What is the revenue and EPS growth rate for BRC year over year?

What is the market's earnings forecast for BRC next quarter?

What does BRC do and what are its main business segments?

What is BRC's gross profit margin?

What is BRC's latest dividend and current dividend yield?

What factors drove the changes in BRC's revenue and profit?

What were the key takeaways from BRC’s earnings call?

What were the key takeaways from BRC's earnings call?

- **Revenue Growth**: 3% YoY, outpacing U.S. coffee category (+13.2%) with 36.7% sales growth and 54% ACV across channels.
- **Margin Management**: 36.9% gross margin in Q3, targeting 35%+ for 2025 despite $3.30/lb green coffee inflation.
- **Energy Expansion**: 20,000 retail locations, 22% ACV in C-stores, disciplined regional rollout to 2026.
- **Financial Discipline**: 9% expense reduction, $5.6M free cash flow, $40M equity raise to strengthen liquidity.
- **Long-Term Vision**: 10-15% CAGR to 2027, 40%+ gross margin by 2027, $8M+ annual cost savings.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue increased 3% YoY, driven by 5% growth in the Wholesale segment (packaged coffee and RTD beverages) and 9% adjusted growth excluding one-time items. Black Rifle outperformed the U.S. coffee category (+13.2%) with 36.7% sales growth, achieving 48% ACV in grocery and 54% across all channels.
- **Market Expansion**: Expanded distribution in grocery (+6% ACV) and RTD (+7% ACV), with velocity gains of over 7% despite a 70% increase in SKUs. Energy drink distribution reached 20,000 retail locations, targeting 22% ACV in convenience stores.
- **Digital Strategy**: Direct-to-consumer sales declined 4% YoY due to timing shifts, but stabilized through third-party marketplaces. Digital initiatives included website upgrades, subscription flexibility, and loyalty programs to deepen customer engagement.
- **Sustainability**: Committed $25 million to forgive medical debt for veterans, reflecting brand mission alignment with growth.

**【CFO Financial Commentary】**
- **Top Line**: Q3 net revenue $110 million (excluding one-time items), with 35%+ gross margin guidance for 2025. Adjusted EBITDA rose 19% to $8.4 million, or 8.4% of sales.
- **Margin Pressures**: 520bp gross margin decline due to trade investments, green coffee inflation, and tariffs, partially offset by 170bp productivity gains. Sequential improvement from 35% in H1 to 36.9% in Q3.
- **Expense Management**: Operating expenses down 9% YoY, driven by 14% marketing reduction and 13% salary/wage cuts. Generated $5.6 million free cash flow and raised $40.25 million via equity.
- **2026 Outlook**: Target 10-15% CAGR, 40%+ gross margin by 2027, with $8-10 million annualized cost savings from operational improvements.

**【Q&A Highlights】**
- **Energy Drink Progress**: Launched in 12 markets with KDP, seeing strong velocity in C-stores and mass retailers. 2026 expansion will be disciplined, prioritizing profitability over scale.
- **Green Coffee Risk**: 50% of 2026 needs hedged, but $3.30/lb forward curve suggests ongoing inflation headwinds.
- **Marketing Strategy**: Shift to owned media (partnerships with UFC, Dallas Cowboys) and in-store activations, reducing agency spend. Maintain marketing as % of sales while focusing on ROI.
- **Distribution Goals**: RTD targeting 70%+ ACV in convenience, energy drink focusing on regional expansion. Cold distribution prioritized for RTD to drive sales growth.


BRC Inc. (BRCC) Q3 2025 Earnings Call Transcript

Direct to Consumer

Wholesale

Outpost

BRCC

BRCC fundamentals

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