BRCC

This article first appeared on GuruFocus. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Packaged coffee retail sales grew 28.2% in Q2, nearly 3 times the category's growth rate, with strong unit growth of 16.6%. Gross margin expanded 15 basis points year-over-year to 34.1%, marking the first improvement in over four quarters. Adjusted EBITDA surged over 160% to $6.3 million, with margin expanding 335 basis points to 5.9%. Direct-to-consumer revenue grew 13.6% year-over-year, the strongest quarterly performance in over four years, with third-party marketplace sales up 90%. Free cash flow swung to positive $11.5 million year-to-date, a $21 million improvement from the prior year, driven by higher profitability and working capital efficiency. The company has secured 100% of its green coffee needs for 2026 and over 50% for 2027, providing cost visibility and supporting margin expansion. Distribution gains continue, with packaged coffee ACV up 2.5 points to 56.5% and average items carried in grocery up 1.3 year-over-year. Second-half revenue growth is expected to moderate due to lapping pricing actions and a $5 million non-recurring liquidation revenue in Q4 2025. The convenience channel is experiencing weakness, attributed to higher fuel prices and category softness in ready-to-drink coffee. Adjusted EBITDA in the back half is projected to decline year-over-year, partly due to normalized bonus payouts and increased marketing investment. Green coffee costs remain a headwind, with higher costs flowing through inventory net of pricing, though expected to ease in H2 2026. The company's energy segment is facing challenges, with ACV flat quarter-over-quarter and a focus on building productivity rather than expanding distribution. Fourth-quarter revenue is expected to be modestly below the prior year due to the lapping of liquidation sales, reflecting improved inventory management. The company's gross margin, while improving, is still below its long-term target of 40%, with the pace dependent on coffee price moderation. Warning! GuruFocus has detected 4 Warning Signs with BRCC. Is BRCC fairly valued? Test your thesis with our free DCF calculator. Q: Can you explain the factors impacting adjusted EBITDA in the back half of the year, given the strong first-half performance and the implied flat-to-down year-over-year trend?A: Chris Monzaleski (CEO) and Matt Amy (CFO) explained that the company is taking a disciplined approach, only relying on confirmed commercial drivers like pricing already in the market and secured distribution. The back-half EBITDA decline is due to several factors: last year's EBITDA was heavily weighted to the back half (85%), this year's growth is more evenly distributed; the company normalized management bonuses to 100% payout versus a discounted rate last year; and marketing spend is more closely aligned with revenue growth, with an additional $5-6 million planned for the back half to support initiatives like America's 250th anniversary. They reaffirmed guidance of at least $7 million in Q3 and $8.3 million in Q4 adjusted EBITDA. Q: What are the locked-in coffee prices for 2026 and 2027, and how do they compare to 2025?A: Matt Amy (CFO) stated that for 2026, the company is fully locked in at $2.95 per pound for green coffee. For 2027, they have 50% coverage locked in at $2.65 per pound. This compares to an average price of $2.85 per pound paid in 2025, indicating that lower contracted costs will begin flowing through cost of sales more meaningfully in the second half of 2026. Q: As you look out to 2027 and beyond, is gross margin the primary driver for margin expansion, and can you elaborate on the key drivers?A: Chris Monzaleski (CEO) and Matt Amy (CFO) confirmed that gross margin is a significant opportunity, driven by four key factors: 1) organic mix shift toward packaged coffee (most profitable segment) and wholesale channel (most profitable channel); 2) continued focus on trade spend efficiency; 3) supply chain productivity projects across manufacturing and third-party logistics; and 4) green coffee costs. They noted that the pace of achieving their long-term 40% gross margin objective depends on coffee price moderation, but they see a clear path forward even without normalization. Operating expense discipline and marketing efficiency will also contribute to overall margin expansion. Q: Can you provide more color on the marketplace business, including customer acquisition, fulfillment, and margin profile?A: Chris Monzaleski (CEO) and Matt Amy (CFO) explained that they view their online business holistically as "total marketplace." The company uses third-party fulfillment for marketplaces, which is slightly more expensive but offers consumers delivery in under 2 days. BlackRifleCoffee.com remains the core platform for subscriptions and loyal customers, while third-party marketplaces serve as an incremental customer acquisition channel. They highlighted that the largest online marketplace represents a $4 billion category where they are underpenetrated, with a low cost to acquire consumers and a strong lifetime value-to-CAC ratio. The marketplace skews heavily toward pods (70%), which complements their BRCC.com site that skews toward bagged coffee. Q: Can you update us on the plans for Black Rifle Energy, including ACV trends and selective growth in key markets?A: Chris Monzaleski (CEO) stated that plans for energy remain unchanged, with a focused approach on investment. The company is prioritizing its hot coffee business, which is driving significant growth, while energy serves as a future growth angle. They exited the quarter at approximately 21% ACV across more than 22,000 doors, consistent with Q1. The priority is building productivity within existing doors while expanding selectively where performance supports additional investment. They continue to work with partner KDP to maximize efficiency from the current footprint, and coffee will remain the primary investment focus until energy demonstrates scalability. Q: How do you view the white space opportunity between online marketplace and grocery channels, and where can you gain share more quickly?A: Chris Monzaleski (CEO) explained that both channels offer significant opportunities but require different approaches. In grocery, the land-and-expand strategy continues to drive distribution gains, with ACV in the mid-50s and average items carried up double-digits year-over-year to 5.6 items. Top grocery accounts carry 12-14 items, showing the expansion potential. In the online marketplace, the opportunity is even larger given similar category size to mass retail but with lower current penetration. The company's share in the largest online marketplace is roughly one-quarter of its mass retail share on bags and half on pods, indicating substantial room for growth. They are bringing in external expertise to optimize this channel. Q: What is the near-term prospect for further distribution gains, and how are those conversations progressing?A: Chris Monzaleski (CEO) stated that while they won't provide specific guidance on distribution growth, they do expect it to continue. The company's brand proposition is appealing to retailers because they have demonstrated the ability to grow category profitability for existing customers. They are in conversations with both larger and smaller retailers not currently carrying Black Rifle. The rollout pace depends on reset windows, with some customers resetting in Q1 and others in Q3. The company will be transparent about high-probability deals as they get closer to finalizing them, but they prefer not to discuss potential deals publicly until they are confirmed. Q: Can you elaborate on the performance of the direct-to-consumer business and the impact of the new e-commerce platform?A: Matt Amy (CFO) noted that DTC revenue increased 14% year-over-year in Q2, accelerating from 7% growth in Q1, marking the third consecutive quarter of growth and the strongest quarterly performance in over four years. In May, they successfully transitioned BlackRifleCoffee.com to a more scalable platform, which has yielded encouraging early results including improved organic search rankings, greater product visibility, and stabilization of the subscriber base. Third-party marketplace sales increased 90% as they expanded reach on platforms where consumers increasingly shop. The new platform provides a stronger technology foundation at a lower cost, allowing them to redirect investment toward other marketplace components. Q: What is driving the expected moderation in revenue growth for the second half, and how should we think about Q3 and Q4 specifically?A: Matt Amy (CFO) explained that the moderation is driven by three known factors: 1) the year-over-year benefit from previously implemented pricing actions will begin to moderate in Q3 and largely roll off by year-end; 2) Q4 202 For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in BRC Inc.? Here are five stocks we like better. Q2 revenue rose 13%, led by a 15% increase in wholesale sales, a 14% increase in direct-to-consumer revenue and strong growth across mass merchants and grocery retailers. Packaged coffee remained the primary growth driver, with sales up 28.2%, market share gains in bags and pods, and distribution reaching 56.5% ACV. Third-party marketplace sales also surged 90% following the company’s e-commerce platform transition. Profitability and cash flow improved significantly: adjusted EBITDA increased more than 160% to $6.3 million, while quarterly free cash flow reached $5.4 million. BRC maintained its full-year outlook for at least 8% revenue growth and approximately $29 million in adjusted EBITDA. BRC (NYSE:BRCC), the parent of Black Rifle Coffee Company, reported second-quarter 2026 revenue growth of 13% as expansion in packaged coffee distribution, direct-to-consumer sales growth and tighter cost management supported higher profitability and free cash flow. Chief Executive Officer Chris Mondzelewski said the company’s first-half performance reflected a more disciplined allocation of resources toward customers, channels and products with the strongest potential returns. He said packaged coffee remained the company’s principal growth engine, supported by retail distribution gains and direct-to-consumer momentum. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Second-quarter net revenue rose 13% from a year earlier. Wholesale revenue increased 15%, aided by pricing and distribution gains across grocery, mass and dollar retailers, according to Chief Financial Officer Matt Amigh. Revenue from mass merchants rose 20%, while grocery revenue nearly doubled year over year. Direct-to-consumer revenue increased 14%, accelerating from 7% growth in the first quarter, driven largely by third-party marketplace sales. Mondzelewski said Black Rifle packaged coffee sales rose 28.2% during the latest quarter, according to Nielsen data, compared with 9.9% growth for the broader category. Over the latest 52-week period, the company’s retail sales increased 32.5%, including 16.6% unit growth. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Bagged coffee velocity reached category-level performance in 2025 and remained at that level year to date despite continued expansion in distribution and the company’s price premium, he said. Bagged-coffee market share increased 60 basis points from a year earlier to 3.3%, while pod share rose 30 basis points to 2.2% across the total market. Packaged coffee distribution increased by more than 2.5 percentage points of all-commodity volume, or ACV, year over year to 56.5% in the second quarter. The company also increased its presence at existing grocery accounts, where the average retailer carried approximately 1.3 more Black Rifle Coffee items than a year earlier. