BRC Inc. (BRCC) Market Cap
BRC Inc. has a market capitalization of $309M.
Financials based on reported quarter end 2025-12-31
Price: $0.98
▲ 0.06 (6.14%)
Market Cap: 309.04M
NYSE · time unavailable
CEO: Christopher Mondzelewski
Sector: Consumer Defensive
Industry: Packaged Foods
IPO Date: 2022-02-10
Website: https://www.blackriflecoffee.com
BRC Inc. (BRCC) - Company Information
Market Cap: 309.04M · Sector: Consumer Defensive
BRC Inc., through its subsidiaries, purchases, roasts, and sells coffee, coffee accessories, and branded apparel. The company also produces media content; podcasts; and digital and print journals, as well as sells coffee brewing equipment, and outdoor and lifestyle gear. It supports active military, veterans, and first responders. The company offers its products through convenience, grocery, drug, and mass merchandise stores; outdoor, do it yourself, and lifestyle retailers; and company operated and franchised Black Rifle Coffee retail coffee shop locations, as well as through e-commerce. BRC Inc. was founded in 2014 and is based in Salt Lake City, Utah.
Analyst Sentiment
Based on 11 ratings
Analyst 1Y Forecast: $2.25
Average target (based on 3 sources)
Consensus Price Target
Low
$3
Median
$3
High
$3
Average
$3
Potential Upside: 156.2%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"BRCC reported revenue of $112.74M for the year ending December 31, 2025, but faced a net income loss of $3.21M, resulting in a negative EPS of -$0.028. With total assets standing at $209.24M and total liabilities of $141.23M, the company has a solid equity base of $68.02M and net debt of $25.39M. However, cash flow remains a concern, as operating cash flow was negative at -$8.72M, leading to an overall free cash flow loss of $9.41M. The company's stock has endured a significant decline, with a 1-year price change of -63.37%, reflecting broader market challenges. Despite no dividends paid, the potential for recovery hinges on executing growth strategies effectively and improving cash flow management."
Revenue Growth
Positive revenue of $112.74M shows some growth potential.
Profitability
Negative net income and EPS indicate ongoing profitability challenges.
Cash Flow Quality
Negative cash flow highlights serious operational weaknesses.
Leverage & Balance Sheet
Adequate equity cushion but existing debt could be concerning.
Shareholder Returns
Significant stock price decline reflects poor shareholder returns.
Analyst Sentiment & Valuation
Target price suggests potential upside, but sentiment remains cautious.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
So what: Management is clearly pitching a margin-and-EBITDA recovery in 2026 powered by packaged coffee volume/velocity and land-and-expand productivity. The hard numbers back part of this—Q4 EBITDA decline narrowed to -2%, and 2026 guidance calls for at least +7% revenue to ~$425M, gross margin of 33%-36%, and at least +30% EBITDA growth vs $21.4M—along with the explicit expectation that working capital won’t be a cash drag in 2026. However, the transcript also shows the key operational hurdle: coffee inflation plus tariffs still cost ~420 bps of Q4 gross margin and ~350 bps for the full year, with residual tariff/inventory flow-through into 2026. In the Q&A, analysts focused on shelf/SKU penetration and pricing elasticity; management avoided retailer/item-name specifics and provided only directional SKU ranges while reframing energy as a careful, regional, KDP-partner execution—implicitly acknowledging variable rollout risk. Overall tone is optimistic, but the margin math keeps the story cautious.
Growth Catalysts
- Packaged coffee momentum: packaged coffee grew 34% YoY in Q4; +31.1% for FY 2025
- Land-and-expand driving productivity and share: shelf productivity improvements translated into retail share gains in Q4
- Shelf productivity / velocity parity: Q4 velocity reached parity with category in grocery despite ~40% higher pricing vs category average
- RTD and energy distribution scaling with controlled execution (returns-focused)
Business Development
- Retail assortment expansion with land-and-expand model (largest retailer cited at 20 items on shelf; other grocery retailers cited at 14, 12, and 8 items—names not provided)
- Energy execution plan with KDP (referenced as partner for 2026 execution)
Financial Highlights
- FY net revenue: +2% YoY; +8% excluding 2024 loyalty rewards accrual change and other nonrecurring items
- Q4 EBITDA decline limited to -2% (despite FY EBITDA decline >40%) due to restructuring expense reductions and improving revenue
- FY gross margin decline: -650 bps
- Q4 gross margin: 32.1%, down 610 bps YoY
- Q4 gross margin headwinds: one-time items -270 bps; coffee inflation & tariffs -420 bps
- Full-year gross margin headwinds: coffee inflation & tariffs -350 bps
- Coffee/tariff specifics: U.S. tariffs on coffee fully removed in November; residual tariff/inventory cost flow-through expected in 2026
- Pricing & elasticity: two price increases in 2025 (Q3 and late Q4) in upper-single-digit ranges; consumer elasticity <0.5
- 2026 guidance: revenue +at least 7% to ~$425M; gross margin 33% to 36% (vs 34.6% in 2025)
- 2026 guidance: at least +30% EBITDA growth vs $21.4M generated in 2025; EBITDA seasonality expected to be second-half weighted (Q1 half expected to be ~25% to 33% of full-year EBITDA)
Capital Funding
- July equity offering used to repay asset-based lending facility balance and reduce total debt by >$30M in 2025
- Debt ending 2025: $39M outstanding
- Liquidity ending 2025: >$50M total liquidity (cash + credit facility capacity)
- Operating cash use: ~$10M in 2025 (work-cap normalization ~$9M); no comparable working capital use expected in 2026
Strategy & Ops
- Land-and-expand mechanics: start with 2-3 best items per segment; then broaden assortment as upper-velocity is achieved (management expects 12-15 item shelf penetration is achievable)
- Direct-to-consumer (DTC): DTC declined -5% for the year but grew +7% in Q4; stabilized enough that DTC is no longer a material offset to wholesale growth
- Energy scaling approach: keep regional focus and avoid pulling resources from core coffee; avoid ACV expansion at the cost of heavier marketing spend
- Cost structure actions: restructuring and reallocations drove operating efficiency; excluding nonrecurring items, operating expenses were -7% YoY; marketing expense -10% YoY; headcount reduced 15%
Market Outlook
- 2026 revenue growth: at least 7% to ~$425M
- 2026 gross margin: 33% to 36%
- 2026 EBITDA growth: at least 30% vs $21.4M (i.e., >= ~$27.8M)
- Q1 2026 revenue growth: at least 10% vs 2025 (early-year benefit of late-2025 distribution gains)
Risks & Headwinds
- Coffee inflation and tariff-related cost pressure: in Q4 gross margin impacted by ~420 bps and ~350 bps for full year (net of pricing)
- Residual elevated coffee costs: residual impact from elevated coffee costs and previously capitalized tariffs expected to flow through inventory in 2026
- RTD convenience channel softness: convenience is >50% of tracked RTD sales; c-store trends weakened, driving Q4 softness
- Energy execution variability by placement/marketing: some markets successful (3-5 units on shelf leading to good velocity) while others underperformed without stronger placement/distribution/marketing
- NYSE minimum price requirement notice: has no immediate impact but company focused on executing to regain compliance
- Strategic constraint: risk of over-allocating resources to energy vs core coffee; management explicitly plans to prevent that
Sentiment: MIXED
Note: This summary was synthesized by AI from the BRCC Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.