Solo Brands (DTC) 10-Q 3 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 01, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-40979
Entity Registrant Name	Solo Brands, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-1360865
Entity Address, Address Line One	1001 Mustang Dr.
Entity Address, City or Town	Grapevine
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	76051
City Area Code	817
Local Phone Number	900-2664
Title of 12(b) Security	Class A Common Stock, $0.001 par value per share
Trading Symbol	DTC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001870600
Current Fiscal Year End Date	--12-31
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		57,674,643
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		32,789,666

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 60,603	$ 23,293
Accounts receivable, net of allowance for credit losses of $1.7 million and $1.5 million	24,072	26,176
Inventory	113,657	132,990
Prepaid expenses and other current assets	13,365	12,639
Total current assets	211,697	195,098
Non-current assets
Property and equipment, net	20,704	15,166
Intangible assets, net	229,979	234,632
Goodwill	384,896	382,658
Other non-current assets	33,890	34,793
Total non-current assets	669,469	667,249
Total assets	881,166	862,347
Current liabilities
Accounts payable	13,870	11,783
Accrued expenses and other current liabilities	45,643	43,377
Deferred revenue	3,725	6,848
Current portion of long-term debt	5,000	5,000
Total current liabilities	68,238	67,008
Non-current liabilities
Long-term debt, net	136,313	108,383
Deferred tax liability	60,549	82,621
Other non-current liabilities	32,921	29,338
Total non-current liabilities	229,783	220,342
Commitments and contingencies (Note 1)
Shareholders’ equity
Additional paid-in capital	353,380	358,118
Retained earnings (accumulated deficit)	5,960	5,746
Accumulated other comprehensive income (loss)	(312)	(499)
Treasury stock	(486)	(35)
Equity attributable to the controlling interest	358,633	363,426
Equity attributable to non-controlling interests	224,512	211,571
Total equity	583,145	574,997
Total liabilities and equity	881,166	862,347
Class A Common Stock
Shareholders’ equity
Common stock issued	58	64
Class B Common Stock
Shareholders’ equity
Common stock issued	$ 33	$ 32

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Allowance for doubtful accounts	$ 1.7	$ 1.5
Class A Common Stock
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock authorized (in shares)	469,394,491	475,000,000
Common stock issued (in shares)	58,301,929	63,651,051
Common stock outstanding (in shares)	58,301,929	63,651,051
Class B Common Stock
Common stock authorized (in shares)	50,000,000	50,000,000
Common stock issued (in shares)	32,609,758	32,157,983
Common stock outstanding (in shares)	32,609,758	32,157,983

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net sales	$ 130,927	$ 136,019	$ 219,134	$ 218,222
Cost of goods sold	47,856	49,343	81,660	82,693
Gross Profit	83,071	86,676	137,474	135,529
Operating expenses
Selling, general & administrative expenses	63,524	69,166	108,146	114,810
Depreciation and amortization expenses	6,349	6,043	12,527	11,978
Impairment charges	0	30,589	0	30,589
Other operating expenses	2,132	820	2,537	1,320
Total operating expenses	72,005	106,618	123,210	158,697
Income (loss) from operations	11,066	(19,942)	14,264	(23,168)
Non-operating (income) expense
Interest expense, net	2,490	1,237	4,776	2,033
Other non-operating (income) expense	(5,546)	513	(5,878)	604
Total non-operating (income) expense	(3,056)	1,750	(1,102)	2,637
Income (loss) before income taxes	14,122	(21,692)	15,366	(25,805)
Income tax expense (benefit)	2,608	(1,819)	2,919	(2,697)
Net income (loss)	11,514	(19,873)	12,447	(23,108)
Less: net income (loss) attributable to noncontrolling interests	4,090	(7,834)	4,099	(9,034)
Net income (loss) attributable to Solo Brands, Inc.	7,424	(12,039)	8,348	(14,074)
Other comprehensive (loss) income
Foreign currency translation, net of tax	108	46	121	70
Comprehensive (loss) income	11,622	(19,827)	12,568	(23,038)
Less: comprehensive income attributable to noncontrolling interests	39	15	43	23
Less: net (loss) income attributable to noncontrolling interests	4,090	(7,834)	4,099	(9,034)
Comprehensive (loss) income attributable to Solo Brands, Inc.	$ 7,493	$ (12,008)	$ 8,426	$ (14,027)
Income (loss) per Class A common stock
Basic (in dollars per share)	$ 0.12	$ (0.19)	$ 0.13	$ (0.22)
Diluted (in dollars per share)	$ 0.12	$ (0.19)	$ 0.13	$ (0.22)
Weighted-average Class A common stock outstanding
Basic (in shares)	63,620	63,416	63,143	63,408
Diluted (in shares)	64,081	63,416	63,291	63,408

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 12,447	$ (23,108)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities
Amortization of intangible assets	10,518	10,478
Equity-based compensation	9,750	8,887
Operating lease right-of-use assets expense	3,982	3,030
Depreciation	2,369	1,500
Changes in accounts receivable reserves	650	433
Deferred income taxes	(661)	(5,497)
Other adjustments	476	421
Impairment charges	0	30,589
Changes in assets and liabilities
Accounts receivable	1,901	(1,879)
Inventory	20,692	(26,244)
Prepaid expenses and other current assets	(682)	(4,487)
Other non-current assets and liabilities	(4,118)	(3,213)
Accounts payable	1,174	2,059
Deferred revenue	(3,125)	477
Accrued expenses and other current liabilities	(3,578)	(5,358)
Net cash (used in) provided by operating activities	51,795	(11,912)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(3,466)	(4,582)
Acquisitions, net of cash acquired	(5,421)	(774)
Net cash (used in) provided by investing activities	(8,887)	(5,356)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt	35,000	25,000
Repayments of long-term debt	(7,500)	(1,250)
Common stock repurchase	(28,479)	0
Distributions to non-controlling interests	(4,964)	(4,984)
Stock issued under employee stock purchase plan	106	246
Taxes paid related to net share settlement of equity awards	52	0
Net cash (used in) provided by financing activities	(5,785)	19,012
Effect of exchange rate changes on cash	187	(117)
Net change in cash and cash equivalents	37,310	1,627
Cash and cash equivalents balance, beginning of period	23,293	25,101
Cash and cash equivalents balance, end of period	$ 60,603	$ 26,728

Consolidated Statements of Equi

Consolidated Statements of Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income	Treasury Stock	Non-controlling Interest	Class A Common Stock Common Stock	Class B Common Stock Common Stock
Beginning balance (in shares) at Dec. 31, 2021							63,397	31,179
Beginning balance at Dec. 31, 2021	$ 574,171	$ 350,088	$ 10,691	$ 6		$ 213,292	$ 63	$ 31
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(3,235)		(2,035)			(1,200)
Equity-based compensation	4,437	3,300				1,137
Other comprehensive income (loss)	24			16		8
Tax distributions to non-controlling interests	(4,290)					(4,290)
Vested equity-based compensation and re-allocation of ownership percentage (in shares)							4	90
Vested equity-based compensation and re-allocation of ownership percentage	0	(380)				380
Ending balance (in shares) at Mar. 31, 2022							63,401	31,269
Ending balance at Mar. 31, 2022	571,107	353,008	8,656	22		209,327	$ 63	$ 31
Beginning balance (in shares) at Dec. 31, 2021							63,397	31,179
Beginning balance at Dec. 31, 2021	574,171	350,088	10,691	6		213,292	$ 63	$ 31
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(23,108)
Ending balance (in shares) at Jun. 30, 2022							63,461	31,363
Ending balance at Jun. 30, 2022	554,702	353,821	(3,383)	53		204,117	$ 63	$ 31
Beginning balance (in shares) at Mar. 31, 2022							63,401	31,269
Beginning balance at Mar. 31, 2022	571,107	353,008	8,656	22		209,327	$ 63	$ 31
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(19,873)		(12,039)			(7,834)
Equity-based compensation	3,427	2,293				1,134
Other comprehensive income (loss)	46			31		15
Tax distributions to non-controlling interests	(251)					(251)
Employee stock purchase plan (in shares)							60
Employee stock purchase plan	246	246
Vested equity-based compensation and re-allocation of ownership percentage (in shares)								94
Vested equity-based compensation and re-allocation of ownership percentage	0	(1,726)				1,726
Ending balance (in shares) at Jun. 30, 2022							63,461	31,363
Ending balance at Jun. 30, 2022	554,702	353,821	(3,383)	53		204,117	$ 63	$ 31
Beginning balance (in shares) at Dec. 31, 2022							63,651	32,158
Beginning balance at Dec. 31, 2022	574,997	358,118	5,746	(499)	$ (35)	211,571	$ 64	$ 32
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	933		924			9
Equity-based compensation	4,764	3,703				1,061
Other comprehensive income (loss)	104			70		34
Tax distributions to non-controlling interests	(6,178)					(6,178)
Vested equity-based compensation and re-allocation of ownership percentage (in shares)							38	227
Vested equity-based compensation and re-allocation of ownership percentage	0	(829)				829
Ending balance (in shares) at Mar. 31, 2023							63,689	32,385
Ending balance at Mar. 31, 2023	574,620	360,992	6,670	(429)	(35)	207,326	$ 64	$ 32
Beginning balance (in shares) at Dec. 31, 2022							63,651	32,158
Beginning balance at Dec. 31, 2022	574,997	358,118	5,746	(499)	(35)	211,571	$ 64	$ 32
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	12,447
Ending balance (in shares) at Jun. 30, 2023							58,302	32,610
Ending balance at Jun. 30, 2023	583,145	353,380	5,960	(312)	(486)	224,512	$ 58	$ 33
Beginning balance (in shares) at Mar. 31, 2023							63,689	32,385
Beginning balance at Mar. 31, 2023	574,620	360,992	6,670	(429)	(35)	207,326	$ 64	$ 32
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	11,514		7,424			4,090
Equity-based compensation	6,500	5,345				1,155
Other comprehensive income (loss)	167			117		50
Tax distributions to non-controlling interests	(1,225)					(1,225)
Employee stock purchase plan (in shares)							36
Employee stock purchase plan	106	106
Common stock repurchase (in shares)							(5,639)
Common stock repurchase	(8,591)	0	19,888		(28,479)
Treasury stock retirement	0		(28,022)		28,028		$ (6)
Surrender of stock to settle taxes on equity awards	52	52
Vested equity-based compensation and re-allocation of ownership percentage (in shares)							216	225
Vested equity-based compensation and re-allocation of ownership percentage	2	(13,115)	0			13,116		$ 1
Ending balance (in shares) at Jun. 30, 2023							58,302	32,610
Ending balance at Jun. 30, 2023	$ 583,145	$ 353,380	$ 5,960	$ (312)	$ (486)	$ 224,512	$ 58	$ 33

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies Included below are selected significant accounting policies, including those that were added or modified during the six months ended June 30, 2023 as a result of the adoption of new accounting policies. Refer to Note 2, Significant Accounting Policies, within the annual consolidated financial statements in the Company’s 2022 Form 10-K for the full list of significant accounting policies. Basis of Presentation The unaudited consolidated financial statements contained herein have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and the rules of the SEC. The unaudited consolidated financial statements include the wholly-owned subsidiaries. Intercompany balances and transactions are eliminated in consolidation. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the 2022 Form 10-K. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses during the reporting period and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates and assumptions about future events and their effects cannot be made with certainty. Estimates may change as new events occur when additional information becomes available and if the operating environment changes. Actual results could differ from estimates. Accounts Receivable, net Accounts receivables consists of amounts due to the Company from retailers and direct-to-corporate customers. Accounts receivable are recorded at invoiced amounts, less contractual allowances for trade terms, sales incentive programs, and discounts. The Company maintains an allowance for expected credit losses that will result from the inability of customers to make required payments. The allowance is determined based on a review of specific customer accounts where the collection is doubtful, as well as an assessment of the collectability of total receivables considering the aging of balances, historical and anticipated trends, and other factors. All accounts are subject to an ongoing review of ultimate collectability. Receivables are written off against the allowance when it is probable the amounts will not be recovered. Business Combinations The Company applies the acquisition method to all transactions and other events in which the Company obtains control over one or more other businesses. Assets acquired and liabilities assumed are measured at fair value as of the acquisition date. Liabilities related to contingent consideration are recognized at the acquisition date and re-measured at fair value in each subsequent reporting period. Goodwill is recognized if the consideration transferred exceeds the fair value of the net assets acquired. Commitments and Contingencies From time to time, the Company is involved in various legal proceedings that arise in the normal course of business. While the Company intends to prosecute and defend any lawsuit vigorously, the Company presently believes that the ultimate outcome of any currently pending legal proceeding will not have any material adverse effect on its financial position, cash flows, or results of operations. However, litigation is subject to inherent uncertainties and unfavorable rulings could occur. An unfavorable ruling could include monetary damages, which could impact the Company’s business and the results of operations for the period in which the ruling occurs or future periods. Based on the information available, the Company evaluates the likelihood of potential outcomes. The Company records the appropriate liability when the amount is deemed probable and reasonably estimable. In addition, the Company does not accrue for estimated legal fees and other directly related costs as they are expensed as incurred. The Company is not currently a party to any pending litigation that it considers material. Therefore, the consolidated balance sheets do not include a liability for any potential obligations as of June 30, 2023 and December 31, 2022. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments. The ASU includes changes to the accounting and measurement of financial assets, including the Company’s accounts receivable, by requiring the Company to recognize an allowance for all expected losses over the life of the financial asset at origination. Prior to adoption of this ASU, an allowance was not recognized until the losses were considered probable. In November 2019, the FASB issued ASU 2019-10, deferring the effective date of ASU 2016-13 to annual periods beginning after December 15, 2022. The Company adopted this standard on January 1, 2023 using the modified retrospective transition approach to the beginning of the year of adoption. Based on the evaluation of potential financial statement impacts performed by management, the Company did not record an adjustment to opening retained earnings. The adoption of this standard has not had and is not expected to have a material impact on the Company’s consolidated financial statements. Additionally, the Company modified its accounting policy to conform with the requirements of the adoption of this standard. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, an update that provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The optional guidance is provided to ease the potential burden of accounting for reference rate reform. The guidance was effective as of March 12, 2020. In December 2022, the FASB issued ASU 2022-06, deferring the date through which Topic 848 is available for contract modifications to December 31, 2024. Due to the forthcoming discontinuation of LIBOR and under the relief provided by Topic 848, the Company modified the terms of its Revolving Credit Facility and Term Loan (as defined in the Company’s 2022 Form 10-K) by replacing references to LIBOR with references to the adjusted secured overnight financing rate (“SOFR”). The adoption of Topic 848 and the related modification to the agreements did not have a significant impact on the Company’s consolidated financial statements and disclosures. The Company did not have any other agreements or transactions that would be impacted by the adoption of Topic 848. Recently Issued Accounting Pronouncements - Not Yet Adopted In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires that an acquirer recognize and measure contract assets and liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance is effective for annual periods beginning after December 15, 2023, including interim periods therein, with early adoption permitted. The guidance will be applied prospectively to acquisitions occurring on or after the effective date. The Company will continue to evaluate the impact of this guidance, which will depend on the contract assets and liabilities acquired in future business combinations.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The Company primarily engages in (1) direct-to-consumer (“DTC”) transactions, which are primarily comprised of product sales directly from the Company’s websites, and (2) business-to-business transactions, or wholesale, which are comprised of product sales to retailers, including where possession of the Company's products is taken and sold by the retailer in-store or online. The following table disaggregates net sales by channel: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net sales by channel Direct-to-consumer $ 99,650 $ 116,096 $ 154,400 $ 176,326 Wholesale 31,277 19,923 64,734 41,896 Net sales $ 130,927 $ 136,019 $ 219,134 $ 218,222