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Mondzelewski described the strategy as “land and expand,” with initial placements typically beginning with two to four items before assortments grow over time. He said the company remains underpenetrated in grocery and online marketplaces relative to its position with its largest mass retailer. Direct-to-consumer growth was supported by a 90% increase in third-party marketplace sales. In May, the company moved blackriflecoffee.com to a new e-commerce platform, which management said has improved product visibility in online shopping results, strengthened organic search rankings and stabilized the subscription base in the nearly three months following the conversion. Mondzelewski said the company views marketplaces as an incremental customer-acquisition channel rather than a replacement for its own website, which remains its core platform for subscriptions, repeat purchases and exclusive offerings. Amigh said the company uses third-party marketplace fulfillment, which carries a higher cost but enables delivery to consumers in less than two days. Management also highlighted different consumer purchasing patterns by channel. The largest online marketplace and the largest mass retailer each generate roughly $4 billion in annual packaged-coffee sales, with both skewing toward pods. Grocery, with approximately $6.8 billion in annual sales, has a more balanced mix of bags and pods. The company said it is tailoring assortments and pack sizes to channel-specific buying patterns. Second-quarter gross margin expanded approximately 15 basis points year over year to 34.1%, the first year-over-year improvement in more than four quarters. Amigh said higher coffee costs flowing through inventory reduced margin by more than 100 basis points net of pricing, but that pressure was offset by a cleaner inventory position, productivity initiatives and favorable mix. The company has secured all of its expected green coffee requirements for 2026 at $2.95 per pound and has purchased more than 50% of anticipated 2027 needs at $2.65 per pound. For comparison, Amigh said its average 2025 coffee cost was $2.85 per pound. He expects lower contracted costs to flow through cost of sales more meaningfully in the second half of 2026. Operating expenses declined 21% to $35.4 million, primarily due to the absence of a prior-year legal accrual and lower legal, professional and other general and administrative expenses. Marketing expense increased 8% but fell about 50 basis points as a percentage of revenue to 9.8%. Adjusted EBITDA increased more than 160% to $6.3 million, from $2.4 million a year earlier, while adjusted EBITDA margin expanded about 335 basis points to 5.9%. Free cash flow totaled $5.4 million in the quarter and $11.5 million year to date, compared with a $9.6 million use of free cash flow in the prior-year period. BRC maintained its 2026 outlook for at least 8% revenue growth, or approximately $430 million, and at least 35% adjusted EBITDA growth, or approximately $29 million. It also maintained its expectation for full-year gross margin of 34% to 36%, compared with 34.6% in 2025. For the third quarter, the company expects revenue growth of at least 5% year over year, or roughly $106 million, and adjusted EBITDA of approximately $7 million. Management said second-half comparisons will be affected by the fading benefit from prior pricing actions, approximately $5 million of non-recurring liquidation revenue in the fourth quarter of 2025, and moderation in convenience-channel demand tied to higher fuel prices and softness in ready-to-drink coffee. In ready-to-drink coffee, management said conditions remain challenging, particularly in convenience stores, though grocery performance has been comparatively stronger. Black Rifle Energy ended the quarter with about 21% ACV across more than 22,000 doors. Mondzelewski said the company’s near-term priority is improving productivity in existing energy doors and expanding selectively, while directing most investment toward its hot-coffee business. Black Rifle Coffee Company, Inc is a veteran-owned specialty coffee roaster and retailer that offers a range of coffee products, merchandise and subscription services. The company sources, roasts and distributes its own blends and single-origin coffees, as well as ready-to-drink beverages and branded apparel. Its product lineup includes whole-bean and ground coffees, cold brew concentrates, K-cup pods and limited-edition small-batch offerings designed to appeal to active lifestyle and patriotic consumers. Founded in 2014 by U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "BRC Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Financial Highlights Net revenue increased 12.8% compared to Q2 2025, driven primarily by growth in Wholesale and Direct-to-Consumer channels. Wholesale revenue increased 15.2%, while Direct-to-Consumer ("DTC") revenue increased 13.6%, marking DTC's strongest quarterly growth in over four years. Packaged coffee distribution increased 2.6 points to 56.5% All Commodity Volume ("ACV"). Net loss improved to $0.2 million in Q2 2026, compared to a net loss of $14.5 million in Q2 2025, while Adjusted EBITDA increased to $6.3 million from $2.4 million in the prior year. For the full year 2026, the Company continues to expect at least 8% revenue growth and at least 35% Adjusted EBITDA growth, reflecting continued strength in the Company's operating performance. SALT LAKE CITY, August 03, 2026--(BUSINESS WIRE)--BRC Inc. (NYSE: BRCC, the "Company" or "Black Rifle"), a Veteran-founded, mission-driven premium beverage company, today announced financial results for the second quarter of fiscal year 2026. "Our second quarter performance reflects continued execution against the priorities we established for 2026 and the strength of our core coffee business," said BRCC Chief Executive Officer Chris Mondzelewski. "Expanded distribution and increased shelf presence drove strong Wholesale growth as part of our land-and-expand strategy, while Direct-to-Consumer delivered its strongest year-over-year growth rate in more than four years. Our programming around America’s 250th anniversary has been in market since the beginning of the year and ramped up throughout the second quarter. These efforts give us a timely way to reach more consumers, reinforce the values that define BRCC and expand our support for veterans, service members and first responders." "The business delivered strong second quarter revenue and Adjusted EBITDA growth while continuing to improve cash conversion," said BRCC Chief Financial Officer Matt Amigh. "Gross margin stabilized during the first half of 2026, including modest expansion in the second quarter, and we expect greater improvement in the second half of 2026 as lower green coffee costs begin to flow through cost of sales, supported by ongoing portfolio mix and productivity initiatives. We remain highly focused on driving structural improvements across the operating model to support earnings growth and improve working capital efficiency. These initiatives are already increasing cash generation and strengthening the balance sheet, while building a foundation to support sustained progress as the business grows. Based on our first-half results and execution against our full-year plan, we are maintaining our outlook of at least 8% revenue growth and at least 35% Adjusted EBITDA growth." Second Quarter 2026 Financial Highlights (in millions, except % data) Second Quarter 2026 Results Net revenue for the second quarter of 2026 increased 12.8% to $107.0 million, compared to $94.8 million in the second quarter of 2025. Wholesale revenue increased 15.2% to $70.6 million in the second quarter of 2026, compared to $61.3 million in the second quarter of 2025. Growth in the Wholesale channel was primarily driven by expanded distribution of packaged coffee, which increased unit volumes across food and mass retailers, as well as by higher pricing. Direct-to-Consumer ("DTC") revenue increased 13.6% to $31.4 million in the second quarter of 2026, compared to $27.6 million in the second quarter of 2025. The increase was primarily driven by growth through third-party digital retail marketplaces, partially offset by lower subscription revenue. Revenue from Black Rifle Coffee shops ("Outposts") decreased 15.0% to $5.0 million in the second quarter of 2026, compared to $5.9 million in the second quarter of 2025. The decline was driven by lower transaction volumes and lower average order value in Company-operated Outposts. Gross profit increased 13.4% to $36.5 million in the second quarter of 2026, compared to $32.2 million in the second quarter of 2025. Gross margin increased 15 basis points to 34.1% in the second quarter of 2026, from 33.9% in the second quarter of 2025. The improvement was primarily driven by pricing actions, lower shipping and fulfillment costs resulting from productivity gains under our Operational Improvement Plan, and a decrease in the reserve for excess and obsolete inventory. These benefits were partially offset by higher green coffee input costs and tariffs, as well as higher third-party e-commerce marketplace fees, which scale with strong growth in marketplace channel sales. Marketing expenses increased 7.8% to $10.5 million in the second quarter of 2026, compared to $9.8 million in the second quarter of 2025. As a percentage of revenue, marketing expenses decreased 50 basis points to 9.8% in the second quarter of 2026, compared to 10.3% in the second quarter of 2025. The dollar increase was driven by higher investment in content production, agency support, and partnerships, partially offset by reduced spending on ad placement and in-store marketing. The decline as a percentage of revenue reflects operating leverage, as revenue growth outpaced the increase in marketing spend. Salaries, wages and benefits expenses decreased 2.0% to $15.5 million in the second quarter of 2026, compared to $15.8 million in the second quarter of 2025. As a percentage of revenue, salaries, wages and benefits expenses decreased 220 basis points to 14.5% in the second quarter of 2026, compared to 16.7% in the second quarter of 2025. The decrease reflects lower fixed personnel costs due to reduced headcount, partially offset by higher incentive-based compensation. General and administrative ("G&A") expenses decreased 35.2% to $9.3 million in the second quarter of 2026, compared to $14.3 million in the second quarter of 2025. As a percentage of revenue, G&A expenses decreased 640 basis points to 8.7% in the second quarter of 2026, compared to 15.1% in the second quarter of 2025. The decrease was primarily driven by lower legal fees, consulting and professional fees, and depreciation and amortization expense. Other operating expenses, net decreased 97.7% to $0.1 million in the second quarter of 2026, compared to $4.9 million in the second quarter of 2025. As a percentage of revenue, other operating expenses decreased 510 basis points to 0.1% in the second quarter of 2026, compared to 5.2% in the second quarter of 2025. The decrease was primarily due to the absence of legal contingency charges recorded in the prior-year period. Net loss for the second quarter of 2026 was $0.2 million, and Adjusted EBITDA was $6.3 million, compared to a net loss of $14.5 million and Adjusted EBITDA of $2.4 million in the second quarter of 2025. Financial Outlook The Company affirms the following guidance based on current market conditions and expectations for revenue, gross margin, and adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure. The Company’s fiscal 2026 guidance reflects a disciplined and measured approach to forecasting, incorporating current commodity conditions and planned growth investments. Management remains focused on consistent execution to drive steady revenue progression, margin improvement, EBITDA expansion, and strengthened cash generation. For full-year fiscal 2026, the Company affirms the following guidance (in millions, except % data): The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the "Forward-Looking Statements" safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. We have not reconciled forward-looking Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss), in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. We cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliation, including market-related assumptions that are not within our control, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net income (loss). See "Non-GAAP Financial Measures" for additional important information regarding Adjusted EBITDA. Conference Call A conference call to discuss the Company’s second quarter results is scheduled for August 4, 2026, at 8:30 a.m. ET. Those who wish to participate in the call may do so by dialing (877) 407-0609 or (201) 689-8541 for international callers. A webcast of the call will be available on the investor relation's page of the Company’s website at ir.blackriflecoffee.com. For those unable to attend the conference call, a replay will be available after the conclusion of the call through August 18, 2026. The U.S. toll-free replay dial-in number is (877) 660-6853, and the international replay dial-in number is (201) 612-7415. The replay passcode is 13761221. About BRC Inc. Black Rifle Coffee Company (BRCC) is a Veteran-founded premium coffee company and lifestyle brand serving beverages to people who love America. Founded in 2014 by Green Beret Evan Hafer, Black Rifle develops their explosive roast profiles with the same mission focus they learned while serving in the military. BRCC is committed to supporting Veterans, active-duty military, first responders and the American way of life. To learn more, visit www.blackriflecoffee.com, subscribe to the BRCC newsletter, or follow along on social media. Forward-Looking Statements This press release contains forward-looking statements about the Company and its industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this press release, including statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s financial condition, liquidity, prospects, growth, strategies, future market conditions, developments in the capital and credit markets and expected future financial performance, as well as any information concerning possible or assumed future results of operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would" and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. The