Solo Brands (SBDS) AI Stock Analysis

• Market Cap: $15.30M
• Dividend Yield: N/A
• Average Volume (3M): 69.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.65
• 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: 157,534
• 30 Day Avg. Volume: 69,830
• 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 Cap: 0.69
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.05
• Enterprise Value/Ebitda: -0.15
• 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: 48 Neutral
• Price Target: $6.00 ▼(-61.04% Downside)

Score is held down primarily by weak financial performance (declining revenue, losses, leverage, and cash-flow pressure). Offsetting factors are a modest near-term technical rebound and a mixed earnings-call picture where cost discipline and recent positive operating cash flow improve the outlook, but severe sales declines and higher interest expense remain key risks.

Positive Factors

Healthy Gross Margin

A sustained gross margin near 60% provides durable product-level economics that can absorb SG&A and interest costs. For a branded outdoor-products business, this margin strength supports margin recovery if revenue stabilizes and enables reinvestment in product innovation over the next 2–6 months.

Improving Operating Cash Flow

Two consecutive quarters of positive operating cash flow indicate improving working-capital management and cost discipline. Reliable cash generation increases liquidity to service debt, fund new product launches, and reduce reliance on external financing, strengthening near-term operational resilience.

Corporate Simplification

Eliminating the UP-C and simplifying ownership reduces governance complexity and can lower administrative friction. A cleaner capital structure improves strategic agility and investor clarity, supporting more efficient decision-making and potential cost savings over the medium term.

Negative Factors

Severe Revenue Decline

A very large year-over-year sales drop, driven by retail sell-in and partner inventory rebalancing, indicates structural top-line weakness. Slow recovery of retail channels and seasonality mean revenue may remain depressed for multiple quarters, limiting leverage on fixed costs.

High Leverage and Rising Interest

Elevated leverage combined with rising interest costs materially increases fixed financial obligations. With a $240M term loan and higher interest expense, cash available for operations and growth is constrained, raising refinancing and liquidity risk over the next several quarters.

Sustained Losses and Negative EBITDA

Persisting GAAP and adjusted losses and negative adjusted EBITDA indicate the company is not yet profitable at current scale. Continued unprofitability undermines ROE and makes recovery dependent on meaningful sales growth or deeper structural cost reductions to restore sustainable earnings.

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 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 Money

Solo 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 Financial Statement Overview

Summary

Weak fundamentals: declining TTM revenue (-10.09%), negative net profit/EBIT margins, and negative operating cash flow. Balance-sheet risk is elevated with high leverage (debt-to-equity 2.34) and negative ROE, partially offset by a still-strong gross margin (55.57%).

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	-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

• Technical Analysis Sentiment: Negative
• Last Price: 15.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 6.39, above the 50-day MA of 7.14, and above the 200-day MA of 10.08, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 46.21 is Neutral, neither overbought nor oversold. The STOCH value of 16.72 is Positive, 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	54 Neutral	$53.14M	9.35	―	―	-34.42%	―
PRTS	51 Neutral	$33.70M	-0.51	-67.30%	―	-8.35%	-74.31%
NHTC	51 Neutral	$46.05M	-48.24	-0.38%	25.20%	-5.07%	-115.50%
SBDS	48 Neutral	$15.30M	-0.11	-58.14%	―	-23.15%	62.52%
TBHC	42 Neutral	$25.16M	-0.94	―	―	-10.64%	37.38%

Solo Brands Corporate Events

Solo Brands Announces Lead Independent Director Resignation, Transition

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.

Solo Brands Announces Merger Agreement for Simplification

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.

The most recent analyst rating on (SBDS) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Solo Brands stock, see the SBDS Stock Forecast page.

Solo Brands Amends CEO Employment Agreement

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.

The most recent analyst rating on (SBDS) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Solo Brands stock, see the SBDS Stock Forecast page.