NYSE$SBDS

Solo Brands Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong results driven by focus on profitability and wholesale channel expansion.

Solo Brands reported a decrease in net sales by 3.7% to $130.9 million, but a significant increase in net income to $11.5 million. The company's focus on profitability led to an expansion of the adjusted EBITDA margin to 19.1%. They are raising their adjusted EBITDA margin target from 16.5% to 17.5% to 17% to 18% for the full year.

  • Net sales decreased by 3.7% to $130.9 million.
  • Net income increased by 157.9% to $11.5 million.
  • Adjusted EBITDA increased by 5.6% to $25.0 million.
  • Wholesale revenues increased 57.0% to $31.3 million.

Headline financials

Total Revenue

$131M

Previous: $136M-3.7%
EPS (adj)

$0.22

Previous: $0.40-45.0%
Capital Expenditures

-$3.47M

Previous: -$4.58M+24.4%
Free Cash Flow

$3.96M

Previous: -$16.6M+123.8%
Net Income

$7.42M

Previous: -$12M+161.7%
Operating Income

$11.1M

Previous: -$19.9M+155.5%
Gross Profit

$83.1M

Previous: $86.7M-4.2%
Cash & Equivalents

$60.6M

Previous: $26.7M+126.7%
Total Assets

$881M

Previous: $859M+2.6%
Stock-Based Comp

$4.96M

Previous: $4.45M+11.4%

Revenue & EPS history

Solo Brands · Revenue · Quarterly

$131M

Q2 2023-3.7%vs Q2 2022
Beat estimate in 7 of 13 quarters(54%)
ActualEstimate

Forward guidance

The company reiterates a revenue range of $520 to $540 million with the most likely outcome at the midpoint of the range at $530 million. While reiterating revenue guidance, they are raising their adjusted EBITDA margin target from 16.5% to 17.5% to 17% to 18% for the full year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-1.4%

Avg return

Earnings day

-3.5%

Avg return

5 days after

-3.7%

Avg return

30 days after

44%

8 / 18 earnings

Positive

+50.8%

Q1 2025

Best reaction

-62.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.2%-9.3%-17.3%
Q3 2025-28.3%-20.1%-33.9%
Q1 2025+50.8%+30.1%+119.2%
Q4 2024-62.9%-64.9%-75.6%
Q3 2024-10.3%-14.4%-21.9%
Q2 2024-41.6%-37.1%-28.7%
Q1 2024+3.0%+2.0%-5.6%
Q4 2023-2.9%-10.4%-21.2%
Q3 2023+14.7%+13.4%+35.4%
Q2 2023+10.3%+6.7%-1.8%
Q1 2023-5.2%-6.6%-42.0%
Q4 2022+36.6%+66.4%+99.8%
Q3 2022+24.1%+25.8%+5.2%
Q2 2022-2.0%-6.0%-20.7%
Q1 2022-5.5%-15.6%-8.5%
Q4 2021+3.9%-4.9%-26.9%
Q3 2020+3.1%-7.2%-7.1%
Q3 2021-11.0%-11.5%-15.1%
Q2 2021
Q1 2021
Q4 2020
Q2 2020
Q1 2020
Q4 2019

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