events and circumstances reflected in the Company’s forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Factors that may cause such forward-looking statements to differ from actual results include, but are not limited to: competition and our ability to grow, manage sustainable expansion, and retain key employees; failure to compete effectively with other producers, distributors and retailers of coffee and energy drinks; our limited operating history, which may hinder the successful execution of strategic initiatives and make it difficult to assess future risks and challenges; challenges in managing rapid growth, inventory needs, and relationships with key business partners; inability to raise additional capital necessary for business development; failure to achieve or sustain long-term profitability; inability to effectively manage debt obligations; failure to maximize the value of assets received through bartering transactions; negative publicity affecting our brand, reputation, or that of key employees; failure to uphold our position as a supportive member of the military, Veteran and first-responder communities, or other factors negatively affecting brand perception; inability to establish and maintain strong brand recognition through intellectual property or other means; shifts in consumer spending, lack of interest in new products or changes in brand perception upon evolving consumer preferences and tastes, including due to shifts in demographic or health and wellness trends, reduction in discretionary spending and price increases, and our ability to anticipate or react to these changes; price changes that are insufficient to offset cost increases; unsuccessful marketing campaigns that incur costs without attracting new customers or realizing higher revenue; failure to attract new customers or retain existing customers; risks associated with reliance on social media platforms, including dependence on third-party platforms for marketing and engagement; variable performance of the direct to consumer revenue channel; inability to effectively manage or scale distribution through Wholesale business partners, particularly key Wholesale partners; failure to manage supply chain operations effectively, including inaccurate forecasting of raw material and co-manufacturing requirements; loss of one or more co-manufacturers or production delays, quality issues, or labor-related disruptions affecting manufacturing output; supply chain disruptions or failures by third-party suppliers and logistics service-providers to deliver coffee, store supplies, RTD beverage ingredients, or merchandise, including disruptions caused by external factors; ongoing risks related to supply chain volatility and reliability, including tariffs, as well as political and climate risks; fluctuations in the market for high-quality coffee beans and other key commodities; unpredictable changes in the cost and availability of labor, raw materials, equipment, transportation, or shipping; failure to successfully improve profitability of existing Outposts, including challenges or delays with the implementation of operational and strategic changes; risks related to long-term, non-cancelable lease obligations and other real estate-related concerns; inability of franchise partners to successfully operate and manage their franchise locations; failure to maintain high-quality customer experiences for retail partners and end users, including production defects or issues caused by co-manufacturers that negatively impact product quality and brand reputation; failure to comply with food safety regulations or maintain product quality standards; difficulties in successfully expanding into new markets; failure to comply with federal, state, and local laws and regulations, or inability to prevail in civil litigation matters; risks related to potential unionization of employees; failure to execute our operational improvement plan to reduce costs and improve efficiency of certain company-wide functions; failure to protect against cybersecurity threats, software vulnerabilities, or hardware security risks; volatility in the trading prices of our Class A Common Stock; and other risks and uncertainties indicated in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (the "SEC") on March 2, 2026 including those set forth under "Item 1A. Risk Factors" included therein, as well as in our other filings with the SEC. Such forward-looking statements are based on information available as of the date of this press release and the Company’s current beliefs and expectations concerning future developments and their effects on the Company, and speak only as of the date hereof. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not place undue reliance on these forward-looking statements as predictions of future events. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this press release, the Company cannot guarantee that the future results, growth, performance or events or circumstances reflected in these forward-looking statements will be achieved or occur at all. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Non-GAAP Financial Measures To evaluate the performance of our business, we rely on both our results of operations recorded in accordance with generally accepted accounting principles in the United States ("GAAP") and certain non-GAAP financial measures, including EBITDA and Adjusted EBITDA. These measures, as defined below, are not defined or calculated under principles, standards or rules that comprise GAAP. Accordingly, the non-GAAP financial measures we use and refer to should not be viewed as a substitute for performance measures derived in accordance with GAAP. Our definitions of EBITDA and Adjusted EBITDA described below are specific to our business and you should not assume that they are comparable to similarly titled financial measures of other companies. We define EBITDA as net income (loss) before interest, tax expense, depreciation and amortization expense. We define Adjusted EBITDA, as EBITDA adjusted for equity-based compensation, write-off of site development costs, non-routine legal expenses and restructuring fees and related costs. When used in conjunction with GAAP financial measures, we believe that EBITDA and Adjusted EBITDA are useful supplemental measures of operating performance and liquidity because these measures facilitate comparisons of historical performance by excluding non-cash items such as equity-based compensation and other amounts not directly attributable to our primary operations, such as write-off of site development costs, non-routine legal expense and restructuring fees and related costs. Adjusted EBITDA is also a key metric used internally by our management to evaluate performance and develop internal budgets and forecasts. EBITDA and Adjusted EBITDA have limitations as an analytical tool and should not be considered in isolation or as a substitute for analyzing our results as reported under GAAP and may not provide a complete understanding of our operating results as a whole. Some of these limitations are (i) they do not reflect changes in, or cash requirements for, our working capital needs, (ii) they do not reflect our interest expense or the cash requirements necessary to service interest or principal payments on our debt, (iii) they do not reflect our tax expense or the cash requirements to pay our taxes, (iv) they do not reflect historical capital expenditures or future requirements for capital expenditures or contractual commitments, (v) although equity-based compensation expenses are non-cash charges, we rely on equity compensation to compensate and incentivize employees, directors and certain consultants, and we may continue to do so in the future and (vi) although depreciation, amortization and impairments are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and these non-GAAP measures do not reflect any cash requirements for such replacements. A reconciliation of net income (loss), the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA is set forth below: View source version on businesswire.com: https://www.businesswire.com/news/home/20260803752498/en/ Contacts Investor Contacts: Matt McGinley: [email protected] ICR for BRCC: [email protected]

Strong retail and packaged-coffee momentum: Management cited broad-based packaged-coffee strength with Nielsen showing Black Rifle grew 34.6% in Q1, roughly +7 points of ACV distribution year-over-year, and grocery sales that “nearly doubled.” Profitability improvement despite margin headwinds: Gross margin fell about 305 basis points to 33% due to one-time items and higher coffee costs, but operating expenses declined >8% and adjusted EBITDA rose from under $1M to over $7M (an eightfold increase). Healthy liquidity and raised guidance: The company exited the quarter with about $39M debt, >$52M total liquidity, raised 2026 revenue guidance to at least 8% (~$430M) and adjusted EBITDA to at least 35% (~$29M), with Q2 revenue growth expected at least 10%. Interested in BRC Inc.? Here are five stocks we like better. BRC (NYSE:BRCC) executives pointed to strong first-quarter 2026 results and “meaningful progress against our core growth priorities,” driven largely by distribution gains in packaged coffee, improving shelf productivity, and a continued push to streamline costs and improve profitability. Chief Executive Officer Chris Mondzelewski said the company is seeing the benefits of its “disciplined execution” at retail, emphasizing that growth is coming not only from adding new doors, but also from expanding shelf presence and improving SKU-level performance. “It’s not just about expanding doors. It is about expanding our shelf presence and making the space we earn more productive,” Mondzelewski said. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries Mondzelewski highlighted broad-based strength in packaged coffee across customers and formats, including “strong dollar and unit performance at mass merchants,” grocery sales that “nearly doubled,” and pack-size innovation that supported new distribution in the dollar channel. According to Nielsen data cited by management, Black Rifle Coffee grew 34.6% in the quarter—more than 2.5 times category growth—while bagged coffee dollar share increased 55 basis points to 3.3% and pods increased 45 basis points to 2.2% by quarter end. The CEO also said grocery bagged coffee unit velocity increased despite higher pricing and expanded shelf presence. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches On distribution, Mondzelewski said the company expanded packaged coffee distribution by about seven points of ACV year-over-year and increased assortment within stores, with “the average grocer” carrying nearly two more items than a year ago. He framed the results as validation of the company’s “land and expand” strategy. In the Q&A, Mondzelewski provided additional detail on SKU counts by retailer, saying new retailers typically start with “two to four SKUs,” often expanding to “six to eight,” while some grocery customers carry “as high as 13 or 14.” He added, “While we sit at five and a half now, there’s no reason that we can’t be at, you know, 12, 13, 14 items on a grocery shelf.” → Tyson Foods' Total Returns: Tasty Treats for Income Investors? Mondzelewski said the direct-to-consumer business delivered its second consecutive quarter of year-over-year growth, as marketplaces play a larger role in customer acquisition. He described marketplaces as a way to expand reach and bring in customers, while blackriflecoffee.com remains focused on subscriptions and loyal customers through “deeper engagement, exclusive offerings, and stronger pricing discipline.” CFO Matthew Amigh reported direct-to-consumer revenue increased 7% year-over-year in the quarter, “driven primarily by increased sales through third-party marketplaces.” He said actions taken over the past year to stabilize the business are translating into more consistent performance and a return to growth. Management described ready-to-drink coffee as a challenging category in the quarter, with “convenience channel softness” weighing on results. Mondzelewski said distribution still expanded, with ACV up nearly eight points year-over-year, and the company is prioritizing channels and partners with stronger demand while using innovation “as a disciplined growth lever.” Asked about what is driving performance at mass retail, Mondzelewski said momentum is “very much in coffee,” particularly bagged and pod coffee. He also provided Walmart-specific share metrics, stating the company has a 9.4% share in the bag category and 5.3% share in pods, up 30 basis points in pods. On RTD innovation, Mondzelewski said cold brew shipments are early and “not yet” a key driver, though the company is “excited about the potential.” He also said Black Rifle views itself as “the number three player in RTD coffee” and “the number 3 cold coffee business in America.” In energy, Mondzelewski said the business is moving into a more deliberate expansion phase, reaching 21% ACV across more than 22,000 