Core Viewpoint - BellRing Brands, Inc. is under investigation for potential violations of federal securities laws, with concerns regarding the sustainability of its sales growth driven by temporary trade inventory loading rather than genuine consumer demand [1][2]. Group 1: Company Overview - BellRing Brands operates in the convenient nutrition category, primarily known for its brands Premier Protein and Dymatize, which offer ready-to-drink protein shakes and powders [2]. - The company reported that Premier Protein achieved an all-time high in household penetration, indicating strong demand and growth across all channels due to distribution expansion and promotional activities [2]. Group 2: Sales and Stock Performance - On May 5, 2025, BellRing disclosed that several key retailers reduced their weeks of supply, which would negatively impact growth in Q3 2025. Following this announcement, the stock price dropped by $13.96, or over 18%, from $77.34 to $63.38 per share [3]. - On August 4, 2025, the company announced disappointing quarterly consumption figures for Premier Protein RTD Shakes, which aligned more closely with shipments than expected. This led to a significant stock decline of $17.46, nearly 33%, from $53.64 to $36.18 per share [4].

Core Viewpoint - BellRing Brands, Inc. is under investigation for potential violations of federal securities laws, with concerns regarding the sustainability of its sales growth driven by temporary trade inventory loading rather than genuine consumer demand [1][2]. Group 1: Company Overview - BellRing Brands operates in the convenient nutrition category, primarily known for its brands Premier Protein and Dymatize, which offer ready-to-drink protein shakes and powders [2]. - The company reported that Premier Protein achieved an all-time high in household penetration and strong demand across all channels, attributed to distribution expansion and promotional activities [2]. Group 2: Sales and Stock Performance - On May 5, 2025, BellRing disclosed that several key retailers reduced their weeks of supply, which would negatively impact growth in Q3 2025. Following this announcement, the stock price dropped by $13.96, or over 18%, from $77.34 to $63.38 per share [3]. - On August 4, 2025, BellRing announced disappointing quarterly consumption figures for Premier Protein RTD Shakes, leading to a further decline in stock price by $17.46, nearly 33%, from $53.64 to $36.18 per share [4].

Core Insights - BellRing Brands is currently under investigation for potential violations of federal securities laws following significant stock price declines related to its earnings reports and customer inventory management decisions [1][2][3] Financial Performance - In the second quarter of 2025, BellRing Brands indicated that customers were optimizing inventories, leading to a projected sales growth slowdown to "low-single-digits" for the third quarter, resulting in a nearly 19% drop in stock price [2] - The company reported its third fiscal quarter 2025 results on August 4, 2025, narrowing its fiscal year 2025 net sales outlook to between $2.28 billion and $2.32 billion, and Adjusted EBITDA to between $480 million and $490 million, reflecting growth of 14%-16% and 9%-11% respectively over fiscal year 2024; however, this news caused the stock price to fall by more than 32% [3]

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1] Group 1: Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1] Group 2: Market Focus - The investment strategy encompasses markets in the US, Canada, and Europe, indicating a broad geographical focus for potential investment opportunities [1]

Core Viewpoint - Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws involving BellRing Brands, Inc., focusing on whether the company and its executives made false or misleading statements or failed to disclose material information to investors [1] Company Overview - BellRing Brands is a consumer packaged goods holding company that offers ready-to-drink protein shakes, other ready-to-drink beverages, protein powders, nutrition bars, and other products primarily under the Premier Protein and Dymatize brands [3] Recent Developments - On May 6, 2025, during its second quarter earnings call, BellRing Brands disclosed that certain customers were optimizing their inventories, which would slow sales growth in the third quarter to low-single-digits. Following this announcement, the company's stock price fell by nearly 19% [4] - On August 4, 2025, BellRing Brands reported that its net earnings for the third quarter of 2025 had decreased by more than 71% compared to the same period the previous year. The company also noted that gross profit and adjusted gross profit were affected by net input cost inflation and increased promotional activity, leading to a further decline in stock price of more than 32% [5]

