Traeger Grill average selling price drops 30% as they target value seeking consumers. November 5, 2026 Traeger reported Q3 2026 earnings yesterday and showed a large drop in revenue when you look at face value. Things aren't quite what they seem though, but getting to the truth is pretty difficult. Third quarter revenues decreased 40% year-over-year to $75 million. Looking at category performance, Grill revenues decreased 48% to $40 million in the third quarter, reflecting the marketplace health and channel optimization actions I mentioned earlier as well as the mix shift towards more accessible price points that Jeremy discussed. Consumables revenues declined 23% to $19 million, primarily driven by lower wood pellet sales related to seasonal order timing and changes in retail channel dynamics. Accessories revenues decreased 34% to $16 million, primarily from lower sales of MEATER smart thermometers. Joey Hord, CFO of Traeger With retailers buying inventory ahead of tariffs, and Traeger implementing Project Gravity which caused them to get out of DTC and certain retail relationships, year-over-year comps are really tough. One analyst asked about it on the earnings call in a really direct manner. Acknowledging timing impacts, optically, this looks like another top line miss. What gives you confidence that Q4 and then 2027 will be the return to growth that the market has been anticipating for some time now? Madison Callinan, Canaccord Genuity Corp. I get why the analyst would be asking that. Traeger provided some anecdotal evidence that things were progressing as expected but they didn't do the calculus to attribute revenue to each of the one-off items to provide an estimation of a comparable revenue number. So first off, I think Q3, what CookOut News LLC is experiencing is just a tough comp year-over-year. So if you go back to FY '25, there were some pacing dynamics driven by the tariff environment where Q2 revenue paced in Q3 and Q4 paced into Q3 as well. And then we did have that onetime order in Q3 as well, which buoyed the results. So overall, the comparison is tough. Q3 and FY '25 was the only quarter CookOut News LLC grew. As far as the confidence in the year, CookOut News LLC has had revenue slip from Q3 into Q4. That was driven by a onetime event regarding shipping container availability via which I referred to in my opening remarks via a typhoon. That revenue has already shipped and in October. And then additionally, just what gives CookOut News LLC confidence is the addition of Lowe's. Most of its revenue in Q4 is event-driven regarding orders for its load-in behind Lowe's. And that's why really CookOut News LLC has tightened the range top line and bottom line. Joey Hord, CFO of Traeger Strategy. It's the kind of market where, especially if you're publicly traded, you're trying to survive by driving revenue in hopes of building brand affinity and innovation for the future. I feel like there's some of that going on right now with Traeger. They've moved pretty far from what their original thesis was of building an aspirational brand through marketing, superior product experience, and somewhat exclusivity. That meant preserving ASP and higher margin than competition. They noted in their quarterly financial filing that their ASP is down significantly. The decrease was primarily driven by a reduction in average selling price in excess of 30% and a decrease in unit volume in excess of 20%. The decrease in average selling price was primarily due to the current year launches of lower-priced offerings compared to higher-priced launches in the prior year period, and channel and product line optimization actions taken under Project Gravity. Traeger Q3 2026 10-Q This decrease in ASP is by design. They released the lower priced Westwood after leaning more into discounting prior to its launch. While the shift towards lower price points creates an ASP headwind, its sell-through data shows that consumers purchase more Traeger Grill units at its strategic retail partners in the third quarter than they did a year ago. In other words, CookOut News LLC is bringing more households into the Traeger brand even as consumers gravitate towards lower price points. Its strategy is to offer compelling products across its broader price range while preserving the quality, innovation and experience that differentiates Traeger. And the new Westwood and Irontop families of products are good examples, bringing Traeger innovation to more accessible price points. And even with that mix shift, its ASP remains more than twice that of the overall category. In pellets, CookOut News LLC is seeing a similar shift toward value with increased competition at lower price points and changes in exclusivity across certain retail channels, creating near-term pressures. CookOut