doors in the first quarter, with selective expansion in channels showing early traction. Amigh said first-quarter net revenue increased 21% year-over-year, driven primarily by wholesale and direct-to-consumer. Wholesale revenue grew 31.5% on distribution gains, pricing, and continued contribution from Black Rifle Energy. He said sales to mass merchants increased more than 20% and grocery sales more than doubled. Gross margin was 33%, down 305 basis points year-over-year, due to “non-recurring items and elevated coffee costs,” according to Amigh. He said the company made progress on controllable levers such as trade efficiency and supply chain improvements, and noted that pricing actions largely offset inflation and tariff impacts, limiting the net effect to about 20 basis points in the quarter. Amigh detailed several items affecting margin: About 100 basis points of costs tied to onboarding a new direct-to-consumer fulfillment provider. Roughly 210 basis points from a one-time non-cash write-down tied to coffee extract due to a formulation change (which was not added back to adjusted EBITDA). About 50 basis points of benefit from supply chain initiatives and mix. Operating expenses declined more than 8% year-over-year, driven by a 10% reduction in marketing expense and a 14% decline in general and administrative expense. Despite the lower gross margin rate, revenue growth drove higher gross profit dollars and, combined with operating expense reductions, resulted in an “eightfold increase” in adjusted EBITDA, Amigh said. Adjusted EBITDA increased from under $1 million to over $7 million year-over-year, with adjusted EBITDA margin expanding 570 basis points. Amigh said the company ended the quarter with $39 million of debt outstanding—approximately 1x net debt to trailing twelve-month adjusted EBITDA—and more than $52 million of total liquidity, including cash and available capacity under its credit facility. Free cash flow improved by about $11 million year-over-year, with $6 million generated in the first quarter compared to a use of more than $5 million in the prior-year period, driven by improved profitability and working capital management. Amigh also referenced an NYSE notice received in February regarding the minimum price requirement. He said shares were trading above $1 and that compliance would be regained if, at the end of the measurement period, both the closing share price and the average closing price over the prior 30 trading days are at least $1. For 2026, the company raised its outlook to at least 8% revenue growth, or approximately $430 million, and increased adjusted EBITDA guidance to at least 35% growth, or approximately $29 million, up from a prior outlook of at least 30% growth. Amigh said guidance reflects “only what we have confirmed at this point,” including in-market pricing and secured distribution gains, without assuming incremental wins not yet realized. On quarterly cadence, Amigh said first-quarter performance exceeded internal expectations, in part due to shipment timing that likely benefited revenue by a few million dollars and is expected to normalize in the second quarter. The company expects second-quarter revenue growth of at least 10% year-over-year, compared with 21% in the first quarter. Gross margin for 2026 is expected in the 34% to 36% range, with second-quarter margin expected to be consistent with the first quarter due to continued coffee inflation pressure and “the more recent impact of higher fuel costs.” Amigh said gross margins should improve in the back half as higher-cost inventory is worked through and productivity and mix benefits build. For the second quarter, the company expects adjusted EBITDA of at least $5 million, “more than double” the prior-year period, with adjusted EBITDA expected to step up further in the second half as revenue builds and operating leverage increases. While not providing formal cash-flow guidance, Amigh said the company expects to generate positive cash flow with capital expenditures in line with prior-year levels. In closing remarks, Mondzelewski said fundamentals are strengthening as growth becomes “increasingly driven by distribution gains, improved shelf productivity…and unit velocity,” and that the company is “converting revenue into earnings more effectively than we have before, and we are generating positive cash flow.” Black Rifle Coffee Company, Inc is a veteran-owned specialty coffee roaster and retailer that offers a range of coffee products, merchandise and subscription services. The company sources, roasts and distributes its own blends and single-origin coffees, as well as ready-to-drink beverages and branded apparel. Its product lineup includes whole-bean and ground coffees, cold brew concentrates, K-cup pods and limited-edition small-batch offerings designed to appeal to active lifestyle and patriotic consumers. Founded in 2014 by U.S. The article "BRC Q1 Earnings Call Highlights" was originally published by MarketBeat.

Financial Highlights Net revenue increased 21.4% compared to Q1 2025, driven primarily by growth in Wholesale and Direct-to-Consumer channels. Wholesale revenue increased 31.5%, while Direct-to-Consumer ("DTC") revenue increased 7.2%, marking DTC's strongest quarterly growth in over four years. Packaged coffee distribution expanded 7.0 points to 55.4% All Commodity Volume ("ACV"), while Ready-to-Drink ("RTD") coffee distribution increased 8.3 points to 55.0% ACV, compared to Q1 2025. Net income improved to approximately breakeven (approximately $0.0 million) in Q1 2026, compared to a net loss of $7.8 million in Q1 2025, while Adjusted EBITDA increased to $7.3 million from $0.9 million in the prior year. For the full year 2026, the Company now expects at least 8% revenue growth and at least 35% Adjusted EBITDA growth, reflecting continued momentum across the business and an increase to the Company's prior outlook. SALT LAKE CITY, May 04, 2026--(BUSINESS WIRE)--BRC Inc. (NYSE: BRCC, the "Company" or "Black Rifle"), a Veteran-founded, mission-driven premium beverage company, today announced financial results for the first quarter of fiscal year 2026. "First quarter results mark a strong start to 2026 and reflect growing momentum across the business," said BRCC Chief Executive Officer Chris Mondzelewski. "We are operating with greater focus and agility, supported by a more streamlined structure that is enabling better execution across the organization. Our coffee portfolio continues to lead, with our land and expand strategy driving broader distribution and increased shelf presence. Performance across channels is strengthening, with particularly strong results in Wholesale and a second consecutive quarter of year-over-year growth in Direct-to-Consumer, contributing to a more balanced and durable growth profile. Our commitment to the veteran, military, and first-responder communities is the foundation of who we are. As the business grows, we are able to broaden that support while staying true to the mission that defines us." "Our results reflect strong operating performance, with robust revenue growth alongside higher profitability and cash generation," said BRCC Chief Financial Officer Matt Amigh. "While coffee input costs have moderated from prior year peaks, they remain elevated relative to historical levels. We are focused on driving gross margin expansion through efficiency gains and favorable mix, with an emphasis on actions within our control regardless of commodity volatility. The balance sheet is in a strong position, and we are building on that foundation by driving cash flow through improved profitability, disciplined execution, and working capital management. Based on our performance to date and continued strength across the business, we are increasing our full-year outlook to at least 8% revenue growth and at least 35% Adjusted EBITDA growth." First Quarter 2026 Financial Highlights (in millions, except % data) First Quarter 2026 Results Net revenue for the first quarter of 2026 increased 21.4% to $109.2 million, compared to $90.0 million in the first quarter of 2025. Wholesale revenue increased 31.5% to $74.7 million in the first quarter of 2026, compared to $56.8 million in the first quarter of 2025. Growth in the Wholesale channel was primarily driven by expanded distribution in packaged coffee, which increased unit volumes across food and mass retailers, along with pricing. Direct-to-Consumer ("DTC") revenue increased 7.2% to $29.7 million in the first quarter of 2026, compared to $27.7 million in the first quarter of 2025. The increase was primarily driven by growth at third-party digital retail marketplaces. Revenue from Black Rifle Coffee shops ("Outposts") decreased 12.0% to $4.8 million in the first quarter of 2026, compared to $5.5 million in the first quarter of 2025. The decline was driven by lower transaction volumes and a reduction in average order value. Gross profit increased 11.1% to $36.1 million in the first quarter of 2026, compared to $32.5 million in the first quarter of 2025. Gross margin decreased 305 basis points to 33.0% in the first quarter of 2026, from 36.1% in the first quarter of 2025. The decrease was primarily driven by green coffee inflation, tariffs, and a non-cash write-down of raw material inputs related to a formulation change, partially offset by pricing actions and productivity gains. Marketing expenses decreased 10.1% to $10.2 million in the first quarter of 2026, compared to $11.3 million in the first quarter of 2025. As a percentage of revenue, marketing expenses decreased 330 basis points to 9.3% in the first quarter of 2026, compared to 12.6% in the first quarter of 2025. The decline reflects improved allocation of marketing resources, with reduced spending on media, in-store marketing, and agency costs. Salaries, wages and benefits expenses increased 4.0% to $14.1 million in the first quarter of 2026, compared to $13.6 million in the first quarter of 2025. As a percentage of revenue, salaries, wages and benefits expenses decreased 220 basis points to 12.9% in the first quarter of 2026, compared to 15.1% in the first quarter of 2025. The increase reflects higher incentive-based compensation, partially offset by lower fixed personnel costs due to reduced headcount. General and administrative ("G&A") expenses decreased 14.3% to $10.1 million in the first quarter of 2026, compared to $11.8 million in the first quarter of 2025. As a percentage of revenue, G&A expenses decreased 390 basis points to 9.2% in the first quarter of 2026, compared to 13.1% in the first quarter of 2025. The decrease was primarily driven by lower consulting, software and license, legal, and depreciation expenses. Other operating expenses, net decreased 69.0% to $0.4 million in the first quarter of 2026, compared to $1.2 million in the first quarter of 2025. As a percentage of revenue, other operating expenses decreased 100 basis points to 0.3% in the first quarter of 2026, compared to 1.4% in the first quarter of 2025. The decrease was primarily due to the absence of prior year lease termination costs. Net income for the first quarter of 2026 was approximately breakeven (approximately $0.0 million), and Adjusted EBITDA was $7.3 million, compared to a net loss of $7.8 million and Adjusted EBITDA of $0.9 million in the first quarter of 2025. Financial Outlook The Company provides the following updated guidance based on current market conditions and expectations for revenue, gross margin, and adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure. The Company’s fiscal 2026 guidance reflects a disciplined and measured approach to forecasting, incorporating current commodity conditions and planned growth investments. Management remains focused on consistent execution to drive steady revenue progression, margin improvement, EBITDA expansion, and strengthened cash generation. For full-year fiscal 2026, the Company provides the following guidance (in millions, except % data): The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the "Forward-Looking Statements" safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. We have not reconciled forward-looking Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss), in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. We cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliation, including market-related assumptions that are not within our control, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net income (loss). See "Non-GAAP Financial Measures" for additional important information regarding Adjusted EBITDA. Conference Call A conference call to discuss the Company’s first quarter results is scheduled for May 5, 2026, at 8:30 a.m. ET. Those who wish to participate in the call may do so by dialing (877) 407-0609 or (201) 689-8541 for international callers. A webcast of the call will be available on the investor relation's page of the Company’s website at ir.blackriflecoffee.com. For those unable to attend the conference call, a replay will be available after the conclusion of the call through May 12, 2026. The U.S. toll-free replay dial-in number is (877) 