Core Viewpoint - BRC Group Holdings, Inc. will host its fourth quarter and full year 2025 earnings call on March 31, 2026, to discuss financial results and operational highlights [1][2]. Company Overview - BRC Group Holdings, Inc. (NASDAQ: RILY) is a diversified holding company involved in financial services, telecom, and retail, with investments in equity, debt, and venture capital [3]. - The company's financial services platform offers customized solutions for small cap and middle market companies, including capital markets, sales, trading, research, merchant banking, M&A, and restructuring [3]. - Wealth management services provided by the company include brokerage, investment management, insurance, and tax preparation [3]. - Telecom operations offer consumer and business services such as traditional, mobile, and cloud phone, internet and data, security, and email [3]. - Retail segments focus on mobile computing accessories and home furnishings [3]. - The company aims to generate shareholder value through opportunistic investments both within and outside its core financial services platform [3].

Core Viewpoint - BRC Group Holdings, Inc. is executing a series of transactions to reduce its outstanding debt by approximately $37.9 million through the cancellation of senior notes and the issuance of common stock [1][2][4]. Group 1: Debt Transactions - The company will cancel 1,343,551 units of its publicly-traded senior notes in exchange for 4,201,300 shares of common stock at an average price of $7.0933 per share [1]. - Additionally, BRC repurchased 171,703 units of its 5.0% senior notes due 2026 for about $4.0 million in cash, leading to the elimination of these notes [2]. - On March 30, 2026, the company plans to redeem its 5.50% Senior Notes due 2026, totaling approximately $96 million [3]. Group 2: Financial Reporting - The company is expected to release its Fourth Quarter and Full Year 2025 financial results by March 31, 2026 [1]. - Due to the onboarding of a new auditor, the company requires additional time to complete its 2025 Annual Report, which will be filed by the extended deadline of March 31, 2026 [5].

Core Insights - The company reported strong growth in packaged coffee, with a 31.1% increase for the year and 34% in the fourth quarter, significantly outpacing the broader category growth of nearly 13% [3][4][8] - The company’s distribution reach in grocery increased to 54.9%, with a nearly eight-point rise in 2025, and shelf presence has nearly tripled since entering the grocery sector three years ago [1][4] - The company anticipates revenue growth of at least 7% for 2026, projecting at least $425 million in revenue and over 30% EBITDA growth [6][22][24] Financial Performance - The company achieved a net revenue increase of 2% year-over-year for fiscal 2025, with an 8% increase when excluding non-recurring items [14] - Packaged coffee sales drove national bagged coffee share to 3.3%, up 60 basis points year-over-year, while pods increased to 2.2%, up 40 basis points [3][4] - Despite margin pressures from coffee inflation and tariffs, the company managed to limit fourth-quarter EBITDA decline to approximately 2% as revenue improved [7][16] Direct-to-Consumer and Distribution - Direct-to-consumer performance stabilized in 2025, returning to growth in the fourth quarter, with the company emphasizing the importance of its owned website for customer engagement [10] - Ready-to-drink (RTD) coffee saw ACV expand by 10 points to 55.9%, with strong performance in grocery and mass channels, although convenience store sales remained under pressure [11] - The company’s energy product distribution reached about 22% ACV across nearly 20,000 retail doors in 2025, with a focus on scaling in the right markets for 2026 [12][13] Cost and Margin Dynamics - Gross margin was impacted by commodity costs and tariffs, declining approximately 6.5 points for the year, with fourth-quarter gross margin at 32.1% [7][17] - Coffee prices nearly doubled from 2024 to 2025 due to weather-related yield declines and tariff impacts, although recent harvest expectations have led to price moderation [18] - Operating expenses increased by 1% year-over-year, but were down 7% when excluding non-recurring items, with marketing expenses decreasing by 10% [19] Future Guidance - For 2026, the company expects gross margin to be between 34% and 36%, with continued pricing actions and productivity improvements [23] - The company plans to maintain a regional focus for its energy products while prioritizing coffee as the top resource [13] - The first quarter of 2026 is projected to see at least 10% revenue growth compared to the prior year, driven by distribution gains [22]

