Solo Brands, Inc.

NOTE 3 -Restructuring, Contract Termination and Impairment Charges

2025 Restructuring Activity

In 2025, management and the Board of Directors of the Company engaged strategic consulting firms to assist the Company with improving financial results from its operations. This operational improvement effort involved the engagement of restructuring, legal and investment banking consultants to perform financial planning, forecasting and project management activities. Certain of these strategic consulting firms assisted in developing operational plans for the near- and long-term, as well as having assisted and continuing to assist in identifying cost saving initiatives to reduce the operational expenses of the Company and aid in the development of enhanced internal reporting to deliver timely insight to management. Expenses related to these strategic consulting firms recognized within restructuring were $7.8 million for the year ended December 31, 2025, respectively.

The cost saving initiatives identified and executed upon in the year ended December 31, 2025 have been designed to reduce operational expenditures over the long-term. The key cost saving initiatives and operational planning activities undertaken for the year ended December 31, 2025 in excess of $0.5 million, for which the Company recorded the related charges to restructuring, contract termination and impairment charges on the consolidated statements of operations and comprehensive income (loss) as applicable, were as follows:

•Restructuring

◦retention payments to key personnel to support the sustainment of operations and focus on cost saving and operational improvements, resulting in a restructuring charge of $5.8 million;

◦reduction in force (“RIF”) of management and non-management personnel in an effort to align headcount with the operational needs of the business, resulting in a moderate decline in related expenses in the short term, with the significance of the savings anticipated to be recognized in future periods, resulting in a restructuring charge of $1.0 million for severance;

◦expenses related to the strategic consulting firms discussed above, resulting in a restructuring charge of $7.8 million;

•Contract Terminations

•termination of an underperforming licensing agreement in an effort to redeploy the allocated funds for operational purposes, of $2.5 million;

•settlement of a termination fee with a former advertising services vendor, with a previously accrued balance of $5.4 million that was settled for $4.0 million, a $1.4 million benefit to the Company; and

•closure of three distribution centers in 2025 to reduce fixed costs in the short term and in future periods, as well as eliminate unnecessary capacity, resulting in charges to restructuring of $1.8 million, contract termination of $0.2 million and impairment of $0.8 million, or an aggregate charge to expense of $2.8 million; and

•termination of a lease agreement for an owned retail store and impairment of a separate owned retail store as a result of underperformance, and in the case of the terminated owned retail store to reduce forward operating losses, resulting in charges to impairment charges of $0.3 million and contract termination of $0.2 million, or an aggregate charge to expense of $0.5 million.

The 2025 restructuring activity was concluded in the fourth quarter of 2025.

2024 Restructuring Activity

In 2024, the Company underwent a significant change in management and personnel across the organization. The management team engaged in a detailed review of the business and its brand level components, both internally and through the engagement of external strategic partners. Management developed a strategic plan focused on returning the Company back to growth. This strategic plan involved the following activities:

•termination of underperforming marketing agreements with marketing barter partners that no longer aligned with the Company’s current marketing strategy;

•charges related to the IcyBreeze reporting unit stemming from underperformance and management’s determination to revise product design; and

•reorganization of the Oru and ISLE reporting units to eliminate costs and capitalize on potential synergies, through restructuring under a revised management structure, which resulted in severance and other changes.

As a result of these activities, the Company recognized significant charges for restructuring and contract terminations, in addition to asset impairment charges related to IcyBreeze. This plan was completed in the fourth quarter of 2024 and, as such, there are no outstanding liabilities related to this plan as of December 31, 2025.

The components of the restructuring, contract termination and impairment charges, inclusive of the $76.0 million goodwill impairment charge recognized at the Solo Stove reporting unit in 2024, as discussed in Note 10, Goodwill, and the $72.5 million and $0.8 million impairment charges related to the long-lived assets of the Solo Stove reporting unit in 2025, exclusive of amounts discussed above, as discussed in Note 9, Intangible Assets, net and Note 8 - Property and Equipment, net, respectively, are as follows (in thousands):

(1)Includes other immaterial amounts that are not outlined in the narrative above.

The changes in restructuring liabilities for the year ended December 31, 2025 are as follows:

The following table summarizes the current liabilities related to the restructuring charges: