12:38 PM EST, 12/22/2025 (MT Newswires) -- Solo Brands ( SBDS ) said Monday it is simplifying its organizational structure, including eliminating its umbrella partnership C corporation structure, which limits material liability for potential cash payments under its tax receivable agreement, or TRA.

As part of a series of transactions, the outstanding shares of Solo Brands ( SBDS ) class B common stock held by former TRA parties will be cancelled, and corresponding units of its subsidiary Solo Stove will be exchanged for shares of Solo Brands ( SBDS ) class A common stock on a one-for-one basis, the company said.

Solo Brands ( SBDS ) will then have a single class of common stock outstanding, with about 2.5 million class A shares as of Jan. 1, 2026, according to a statement.

The transactions will reduce Solo Brands' ( SBDS ) future cash tax payments by an estimated $10 million over the next five years and are expected to result in about $500,000 in annual savings from reduced compliance and financial reporting costs, the company said.

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