Financial Data and Key Metrics Changes - For the full year 2025, net revenue increased by 2% year-over-year, and 8% when excluding non-recurring items [13] - Gross margins declined by 6.5 points, and EBITDA decreased by more than 40% [14] - In the fourth quarter, revenue increased by 7% year-over-year, or 11% excluding non-recurring revenue [14] Business Line Data and Key Metrics Changes - Packaged coffee grew by 31.1% for the year, with units up more than 22% and market share in bagged coffee reaching 3.3%, up 60 basis points year-over-year [3][5] - Direct to consumer revenue declined by 5% for the year but showed slight positive growth in the fourth quarter [13] - The ready-to-drink coffee segment saw distribution expansion, increasing ACV by 10 points to 55.9% [9] Market Data and Key Metrics Changes - The broader coffee category growth was nearly 13%, while Black Rifle's packaged coffee business grew by 34% in the fourth quarter [5] - The company achieved category-level velocity at a premium price point, reinforcing strong consumer demand [5] - Coffee prices nearly doubled from 2024 to 2025, with recent moderation observed [16] Company Strategy and Development Direction - The company is focused on a "land and expand" strategy, entering retailers with a concentrated set of high-performing items and expanding the assortment as performance improves [6] - The strategy includes prioritizing geographies and channels for energy drinks to drive velocity and returns [12] - The company aims to achieve a 40% gross margin target through structural levers within its control [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to strong EBITDA growth in 2026, supported by disciplined pricing and expense management [4] - The company anticipates revenue growth of at least 7% in 2026, reflecting current visibility into demand trends and secured distribution gains [20] - Management highlighted the importance of supporting veterans and the community as a foundational aspect of the brand [12] Other Important Information - The company repaid over $30 million in debt during 2025, ending the year with $39 million of debt outstanding [19] - The company received notice from the New York Stock Exchange regarding minimum price requirements but stated it has no immediate impact on operations [19] Q&A Session Summary Question: Can you provide insights on the coffee side of the land and expand strategy? - Management confirmed the strategy is working well, with significant SKU expansion across retail networks [27][29] Question: What lessons were learned from the energy drinks launch? - Management noted a successful first year with a focus on regional launches and careful resource allocation [33][35] Question: How will lower coffee bean costs impact industry prices? - Management indicated that coffee prices have moderated recently, and previous price increases have had a low elasticity response from consumers [43][45] Question: Will current military actions change marketing priorities? - Management stated that the brand's focus on veterans remains unchanged and is foundational to its operations [46][47]

Financial Data and Key Metrics Changes - For the full year 2025, net revenue increased by 2% year-over-year, with an 8% increase when excluding non-recurring items [13] - Gross margins declined by 6.5 points, and EBITDA decreased by more than 40% [14] - In the fourth quarter, revenue increased by 7% year-over-year, or 11% excluding non-recurring revenue [14] Business Line Data and Key Metrics Changes - Packaged coffee grew by 31.1% for the year, with units up more than 22% and market share in bagged coffee reaching 3.3% nationally, up 60 basis points year-over-year [3][5] - The wholesale segment grew by 5% year-over-year, or 13% excluding non-recurring items, driven by stronger velocity and expanded distribution [13] - Direct-to-consumer revenue declined by 5% for the year but returned to growth in the fourth quarter, marking the first growth in over three years [13][10] Market Data and Key Metrics Changes - The packaged coffee business outperformed the broader category, which grew nearly 13%, with Black Rifle's growth at 34% in the fourth quarter [5] - The ready-to-drink coffee segment saw distribution expansion, increasing ACV by 10 points to 55.9%, with strong performance in grocery and mass channels [11] - The energy segment reached approximately 22% ACV across nearly 20,000 retail doors in 2025 [12] Company Strategy and Development Direction - The company is focused on a "land and expand" strategy, entering retailers with a concentrated set of high-performing items and expanding the assortment as performance improves [6] - The company aims to streamline its platform and direct resources towards initiatives that support durable, profitable growth [4] - The strategy for energy drinks involves careful resource allocation, focusing on regions where the brand has strength while not overshadowing the core coffee business [38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating backdrop in 2025, with volatile coffee markets and consumer pressure, but expressed confidence in returning to strong EBITDA growth in 2026 [4][24] - The company expects revenue growth of at least 7% in 2026, with gross margins projected in the range of 34%-36% [20][21] - Management emphasized the importance of disciplined execution and operational efficiency to drive long-term shareholder value [24] Other Important Information - The company exceeded its goal of eliminating $25 million in medical debt for veterans, wiping out over $34 million and helping approximately 15,000 veterans [12] - The company ended 2025 with $39 million of debt outstanding, representing approximately 1.8x net debt to 2025 Adjusted EBITDA [19] Q&A Session Summary Question: Can you provide insights on the expansion of SKUs across retail networks? - The company has tripled its shelf presence, with significant SKU penetration in major retailers, indicating strong performance and potential for further expansion [29][31] Question: What lessons were learned from the energy drinks launch? - The company plans to maintain a regional focus for energy drinks, leveraging successful markets while ensuring that resources do not detract from the core coffee business [36][38] Question: How will lower coffee bean costs impact industry prices? - The company has seen a recent pullback in coffee prices and has implemented price increases in 2025, with consumer response aligning with expectations [44][45] Question: Will current military actions change marketing priorities? - The company's focus on supporting veterans remains unchanged, as the brand has always centered around veterans and their needs [46][47]

