Solo Brands, Inc. Q1 FY2025 earnings call

• NYSE Trading Suspension: Recently appealed the NYSE's determination and have a plan to regain compliance, currently trading on OTC under ticker DTCB. Working with lenders on debt restructuring and developed operational financial plan for near and long term.
• First Quarter Results: Chubbies sales up 43.9% with EBITDA margin 26.5%; Solo Stove sales down due to DTC channel changes; consolidated bottom line exceeded last year for Feb and March.
• Tariffs: Took proactive steps to offset incremental costs, diversifying manufacturing footprint, reducing reliance on China-sourced products, and implementing pricing actions.
• Organizational Design: Made headcount reductions, eliminated open positions, adjusted bonus structure, suspended 401(k) match, and worked on rightsizing facilities and distribution footprint.
• Marketing Effectiveness: Eliminated legacy marketing programs, focused on return on ad spend, used contribution margin analysis model, and eliminated unprofitable sponsorships.
• Pricing Strategies: Aligned DTC and retail promotions, strategic repricing of portfolio, and terminated low-profit retail programs.
• Product Innovation: Solo Stove has 5 new products launching this year, starting with Windchill 47 cooler, less promotional, and plan to bring retail partners into newness with exclusive products.

Chubbies segment: First quarter sales grew 43.9% with segment EBITDA margin expanding to 26.5% of sales. Solo Stove segment: Sales declined primarily in response to elimination of extensive discounting and promotion in DTC channel. Chubbies contributed incrementally to sales, while Solo Stove's decline offset some of that. Chubbies accounted for a significant portion of the sales growth, and Solo Stove's performance was affected by channel realignment.

• Expect to stabilize performance in the second half of 2025.
• Working with lenders on debt structure and no planned acquisitions in 2025.

• Risk of not regaining NYSE listing if appeal is unsuccessful.
• Noncompliance with financial covenants as expected, leading to going concern disclaimer.
• Tariffs continuing to impact costs.
• Risk of restructuring initiatives not driving profitability and cash flow improvements.

Q: None provided as they are holding off answering investor questions until details can be discussed A: None