660-6853, and the international replay dial-in number is (201) 612-7415. The replay passcode is 13759221. About BRC Inc. Black Rifle Coffee Company (BRCC) is a Veteran-founded premium coffee company and lifestyle brand serving beverages to people who love America. Founded in 2014 by Green Beret Evan Hafer, Black Rifle develops their explosive roast profiles with the same mission focus they learned while serving in the military. BRCC is committed to supporting Veterans, active-duty military, first responders and the American way of life. To learn more, visit www.blackriflecoffee.com, subscribe to the BRCC newsletter, or follow along on social media. Forward-Looking Statements This press release contains forward-looking statements about the Company and its industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this press release, including statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s financial condition, liquidity, prospects, growth, strategies, future market conditions, developments in the capital and credit markets and expected future financial performance, as well as any information concerning possible or assumed future results of operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would" and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. The events and circumstances reflected in the Company’s forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Factors that may cause such forward-looking statements to differ from actual results include, but are not limited to: competition and our ability to grow, manage sustainable expansion, and retain key employees; failure to compete effectively with other producers, distributors and retailers of coffee and energy drinks; our limited operating history, which may hinder the successful execution of strategic initiatives and make it difficult to assess future risks and challenges; challenges in managing rapid growth, inventory needs, and relationships with key business partners; inability to raise additional capital necessary for business development; failure to achieve or sustain long-term profitability; inability to effectively manage debt obligations; failure to maximize the value of assets received through bartering transactions; negative publicity affecting our brand, reputation, or that of key employees; failure to uphold our position as a supportive member of the military, Veteran and first-responder communities, or other factors negatively affecting brand perception; inability to establish and maintain strong brand recognition through intellectual property or other means; shifts in consumer spending, lack of interest in new products or changes in brand perception upon evolving consumer preferences and tastes, including due to shifts in demographic or health and wellness trends, reduction in discretionary spending and price increases, and our ability to anticipate or react to these changes; price changes that are insufficient to offset cost increases; unsuccessful marketing campaigns that incur costs without attracting new customers or realizing higher revenue; failure to attract new customers or retain existing customers; risks associated with reliance on social media platforms, including dependence on third-party platforms for marketing and engagement; variable performance of the direct to consumer revenue channel; inability to effectively manage or scale distribution through Wholesale business partners, particularly key Wholesale partners; failure to manage supply chain operations effectively, including inaccurate forecasting of raw material and co-manufacturing requirements; loss of one or more co-manufacturers or production delays, quality issues, or labor-related disruptions affecting manufacturing output; supply chain disruptions or failures by third-party suppliers and logistics service-providers to deliver coffee, store supplies, RTD beverage ingredients, or merchandise, including disruptions caused by external factors; ongoing risks related to supply chain volatility and reliability, including tariffs, political and climate risks; fluctuations in the market for high-quality coffee beans and other key commodities; unpredictable changes in the cost and availability of labor, raw materials, equipment, transportation, or shipping; failure to successfully improve profitability of existing Outposts, including challenges or delays with the implementation of operational and strategic changes; risks related to long-term, non-cancelable lease obligations and other real estate-related concerns; inability of franchise partners to successfully operate and manage their franchise locations; failure to maintain high-quality customer experiences for retail partners and end users, including production defects or issues caused by co-manufacturers that negatively impact product quality and brand reputation; failure to comply with food safety regulations or maintain product quality standards; difficulties in successfully expanding into new markets; failure to comply with federal, state, and local laws and regulations, or inability to prevail in civil litigation matters; risks related to potential unionization of employees; failure to execute our operational improvement plan to reduce costs and improve efficiency of certain company-wide functions; failure to protect against cybersecurity threats, software vulnerabilities, or hardware security risks; and other risks and uncertainties indicated in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (the "SEC") on March 2, 2026 including those set forth under "Item 1A. Risk Factors" included therein, as well as in our other filings with the SEC. Such forward-looking statements are based on information available as of the date of this press release and the Company’s current beliefs and expectations concerning future developments and their effects on the Company, and speak only as of the date hereof. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not place undue reliance on these forward-looking statements as predictions of future events. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this press release, the Company cannot guarantee that the future results, growth, performance or events or circumstances reflected in these forward-looking statements will be achieved or occur at all. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Non-GAAP Financial Measures To evaluate the performance of our business, we rely on both our results of operations recorded in accordance with generally accepted accounting principles in the United States ("GAAP") and certain non-GAAP financial measures, including EBITDA, and Adjusted EBITDA. These measures, as defined below, are not defined or calculated under principles, standards or rules that comprise GAAP. Accordingly, the non-GAAP financial measures we use and refer to should not be viewed as a substitute for performance measures derived in accordance with GAAP. Our definitions of EBITDA and Adjusted EBITDA described below are specific to our business and you should not assume that they are comparable to similarly titled financial measures of other companies. We define EBITDA as net income (loss) before interest, tax expense, depreciation and amortization expense. We define Adjusted EBITDA, as EBITDA adjusted for equity-based compensation, write-off of site development costs, non-routine legal expenses and restructuring fees and related costs. When used in conjunction with GAAP financial measures, we believe that EBITDA and Adjusted EBITDA are useful supplemental measures of operating performance and liquidity because these measures facilitate comparisons of historical performance by excluding non-cash items such as equity-based compensation and other amounts not directly attributable to our primary operations, such as write-off of site development costs, non-routine legal expense and restructuring fees and related costs. Adjusted EBITDA is also a key metric used internally by our management to evaluate performance and develop internal budgets and forecasts. EBITDA and Adjusted EBITDA have limitations as an analytical tool and should not be considered in isolation or as a substitute for analyzing our results as reported under GAAP and may not provide a complete understanding of our operating results as a whole. Some of these limitations are (i) they do not reflect changes in, or cash requirements for, our working capital needs, (ii) they do not reflect our interest expense or the cash requirements necessary to service interest or principal payments on our debt, (iii) they do not reflect our tax expense or the cash requirements to pay our taxes, (iv) they do not reflect historical capital expenditures or future requirements for capital expenditures or contractual commitments, (v) although equity-based compensation expenses are non-cash charges, we rely on equity compensation to compensate and incentivize employees, directors and certain consultants, and we may continue to do so in the future and (vi) although depreciation, amortization and impairments are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and these non-GAAP measures do not reflect any cash requirements for such replacements. A reconciliation of net income (loss), the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA is set forth below: View source version on businesswire.com: https://www.businesswire.com/news/home/20260504381338/en/ Contacts Investor Contacts: Matt McGinley: [email protected] ICR for BRCC: [email protected]

Packaged coffee momentum: Packaged coffee grew ~31% for fiscal 2025 (34% in Q4), driving national bagged share to 3.3% (+60 bps) and ACV to 54.9% as expanded distribution and improved shelf velocity translated into meaningful retail share gains. Margin pressure from coffee inflation and tariffs: Commodity and tariff headwinds pushed gross margin down ~6.5 points for the year (Q4 gross margin 32.1%, down 610 bps) and drove a >40% decline in full-year EBITDA, though Q4 EBITDA was only down ~2% as revenue recovered. Outlook and financial position: BRC guided 2026 revenue of at least $425 million (≈7% growth) and at least 30% EBITDA growth, while reducing debt by >$30 million to $39 million and ending the year with more than $50 million in liquidity as DTC stabilized and RTD/energy distribution is being selectively scaled. Interested in BRC Inc.? Here are five stocks we like better. Black Rifle Coffee Company BRC (NYSE:BRCC) executives told investors the company made “measurable operating progress” in fiscal 2025, led by strong packaged coffee performance and a stabilizing direct-to-consumer business, while navigating volatility in coffee markets and continued consumer pressure. CEO Chris Mondzelewski said packaged coffee grew 31.1% for the year, roughly three times the broader category growth rate, with units up more than 22% and national bagged coffee share up 60 basis points. He added that momentum accelerated in the fourth quarter as expanded distribution translated into better productivity and share with key retail partners. → Defense Stocks Are Soaring—AeroVironment's Earnings Could Close the Gap Mondzelewski highlighted fourth-quarter packaged coffee growth of 34% versus nearly 13% for the broader category, which the company said supported continued market share gains. National bagged coffee share reached 3.3% (up 60 basis points year-over-year), while pods increased to 2.2% (up 40 basis points). Management emphasized that gains were supported by improving shelf productivity and velocity, not only by getting into more stores. Mondzelewski said velocity reached parity with the overall bagged coffee category in grocery despite Black Rifle’s pricing being about 40% above the category average, which he framed as evidence of stronger consumer takeaway and repeat purchase. → IonQ in Rebound Mode: Buy the Thesis, Respect the Risk The company also discussed its “land and expand” retail strategy, which starts with a focused assortment and then grows shelf space as performance improves. Mondzelewski said 2025 distribution reach increased nearly eight points, taking ACV to 54.9%, and that grocers added an average of two incremental Black Rifle items during the year. Since entering grocery three years ago, he said the company has “nearly tripled” its shelf presence. In response to a question about SKU penetration, Mondzelewski said Black Rifle starts with “two to three” best items per segment (such as bags and pods) and earns expansion as velocity improves. Without naming retailers, he said the company’s largest retailer has 20 items on shelf, while other large accounts have 14, 12, and eight items. He said management believes reaching “12–15” items in more accounts is achievable. → Super Micro: Why the Shadow of NVIDIA Is a Profitable Place to Be Management said direct-to-consumer performance stabilized in 2025 and returned to growth in the fourth quarter. Mondzelewski described the company’s owned website as strategically important for engaging loyal customers and gathering insights, while also pointing to continued growth across third-party marketplaces. In ready-to-drink (RTD) coffee, the company said performance