Traeger’s stock has dropped roughly 96% since its IPO. The company shut down its own website sales. Hundreds of workers have been laid off. It’s fair to ask whether the brand is finished.
But the honest answer is more complicated than the headlines suggest. This article breaks down what Traeger’s financial situation actually looks like, what Project Gravity is and what it isn’t, what the stock collapse means in practical terms, and what customers and investors should realistically watch for.
Traeger Is Still Operating — But It Is Under Serious Pressure
No bankruptcy filing, liquidation notice, or shutdown announcement has been made as of the latest available data. Traeger grills are still sold through Costco, Home Depot, Lowe’s, and Ace Hardware. The company is still producing and shipping product.
That said, the financial numbers are genuinely bad. Revenue has fallen four consecutive years — from $655.9M in 2022 down to $559.5M in 2025. The company posted a net loss of $115.2M in 2025 and carries an accumulated deficit of $804.1M.
These are not signs of a healthy business. But they describe a company under serious financial stress, not one that has shut its doors. The distinction matters, especially if you’re deciding whether to buy a grill or hold shares.
What Project Gravity Actually Is
In May 2025, Traeger launched a restructuring plan called Project Gravity. It’s a cost-reduction effort, not a wind-down. The goal is to cut overhead, streamline operations, and get the business closer to profitability.
The plan runs in two phases. Phase 1 targets $30M in savings. Phase 2 targets an additional $20M. Together, these cuts are designed to push Traeger toward positive adjusted EBITDA in the $66–$73M range and gross margins in the low-40% range.
The specific actions under Project Gravity include:
- Workforce reductions across the company
- Centralizing the MEATER business operations to Salt Lake City
- Consolidating pellet-mill operations
- Shifting to distributor models in certain European markets
- Ending the Costco roadshow demo program
- Exiting Traeger-operated direct-to-consumer sales
None of these steps are what a company does when it’s preparing to close. They are what a company does when it’s trying to survive by spending less and focusing on what actually works.
Headcount has been cut by roughly 35% over the past year. A facility has been closed. Dozens of workers have joined a lawsuit alleging labor-law violations during the restructuring. This is real disruption — but it’s also a common feature of large-scale corporate cost-cutting, not evidence of imminent collapse.
The DTC Exit and Costco Roadshow Change Do Not Mean Traeger Left Retail
This is where a lot of the confusion comes from. When Traeger stopped selling directly through its own website and ended the Costco roadshow program, some people interpreted that as Traeger pulling out of the market entirely. That’s not what happened.
Traeger shut down its own direct-to-consumer sales operation. If you go to Traeger.com today, you get redirected to retail partners instead of completing a purchase on their site. The company made a deliberate decision to stop handling its own logistics, fulfillment, and customer service for online orders.
The Costco roadshow program — the traveling demo teams that set up in Costco locations — has ended. But Traeger grills are still in Costco’s regular inventory and available through Costco’s online listings. Removing the demo crews is not the same as removing the product.
Think of it this way: if a clothing brand stops selling from its own website but keeps selling through Amazon and department stores, it hasn’t gone out of business. It’s just changed where it sells. That’s exactly what Traeger did. The stated reason is straightforward — running a DTC operation requires logistics infrastructure, customer service teams, and fulfillment costs that don’t justify the margin when a company is trying to cut $50M in expenses.
The Stock Price Collapse and NYSE Warning Explained
Traeger’s stock has been brutal for investors. Shares fell roughly 96% over four years since the IPO, eventually trading near or below $1. In November 2025, the NYSE issued a non-compliance notice because Traeger failed the minimum stock price requirement for continued listing.
To fix the listing issue, Traeger pursued a 1-for-50 reverse stock split. That means every 50 existing shares become 1 share, and the price adjusts upward mathematically. It doesn’t change what the business owns, earns, or owes. It’s a mechanical fix to meet exchange rules.
A reverse split is a red flag for investors — it often signals that a company’s equity has been severely eroded. But it doesn’t mean the business stops operating. Companies do reverse splits to stay listed while they work on recovering the underlying business.
Traeger’s total debt stands at approximately $436.9M. S&P Global affirmed the company’s ‘B-‘ credit rating but revised the outlook to negative, citing tariff-related headwinds and ongoing business challenges. A ‘B-‘ rating means speculative grade — higher risk, not investment quality. A negative outlook means S&P sees elevated risk of a future downgrade. Neither is good news, but neither means default is certain or imminent.
To use a plain analogy: a homeowner who refinances their mortgage, cuts household expenses, and sells a second car is under financial pressure. That’s not the same as foreclosure. Traeger is cutting costs and restructuring its balance sheet. That’s stressful. It’s not guaranteed failure.
What This Means for Customers
If you’re thinking about buying a Traeger grill, the practical concern is whether the company will still exist to honor warranties and supply pellets and accessories a few years from now. That’s a reasonable question.
Right now, Traeger grills and pellets are available at major retail partners. Project Gravity explicitly states that a goal of the restructuring is to maintain consumer access to products while reducing overhead. The company is not voluntarily pulling product from shelves.
Warranty obligations are contractual. Even companies in distress typically work to honor them while they’re still operating. That said, if Traeger’s financial situation deteriorates significantly, warranty support and parts availability could become harder to rely on. That’s a real risk worth acknowledging.
The safest practical advice: Traeger is still selling and servicing products today. Watch for any signs of retail partners dropping the brand or further sharp revenue declines in upcoming quarterly reports.
What Investors and Observers Should Watch
For anyone tracking Traeger from a business or investment perspective, here are the key indicators that matter going forward:
- Revenue stabilization: Four consecutive years of declining revenue is a serious trend. If 2026 guidance shows the decline stopping, that’s a meaningful signal. If revenue continues to fall, the debt load becomes harder to manage.
- Adjusted EBITDA progress: Management is targeting $66–$73M in adjusted EBITDA. Whether they actually hit that range will indicate how effective Project Gravity’s cuts are.
- Debt servicing: With $436.9M in debt and a ‘B-‘ rating with a negative outlook, Traeger needs enough cash flow to keep up with debt obligations. Any signs of refinancing trouble or covenant violations would be serious warning signs.
- Retail partner relationships: If major retailers like Costco or Home Depot reduce their Traeger shelf space significantly, that would be a direct hit to revenue with few alternatives left after the DTC exit.
- Tariff exposure: S&P specifically flagged tariff headwinds as a risk. If trade policy shifts create cost increases for Traeger’s supply chain, that pressure compounds everything else.
For deeper context on how companies navigate financial restructuring, Road of Business covers business strategy and turnaround analysis in practical terms.
The Bottom Line
Traeger is not going out of business right now. It is, however, a company with serious financial problems — declining revenue, large accumulated losses, heavy debt, a distressed stock price, and a credit rating that reflects genuine risk.
Project Gravity is a real restructuring effort with real consequences: layoffs, facility closures, and major channel changes. The DTC exit and Costco roadshow changes look alarming on the surface but are channel strategy decisions, not signs of a brand disappearing from the market.
What comes next depends on whether the cost cuts actually improve margins, whether revenue stabilizes, and whether Traeger can manage its debt load through what looks like a prolonged recovery. None of that is guaranteed. But as of now, the company is still operating, still selling grills, and still working through a restructuring plan — not shutting down.
Keep an eye on the next two or three quarterly reports. Those numbers will tell you more than any headline about whether the turnaround is working.
Also Read: