Texas, is an omnichannel lifestyle brand company offering innovative products through brands like Solo Stove, Chubbies, ISLE, and Oru Kayak, catering to the outdoor and apparel industries.

Solo Brands Resumes NYSE Trading After Suspension

In August 2025, Solo Brands will engage in meetings with investors and analysts, sharing presentation materials that are available on their Investor Relations website. The company has recently overcome significant challenges, including elevated cost structures and a temporary NYSE trading suspension, by achieving key milestones such as debt refinancing through June 2028 and reinstatement of their Class A common stock trading on the NYSE.

The most recent analyst rating on (SBDS) stock is a Hold with a $10.50 price target. To see the full list of analyst forecasts on Solo Brands stock, see the SBDS Stock Forecast page.