Solo Brands Reports 29.9% Decline in Q2 2025 Net Sales, Net Loss of $20.8 Million

Solo Brands, Inc. reported a significant decline in financial performance for the second quarter of 2025, with net sales dropping to $92.3 million, a decrease of 29.9% from $131.6 million in the same period last year. For the first half of 2025, net sales totaled $169.5 million, down 21.8% from $216.9 million in the prior year. The decline was primarily attributed to a substantial drop in direct-to-consumer sales within the Solo Stove segment, which fell by 39.6% year-over-year. The company also recorded a net loss of $20.8 million for the quarter, compared to a loss of $4.0 million in the same period of 2024.

In terms of operational changes, Solo Brands engaged strategic consulting firms to assist in improving financial results, which included restructuring efforts and cost-saving initiatives. The company incurred restructuring charges of $10.3 million in the second quarter, reflecting costs associated with retention payments, a reduction in workforce, and the closure of two distribution centers. Additionally, the company settled a termination fee with a former vendor, resulting in a $1.4 million benefit. These restructuring efforts are expected to yield long-term savings, although the immediate financial impact has been negative.

The company’s balance sheet showed a decrease in total assets to $459.7 million as of June 30, 2025, down from $495.1 million at the end of 2024. Cash and cash equivalents increased to $18.1 million, while accounts receivable and inventory decreased significantly. The company’s long-term debt rose to $237.8 million, reflecting a restructuring of its credit facilities under the 2025 Refinancing Amendment, which provided financial flexibility and extended maturities. The company is required to meet certain financial covenants under this agreement, with the first measurement period occurring in the third quarter of 2026.

Looking ahead, Solo Brands aims to stabilize and transform its business through ongoing operational improvements and cost-saving initiatives. The company has expressed confidence in its ability to comply with financial covenants and believes that its cash reserves and cash generated from operations will be sufficient to meet obligations for at least the next twelve months. However, the company remains cautious about potential risks, including the impact of tariffs, market conditions, and the effectiveness of its restructuring efforts on future performance.