Core Viewpoint - BellRing Brands, Inc. experienced a significant decline in share price, dropping over 30% on August 5, 2025, due to narrowed full-year guidance and weaker-than-expected earnings, attributed to increased promotional spending, input cost inflation, and a legal provision [2]. Group 1: Company Performance - The company's full-year guidance was narrowed, indicating potential challenges ahead [2]. - Earnings reported were weaker than anticipated, leading to investor concerns [2]. - The decline in share price follows a previous selloff in May, where the company reaffirmed its guidance but revealed that key retailers were reducing inventory levels, which could negatively impact Q3 shipments [2]. Group 2: Investor Actions - Block & Leviton is investigating BellRing Brands for potential securities law violations, encouraging investors who have lost money to contact them for recovery options [1][4]. - Investors who purchased BellRing Brands common stock and experienced a decline in share value may be eligible for recovery, regardless of whether they sold their investment [3]. Group 3: Legal and Whistleblower Information - Block & Leviton is considering filing an action to recover losses for investors, emphasizing their reputation as a leading securities class action firm [4][7]. - Whistleblowers with non-public information about BellRing Brands are encouraged to assist in the investigation, with potential rewards of up to 30% of any successful recovery from the SEC [6].

Core Insights - Holzer & Holzer, LLC is investigating whether BellRing Brands, Inc. complied with federal securities laws following the announcement of its third quarter 2025 financial results [1] - The financial results revealed a decrease in net earnings compared to the prior year and a narrowed fiscal year 2025 outlook for net sales and Adjusted EBITDA [1] - Following the announcement, the stock price of BellRing Brands experienced a decline [1] Financial Performance - BellRing Brands reported a decrease in net earnings for the third quarter of 2025 compared to the same period in the previous year [1] - The company has adjusted its fiscal year 2025 outlook, indicating a more conservative estimate for net sales and Adjusted EBITDA [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q __________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 1-39093 BellRing Brands, Inc. (Exact name of registrant as specified in its charter) (State or ...

Financial Data and Key Metrics Changes - Net sales for the third quarter were $548 million, an increase of 6% compared to the prior year [23] - Adjusted EBITDA was $120 million, with adjusted EBITDA margins at 22% [23] - Adjusted gross profit grew 3% year-over-year to $192 million, with a gross profit margin of 35.1%, down 130 basis points [25] Business Line Data and Key Metrics Changes - Premier Protein's net sales grew 6%, with both volume and pricing up 3% [23] - Premier Protein's consumption grew 19% in Q3, with volume gains contributing approximately 60% of this growth [14] - Dymatized net sales increased 5%, driven by strong growth in international and domestic RTD shake sales [24] Market Data and Key Metrics Changes - The ready-to-drink (RTD) shake category grew 16% in Q3, with 70% of that growth coming from volume [9] - Premier Protein holds a 25% market share in the RTD segment, making it the number one brand in the category [14] - The RTD category has a household penetration of 52%, indicating significant growth potential compared to mature categories [13] Company Strategy and Development Direction - The company aims to expand brand support, distribution, and innovation to drive future growth [16] - A new media campaign launched in December 2024 has shown strong ROI, with updated packaging aimed at appealing to younger consumers [16] - The company is focusing on increasing in-store investments through promotions, displays, and demos to reach new households [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the convenient nutrition category and Premier Protein's leadership role [40] - The company anticipates strong top-line growth of 14% to 16% for the fiscal year, with adjusted EBITDA growth of 9% to 11% [29] - Management noted that competition in the RTD category is beneficial, as it leads to increased shelf space and marketing efforts [12] Other Important Information - The company generated $40 million in cash flow from operations in Q3, with a year-to-date total of $92 million [28] - Share repurchases totaled 1.3 million shares at an average price of $65.07 per share, amounting to $83 million [28] - The company expects to face input cost inflation and promotional pressures impacting gross margins in the fourth quarter [31] Q&A Session Summary Question: Initial thoughts on fiscal 2026 - Management indicated it is too early to provide detailed guidance for fiscal 2026, but remains optimistic about long-term opportunities [38] Question: Why narrow guidance despite better-than-expected Q3? - Management explained that while Q3 consumption was slightly higher than expected, competitive pressures and inventory changes led to a cautious approach in guidance [44][47] Question: Long-term growth targets and market share expectations - Management reaffirmed confidence in long-term growth targets of 10% to 12%, emphasizing that growth can occur even without increasing market share [54] Question: Evaluation of single-serve opportunities and competition - Management highlighted the importance of high-traffic displays and merchandising to capture new customers, especially in the face of increased competition [63][65] Question: Expectations for promotional cadence amid competition - Management stated that promotional cadence has been consistent and will continue to align with consumer behavior, particularly during peak promotional periods [72] Question: Insights on innovation and new product lines - Management reported strong performance from the indulgence line, with about 50% of sales driven by category expansion, while almond milkshake performance is still being evaluated [111][113]