varied by channel. Mondzelewski said RTD ACV expanded by 10 points to 55.9%, with the strongest performance in grocery, mass, and dollar, where the company outperformed the category for the full year. He also noted that the category remained under pressure in convenience stores—more than half of tracked RTD sales—contributing to fourth-quarter softness. Management said it is not assuming a category recovery and is focused on improving shelf productivity and using “disciplined” innovation, including new Cold Brew flavors intended to drive incremental takeaway within existing distribution. For Black Rifle Energy, Mondzelewski said distribution reached about 22% ACV across nearly 20,000 retail doors in 2025. He said the company’s 2026 focus shifts from launch execution to scaling “in the right markets with the right partners,” prioritizing velocity and returns rather than distribution for its own sake. In Q&A, Mondzelewski called 2025 a “great learning year” for energy and said performance varied by market, with better results where the company had stronger placement, distribution, and marketing support. He said the plan for 2026 is to maintain a regional focus—citing the “smile states” as areas of brand strength—while working with partner KDP on execution, and keeping coffee as the top resource priority. Chief Financial Officer Matt Amigh said net revenue increased 2% year-over-year for fiscal 2025. Excluding the impact of a 2024 loyalty rewards accrual change and other non-recurring items, he said net revenue increased 8%, primarily driven by wholesale growth. Amigh said wholesale revenue grew 5% year-over-year (13% excluding non-recurring items), reflecting stronger velocity, expanded distribution, and contribution from Black Rifle Energy. He added that sales to mass merchants increased double digits and grocery sales more than doubled. Direct-to-consumer declined 5% for the year but was slightly positive excluding the 2024 loyalty benefit, and he said the channel is “no longer a material offset” to growth elsewhere. Profitability was pressured by commodity costs. Amigh said operating efficiency gains from restructuring and resource reallocation partially offset higher commodity costs and tariffs, but gross margins declined 6.5 points for the year and EBITDA declined more than 40%. In the fourth quarter, revenue increased 7% year-over-year (11% excluding non-recurring items), with wholesale up 8% (16% excluding non-recurring items) and direct-to-consumer up 7%, which he said marked the first quarterly growth in that segment in more than three years. He also said fourth-quarter EBITDA decline was limited to 2% as revenue improved against a reduced cost structure. Fourth-quarter gross margin was 32.1%, down 610 basis points year-over-year. Amigh attributed 270 basis points of pressure to one-time items, including startup costs from onboarding a new direct-to-consumer fulfillment provider and a non-cash impairment of coffee extract tied to a formulation change. He said those were partially offset by 170 basis points of productivity and favorable mix. Amigh said coffee inflation and tariffs net of pricing were the largest headwind, impacting gross margin by about 420 basis points in the fourth quarter and 350 basis points for the year. He said coffee prices nearly doubled from 2024 to 2025, driven by weather-related yield declines and tariff-driven shifts in global supply, while noting U.S. tariffs on coffee were fully removed in November. He also said improved harvest expectations have contributed to recent price moderation, with Arabica peaking near $3.75 in early January and declining into the high $2 range. Amigh said operating expenses increased 1% year-over-year on a reported basis, but excluding non-recurring restructuring and certain legal expenses, operating expenses were down 7%. Marketing expense decreased 10% due to lower non-working spend and a reallocation toward programs more directly tied to revenue. He said salaries, wages, and benefits were flat despite a 15% headcount reduction, largely due to lapping a $3 million incentive compensation reduction in the prior year. On the balance sheet, Amigh said the company used proceeds from a July equity offering to repay its asset-based lending facility and reduced total debt by more than $30 million in 2025. The company ended the year with $39 million of debt and more than $50 million in total liquidity, including cash and available credit capacity. Cash used in operating activities was about $10 million in 2025, including roughly $9 million tied to working capital normalization; Amigh said the company does not expect working capital to be a comparable use of cash in 2026. Amigh also said the company received a notice from the New York Stock Exchange regarding the minimum price requirement, adding that it has no immediate impact on listing status, operations, or reporting obligations, and that the company has the standard cure period. For 2026, the company guided for revenue growth of at least 7%, or approximately $425 million. Amigh said the outlook reflects current visibility into demand trends, pricing already in market, and distribution gains that are secured and operationally in place, while incorporating continued volatility in the ready-to-drink category. He said guidance does not assume incremental distribution wins that remain pending. The company expects first-quarter 2026 revenue growth of at least 10% versus the prior year’s first quarter, citing momentum and the early-year benefit of distribution gains implemented late in 2025. For full-year 2026, management expects gross margin of 34% to 36% compared with 34.6% in 2025, noting the benefit of pricing actions, productivity, and mix, offset by coffee costs that remain above 2025 average levels and residual tariff impacts early in the year. Amigh said the company expects at least 30% EBITDA growth in 2026 compared with $21.4 million in 2025, driven by higher gross profit dollars and lower operating expenses, particularly general and administrative costs. He said EBITDA is expected to remain second-half weighted, with the first half representing roughly one-quarter to one-third of full-year EBITDA. In Q&A on coffee pricing, Amigh said the company took two price increases in 2025—one in the third quarter and another that “settled in late Q4”—both in the upper single-digit range. He said consumer response was “in line with expectations,” with relatively low elasticity of less than 0.5, and that the company will continue to monitor performance and adjust as needed. Separately, Mondzelewski reiterated the company’s veteran-focused mission, noting that Black Rifle exceeded a prior commitment to eliminate $25 million in medical debt for veterans, ultimately wiping out more than $34 million and helping about 15,000 veterans. Black Rifle Coffee Company, Inc is a veteran-owned specialty coffee roaster and retailer that offers a range of coffee products, merchandise and subscription services. The company sources, roasts and distributes its own blends and single-origin coffees, as well as ready-to-drink beverages and branded apparel. Its product lineup includes whole-bean and ground coffees, cold brew concentrates, K-cup pods and limited-edition small-batch offerings designed to appeal to active lifestyle and patriotic consumers. Founded in 2014 by U.S. The article "BRC Q4 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Packaged Coffee Growth: 31.1% growth for the year, with units up more than 22%. Fourth Quarter Packaged Coffee Growth: 34% growth compared to nearly 13% for the broader category. Net Revenue: Increased 2% year over year; 8% increase excluding non-recurring items. Wholesale Segment Growth: 5% year over year; 13% excluding non-recurring items. Direct-to-Consumer Revenue: Declined 5% for the year; slightly positive excluding 2024 loyalty benefit. Gross Margin: 32.1% in Q4, a decrease of 610 basis points year over year. EBITDA: Declined more than 40% for the year; fourth-quarter decline limited to 2%. Operating Expenses: Increased 1% year over year; decreased 7% excluding non-recurring items. Debt Reduction: Total debt reduced by more than $30 million in 2025. 2026 Revenue Growth Expectation: At least 7%, approximately $425 million. 2026 Gross Margin Expectation: Range of 34% to 36%. 2026 EBITDA Growth Expectation: At least 30% growth compared to $21.4 million in 2025. Warning! GuruFocus has detected 4 Warning Signs with BRCC. Is BRCC fairly valued? Test your thesis with our free DCF calculator. Release Date: March 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Packaged coffee grew 31.1% in 2025, significantly outpacing the broader category growth rate. Retail distribution expanded, with ACV increasing nearly 8 points to 54.9% in 2025. Direct-to-consumer business stabilized and returned to growth in the fourth quarter. Energy distribution expanded to approximately 22% ACV across nearly 20,000 retail doors. BRC Inc exceeded its goal of eliminating $25 million in medical debt for veterans, achieving over $34 million. Gross margins declined by 6.5 points in 2025 due to higher commodity costs and tariffs. EBITDA declined more than 40% for the year, despite operating efficiency gains. Coffee inflation and tariffs impacted gross margins by approximately 420 basis points in Q4. Ready-to-drink coffee faced challenges in the convenience channel, which represents a significant portion of sales. Direct-to-consumer revenue declined 5% for the year, despite a slight positive excluding the 2024 loyalty benefit. Q: Can you elaborate on the land-and-expand strategy and its impact on SKU expansion across retail networks? A: Chris Mondzelewski, CEO, explained that the land-and-expand strategy is central to their growth model. The approach involves introducing two to three high-performing items per segment and expanding shelf space as performance improves. The strategy has led to significant SKU expansion, with some retailers carrying up to 20 items. Core items continue to drive the highest velocities, and innovation will align with consumer preferences. Q: What lessons have been learned from the energy drinks launch, and what are the plans for 2026? A: Chris Mondzelewski noted that the first year was a learning experience, with a regional launch strategy. The focus remains on the core coffee business, but energy drinks are seen as a significant opportunity due to consumer overlap. In 2026, the company plans to maintain a regional focus, particularly in areas where the brand is strong, and will work with partners to drive success without diverting resources from coffee. Q: How will lower coffee bean costs impact industry prices, and what has been the response to recent price increases? A: CFO Matthew Amigh stated that coffee prices have moderated recently, with an 18% decrease in forward-curve months. The company implemented two price increases in 2025, with low elasticity observed. They will continue to monitor market performance and adjust as needed. Q: Do current military actions affect your marketing messaging or priorities? A: Chris Mondzelewski emphasized that the brand's focus on veterans remains unchanged. The company has always centered its marketing and community support around veterans, and current military actions reinforce the importance of backing veterans daily. Q: What are the company's priorities and targets as it enters 2026? A: The management team highlighted their focus on disciplined growth, margin expansion, and cash generation. They have set clear priorities and measurable targets, with a strong brand and growing distribution providing financial flexibility. Execution will remain a key focus moving forward. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Tuesday, March 3, 2026 at 8:30 a.m. ET Executive Chairman — Evan Hafer Chief Executive Officer — Chris Mondzelewski Chief Financial Officer — Matthew Amigh Head of Investor Relations — Matthew McGinley Need a quote from a Motley Fool analyst? Email [email protected] Chris Mondzelewski: Thanks, Matt. Good morning, everyone. Joining me today are Evan Hafer, our Executive Chairman, Matthew Amigh, our Chief Financial Officer, and Matthew McGinley, our Head of Investor Relations. 2025 was a year of measurable operating progress for BRC Inc., led by strong performance in packaged coffee. For the year, packaged coffee grew 31.1%, approximately three times the broader category growth rate, with units up more than 22% and share up 60 basis points in bagged coffee. That momentum accelerated in the fourth quarter, as distribution expansion translated into measurable improvements in productivity and share with key retail partners. The combination of expanded doors and stronger per-SKU productivity materially strengthened our retail position as we exited the year. We also advanced our ready-to-drink and energy platforms, securing incremental distribution and broadening our presence in priority accounts. These gains reflect disciplined commercial execution and reinforce the strength of the brand. 