Traeger’s Project Gravity restructuring is expected to generate approximately $50 million of value capture during fiscal 2026 as the grill maker sharply improves cash generation and reduces inventory despite continued pressure on revenue.
Cash and cash equivalents increased to $59.7 million at the end of Q2 from $19.6 million at the end of 2025. Inventory declined to $76.3 million from $98.8 million over the same period, a reduction of approximately $22.6 million.
Working capital improvements helped Traeger generate $45 million of operating cash flow during the first half compared with $2.5 million of cash used in operations a year earlier. Inventory movements contributed approximately $22.6 million to first-half operating cash flow.
Project Gravity is also reducing operating expenses. Q2 sales and marketing costs declined to $17.1 million from $24.8 million, while general and administrative expenses fell to $21.8 million from $26 million. Traeger attributed both declines primarily to lower employee-related costs and restructuring initiatives.
Adjusted EBITDA increased 21% to $17.3 million despite a 17.4% decline in revenue to $120.2 million. Adjusted EBITDA margin increased to 14.4% from 9.8%.
Traeger lowered full-year revenue guidance to $435 million to $465 million, primarily because of additional softness in the MEATER business and near-term channel effects associated with its distribution expansion. However, Adjusted EBITDA guidance remained unchanged at $57 million to $67 million, while free cash flow is expected to be at least $30 million.
The company is also expanding distribution through a new partnership with Lowe’s, which management described as one of the most meaningful distribution expansions in Traeger’s recent history. The partnership follows encouraging initial performance for the company’s Westwood and Irontop products.
KEY QUOTES:
“Project Gravity continues to strengthen our operating model, improve cash generation and create greater flexibility to invest in growth. As we enter 2027, we expect to benefit from a larger installed base, broader distribution footprint, a more complete product architecture and a simpler operating model, reinforcing our confidence in Traeger’s ability to return to profitable growth.”
Jeremy Andrus, Chief Executive Officer Of Traeger