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions The following transactions were accounted for under the acquisition method of accounting for business combinations. Sconberg LLC On May 1, 2023, Solo Brands, LLC, a wholly-owned subsidiary of Solo Stove Holdings, LLC (“Holdings”), entered into an Equity Purchase Agreement to acquire 100% percent of the voting equity interests in Sconberg LLC (“TerraFlame”), that constitute a business for purposes of ASC 805, for total purchase consideration of $13.2 million, of which $5.5 million was cash paid at closing. The remainder of the consideration, an earnout and post-closing payment liabilities of $7.7 million, was recorded as contingent consideration, which are tied to TerraFlame achieving certain specified profitability metrics. The total purchase consideration was primarily allocated to $5.5 million of intangible assets, $4.5 million of property, plant and equipment and $2.2 million of goodwill. The Company acquired TerraFlame to increase its brand and market share in the overall outdoor activities industry and penetrate the indoor fire and scent industry, as TerraFlame manufactures, markets, and sells fire features for both outdoor and indoor use. As part of the acquisition, the Company is required to make the earnout and post-closing payments that are contingent on the future performance of TerraFlame. The fair value of the earnout was derived using a Monte Carlo simulation. It was determined the mean of $2.6 million was the most reasonable estimate of fair value as of June 30, 2023, with the simulation producing a range of $0.0 million to $2.8 million. The fair value of the post-closing payment of $5.1 million was derived using a threshold and cap (capped call) structure. Due to the valuation model chosen, there was no applicable range produced. These contingent considerations represent stand-alone liabilities that are measured at fair value on a recurring basis and are considered a level 3 estimate. See Note 2, Significant Accounting Policies in our 2022 Form 10-K for additional information about the fair value framework and the levels within. The earnout contingent consideration is included in accrued expenses and other current liabilities and the post-closing payment contingent consideration is included in other non-current liabilities within the unaudited consolidated balance sheets. The excess enterprise value of TerraFlame over the estimated fair value of assets and liabilities assumed was recorded as goodwill. Goodwill was recorded to reflect the excess purchase consideration over net assets acquired, which represents the value that is expected to be achieved from expanding the Company’s product offerings and other synergies related to the acquisition of TerraFlame. The primary factor that contributed to the recognition of goodwill was the expected future revenue growth of TerraFlame. None of the goodwill recognized was expected to be deductible for tax purposes.

Inventory

Inventory	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Inventory	Inventory Inventory consisted of the following: June 30, 2023 December 31, 2022 Finished products on hand $ 95,456 $ 112,126 Finished products in transit 14,792 16,589 Raw materials 3,409 4,275 Inventory $ 113,657 $ 132,990

Property and Equipment, net

Property and Equipment, net	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment, net consisted of the following: June 30, 2023 December 31, 2022 Machinery $ 12,235 $ 8,940 Leasehold improvements 7,960 6,959 Computer, software, and other equipment 2,643 2,003 Furniture and fixtures 1,706 1,463 Buildings 1,494 — Land 996 — Construction in progress 289 67 Property and equipment, gross 27,323 19,432 Accumulated depreciation (6,619) (4,266) Property and equipment, net $ 20,704 $ 15,166 Depreciation expense was $1.4 million and $2.4 million for the three and six months ended June 30, 2023, compared to $0.8 million and $1.5 million for the three and six months ended June 30, 2022, respectively. Depreciation expense is recorded to depreciation and amortization expenses on the unaudited consolidated statements of operations and comprehensive income (loss).

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, net	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, net	Goodwill and Intangible Assets, net Goodwill The carrying value of goodwill was as follows: Balance, December 31, 2022 382,658 Acquisitions 2,238 Balance, June 30, 2023 384,896 Intangible Assets, net Intangible assets consisted of the following: June 30, 2023 December 31, 2022 Gross carrying value Brand $ 198,414 $ 196,114 Trademark 33,566 33,566 Customer relationships 31,805 28,605 Developed technology 17,871 17,871 Patents 3,249 2,883 Intangible assets, gross 284,905 279,039 Accumulated amortization and impairments Brand (35,682) (29,146) Trademark (1) (7,147) (5,957) Customer relationships (5,855) (4,542) Developed technology (5,532) (4,255) Patents (710) (507) Accumulated amortization, gross (54,926) (44,407) Intangible assets, net $ 229,979 $ 234,632 (1) Includes impairment of trademark. See Note 7, Intangible Assets, net, to the audited consolidated financial statements included in the 2022 Form 10-K. Amortization expense was $5.3 million and $10.5 million for the three and six months ended June 30, 2023, compared to $5.2 million and $10.5 million for the three and six months ended June 30, 2022. Amortization expense is recorded to depreciation and amortization expenses on the unaudited consolidated statements of operations and comprehensive income (loss).

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities Significant accrued expenses and other current liabilities were as follows: June 30, 2023 December 31, 2022 Inventory 8,970 7,543 Leases 7,507 6,889 Payroll 4,353 6,999 Allowance for sales returns 4,294 3,937 Marketing 3,676 451 Shipping costs 3,599 3,607 Non-income taxes 3,128 6,163 Contingent consideration 2,617 — Accrued distributions 2,440 2 Income taxes 936 5,490 Other 4,123 2,296 Accrued expenses and other current liabilities $ 45,643 $ 43,377

Long-Term Debt, Net

Long-Term Debt, Net	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Long-Term Debt, Net	Long-Term Debt, Net Long-term debt, net consisted of the following: Weighted-Average Interest Rate at June 30, 2023 June 30, 2023 December 31, 2022 Term loan 6.37 % $ 93,750 $ 96,250 Revolving credit facility 6.41 % 50,000 20,000 Unamortized debt issuance costs (2,437) (2,867) Total debt, net of debt issuance costs 141,313 113,383 Less: current portion of long-term debt 5,000 5,000 Long-term debt, net $ 136,313 $ 108,383 Long-term debt, net equivocates fair value and is valued using Level 2 inputs within the fair value hierarchy, as defined in Note 2, Significant Accounting Policies, in the 2022 Form 10-K. The Company was in compliance with all covenants under all credit arrangements as of June 30, 2023.