2025 presented a challenging operating backdrop. Coffee markets remained volatile, and consumers faced ongoing pressure. Throughout the year, we remained disciplined on pricing, tightly managed expenses, and aligned resources with the highest return opportunities across the portfolio. We also took meaningful steps to streamline our platform. Our asset base is leaner and more focused, with capital and talent directed towards initiatives that support durable, profitable growth. As we look ahead, the actions taken in 2025, combined with expanding distribution, improving shelf productivity, and moderating cost pressures, position us for a return to strong EBITDA growth in 2026. We are encouraged by the progress we have made and confident in the trajectory of the business as we enter the new year. Moving to Slide 7. Momentum in packaged coffee accelerated as we exited the year. In the fourth quarter, our packaged coffee business grew 34% compared to nearly 13% growth for the broader category. That performance translated into continued share gains. In bagged coffee, market share reached 3.3% nationally, up 60 basis points year over year, while pods increased to 2.2% nationally, up 40 basis points. Importantly, these gains were supported by improving shelf productivity, not just expanded distribution. Velocity strengthened throughout the year and reached parity with the overall bagged coffee category in grocery, despite pricing approximately 40% above the category average. We are seeing stronger consumer takeaway and repeat purchase, reinforcing sustained velocity improvement. Achieving category-level velocity at a premium price point reinforces the strength of consumer demand and the durability of our retail position as we enter 2026. Move to Slide 8, please. Our land-and-expand strategy continues to prove itself as a scalable and repeatable growth engine. We begin with a focused assortment, entering retailers with a concentrated set of high-performing items designed to demonstrate the value of the brand to the category. Once performance is established, we earn the right to broaden the assortment by adding incremental items to the shelf. On the land side, we delivered another year of retail expansion. Distribution reach increased nearly eight points in 2025, bringing ACV to 54.9%. That steady expansion reflects continued success in adding new retail doors and strengthening our national presence. The expand component is working as well. Improving velocity translated to directly higher shelf productivity, which supported broader assortments and additional shelf space. On average, grocers added two incremental BRC Inc. items in 2025 alone. And since entering grocery three years ago, we have nearly tripled our shelf presence. This disciplined execution is translating into greater shelf visibility, stronger retail economics, and deeper long-term retailer commitment to the brand. Slide 9. Looking at the broader category, much of the reported growth continues to be price-led, while underlying unit trends remain muted, with higher shelf pricing driving dollar expansion across legacy brands. Our performance looks different. The majority of our growth is volume-driven. Units increased more than 22% in 2025, reflecting real consumer takeaway rather than pricing actions. That distinction matters. We are adding households, increasing purchase frequency, and expanding share within existing accounts. As distribution expands and repeat purchase strengthens, our growth is becoming broader and more sustainable. In a category heavily influenced by price, our gains are rooted in unit expansion, repeat purchase, and stronger shelf productivity. Those dynamics reinforce durable top-line momentum and operating leverage. As volume scales, we expand gross profit dollars and improve fixed cost absorption, while delivering strong productivity and economics to our retail partners. Packaged coffee is firmly established as the core economic engine of the business, and we see meaningful runway for continued growth. Turning to Slide 10. Our direct-to-consumer business stabilized in 2025 and returned to growth in the fourth quarter. While retail continues to be the primary driver of top-line growth, direct-to-consumer remains an important strategic channel. Our owned website allows us to engage directly with our most loyal customers, gather insight and feedback, and introduce new products and messaging. Our approach is not to force traffic to a single destination, but to ensure BRC Inc. products are available wherever consumers choose to shop. We saw improvement on our core website during the year, and at the same time continued growth across third-party marketplaces. Those platforms are extending our reach, supporting repeat purchase, and complementing retail distribution. Taken together, direct-to-consumer is operating from a more stable base and contributing positively to the broader business. Slide 11. In ready-to-drink coffee, performance in 2025 varied by channel. We expanded distribution, increasing ACV by 10 points, to 55.9%. The strongest performance was in grocery, mass, and dollar. We outperformed the category for the full year. The category remained under pressure in convenience, which represents more than half of tracked ready-to-drink sales. As c-store trends weakened, fourth quarter results reflected that softness. We are not assuming a category recovery and are focused on the factors we can control. That means prioritizing our top retail partners, improving shelf productivity, and using innovation as a disciplined growth lever. New flavors in our cold brew platform are intended to drive incremental takeaway and improve velocity within our existing distribution footprint. Packaged coffee remains our core economic engine. RTD is an important adjacency, and we are scaling it deliberately with a focus on returns and disciplined execution. Slide 12. In energy, distribution expanded in line with our launch year plan, reaching approximately 22% ACV across nearly 20,000 retail doors in 2025. As we move into 2026, the focus shifts from launch execution to scaling the business in the right markets, with the right partners, and with a clear emphasis on where we can win. That discipline continues to guide our approach. We are prioritizing geographies and channels where we can drive velocity and returns rather than pursuing distribution for its own sake. This return-focused strategy positions the energy business to scale responsibly and contribute to the overall growth of the BRC Inc. brand. Before I hand it off to Matt, I want to briefly touch on how we continue to show up for the communities we serve. Last quarter, we committed to eliminate $25,000,000 in medical debt for veterans through Operation Debt of Gratitude, in partnership with Born Primitive and ForgiveCo. I am proud to say we exceeded that goal, wiping out more than $34,000,000 in medical debt and helping approximately 15,000 veterans enter 2026 free from that burden. We also helped feed more than 1,000 military families through Operation Homefront during the holidays and continued supporting the Special Operation Warrior Foundation and other veteran and first responder organizations across the country. With members of our community and even our families currently deployed in the Middle East and around the world, we remain committed to supporting them and those waiting for them at home. That same commitment will guide us as we move into 2026 and honor America's 250th birthday through initiatives that celebrate service and expand programs that create meaningful impact for veterans and their families. Supporting this community is not a campaign for us. It is foundational to who we are and how we grow. I will now turn it over to Matthew Amigh. Matthew Amigh: Thank you, Manz. I will begin my remarks on Slide 14. For the full year, net revenue increased 2% year over year. Excluding the impact of the 2024 loyalty rewards accrual change and other nonrecurring items in both periods, net revenue increased 8%, primarily driven by wholesale growth. Our wholesale segment, which sells packaged coffee and ready-to-drink beverages to retailers, grew 5% year over year, or 13% excluding nonrecurring items, reflecting stronger velocity, expanded distribution across both doors and items, and continued contribution from Black Rifle Energy. Sales to mass merchants increased double digits and grocery sales more than doubled. Direct-to-consumer declined 5% for the year, but was slightly positive excluding the 2024 loyalty benefit. With the stabilization achieved in 2025, direct-to-consumer is no longer a material offset to growth elsewhere in the business, allowing wholesale performance to more clearly drive consolidated results. Moving down the P&L, operating efficiency gains in 2025 from restructuring actions and reallocating resources towards higher return initiatives partially offset higher commodity costs and tariffs. For the year, gross margins declined 6.5 points and EBITDA declined more than 40%. As shown on Slide 15, the operating expense reductions we implemented combined with improving revenue limited the fourth quarter EBITDA decline to just 2%. In the fourth quarter, revenue increased 7% year over year, or 11% excluding nonrecurring revenue in both periods. Wholesale revenue increased 8% year over year, or 16% excluding nonrecurring items. Direct-to-consumer revenue increased 7%, marking the first quarter of growth in this segment in more than three years. Turning to Slide 16. We provide a detailed view of the year's gross margin drivers and the path forward. Gross margin was 32.1% in the fourth quarter, a decrease of 610 basis points year over year. One-time items, including start-up costs associated with onboarding a new direct-to-consumer fulfillment provider and a non-cash impairment of coffee extract related to a formulation change, pressured margins by 270 basis points, partially offset by 170 basis points of productivity and favorable mix. Coffee inflation and tariffs, net of pricing, were the single largest headwind, impacting gross margins by approximately 420 basis points in the fourth quarter and 350 basis points for the full year. Coffee prices nearly doubled from 2024 to 2025 and remain elevated due to weather-related yield declines and tariff-driven shifts in global supply. U.S. tariffs on coffee were fully removed in November, and improved harvest expectations have contributed to a recent price moderation. Arabica prices peaked near $3.75 in early January and have since declined into the high $2 range. While the futures curve implies continued normalization through 2026 and 2027, we expect some residual impact from elevated coffee costs and previously capitalized tariffs to flow through inventory in 2026. However, pricing actions, productivity initiatives, and favorable mix are expected to offset those pressures and stabilize gross margins relative to 2025. Longer term, we remain confident in our ability to reach our 40% gross margin target. The path is driven primarily by structural levers within our control, including product and channel mix, trade efficiency, and supply chain productivity. The green coffee forward curve has recently shown downward pricing pressure, which would accelerate progress. That said, reaching our long-term target does not rely on additional pricing action. Slide 17. Operating expenses increased 1% year over year on a reported basis. Excluding nonrecurring items related to our 2020 restructuring and certain legal expenses, operating expenses were lower by 7%. Marketing expense decreased 10%, reflecting lower nonworking spend and a reallocation towards programs more directly tied to revenue. Salaries, wages, and benefits were flat despite a 15% reduction in headcount, primarily due to a lapping of a $3,000,000 incentive compensation reduction in the prior year. General and administrative expenses increased 28% in the quarter and reflect a significant portion of these nonrecurring items. Excluding those items, general and administrative expenses decreased 25%. Fourth quarter performance demonstrates the operating leverage now embedded in the model as revenue improves against a more disciplined cost structure. Turning to the balance sheet. Through the equity offering completed in July, we repaid the outstanding balance of our asset-based lending facility and reduced total debt by more than $30,000,000 in 2025. We ended the year with $39,000,000 of debt outstanding, representing approximately 1.8x net debt to 2025 adjusted EBITDA and approximately 1.4x adjusted EBITDA based upon our 2026 guidance. At the end of the year, we had more than $50,000,000 of total liquidity, including cash on hand and available capacity under our credit facility. Cash used in operating activities was approximately $10,000,000 in 2025, with roughly $9,000,000 attributable to working capital normalization. We do not expect working capital to be a comparable use of cash in 2026. As previously disclosed, we received notice from the New York Stock Exchange regarding the minimum price requirement. The notice has no immediate impact on our listing, operations, or financial reporting obligations. We