Solo Brands Inc. reported net sales of $53 million for the third quarter ended September 30, a 43.7% decrease from $94.1 million in the same period last year. The outdoor lifestyle company, which owns Solo Stove, Chubbies, Isle and Oru brands, posted a net loss of $22.9 million, or $9.22 per diluted share.
The company generated $11 million in operating cash flow, marking its second consecutive quarter of positive cash generation. CEO John Larson attributed the cash flow improvement to cost discipline and working capital management, though he acknowledged continued pressure on consumer demand.
“The third quarter was challenging, reflecting continued pressure on consumer demand while we rebuild retail relationships and work through excess retailer inventory primarily within our Solo Stove division,” Larson said in a statement.
Solo Stove Segment Faces Inventory Challenges
The Solo Stove division experienced a 48.1% decline in net sales to $30.8 million. The decrease reflected lower sales as retail partners reduced excess inventory and the company reset promotional activity across retail and direct-to-consumer channels.
Segment EBITDA for Solo Stove fell to $1.4 million, or 4.4% of net sales, compared to $14.6 million, or 24.6% of net sales, in the third quarter of 2024. The company cited the implementation of strategic initiatives and operating deleverage associated with lower sales as factors in the decline.
For the nine-month period, Solo Stove net sales decreased 47.5% to $95.2 million. Segment EBITDA dropped to $3.3 million, or 3.4% of net sales, from $37.0 million, or 20.4% of net sales, in the prior year.
Chubbies Shows Mixed Results
The Chubbies apparel segment reported net sales of $16.5 million for the third quarter, down 16% from $19.6 million in 2024. The company said retail channel replenishments occurred earlier in 2025 versus the prior year, while direct-to-consumer sales remained flat year-over-year.
Chubbies posted a segment EBITDA loss of $1.2 million, or negative 7.5% of net sales, compared to a loss of $0.5 million, or negative 2.4% of net sales, in the third quarter of 2024.
However, the nine-month results showed growth for Chubbies, with net sales increasing 17% to $103.6 million. Segment EBITDA improved to $21.5 million, or 20.8% of net sales, from $12.2 million, or 13.8% of net sales, in the prior year period.
Cost Reduction and Restructuring Efforts
Solo Brands reduced selling, general and administrative expenses by 35.4% compared to the same quarter last year. Operating expenses totaled $48 million, down 68.9% from the prior year, primarily due to reductions in restructuring, contract termination and impairment charges.
The company has been implementing structural cost reductions to align its operating model with current demand levels. Larson noted that recent product launches, including the Summit 24″ and Infinity Flame firepits, have received favorable initial responses and improved year-over-year sales trends in October.
Larson was appointed on an interim basis in February after former CEO Chris Metz stepped down after one year on the job.
Solo Brands warned in early 2025 that it was dealing with heavy debt, declining sales, and tariffs. The company completed a debt refinancing in June 2025 and executed a 1-for-40 reverse stock split to regain compliance with NYSE listing standards. Trading of the company’s Class A common stock resumed on the NYSE in July 2025 under the ticker symbol “SBDS.”
As of September 30, 2025, Solo Brands had cash and cash equivalents of $16.3 million and inventory of $84.8 million. Outstanding borrowings under the company’s term loan totaled $247.1 million.