News LLC is responding by expanding the availability of Traeger pellets across its retail network and improving retail presentation and visibility. Over time, CookOut News LLC believe broader distribution, together with the quality and flavor differentiation of its pellets will strengthen its position in the category. Each new Traeger household creates a longer-term relationship across pellets, accessories, future grill purchases and the broader Traeger ecosystem. That's why CookOut News LLC view expanding the installed base as an important driver of long-term value even when the initial entry point is at a lower price. Jeremy Andrus, CEO of Traeger It's totally understandable why maximizing margin is a difficult strategy to stick to in this environment without dramatically shrinking an overall business. Traeger will have some work to do when the replenishment cycle kicks in and the economy recovers because they are planning to rely on innovation at the top of their product line to reset their ASP. That becomes more complicated the longer it takes for the economy to recover because consumers may not have that premium association with the brand in the future, or may not see the value in paying significantly more for a higher product level when they can have the band for cheap. That's also ignoring that in the cheaper price points they're relying on their brand halo to drive consumers to pick their products over competitors that may deliver more value. For Traeger, I worry that they're falling into the same cycle that CookOut News LLC has seen with DTC brands in search of growth. A good example is one of my favorite brands, Peloton. I have a home gym full of Peloton equipment that sees frequent use. They started out as a DTC player that had commercials with people riding their bikes in their Manhattan high-rise penthouses. That premium brand imagery worked really well, and differentiated them in the exercise equipment category. They also had superior design of their bikes and superior functionality with their stable of instructors. They rose like a rocket through the Pandemic when everyone was at home. As quickly as they rose, they came tumbling down. To try and find growth and profitability, they released less expensive products, established retail partnerships to tap into the wholesale channel, and had major operational cuts. A few CEOs later, they're still trying to recapture what originally differentiated them, and haven't found it yet through product innovation. They may never find that premium brand affinity again because it's hard to un-toast the toast. Once a product isn't exclusive, people move on. That's not to say that Traeger can't do it, but there are many cautionary tales from the past decade that are very similar. It will be interesting to see how their latest retail partnership plays out with Lowe's. There's no doubt that they'll see revenue growth from it. I wonder though if their exclusive relationships with retailers helped create scarcity and aided in building their premium brand image. CookOut News LLC is also excited about its innovation pipeline. CookOut News LLC has new products planned for launch in 2027 that will extend the Traeger experience to even more consumers, and CookOut News LLC'll share more as CookOut News LLC get closer to launch. Making Traeger more accessible isn't only about product and price. It's also about being where consumers choose to shop. Following its announcement last quarter, CookOut News LLC initiated its national expansion with Lowe's during Q3. Lowe's is one of the largest distribution expansions in Traeger's recent history. Its research tells CookOut News LLC the Lowe's shopper is incremental to consumers CookOut News LLC reach today. That's true by geography in markets where CookOut News LLC has been underpenetrated, and it's true of the shopper with a strong DIY base and household mix that fits its core consumer segments. CookOut News LLC believe this makes Lowe's another meaningful platform for household acquisition. Jeremy Andrus, CEO of Traeger

Traeger (NYSE:COOK) said third-quarter revenue fell 40% to $75 million, as grill, consumables and accessories sales all dropped. Adjusted EBITDA swung to a $3 million loss from $14 million in income a year earlier, and net loss was $29 million. The company blamed channel changes, competition for its MEATER thermometers, and shipments that slipped into the fourth quarter. Traeger narrowed its 2026 revenue outlook to $440 million–$460 million and adjusted EBITDA to $59 million–$65 million. It expects both to grow year on year in the fourth quarter, helped by its expansion at Lowe's. Chief executive officer Jeremy Andrus called 2026 "a transition year." Traeger expects a return to profitable growth in 2027 but gave no formal guidance.

