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- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

BRCC

BRCC fundamentals

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