Financial Data and Key Metrics Changes - For the full year 2025, net revenue increased by 2% year-over-year, with an 8% increase when excluding non-recurring items [14] - Gross margins declined by 6.5 points, and EBITDA decreased by more than 40% [15] - In Q4 2025, revenue increased by 7% year-over-year, or 11% excluding non-recurring revenue [15] - Gross margin for Q4 was 32.1%, a decrease of 610 basis points year-over-year [16] Business Line Data and Key Metrics Changes - Packaged coffee grew by 31.1% for the year, with Q4 growth accelerating to 34% compared to nearly 13% for the broader category [3][5] - The wholesale segment grew by 5% year-over-year, or 13% excluding non-recurring items, driven by stronger velocity and expanded distribution [14] - Direct-to-consumer revenue declined by 5% for the year but showed slight positive growth in Q4, marking the first growth in over three years [14] Market Data and Key Metrics Changes - Market share for bagged coffee reached 3.3% nationally, up 60 basis points year-over-year, while pods increased to 2.2%, up 40 basis points [5] - Distribution reach increased nearly eight points in 2025, bringing ACV to 54.9% [6] Company Strategy and Development Direction - The company is focused on a "land and expand" strategy, entering retailers with a concentrated set of high-performing items and expanding the assortment as performance improves [6] - The company aims to streamline its platform and direct resources towards initiatives that support durable, profitable growth [4] - The energy business is being scaled deliberately, focusing on markets and partners where the company can win [12] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 presented a challenging operating backdrop with volatile coffee markets and consumer pressure, but they remain confident in the trajectory of the business entering 2026 [4] - The company expects revenue growth of at least 7% in 2026, reflecting current visibility into demand trends and secured distribution gains [21] - Management anticipates at least 30% growth in EBITDA in 2026 compared to 2025 [23] Other Important Information - The company exceeded its goal of eliminating $25 million in medical debt for veterans, wiping out over $34 million [11] - The company ended 2025 with $39 million of debt outstanding, representing approximately 1.8x net debt to 2025 Adjusted EBITDA [20] Q&A Session Summary Question: Can you help us understand the expansion of SKUs across your retail network? - The company has tripled its shelf presence, with significant SKU penetration in major retailers, indicating strong performance in bagged coffee and other products [28][30] Question: What lessons have been learned from the energy drinks launch? - The company had a successful first year with regional launches and plans to continue focusing on markets where they have seen high success while being cautious not to divert resources from the core coffee business [34][36] Question: How will lower coffee bean costs impact industry prices? - The company has seen a recent pullback in coffee prices and has taken two price increases in 2025, with consumer response aligning with expectations [44][45] Question: Will current military actions change your marketing priorities? - The company's focus on veterans remains unchanged, as supporting veterans has always been central to its brand identity [47][48]

Fourth Quarter and Fiscal Year 2025 America's Coffee DISCLAIMER Forward-Looking Statements This presentation contains forward-looking statements about BRC Inc. (the "Company," "we," "us," and "our") and its industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this presentation, including statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's financial condition, li ...

