Heading into 2025 it looked liked it could be a promising year for a grill industry rebound. There were some tailwinds with inventory levels normalizing, a reasonably healthy consumer, and a housing market that was bound to find a bottom at some point.

The implementation of tariffs changed any potential for promise that the year had. It sent the stocks for all companies in the live-fire industry tumbling because their gross margin would be significantly cut. To navigate those tough seas, companies tried a combination of pricing to preserve margin, and operating expense reductions to help make up ground before net income.

It’s all resulted in softness in revenue and companies looking to right-size their business to current revenue levels. It’s also had a big impact on stock prices.

Solo Brands, the Solo Stove parent, saw their stock drop significantly under $1, which is a threshold required to maintain listing on the stock market. They performed a number of cost custting initiatives and did a reverse stock split to boost their stock price above $1 and remain listed.

Traeger has been actively cutting costs and they’re on the same trajectory with their stock. Their stock dropped below $1 in October, they received notice from the New York Stock Exchange, and their share price has been bouncing around near $1 since then.

In an expected move, they announced that they’re going to have a Special Meeting of Stockholders on March 2nd to vote on performing a reverse stock split. At the meeting they’ll also vote on the ratio of the reverse stock split with a range 1-for-10 to 1-for-50. That means that every 10 shares owned of stock would combine into 1 share, up to every 50 shares, depending on what’s decided.

Combining the shares effectively increases the price of them by the ratio. It’s a necessary move to remain listed on the exchange with how their stock has been performing.