Leases

Leases	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Leases	Leases The following table presents the components of the total leased assets and lease liabilities and their classification in the Company's unaudited consolidated balance sheets: Classification in Consolidated Balance Sheets June 30, 2023 December 31, 2022 Operating lease right-of-use assets, net Other non-current assets $ 33,329 $ 34,259 Current operating lease liabilities Accrued expenses and other current liabilities 7,507 6,889 Long-term operating lease liabilities Other non-current liabilities 27,626 29,133 Total operating lease liabilities $ 35,133 $ 36,022 The components of lease expense were as follows: Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Operating lease right-of-use expense $ 2,021 $ 1,709 $ 3,982 $ 3,030 Variable and short-term lease expense 691 130 1,300 611 Total lease expense $ 2,712 $ 1,839 $ 5,282 $ 3,641 The weighted average remaining lease terms and discount rates were as follows: June 30, 2023 December 31, 2022 Weighted average remaining lease term (years) 4.64 5.05 Weighted average discount rate 2.93 % 2.66 % Cash flow and other information related to leases is included in the following table: Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Operating cash outflows for amounts included in the measurement of lease liabilities $ 1,997 $ 1,737 $ 3,943 $ 2,310 Operating lease right of use assets obtained in exchange for lease obligations 2,273 249 2,532 3,243 Future maturities of lease liabilities as of June 30, 2023 were as follows: Years Ending December 31, Operating Leases 2023 (remaining six months) $ 4,237 2024 8,541 2025 8,607 2026 7,194 2027 5,261 Thereafter 4,108 Total lease payments 37,948 Less: imputed interest 2,815 Present value of lease liabilities $ 35,133

Equity-Based Compensation

Equity-Based Compensation	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Equity-Based Compensation	Equity-Based Compensation Summary of Equity-Based Compensation The table below summarizes equity-based compensation expense recognized by award type: Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Common units $ 3,221 $ 3,428 $ 6,373 $ 6,873 Restricted stock units 966 794 1,928 1,608 Performance stock units 592 — 1,201 — Stock options 177 198 248 376 Employee stock purchase plan 52 30 52 30 Total equity-based compensation $ 5,008 $ 4,450 $ 9,802 $ 8,887 Common Units A summary of the common units was as follows for the periods indicated (in thousands, except per share data): Outstanding Common Units Weighted Average Grant Date Fair Value Per Unit Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Unvested, December 31, 2022 1,193 $ 13.12 1.16 $ 15,655 Forfeited/canceled (39) 12.04 (466) Vested (452) 15.32 (6,921) Unvested, June 30, 2023 702 11.77 1.41 8,268 Exercisable, June 30, 2023 (1) — $ — $ — (1) Note there were performance and service-based units that vested by June 30, 2023. However, none of such units are exercisable under the Stockholders Agreement, as described in Note 12, Equity-Based Compensation, to the audited consolidated financial statements included in our 2022 Form 10-K. Incentive Award Plan Restricted Stock Units The following table summarizes the activity related to the Company’s restricted stock units: Restricted Stock Units Outstanding Number of Awards Weighted-Average Grant Date Fair Value Outstanding, December 31, 2022 1,784 $ 6.05 Granted 72 5.46 Vested and converted to shares (256) 7.83 Forfeited/canceled (265) 5.96 Outstanding, June 30, 2023 1,335 $ 5.70 Performance Stock Units The following table summarizes the activity related to the Company’s performance stock units: Performance Stock Units Outstanding Number of Awards Weighted-Average Grant Date Fair Value Outstanding, December 31, 2022 1,296 $ 3.86 Forfeited/canceled (37) 4.01 Outstanding, June 30, 2023 1,271 $ 3.86 Stock Options The following table summarizes the activity related to the Company’s stock options: Number of Stock Options Weighted-Average Grant Date Fair Value Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (1) Outstanding, December 31, 2022 687 $ 4.34 $ 8.29 4.98 $ — Forfeited or expired (204) 3.40 5.76 — Vested (45) 6.33 12.51 — Outstanding, June 30, 2023 438 $ 4.91 9.67 4.88 — Exercisable, June 30, 2023 (2) 106 $ 7.71 $ 15.12 — $ 2.8 (1) The aggregate intrinsic value represents only those vested options that have a weighted-average exercise price below the closing Class A common stock price at the end of each period. Employee Stock Purchase Plan As of June 30, 2023, 139,032 shares of Class A common stock have been issued under the Solo Brands, Inc. 2021 Employee Stock Purchase Plan.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Provision for Income Taxes The effective income tax rate was 18.9% and 19.4% for the three and six months ended June 30, 2023, compared to 8.4% and 10.5% for the corresponding periods in 2022. The increase for the three and six months ended June 30, 2023 was primarily due to a discrete tax benefit related to the Company’s impairment charges of $30.6 million recorded for the three and six months ended June 30, 2022. Income tax expense for the three and six months ended June 30, 2023 was $2.6 million and $2.9 million, respectively, compared to $1.8 million and $2.7 million of income tax benefit in the corresponding periods for 2022, respectively. Income taxes represents federal, state, and local income taxes on the Company’s allocable share of taxable income of Holdings, as well as Oru's and Chubbies' federal and state tax expense and foreign tax expense related to international subsidiaries. The weighted-average ownership interest in Holdings was 65.1% and 65.7% for the three and six months ended June 30, 2023, respectively, and 67.0% for the three and six months ended June 30, 2022. Deferred Tax Assets and Liabilities As of June 30, 2023, the total deferred tax liability related to the basis difference in the Company's investment in Holdings was $41.4 million. However, a portion of the total basis difference will only reverse upon the eventual sale of its interest in Holdings, which the Company expects would result in a capital loss. As of June 30, 2023, the total valuation allowance established against the deferred tax asset to which this portion relates was $7.0 million. The Company’s valuation allowance decreased by $19.9 million during the six months ended June 30, 2023 primarily due to a remeasurement of its investment in partnership as a result of the secondary offering completed in May 2023. During the three and six months ended June 30, 2023, the Company did not recognize any deferred tax assets related to additional tax basis increases generated from expected future payments under the Tax Receivable Agreement, as defined in Note 13, Income Taxes, to the audited consolidated financial statements included in our 2022 Form 10-K. The Company evaluates the realizability of its deferred tax assets on a quarterly basis and establishes valuation allowances when it is more likely than not that all or a portion of a deferred tax asset may not be realized. As of June 30, 2023, the Company concluded, based on the weight of all available positive and negative evidence, that all of its deferred tax assets (except for those deferred tax assets described above relating to basis differences that are expected to result in a capital loss upon eventual sale of its interest in Holdings) are more likely than not to be realized. As such, no additional valuation allowance was recognized. During the three months ended June 30, 2023, the Company received a one-time refund payment of $5.1 million related to COVID-19 era employment tax benefits, which is recorded to other non-operating income (expense) on the unaudited consolidated statements of operations and comprehensive income (loss).