Revenue Performance - Net revenue for the year ended December 31, 2025 increased by $6.8 million, or 2%, to $398.3 million compared to $391.5 million for 2024[282]. - Wholesale channel revenue increased by $13.0 million, or 5%, to $258.0 million, driven by expanded packaged coffee distribution and contributions from Black Rifle Energy[283]. - DTC channel revenue decreased by $6.1 million, or 5%, to $117.6 million, primarily due to a decrease in the accrual for loyalty rewards points[284]. - The Outpost channel revenue remained relatively flat at $22.6 million compared to the previous year[285]. Operating Income and Expenses - Operating income for the year ended December 31, 2025 was a loss of $24.6 million compared to an income of $3.8 million in 2024[280]. - Total operating expenses increased by $5.2 million, or 3%, to $162.5 million, with marketing and advertising expenses rising to $39.2 million[281]. - Total operating expenses for the year ended December 31, 2025 increased by $5.2 million, or 3%, to $162.5 million compared to $157.3 million for 2024[287]. - Marketing and advertising expenses rose by $3.6 million, or 10%, to $39.2 million, driven by expanded partnerships and increased consumer research[287]. - Salaries, wages, and benefits expenses decreased by $5.7 million, or 9%, to $56.7 million, primarily due to headcount reductions[288]. - General and administrative expenses increased by $3.9 million, or 8%, to $54.7 million, mainly due to costs associated with transitioning to a new software solution[289]. - Other operating expenses increased by $3.4 million, or 40%, to $11.9 million, largely due to a rise in legal contingencies[290]. Cost Management - Cost of goods sold increased by $30.0 million, or 13%, to $260.3 million, with gross margin decreasing to 35% from 41% due to higher inflationary costs[286]. - The Operational Improvement Plan implemented in Q2 2025 is expected to yield annualized cost savings exceeding $8.9 million[267]. - The company is reallocating investments to improve profitability in the Outpost channel while focusing on customer retention programs[266]. Cash Flow and Financial Position - Net cash used in operating activities was $9.8 million for 2025, a change of $21.1 million from net cash provided in 2024[299]. - Net cash provided by investing activities was $1.4 million for 2025, a change of $9.1 million from cash used in 2024[300]. - Net cash provided by financing activities was $5.9 million for 2025, primarily due to $37.3 million from a public offering[301]. - As of December 31, 2025, cash and cash equivalents were $4.3 million, with working capital of $24.2 million and $55.4 million available under credit facilities[295]. Growth Strategy - The company plans to continue expanding its product line to increase growth opportunities and reduce product-specific risks[272].

Core Viewpoint - BRC Group Holdings, Inc. has announced the full redemption of its 5.50% Senior Notes due 2026, amounting to $95,990,500, effective March 30, 2026, with the redemption price being 100% of the principal plus accrued interest [1]. Company Overview - BRC Group Holdings, Inc. (formerly B. Riley Financial, Inc.) operates as a diversified holding company involved in financial services, telecom, and retail, as well as investments in equity, debt, and venture capital [1]. - The company's financial services platform offers customized solutions for small cap and middle market companies throughout their enterprise life cycle, including capital markets, sales, trading, research, merchant banking, M&A, and restructuring [1]. - BRC's wealth management division provides services such as brokerage, investment management, insurance, and tax preparation [1]. - The telecom segment offers consumer and business services, including traditional and mobile phone services, internet and data, security, and email [1]. - Retail operations focus on mobile computing accessories and home furnishings [1].

Core Viewpoint - Black Rifle Coffee Company has received a notice from the New York Stock Exchange indicating non-compliance with the minimum price criteria due to its Class A common stock average closing price being below $1.00 [1] Company Summary - Black Rifle Coffee Company is a veteran-founded and mission-driven premium beverage company [1] - The company is currently facing challenges related to its stock price, which has implications for its listing status on the NYSE [1]