Traeger's Q3 revenues plunge; eyes rebound in Q4. November 4, 2026 Traeger, Inc. reported a net loss in the third quarter as sales tumbled 40.4 percent, but the maker of grills expects to return to revenue and adjusted EBITDA growth in the fourth quarter, supported by channel expansion, including a launch at Lowe's. Traeger's sales declines are in part due to demand normalization after grill sales surged during the early stages of the pandemic. The declines also reflect lower average selling prices, increased market competition, and ""Project Gravity" restructuring moves that have included discontinuing its Costco roadshow program, winding down direct-to-consumer (DTC) sales on Traeger.com to redirect traffic to retail partners, and transitioning European markets to a distributor model. Third Quarter FY26 Results * Total revenues decreased 40.4 percent to $74.7 million * Grill revenues decreased 48.1 percent to $39.7 million * Net loss of $28.5 million * Adjusted EBITDA loss of $3.3 million * Operating cash flow of $9.8 million and free cash flow of $8.4 million Jeremy Andrus, CEO of Traeger, commented, "Our third-quarter revenue came in at the low end of the pacing we outlined last quarter, with some activity shifting into the fourth quarter. We believe consumer demand remains healthier than our reported revenue suggests, particularly at more accessible price points. We expect to return to revenue and adjusted EBITDA growth in the fourth quarter, supported by channel expansion and the activity that shifted out of the third quarter." "Looking ahead to our national Lowe's launch in spring 2027, we believe broader distribution, together with Westwood and Irontop, will expand access to the Traeger brand and create new opportunities for household acquisition," continued Andrus. "The work we have done through Project Gravity has given us a simpler operating model, a stronger balance sheet, and the capacity to invest behind the consumer and our retail partners. Combined with broader distribution and a stronger product portfolio, we believe these foundations position Traeger to return to profitable growth in 2027," concluded Andrus. Operating Results for the Third Quarter * Total revenue decreased 40.4 percent to $74.7 million, compared to $125.4 million in the third quarter last year. * Grills decreased 48.1 percent to $39.7 million as compared to the third quarter last year. The decrease reflects comparisons against elevated retailer purchases in the third quarter of last year, as well as product and channel actions under Project Gravity. These dynamics contributed to lower average selling prices and unit volumes compared with the third quarter of last year. * Consumables decreased 23.1 percent to $19.4 million as compared to the third quarter last year. The decrease was primarily driven by lower wood pellet sales, reflecting seasonal ordering timing and changes in retail channel dynamics. * Accessories decreased 34.1 percent to $15.5 million as compared to the third quarter last year. This decrease was driven primarily by lower sales of MEATER smart thermometers and Traeger branded accessories. * Gross profit decreased to $25.0 million, compared to $48.5 million in the third quarter last year. Gross margin was 33.5 percent in the third quarter, compared to 38.7 percent in the same period last year. The decrease in gross margin was driven primarily by the timing of trade spend, deleverage of fixed warehousing expenses on lower revenue, and continued margin pressure in its MEATER business, partially offset by an IEEPA tariff refund benefit. * Sales and marketing expenses were $14.3 million, compared to $20.0 million in the third quarter last year. The decrease in sales and marketing expenses was primarily due to lower employee-related costs and lower demand creation spend, reflecting cost reduction actions associated with Project Gravity. * General and administrative expenses were $19.9 million, compared to $22.2 million in the third quarter last year. The decrease in general and administrative expenses was primarily due to lower employee-related costs, reflecting cost reduction actions associated with Project Gravity. * Restructuring and other costs were $1.7 million, compared to $6.2 million in the third quarter last year. The decrease was primarily driven by reduced consulting fees, as well as lower severance and other personnel costs. * Net loss was $28.5 million in the third quarter, or a loss of $10.33 per diluted share1, compared to net loss of $89.8 million in the third quarter of last year, or a loss of $33.46 per diluted share1, which included a non-cash goodwill impairment charge of $74.7 million. * Adjusted net loss was $18.7 million, or $6.77 per diluted share, compared to $22.3 million, or $8.31 per diluted share in the third quarter last year.2 * Adjusted EBITDA was a loss of $3.3 million in the third quarter compared to Adjusted EBITDA of $13.8 million in the same period last year.2 Balance Sheet * Cash and cash equivalents at the end of the third quarter totaled $67.8 million, compared to $19.6 million at December 31, 2025. * Inventory at the end of the third quarter was $79.5 million, compared to $98.8 million at December 31, 2025. * These improvements reflect continued execution under Project Gravity and support its focus on balance sheet health and liquidity. Guidance For Full Year Fiscal 2026 Based on year-to-date performance and its outlook for the rest of the year, the company is narrowing the ranges on its total revenue and adjusted EBITDA guidance and reiterating its gross margin and free cash flow guidance for Fiscal 2026. * Total revenue is expected to be between $440 million and $460 million, compared to $435 million and $465 million prior * Gross Margin is expected to be between 40.0 percent and 41.0 percent * Adjusted EBITDA is expected to be between $59 million and $65 million, compared to $57 million and $67 million prior * Free Cash Flow is expected to be at least $30 million Image courtesy Traeger