have the standard cure period and are focused on executing our business plan to regain compliance. Our focus remains on disciplined execution and driving long-term shareholder value. Moving to the outlook on Slide 19. In 2026, we expect revenue growth of at least 7% to approximately $425,000,000. This outlook reflects current visibility into demand trends, pricing already in market, and distribution gains that are secured and operationally in place while incorporating category volatility within our ready-to-drink portfolio. Our guidance is grounded in confirmed commercial drivers and does not assume incremental distribution wins or other actions that remain pending. As we continue executing against our 2026 priorities, we expect to incorporate incremental gains through our regular quarterly updates. From a quarterly cadence standpoint, we expect revenue dollars to build sequentially through the year, consistent with the progression experienced in 2025. In the first quarter, we expect revenue growth of at least 10% compared to 2025, reflecting current momentum in the business and the early-year benefit of distribution gains implemented in late 2025. We expect gross margins in the range of 33% to 35% in 2026 compared to 34.6% in 2025. The range reflects continued execution progress and external variables that remain dynamic. We benefit from the annualized impact of pricing actions taken in 2025, continued productivity initiatives across our supply chain, and favorable channel and product mix. At the same time, coffee prices have moderated in recent months but remain above the 2025 average cost, which limits the pace of our margin expansion. We also expect residual tariff impacts early in 2026 as inventory produced under prior tariff rates flows through cost of goods sold. In addition, we are making incremental trade and slotting investments to support distribution expansion, which will weigh modestly on gross margins as we scale into new doors. We expect at least 30% growth in EBITDA in 2026 compared to the $21,400,000 generated in 2025. The primary drivers of the growth are higher gross profit dollars from revenue expansion and a reduction in operating expenses. We expect operating expenses to decline year over year, driven largely by lower general and administrative expenses as cost savings actions implemented in 2025 continue to benefit us in 2026. Marketing expense is expected to grow in line with sales, while labor expense growth should remain muted. From a cadence standpoint, we expect EBITDA will remain second-half weighted. In 2025, approximately 15% of the full-year EBITDA was generated in the first half. In 2026, we expect the first half EBITDA to represent roughly one-quarter to one-third of the full year, with the balance generated in the back half of the year as revenue scales and leverage increases. While we are not providing formal cash flow guidance, converting revenue growth into higher profit margins and improved working capital efficiency is a core focus. We will continue to invest where appropriate to support growth, but at capital expenditure levels consistent with prior year, we expect to be cash flow generative. We have simplified the model. As we look ahead, the trajectory of the business is clear. We strengthened our cost structure and improved the underlying economics of our company. The actions we took in 2025 are translating to higher profitability, tighter expense discipline, and a stronger balance sheet entering 2026. We are carrying real momentum into the year, particularly in coffee. Pricing, distribution gains, and productivity initiatives are working together to expand gross profit dollars and improve returns on invested capital. At the same time, we are converting that growth into EBITDA expansion and operating cash flow, reinforcing financial flexibility. Our focus remains consistent: disciplined execution, operational efficiency across the entire income statement, structural efficiency within operating expenses, and thoughtful capital allocation. We believe that combination positions us to further strengthen the business and drive durable, profitable growth in 2026 and beyond. Operator, we will now open for questions. Operator: Thank you. Our first question is from Sarang Vora with Telsey Advisory Group. Please proceed. Sarang Vora: Great, thank you, and first of all, congratulations. It is good to see the momentum coming back. My first question is on the coffee side. The land-and-expand strategy that you talked about seems to be really catching up. You are seeing momentum in the business. One of the main drivers I feel is expansion of SKUs across your retail network. Can you help us understand, you know, I see the average number of SKUs is about five to six right now across the retail doors. Can you help us understand where it is at some of the higher level, which retailers you see at the higher level penetration, and then any color you can share in terms of bagged coffee or some of the newer products like K-cups or cold brew, how the performance of some of these other coffee products has been as well? Chris Mondzelewski: Hey, Sarang. It is Chris. Thanks very much for the question. Yes, so our land-and-expand strategy is the core of our growth model, and it is working quite well. So just to reiterate, the strategy is to put two to three of our best items per segment, in bags and pods, drive those to strong performance, then as we move into that upper half of velocity with that particular retailer, generate shelf expansion off of that. To answer your question directly, we have absolutely seen the expansion you quoted. We mentioned that in the upfront comments. We have nearly tripled our number. I am not going to give you specific retailer names, but if we think about a number of the retailers that launched well, at our largest retailer, we have 20 items on shelf. That may not be a comparative across grocery, but in a number of our grocery retailers that launched shortly thereafter, we have 14 items, 12 items, and 8 items as three examples of a national retailer and two large regional retailers. The reality is that we believe that continuing to drive items up into that 12 to 15 range is absolutely achievable for us. We have demonstrated that. And to answer your final question on which items are performing well, it continues to be our core items that drive the highest velocities. We are going to continue to innovate and make sure that we provide items that align with where we know consumers' preferences are moving. We are not going to talk specifically about any of the innovation items that we are launching this year. They have not yet hit the shelf. But like every year, we are going to bring new news to our retailers. We believe heavily in driving new items in order to help drive that category expansion. Sarang Vora: That is great, and it is really good to see the momentum coming back on the coffee side. My second question is on the energy side. We are almost a year into the launch of the energy drinks. Can you share any lessons learned over the year and also a little more color on the plans for 2026, like markets that you are trying to expand, flavor profiles, changes in SKUs? Any color you can share on the energy side would be helpful. Thank you. Chris Mondzelewski: Sure. It was a great learning year for us. We were pleased with the first year of execution. As we have talked about, it was a regional launch position for us in the first year. We want to continue to be very careful that we do not put more resources against energy than our core coffee business, with the kind of momentum we have in coffee. That is obviously the first dollar spent for us. We continue to believe in the potential of energy because of the size of that category and the dynamics of that category, and even more importantly, because nearly two-thirds of our consumers are already drinking energy as part of their routine. So we know that it is a tight fit to our consumer base. To answer your question, in the first year we did a regional launch as we talked about. We had markets that were very successful for us where we were able to drive from three to five units on shelves at a time and see the velocities respond around that. We had other markets where we had less success. Not surprisingly, similar to any other CPG business, certainly businesses in the cold, where we get better placement, better distribution, and couple the marketing programs around that, we see the best success. The key piece for us is that we have seen markets with very high success, and we have seen our retail chains with very high success. I am not going to say which ones. We have not given guidance on that. As we go into 2026, the plan very much revolves around that. Rather than saying we are going to continue to drive our ACV to a significantly higher level, which would cost us a lot more in marketing dollars to support that, we are going to keep a regional focus. We like to talk about the smile states of the U.S., which is where a lot of our brand strength is. I am not going to talk to the specific markets. We will continue to be in the regions that we do best in as BRC Inc., and we will focus with our partners KDP on very strong execution, building off of our learnings in 2025, and continue to evaluate what is the best overall model for us from a marketing and commercialization standpoint to drive success with that item. Again, we will be careful that we do not ever pull more resources than we want to from the coffee business. Coffee is core for us. Energy is an incredible opportunity for us that we want to continue to prepare for the future on. Sarang Vora: That is great and good luck ahead. Thank you. Operator: Our next question is from Daniel William Biolsi with Hedgeye. Please proceed. Daniel William Biolsi: I was wondering if you could share what you expect lower coffee bean costs will impact for the industry prices on the shelf. What have you seen with your latest price increase? Matthew Amigh: Sure, Dan. This is Matt. What we are seeing right now is that coffee nearly doubled over the last two years, and in 2025, we were sitting at about $2.83, and in 2026, we expect it to increase slightly. We are seeing a pullback in the commodities over the last, I would say, 20 trading days, where the price per pound of coffee has gone down on average about 18% for the forward curve months. So we are seeing a moderation there. We have taken two price increases in 2025. One was in Q3 and then the second one just settled in late Q4. Both of those price increases were in the upper single-digit ranges. The consumer response from that is in line with expectations, with relatively low elasticity, sitting at less than 0.5 elasticity factor. Everything is going according to plan with the price increases we see in market. We will continue to stay close to how the market forms, how our elasticities look, how trade promotion looks, and we will adjust as needed. Daniel William Biolsi: Thank you. Unknown Analyst: I know you think about this a lot more than most of us, but do the current actions by our military change your messaging or your priorities in terms of marketing during these times? Chris Mondzelewski: No. The reality is that this brand, from its inception when the founders first came up with BRC Inc., was always centered around veterans. They were at the time active in the military service. We have always had veterans at the core of everything that we do when it comes to our give-back to the community, which I talked about earlier, as well as how we market the brand. Obviously, all of the troops overseas are in our thoughts and prayers like everyone else out there, but it does not change anything we are doing. We have been focused on veterans from the very beginning, and times like this are just a great reminder to everyone in America as to why we need to be backing our veterans every single day, because they are constantly put in harm's way. We all owe a real debt of gratitude to them for that. Operator: There are no further questions at this time. I would like to hand the call back over to management for closing remarks. Chris Mondzelewski: Let me close by saying we are focused on disciplined growth, continuing to expand our margins, and generating cash. The actions we have taken this year are the foundation for the business as we enter 2026. We have very clear priorities, very measurable targets, and our brand is stronger than ever. Distribution is growing, and we have greater financial flexibility than at any other point in time in the company. Execution will continue to be our focus going forward. We appreciate everyone calling in. We appreciate your continued support and look forward to updating you next quarter. Operator: Thank you. This will conclude today's conference. You may disconnect at this time, and thank you for your participation. Before you buy stock in BRC, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and BRC wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. BRC (BRCC) Q4 2025 Earnings Call Transcript was originally published by The Motley Fool