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	Net Income (Loss) Per Share Basic net income (loss) per share of Class A common stock is computed by dividing net income (loss) attributable to Solo Brands, Inc. by the weighted average number of shares of Class A common stock outstanding during the period. Diluted net income (loss) per share of Class A common stock is computed by dividing net income (loss) attributable to Solo Brands, Inc. by the weighted average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities. The following table sets forth the calculation of the basic and diluted net income (loss) per share for the Company’s Class A common stock: Three Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income (loss) $ 11,514 $ (19,873) $ 12,447 $ (23,108) Less: Net income (loss) attributable to non-controlling interests 4,090 (7,834) 4,099 (9,034) Net income (loss) attributable to Solo Brands, Inc. $ 7,424 $ (12,039) $ 8,348 $ (14,074) Weighted average shares of Class A common stock outstanding - basic 63,620 63,416 63,143 63,408 Effect of dilutive securities 461 — 148 — Weighted average shares of Class A common stock outstanding - diluted 64,081 63,416 63,291 63,408 Income (loss) per share of Class A common stock outstanding - basic $ 0.12 $ (0.19) $ 0.13 $ (0.22) Income (loss) per share of Class A common stock outstanding - diluted $ 0.12 $ (0.19) $ 0.13 $ (0.22) During the three months ended June 30, 2023 and 2022, 0.3 million and 0.5 million options and 0.3 million and 1.1 million restricted stock units, respectively, were not included in the computation of diluted net income per share because their effect would have been anti-dilutive. During the six months ended June 30, 2023 and 2022, 0.4 million and 0.4 million options and 0.5 million and 0.8 million restricted stock units, respectively, were not included in the computation of diluted net income per share because their effect would have been anti-dilutive. The Company has determined that the performance stock units and the shares of Class B common stock will in all cases neither be dilutive nor anti-dilutive and has excluded them from the calculation of net income (loss) per Class A common stock for all periods presented.

Equity

Equity	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Equity	Equity Class A Common Stock During the three months ended June 30, 2023 , the Board of Directors of the Company approved the repurchase of an aggregate of 5,605,509 shares of Class A common stock. During the three and six months ended June 30, 2023 , pursuant to the a Stock Purchase Agreement, dated as of May 10, 2023, by the Company and the selling stockholders party thereto, the Company repurchased 5,605,509 shares of its Class A common stock for $28.0 million, which shares were subsequently retired in accordance with the Board of Directors’ resolution, which is a classified as a non-cash financing activity within the statements of cash flows. As of June 30, 2023, the Company has 469,394,491, shares of Class A common stock, par value $0.001 per share, authorized, a decrease from the balance as of December 31, 2022 of 475,000,000, as a result of the repurchase and retirement of 5,605,509 shares in three months ended 2023. Holders of Class A common stock are entitled to one vote per share on all matters presented to the stockholders in general. In the event of liquidation, dissolution or winding up, each holder of Class A common stock will be entitled to a pro rata distribution of any assets available for distribution to common stockholders.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events In accordance with ASC Topic 855, Subsequent Events, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company evaluated subsequent events and transactions that occurred after June 30, 2023, the balance sheet date, up to the date that the financial statements were available to be issued. As a result, the following transactions were identified as subsequent events as of June 30, 2023. On July 1, 2023, the Company completed the acquisition of IcyBreeze Cooling LLC for total cash consideration of $30.0 million. Additionally, the total purchase price consideration is subject to purchase price and fair market value considerations prescribed by ASC 805 and ASC 820, respectively. Due to the timing of the closing of this transaction, purchase accounting is incomplete. The Company is evaluating the potential effects of this acquisition on the financial statements. The Company does not anticipate this acquisition having a material impact on its results of operations for the year ending December 31, 2023. In July 2023, the Board of Directors approved the repurchase of an aggregate of 627,286 shares of the Company’s Class A common stock pursuant to a Stock Purchase Agreement, dated as of July 12, 2023 (the “July 2023 Purchase Agreement”), by and between the Company and the selling stockholders party thereto. On July 12, 2023, pursuant to the to July 2023 Purchase Agreement, the Company repurchased an aggregate of 627,286 shares of the Company’s Class A common stock for $3.1 million, which shares were subsequently retired in accordance with the Board of Directors’ resolution.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 7,424	$ (12,039)	$ 8,348	$ (14,074)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	The unaudited consolidated financial statements contained herein have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and the rules of the SEC. The unaudited consolidated financial statements include the wholly-owned subsidiaries. Intercompany balances and transactions are eliminated in consolidation. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the 2022 Form 10-K.
Use of Estimates	The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses during the reporting period and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates and assumptions about future events and their effects cannot be made with certainty. Estimates may change as new events occur when additional information becomes available and if the operating environment changes. Actual results could differ from estimates.
Accounts Receivable, net	Accounts receivables consists of amounts due to the Company from retailers and direct-to-corporate customers. Accounts receivable are recorded at invoiced amounts, less contractual allowances for trade terms, sales incentive programs, and discounts. The Company maintains an allowance for expected credit losses that will result from the inability of customers to make required payments. The allowance is determined based on a review of specific customer accounts where the collection is doubtful, as well as an assessment of the collectability of total receivables considering the aging of balances, historical and anticipated trends, and other factors. All accounts are subject to an ongoing review of ultimate collectability. Receivables are written off against the allowance when it is probable the amounts will not be recovered.
Business Combinations	The Company applies the acquisition method to all transactions and other events in which the Company obtains control over one or more other businesses. Assets acquired and liabilities assumed are measured at fair value as of the acquisition date. Liabilities related to contingent consideration are recognized at the acquisition date and re-measured at fair value in each subsequent reporting period. Goodwill is recognized if the consideration transferred exceeds the fair value of the net assets acquired.
Commitments and Contingencies	From time to time, the Company is involved in various legal proceedings that arise in the normal course of business. While the Company intends to prosecute and defend any lawsuit vigorously, the Company presently believes that the ultimate outcome of any currently pending legal proceeding will not have any material adverse effect on its financial position, cash flows, or results of operations. However, litigation is subject to inherent uncertainties and unfavorable rulings could occur. An unfavorable ruling could include monetary damages, which could impact the Company’s business and the results of operations for the period in which the ruling occurs or future periods. Based on the information available, the Company evaluates the likelihood of potential outcomes. The Company records the appropriate liability when the amount is deemed probable and reasonably estimable. In addition, the Company does not accrue for estimated legal fees and other directly related costs as they are expensed as incurred. The Company is not currently a party to any pending litigation that it considers material. Therefore, the consolidated balance sheets do not include a liability for any potential obligations as of June 30, 2023 and December 31, 2022.
Recently Adopted Accounting Pronouncements, Recently Issued Accounting Pronouncements - Not Yet Adopted	In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments. The ASU includes changes to the accounting and measurement of financial assets, including the Company’s accounts receivable, by requiring the Company to recognize an allowance for all expected losses over the life of the financial asset at origination. Prior to adoption of this ASU, an allowance was not recognized until the losses were considered probable. In November 2019, the FASB issued ASU 2019-10, deferring the effective date of ASU 2016-13 to annual periods beginning after December 15, 2022. The Company adopted this standard on January 1, 2023 using the modified retrospective transition approach to the beginning of the year of adoption. Based on the evaluation of potential financial statement impacts performed by management, the Company did not record an adjustment to opening retained earnings. The adoption of this standard has not had and is not expected to have a material impact on the Company’s consolidated financial statements. Additionally, the Company modified its accounting policy to conform with the requirements of the adoption of this standard. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, an update that provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The optional guidance is provided to ease the potential burden of accounting for reference rate reform. The guidance was effective as of March 12, 2020. In December 2022, the FASB issued ASU 2022-06, deferring the date through which Topic 848 is available for contract modifications to December 31, 2024. Due to the forthcoming discontinuation of LIBOR and under the relief provided by Topic 848, the Company modified the terms of its Revolving Credit Facility and Term Loan (as defined in the Company’s 2022 Form 10-K) by replacing references to LIBOR with references to the adjusted secured overnight financing rate (“SOFR”). The adoption of Topic 848 and the related modification to the agreements did not have a significant impact on the Company’s consolidated financial statements and disclosures. The Company did not have any other agreements or transactions that would be impacted by the adoption of Topic 848. Recently Issued Accounting Pronouncements - Not Yet Adopted In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires that an acquirer recognize and measure contract assets and liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance is effective for annual periods beginning after December 15, 2023, including interim periods therein, with early adoption permitted. The guidance will be applied prospectively to acquisitions occurring on or after the effective date. The Company will continue to evaluate the impact of this guidance, which will depend on the contract assets and liabilities acquired in future business combinations.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Disaggregation of Net Sales	The following table disaggregates net sales by channel: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net sales by channel Direct-to-consumer $ 99,650 $ 116,096 $ 154,400 $ 176,326 Wholesale 31,277 19,923 64,734 41,896 Net sales $ 130,927 $ 136,019 $ 219,134 $ 218,222

