Solo Brands, Inc.

Distressed multi-brand outdoor DTC company with going-concern doubt, collapsing sales, and severe leverage.

Strengths

• High gross margin 59% (92nd pct) and adequate current ratio (2.96)
• Recognizable Solo Stove/Chubbies brands with restructuring and cost cuts underway

Risks

• Cash runway only ~1.6 quarters (18.8th pct) with going-concern risk and D/E of 5.2 (100th pct)
• Revenue down 30% (7.5th pct), operating margin -36%, FCF margin -16% — deeply loss-making

Notable findings

• Going concernSummary The principal risks and uncertainties affecting our business include the following: Risks Related to our Liquidity and Indebtedness • Our financial condition previously raised and may
• Restatementor Blocker, which were cancelled for no consideration in accordance with the Merger Agreement and Holdings’ Amended and Restated Limited Liability Company Agreement (the “LLC Agreement”) 8-K ↗
• High leverageHigh leverage (debt/equity 5.22)
• Net lossNet loss (net margin -45.9%)
• Cash burnNegative free cash flow (-51.2M)
• Exec changeRecent 8-K item 5.02 8-K ↗
• Buying back stockNet buyback — share count -61%/yr over 4y
• Pending mergerOn December 17, 2025, as part of the Corporate Simplification transactions, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Holdings and Solo Merger Sub LLC (“Merger Sub”
• Revenue declineRevenue -33.1% YoY