Traeger Revenue Falls 40% in Third Quarter
The grill maker's quarterly sales drop reflects demand normalization, competition and restructuring moves, with recovery expected in the fourth quarter.
Updated on Nov. 4, 2026 in Consumer Goods
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Traeger, Inc. reported third-quarter fiscal 2026 total revenue of $74.7 million, a 40.4 percent decline year over year, and a net loss of $28.5 million. Grill, consumables and accessories sales all fell, and the company's gross margin declined to 33.5 percent from 38.7 percent a year earlier.
Why it matters
The decline follows a pandemic-era surge in grill demand that has since normalized, alongside lower average selling prices and heightened competition. Traeger's restructuring moves, including ending its Costco roadshow program and shifting European sales to distributors, reshape how the company reaches consumers.
Third-quarter operating cash flow was $9.8 million and free cash flow was $8.4 million, while inventory stood at $79.5 million. The company's fiscal 2026 total revenue guidance is $440 million to $460 million.
The players
Traeger, Inc.
Traeger is a Utah-based maker of wood-pellet grills and related consumables and accessories, known for popularizing pellet-fired outdoor cooking.
Lowe's
Lowe's is a major U.S. home-improvement retailer whose planned national launch of Traeger products is expected in spring 2027.
The details
Grill revenue fell 48.1 percent to $39.7 million, consumables dropped 23.1 percent to $19.4 million, and accessories declined 34.1 percent to $15.5 million. Traeger discontinued its Costco roadshow program, wound down direct-to-consumer sales on Traeger.com to redirect traffic to retail partners, and moved European markets to a distributor model.
Timeline
- Comparison date for balance sheet figures: December 31, 2025
- Third quarter fiscal 2026: revenue decline and net loss reported
- Fourth quarter fiscal 2026: expected return to revenue and adjusted EBITDA growth
- Spring 2027: planned national Lowe's launch
- 2027: expected return to profitable growth
Market Landscape
Traeger's sales decline reflects the unwinding of pandemic-era grill demand that lifted the category sharply in 2020 and 2021. The company now faces heightened competition as it shifts from direct-to-consumer sales toward retail partners and distributors.
Shoppers buying Traeger grills and accessories may find products increasingly available through retailers such as Lowe's rather than direct from the company's website. Lower average selling prices in the category could benefit buyers comparing grill prices this season.
The takeaway
Companies that rode a pandemic-driven demand spike are now rebuilding around normalized sales and new retail channels. Consumers evaluating outdoor cooking purchases can expect more competitive pricing as the category adjusts.
What happens next
Traeger expects to return to revenue and adjusted EBITDA growth in the fourth quarter of fiscal 2026 and plans a national Lowe's launch in spring 2027.
Further reading
Explore more on the Consumer Goods industry as retailers and manufacturers adjust to shifting demand.
Source note: This article includes information reported by Sgbonline.
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