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consisted of the following: June 30, 2023 December 31, 2022 Finished products on hand $ 95,456 $ 112,126 Finished products in transit 14,792 16,589 Raw materials 3,409 4,275 Inventory $ 113,657 $ 132,990

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, net	Property and equipment, net consisted of the following: June 30, 2023 December 31, 2022 Machinery $ 12,235 $ 8,940 Leasehold improvements 7,960 6,959 Computer, software, and other equipment 2,643 2,003 Furniture and fixtures 1,706 1,463 Buildings 1,494 — Land 996 — Construction in progress 289 67 Property and equipment, gross 27,323 19,432 Accumulated depreciation (6,619) (4,266) Property and equipment, net $ 20,704 $ 15,166

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, net (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of the Carrying Value of Goodwill	The carrying value of goodwill was as follows: Balance, December 31, 2022 382,658 Acquisitions 2,238 Balance, June 30, 2023 384,896
Schedule of Intangible Assets	Intangible assets consisted of the following: June 30, 2023 December 31, 2022 Gross carrying value Brand $ 198,414 $ 196,114 Trademark 33,566 33,566 Customer relationships 31,805 28,605 Developed technology 17,871 17,871 Patents 3,249 2,883 Intangible assets, gross 284,905 279,039 Accumulated amortization and impairments Brand (35,682) (29,146) Trademark (1) (7,147) (5,957) Customer relationships (5,855) (4,542) Developed technology (5,532) (4,255) Patents (710) (507) Accumulated amortization, gross (54,926) (44,407) Intangible assets, net $ 229,979 $ 234,632 (1) Includes impairment of trademark. See Note 7, Intangible Assets, net, to the audited consolidated financial statements included in the 2022 Form 10-K.

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Significant accrued expenses and other current liabilities were as follows: June 30, 2023 December 31, 2022 Inventory 8,970 7,543 Leases 7,507 6,889 Payroll 4,353 6,999 Allowance for sales returns 4,294 3,937 Marketing 3,676 451 Shipping costs 3,599 3,607 Non-income taxes 3,128 6,163 Contingent consideration 2,617 — Accrued distributions 2,440 2 Income taxes 936 5,490 Other 4,123 2,296 Accrued expenses and other current liabilities $ 45,643 $ 43,377

Long-Term Debt, Net (Tables)

Long-Term Debt, Net (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt, net consisted of the following: Weighted-Average Interest Rate at June 30, 2023 June 30, 2023 December 31, 2022 Term loan 6.37 % $ 93,750 $ 96,250 Revolving credit facility 6.41 % 50,000 20,000 Unamortized debt issuance costs (2,437) (2,867) Total debt, net of debt issuance costs 141,313 113,383 Less: current portion of long-term debt 5,000 5,000 Long-term debt, net $ 136,313 $ 108,383

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2023
Leases [Abstract]
Schedule of Operating Lease Assets and Liabilities	The following table presents the components of the total leased assets and lease liabilities and their classification in the Company's unaudited consolidated balance sheets: Classification in Consolidated Balance Sheets June 30, 2023 December 31, 2022 Operating lease right-of-use assets, net Other non-current assets $ 33,329 $ 34,259 Current operating lease liabilities Accrued expenses and other current liabilities 7,507 6,889 Long-term operating lease liabilities Other non-current liabilities 27,626 29,133 Total operating lease liabilities $ 35,133 $ 36,022
Schedule of Components of Lease Expense	The components of lease expense were as follows: Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Operating lease right-of-use expense $ 2,021 $ 1,709 $ 3,982 $ 3,030 Variable and short-term lease expense 691 130 1,300 611 Total lease expense $ 2,712 $ 1,839 $ 5,282 $ 3,641 The weighted average remaining lease terms and discount rates were as follows: June 30, 2023 December 31, 2022 Weighted average remaining lease term (years) 4.64 5.05 Weighted average discount rate 2.93 % 2.66 % Cash flow and other information related to leases is included in the following table: Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Operating cash outflows for amounts included in the measurement of lease liabilities $ 1,997 $ 1,737 $ 3,943 $ 2,310 Operating lease right of use assets obtained in exchange for lease obligations 2,273 249 2,532 3,243
Schedule of Future Maturities of Operating Lease Liabilities	Future maturities of lease liabilities as of June 30, 2023 were as follows: Years Ending December 31, Operating Leases 2023 (remaining six months) $ 4,237 2024 8,541 2025 8,607 2026 7,194 2027 5,261 Thereafter 4,108 Total lease payments 37,948 Less: imputed interest 2,815 Present value of lease liabilities $ 35,133

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Summary of Equity-based Compensation Expense	The table below summarizes equity-based compensation expense recognized by award type: Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Common units $ 3,221 $ 3,428 $ 6,373 $ 6,873 Restricted stock units 966 794 1,928 1,608 Performance stock units 592 — 1,201 — Stock options 177 198 248 376 Employee stock purchase plan 52 30 52 30 Total equity-based compensation $ 5,008 $ 4,450 $ 9,802 $ 8,887
Schedule of Common Units and Stock Options Activity	A summary of the common units was as follows for the periods indicated (in thousands, except per share data): Outstanding Common Units Weighted Average Grant Date Fair Value Per Unit Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Unvested, December 31, 2022 1,193 $ 13.12 1.16 $ 15,655 Forfeited/canceled (39) 12.04 (466) Vested (452) 15.32 (6,921) Unvested, June 30, 2023 702 11.77 1.41 8,268 Exercisable, June 30, 2023 (1) — $ — $ — (1) Note there were performance and service-based units that vested by June 30, 2023. However, none of such units are exercisable under the Stockholders Agreement, as described in Note 12, Equity-Based Compensation, to the audited consolidated financial statements included in our 2022 Form 10-K. The following table summarizes the activity related to the Company’s stock options: Number of Stock Options Weighted-Average Grant Date Fair Value Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (1) Outstanding, December 31, 2022 687 $ 4.34 $ 8.29 4.98 $ — Forfeited or expired (204) 3.40 5.76 — Vested (45) 6.33 12.51 — Outstanding, June 30, 2023 438 $ 4.91 9.67 4.88 — Exercisable, June 30, 2023 (2) 106 $ 7.71 $ 15.12 — $ 2.8 (1) The aggregate intrinsic value represents only those vested options that have a weighted-average exercise price below the closing Class A common stock price at the end of each period.
Schedule of Restricted Stock Units Activity	The following table summarizes the activity related to the Company’s restricted stock units: Restricted Stock Units Outstanding Number of Awards Weighted-Average Grant Date Fair Value Outstanding, December 31, 2022 1,784 $ 6.05 Granted 72 5.46 Vested and converted to shares (256) 7.83 Forfeited/canceled (265) 5.96 Outstanding, June 30, 2023 1,335 $ 5.70 The following table summarizes the activity related to the Company’s performance stock units: Performance Stock Units Outstanding Number of Awards Weighted-Average Grant Date Fair Value Outstanding, December 31, 2022 1,296 $ 3.86 Forfeited/canceled (37) 4.01 Outstanding, June 30, 2023 1,271 $ 3.86