Financial Data and Key Metrics Changes - Net sales for the third quarter were $548 million, an increase of 6% compared to the prior year, with adjusted EBITDA at $120 million and adjusted EBITDA margins at 22% [23][28] - Adjusted gross profit grew 3% year-over-year to $192 million, with a gross profit margin of 35.1%, which decreased by 130 basis points due to input cost inflation and other factors [25][27] - Cash flow from operations was $40 million for the quarter and $92 million year-to-date, with net debt at $91 million and net leverage at two times [27][28] Business Line Data and Key Metrics Changes - Premier Protein's net sales grew 6%, with both volume and pricing up 3%, driven by distribution gains and promotions [23][24] - Premier Protein's consumption grew 19% in Q3, with volume gains contributing approximately 60% of this growth [14][23] - Dymatized net sales increased by 5%, supported by strong growth in international and domestic RTD shake sales [24] Market Data and Key Metrics Changes - The ready-to-drink (RTD) shake category grew 16% in Q3, with 70% of that growth coming from volume [8][9] - Premier Protein holds a 25% market share in the RTD segment, making it the number one brand in both the RTD and broader convenient nutrition categories [14][21] - Household penetration for RTD shakes reached 52%, indicating significant growth potential compared to more mature categories [13][21] Company Strategy and Development Direction - The company aims to leverage its leadership position in the RTD shake category, focusing on brand support, distribution expansion, and innovation [16][18] - Recent marketing campaigns and new packaging are designed to enhance brand visibility and appeal to younger consumers [16][17] - The company is committed to expanding its product offerings, including new lines such as indulgence shakes and almond milkshakes, to attract a broader consumer base [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the convenient nutrition category, citing strong retailer support and consumer trends [21][39] - The company anticipates continued strong consumption growth for Premier Protein, with expectations for high teens to low 20s growth in Q4 [30][39] - Management acknowledged challenges such as input cost inflation and increased competition but remains optimistic about the company's positioning and market share stability [32][39] Other Important Information - The company has initiated share repurchases, acquiring 1.3 million shares at an average price of $65.07 per share [27] - A settlement in principle was reached regarding legal matters related to the Joint Juice brand, which is expected to impact cash flow in fiscal 2026 [25][26] Q&A Session Summary Question: Long-term potential of the convenient nutrition category and Premier Protein's role - Management indicated it is too early to provide detailed guidance for fiscal 2026 but remains optimistic about long-term opportunities [36][39] Question: Why narrow guidance despite better-than-expected Q3 results - Management explained that minor fluctuations in consumption and competitive pressures led to the decision to narrow guidance rather than push towards the higher end [42][46] Question: Expectations for promotional cadence in light of increased competition - Management stated that promotional cadence has been consistent and will continue to align with historical patterns, particularly during peak promotional periods [70][73] Question: Insights on innovation and capital allocation priorities - Management highlighted strong performance from the indulgence line and ongoing efforts to expand the almond milkshake segment, while capital allocation priorities remain focused on debt reduction and share buybacks [116][118]