Solo Brands projects lower 2026 revenue despite margin improvement

Solo Brands Inc. (NYSE:DTC) released its financial outlook for fiscal year 2026, forecasting net sales in the range of $280 million to $310 million, compared with reported revenue of $316.8 million in 2025.

The outdoor lifestyle company expects adjusted EBITDA of between $24 million and $30 million in 2026, up from $18.5 million recorded in the previous year. Solo Brands owns several consumer brands, including Solo Stove, Chubbies, Isle and Oru Kayak.

Chief Executive Officer John Larson said the company anticipates both net sales and adjusted EBITDA to decline year over year in the first quarter of 2026. He attributed the expected dip in part to shifts in retail timing, with some activity moving from late in the first quarter into early in the second quarter, as well as increased marketing spending tied to upcoming product launches.

The outlook also assumes that demand conditions will remain uneven. It factors in potential tariff impacts based on recent court decisions, including expected refunds and possible rate reductions, along with anticipated benefits from payroll reductions and restructuring measures outlined during the company’s March 19 earnings call.

Solo Brands reported a net loss of $145.4 million in 2025, which included $93.5 million in restructuring, contract termination, impairment and related charges. The company has been implementing cost-cutting initiatives and operational changes as part of a broader restructuring plan.

Based in Grapevine, Texas, Solo Brands sells its products through e-commerce channels, retail partnerships and its own physical stores. The company noted that the guidance reflects management’s current expectations and is based on assumptions that could change due to factors outside its control.

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