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Income (Loss) Per Share and Weighted-Average Common Shares Outstanding	The following table sets forth the calculation of the basic and diluted net income (loss) per share for the Company’s Class A common stock: Three Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income (loss) $ 11,514 $ (19,873) $ 12,447 $ (23,108) Less: Net income (loss) attributable to non-controlling interests 4,090 (7,834) 4,099 (9,034) Net income (loss) attributable to Solo Brands, Inc. $ 7,424 $ (12,039) $ 8,348 $ (14,074) Weighted average shares of Class A common stock outstanding - basic 63,620 63,416 63,143 63,408 Effect of dilutive securities 461 — 148 — Weighted average shares of Class A common stock outstanding - diluted 64,081 63,416 63,291 63,408 Income (loss) per share of Class A common stock outstanding - basic $ 0.12 $ (0.19) $ 0.13 $ (0.22) Income (loss) per share of Class A common stock outstanding - diluted $ 0.12 $ (0.19) $ 0.13 $ (0.22)

Revenue - Disaggregation of Net

Revenue - Disaggregation of Net Sales (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 130,927	$ 136,019	$ 219,134	$ 218,222
Direct-to-consumer
Disaggregation of Revenue [Line Items]
Net sales	99,650	116,096	154,400	176,326
Wholesale
Disaggregation of Revenue [Line Items]
Net sales	$ 31,277	$ 19,923	$ 64,734	$ 41,896

Acquisitions (Details)

Acquisitions (Details) - USD ($)		2 Months Ended
	May 01, 2023	Jun. 30, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Property and equipment, net		$ 20,704,000	$ 15,166,000
Goodwill		384,896,000	$ 382,658,000
Sconberg LLC (TerraFlame)
Business Acquisition [Line Items]
Purchase option voting interest acquired	100%
Net cash paid	$ 13,200,000
Acquired consideration paid	5,500,000
Business combination, recognized identifiable assets acquired and liabilities assumed, contingent liability	7,700,000
Intangible assets, net	5,500,000
Property and equipment, net	4,500,000
Goodwill	2,200,000
Goodwill expected to be tax deductible	0
Sconberg LLC (TerraFlame) | Earnout Contingent Consideration
Business Acquisition [Line Items]
Earnout contingent consideration		2,600,000
Payment for earnout contingent consideration		$ 5,100,000
Sconberg LLC (TerraFlame) | Earnout Contingent Consideration | Minimum
Business Acquisition [Line Items]
Earnout contingent consideration	0
Sconberg LLC (TerraFlame) | Earnout Contingent Consideration | Maximum
Business Acquisition [Line Items]
Earnout contingent consideration	$ 2,800,000

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished products on hand	$ 95,456	$ 112,126
Finished products in transit	14,792	16,589
Raw materials	3,409	4,275
Inventory	$ 113,657	$ 132,990

Property and Equipment, net - S

Property and Equipment, net - Schedule of Property and Equipment, net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 27,323	$ 19,432
Accumulated depreciation	(6,619)	(4,266)
Property and equipment, net	20,704	15,166
Machinery
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,235	8,940
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	7,960	6,959
Computer, software, and other equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,643	2,003
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,706	1,463
Buildings
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,494	0
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	996	0
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 289	$ 67

Property and Equipment, net - N

Property and Equipment, net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1.4	$ 0.8	$ 2.4	$ 1.5

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets, net- Schedule of the Carrying Value of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 382,658
Acquisitions	2,238
Goodwill, ending balance	$ 384,896

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets, net- Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 284,905	$ 279,039
Accumulated amortization, gross	(54,926)	(44,407)
Intangible assets, net	229,979	234,632
Brand
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	198,414	196,114
Accumulated amortization, gross	(35,682)	(29,146)
Trademark
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	33,566	33,566
Accumulated amortization, gross	(7,147)	(5,957)
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	31,805	28,605
Accumulated amortization, gross	(5,855)	(4,542)
Developed technology
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	17,871	17,871
Accumulated amortization, gross	(5,532)	(4,255)
Patents
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	3,249	2,883
Accumulated amortization, gross	$ (710)	$ (507)

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets, net- Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 5,300	$ 5,200	$ 10,518	$ 10,478

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Inventory	$ 8,970	$ 7,543
Leases	7,507	6,889
Payroll	4,353	6,999
Allowance for sales returns	4,294	3,937
Marketing	3,676	451
Shipping costs	3,599	3,607
Non-income taxes	3,128	6,163
Contingent consideration	2,617	0
Accrued distributions	2,440	2
Income taxes	936	5,490
Other	4,123	2,296
Accrued expenses and other current liabilities	$ 45,643	$ 43,377

Long-Term Debt, Net - Schedule

Long-Term Debt, Net - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (2,437)	$ (2,867)
Total debt, net of debt issuance costs	141,313	113,383
Less: current portion of long-term debt	5,000	5,000
Long-term debt, net	$ 136,313	108,383
Term loan
Debt Instrument [Line Items]
Weighted average interest rate (as a percent)	6.37%
Total debt, gross	$ 93,750	96,250
Revolving credit facility | Revolving credit facility
Debt Instrument [Line Items]
Weighted average interest rate (as a percent)	6.41%
Total debt, gross	$ 50,000	$ 20,000

Leases - Schedule of Components

Leases - Schedule of Components of the Total Leased Assets and Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other non-current assets	Other non-current assets
Operating lease right-of-use assets, net	$ 33,329	$ 34,259
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities
Current operating lease liabilities	$ 7,507	$ 6,889
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other non-current liabilities	Other non-current liabilities
Long-term operating lease liabilities	$ 27,626	$ 29,133
Total operating lease liabilities	$ 35,133	$ 36,022

Leases - Schedule of Componen_2

Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Operating lease right-of-use expense	$ 2,021	$ 1,709	$ 3,982	$ 3,030
Variable and short-term lease expense	691	130	1,300	611
Total lease expense	$ 2,712	$ 1,839	$ 5,282	$ 3,641

Leases - Schedule of Weighted A

Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Details)	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Weighted average remaining lease term (in years)	4 years 7 months 20 days	5 years 18 days
Weighted average discount rate (percent)	2.93%	2.66%

Leases - Schedule of Cash Flow

Leases - Schedule of Cash Flow and Other Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Operating cash outflows for amounts included in the measurement of lease liabilities	$ 1,997	$ 1,737	$ 3,943	$ 2,310
Operating lease right of use assets obtained in exchange for lease obligations	$ 2,273	$ 249	$ 2,532	$ 3,243

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Annual Commitments Under Operating Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2023 (remaining six months)	$ 4,237
2024	8,541
2025	8,607
2026	7,194
2027	5,261
Thereafter	4,108
Total lease payments	37,948
Less: imputed interest	2,815
Total operating lease liabilities	$ 35,133	$ 36,022

