$SBDS

Solo Brands, Inc.

CIK:0001870600|SEC Filings

Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net sales	$ 88,460	$ 92,257	$ 151,341	$ 169,509
Cost of goods sold	35,441	35,658	65,419	70,305
Gross profit	53,019	56,599	85,922	99,204
Operating expenses
Selling, general & administrative expenses	42,609	47,686	75,814	86,676
Restructuring, contract termination and impairment charges	1,895	10,251	2,200	16,090
Depreciation and amortization expenses	4,334	6,394	8,442	13,283
Other operating expenses	668	2,103	690	3,633
Total operating expenses	49,506	66,434	87,146	119,682
Income (loss) from operations	3,513	(9,835)	(1,224)	(20,478)
Non-operating (income) expense
Interest expense, net	7,887	5,989	15,380	11,559
Other non-operating (income) expense	(119)	3,267	(267)	2,687
Total non-operating (income) expense	7,768	9,256	15,113	14,246
Income (loss) before income taxes	(4,255)	(19,091)	(16,337)	(34,724)
Income tax expense (benefit)	136	1,676	(6,480)	4,620
Net income (loss)	(4,391)	(20,767)	(9,857)	(39,344)
Less: net income (loss) attributable to noncontrolling interests	0	(7,299)	0	(13,684)
Net income (loss) attributable to Solo Brands, Inc.	(4,391)	(13,468)	(9,857)	(25,660)
Net income (loss) attributable to Solo Brands, Inc.	(4,391)	(13,468)	(9,857)	(25,660)
Other comprehensive income (loss)
Foreign currency translation, net of tax	(55)	181	(214)	181
Comprehensive income (loss)	(4,446)	(20,586)	(10,071)	(39,163)
Less: other comprehensive income (loss) attributable to noncontrolling interests	0	64	0	64
Less: net income (loss) attributable to noncontrolling interests	0	(7,299)	0	(13,684)
Comprehensive income (loss) attributable to Solo Brands, Inc.	$ (4,446)	$ (13,351)	$ (10,071)	$ (25,543)
Net income (loss) per Class A common stock
Basic (in dollars per share)	$ (1.72)	$ (8.93)	$ (3.89)	$ (17.06)
Diluted (in dollars per share)	$ (1.72)	$ (8.93)	$ (3.89)	$ (17.06)
Weighted-average Class A common stock outstanding
Basic (in shares)	2,560	1,509	2,534	1,504
Diluted (in shares)	2,560	1,509	2,534	1,504

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (9,857)	$ (39,344)
Adjustments to reconcile net income (loss) to net cash and cash equivalents (used in) provided by operating activities
Depreciation and amortization	10,622	13,799
Interest expense payable in kind	5,804	0
Noncash operating lease expense	3,208	3,828
Amortization of debt issuance costs	3,016	684
Equity-based compensation, net	1,128	962
Loss on disposition of the TerraFlame manufacturing operations	0	1,441
Inventory charges associated with restructuring and consolidation activities	1,424	0
Restructuring, contract termination and impairment charges	(724)	(588)
Other	83	(270)
Change in fair value of contingent consideration	0	(787)
Deferred income taxes	(6,528)	(1,405)
Changes in assets and liabilities
Accounts receivable	24	2,123
Inventory	20,452	26,331
Prepaid expenses and other current assets	(133)	(1,935)
Accounts payable	(1,385)	(58,306)
Accrued expenses and other current liabilities	(4,779)	(11,781)
Deferred revenue	(542)	(395)
Operating lease liabilities	(2,394)	(3,292)
Other non-current assets and liabilities	585	4,679
Net cash provided by (used in) operating activities	20,004	(64,256)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(3,633)	(6,414)
Net cash provided by (used in) investing activities	(3,633)	(6,414)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facilities and term loans	15,000	277,322
Repayments of revolving credit facilities and term loans	(15,600)	(179,322)
Debt issuance costs paid	0	(18,502)
Net consideration paid to Former Sellers of TerraFlame	0	(2,500)
Finance lease liability principal paid	0	(155)
Surrender of stock to settle taxes on restricted stock awards	(117)	(216)
Net cash provided by (used in) financing activities	(717)	76,627
Effect of exchange rate changes on cash	(242)	181
Net change in cash and cash equivalents	15,412	6,138
Cash and cash equivalents balance, beginning of period	20,034	11,980
Cash and cash equivalents balance, end of period	$ 35,446	$ 18,118

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 35,446	$ 20,034
Accounts receivable, net of allowance for credit losses of $0.5 million and $1.1 million as of June 30, 2026 and December 31, 2025, respectively	29,858	29,764
Inventory	59,599	81,648
Prepaid expenses and other current assets	10,614	8,767
Total current assets	135,517	140,213
Non-current assets
Property and equipment, net	10,088	13,197
Intangible assets, net	95,269	100,038
Goodwill	73,119	73,119
Operating lease right-of-use assets	14,450	17,901
Other non-current assets	14,569	15,874
Total non-current assets	207,495	220,129
Total assets	343,012	360,342
Current liabilities
Accounts payable	11,681	13,073
Accrued expenses and other current liabilities	26,413	30,843
Deferred revenue	1,107	1,649
Current portion of long-term debt	4,200	1,800
Total current liabilities	43,401	47,365
Non-current liabilities
Long-term debt, net	245,046	240,272
Deferred tax liability	211	6,739
Operating lease liabilities	11,049	13,888
Other non-current liabilities	964	677
Total non-current liabilities	257,270	261,576
Commitments and contingencies (Note 1)
Shareholders’ equity
Additional paid-in capital	383,857	377,331
Retained earnings (accumulated deficit)	(339,822)	(329,965)
Accumulated other comprehensive income (loss)	(488)	(274)
Treasury stock, 54,200 and 32,836 owned as of June 30, 2026 and December 31, 2025, respectively	(1,209)	(1,092)
Equity attributable to Solo Brands, Inc.	42,341	46,003
Equity attributable to noncontrolling interests	0	5,398
Total equity	42,341	51,401
Total liabilities and equity	343,012	360,342
Class A Common Stock
Shareholders’ equity
Common stock issued	3	2
Class B Common Stock
Shareholders’ equity
Common stock issued	$ 0	$ 1