Equity-Based Compensation - Sch

Equity-Based Compensation - Schedule of Equity -Based Compensation Arrangements by Share-Based Payment Award (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total equity-based compensation	$ 5,008	$ 4,450	$ 9,802	$ 8,887
Common units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total equity-based compensation	3,221	3,428	6,373	6,873
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total equity-based compensation	966	794	1,928	1,608
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total equity-based compensation	592	0	1,201	0
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total equity-based compensation	177	198	248	376
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total equity-based compensation	$ 52	$ 30	$ 52	$ 30

Equity-Based Compensation - Sum

Equity-Based Compensation - Summary of Common Units (Details) - Common units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Outstanding Common Units
Beginning balance (in shares)	1,193
Forfeited/canceled (in shares)	(39)
Vested (in shares)	(452)
Ending balance (in shares)	702	1,193
Exercisable (in shares)	0
Weighted Average Grant Date Fair Value Per Unit
Beginning balance (in dollars per share)	$ 13.12
Forfeited and cancelled (in dollars per share)	12.04
Vested (in dollars per share)	15.32
Ending balance (in dollars per share)	11.77	$ 13.12
Exercisable, weighted-average exercise price (in dollars per share)	$ 0
Weighted Average Remaining Contractual Term (Years)
Outstanding	1 year 4 months 28 days	1 year 1 month 28 days
Aggregate Intrinsic Value
Beginning balance	$ 15,655
Forfeited/canceled	(466)
Vested	(6,921)
Ending balance	8,268	$ 15,655
Exercisable, aggregate intrinsic value	$ 0

Equity-Based Compensation - S_2

Equity-Based Compensation - Schedule of Restricted Stock Units and Performance Stock Units (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Restricted stock units
Number of Awards
Outstanding at beginning of period (in shares) | shares	1,784,000
Granted (in shares) | shares	72,000
Vested and converted to shares (in shares) | shares	(256,000)
Forfeited/canceled (in shares) | shares	(265,000)
Outstanding at end of period (in shares) | shares	1,335,000
Weighted-Average Grant Date Fair Value
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 6.05
Granted (in dollars per share) | $ / shares	5.46
Vested and converted to shares (in dollars per share) | $ / shares	7.83
Forfeited/canceled (in dollars per share) | $ / shares	5.96
Outstanding at end of period (in dollars per share) | $ / shares	$ 5.70
Performance stock units
Number of Awards
Outstanding at beginning of period (in shares) | shares	1,296,000
Forfeited/canceled (in shares) | shares	(37,000)
Outstanding at end of period (in shares) | shares	1,271,000
Weighted-Average Grant Date Fair Value
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 3.86
Forfeited/canceled (in dollars per share) | $ / shares	4.01
Outstanding at end of period (in dollars per share) | $ / shares	$ 3.86

Equity-Based Compensation - S_3

Equity-Based Compensation - Summary of Stock Options (Details) - Stock options - Incentive Award Plan - USD ($) $ / shares in Units, shares in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Number of Stock Options
Beginning balance (in shares)	687
Forfeited or expired (in shares)	(204)
Vested (in shares)	(45)
Ending balance (in shares)	438	687
Exercisable (in shares)	106
Weighted-Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 4.34
Forfeited or expired (in dollars per share)	3.40
Vested (in dollars per share)	6.33
Ending balance (in dollars per share)	4.91	$ 4.34
Exercisable, weighted-average exercise price (in dollars per share)	7.71
Weighted-Average Exercise Price
Beginning balance (in dollars per share)	8.29
Forfeited or expired (in dollars per share)	5.76
Vested (in dollars per share)	12.51
Ending balance (in dollars per share)	9.67	$ 8.29
Exercisable, weighted-average exercise price (in dollars per share)	$ 15.12
Weighted Average Remaining Contractual Term (Years)
Outstanding	4 years 10 months 17 days	4 years 11 months 23 days
Aggregate Intrinsic Value
Beginning balance	$ 0
Ending balance	0	$ 0
Exercisable, aggregate intrinsic value	$ 2,800

Equity-Based Compensation - Emp

Equity-Based Compensation - Employee Stock Purchase Plan (Details)	6 Months Ended
	Jun. 30, 2023 shares
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	139,032

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Operating Loss Carryforwards [Line Items]
Effective tax rate (as a percent)	18.90%	8.40%	19.40%	10.50%
Impairment charges	$ 0	$ 30,589	$ 0	$ 30,589
Income tax expense (benefit)	2,608	$ (1,819)	2,919	$ (2,697)
Deferred tax liabilities, investment in holdings	41,400		41,400
Valuation allowance	7,000		7,000
Valuation allowance decrease			$ 19,900
Income tax refund payment	$ 5,100
Subsidiaries
Operating Loss Carryforwards [Line Items]
Weighted average ownership interest	65.10%	67%	65.70%	67%

Net Income (Loss) Per Share - S

Net Income (Loss) Per Share - Schedule of Basic and Diluted Net (Loss) Income Per Share and Weighted-Average Common Shares Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income (loss)	$ 11,514	$ 933	$ (19,873)	$ (3,235)	$ 12,447	$ (23,108)
Less: Net income (loss) attributable to non-controlling interests	4,090		(7,834)		4,099	(9,034)
Net income (loss) attributable to Solo Brands, Inc.	$ 7,424		$ (12,039)		$ 8,348	$ (14,074)
Weighted average shares of Class A common stock outstanding - basic (in shares)	63,620		63,416		63,143	63,408
Effect of dilutive securities (in shares)	461		0		148	0
Weighted average shares of Class A common stock outstanding - diluted (in shares)	64,081		63,416		63,291	63,408
Income (loss) per share of Class A common stock outstanding - basic (in dollars per share)	$ 0.12		$ (0.19)		$ 0.13	$ (0.22)
Income (loss) per share of Class A common stock outstanding - diluted (in dollars per share)	$ 0.12		$ (0.19)		$ 0.13	$ (0.22)

Net Income (Loss) Per Share - N

Net Income (Loss) Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	0.3	0.5	0.4	0.4
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	0.3	1.1	0.5	0.8

Equity (Details)

Equity (Details) - Class A Common Stock - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	May 31, 2023	Dec. 31, 2022
Class of Stock [Line Items]
Stock repurchase program, number of shares authorized to be repurchased (in shares)			5,605,509
Stock repurchased and retired (in shares)	5,605,509	5,605,509
Stock repurchased and retired during period, value	$ 28	$ 28
Common stock authorized (in shares)	469,394,491	469,394,491		475,000,000
Common stock par value (in dollars per share)	$ 0.001	$ 0.001		$ 0.001
Voting rights description		Holders of Class A common stock are entitled to one vote per share on all matters presented to the stockholders in general. In the event of liquidation, dissolution or winding up, each holder of Class A common stock will be entitled to a pro rata distribution of any assets available for distribution to common stockholders.

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Millions		1 Months Ended	3 Months Ended	6 Months Ended
	Jul. 01, 2023	Jul. 31, 2023	Jun. 30, 2023	Jun. 30, 2023
Class A Common Stock
Subsequent Event [Line Items]
Stock repurchased and retired (in shares)			5,605,509	5,605,509
Stock repurchased and retired during period, value			$ 28	$ 28
Subsequent Event | Class A Common Stock
Subsequent Event [Line Items]
Stock repurchased and retired (in shares)		627,286
Stock repurchased and retired during period, value		$ 3.1
Subsequent Event | IcyBreeze Cooling LLC
Subsequent Event [Line Items]
Cash consideration for acquisition	$ 30