Black Rifle Coffee Company (BRCC) is a Veteran-founded premium coffee company and lifestyle brand serving beverages to people who love America. Founded in 2014 by Green Beret Evan Hafer, Black Rifle develops its explosive coffee roast profiles with the same mission focus learned while serving in the military. BRCC is committed to supporting Veterans, active-duty military, first responders, and the American way of life. To learn more, visit www.blackriflecoffee.com, subscribe to the BRCC newsletter, or follo ...

Core Insights - Fenbo and BRC are both small-cap consumer staples companies, with a comparison of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk, and dividends [1] Earnings and Valuation - Fenbo reported gross revenue of $17.11 million with a Price/Sales ratio of 0.48, while BRC had gross revenue of $391.49 million with a Price/Sales ratio of 0.76 [2] - BRC's net income was -$2.95 million with an earnings per share (EPS) of -$0.14, while Fenbo's net income was -$1.99 million [2] Analyst Ratings - Fenbo has a rating score of 1.00 with 1 sell rating, while BRC has a rating score of 2.20 with 1 sell rating, 2 hold ratings, and 2 buy ratings [4] - BRC has a consensus price target of $2.50, indicating a potential upside of 109.21%, suggesting analysts favor BRC over Fenbo [4] Insider and Institutional Ownership - 0.0% of Fenbo shares are held by institutional investors, whereas 16.3% of BRC shares are held by institutional investors, with 69.0% of BRC shares held by company insiders [5] Profitability - BRC's net margin is -2.86%, return on equity is -11.48%, and return on assets is -2.60% [7] Volatility and Risk - Fenbo has a beta of -1.35, indicating its share price is 235% less volatile than the S&P 500, while BRC has a beta of 0.9, indicating it is 10% less volatile than the S&P 500 [8] Summary - BRC outperforms Fenbo in 8 out of 12 factors compared between the two stocks [9]

Core Points - The company B. Riley Financial, Inc. will change its name to BRC Group Holdings, Inc. effective January 1, 2026, reflecting its evolution into a diverse portfolio of companies [1][2] - BRC Group Holdings will encompass various sectors including financial services, telecom, and retail, along with investments in equity, debt, and venture capital [1][4] - The Nasdaq ticker symbol will remain "RILY," and there will be no changes to the ticker symbols for its preferred shares and tradeable senior notes [3] Company Overview - BRC Group Holdings will continue to provide a range of services including capital markets, sales, trading, research, merchant banking, M&A, and restructuring, targeting small cap and middle market companies [4] - The wealth management division will offer services such as brokerage, investment management, insurance, and tax preparation [4] - The telecom segment will provide consumer and business services including traditional, mobile, and cloud phone services, internet and data, security, and email [4] - Retail operations will focus on home furnishings and mobile computing accessories [4] - The company aims to generate shareholder value through opportunistic investments both within and outside its core financial services platform [4]

Financial Data and Key Metrics Changes - In Q3 2025, net revenue increased by 3% year over year, primarily driven by growth in the wholesale segment [13] - Gross margin was 36.9%, a decrease of 520 basis points compared to the prior year, mainly due to increased trade investment and green coffee inflation [15] - Operating expenses declined by $3.6 million, or 9%, compared to the same quarter last year, with marketing expenses decreasing by 14% [15][16] - Adjusted EBITDA increased by 19% to 8.4% of sales, representing a 115 basis point improvement year over year [16] Business Line Data and Key Metrics Changes - The wholesale segment, which sells packaged coffee and ready-to-drink beverages, grew by 5% year over year, with a 9% increase when adjusted for non-recurring revenue [13] - Direct-to-consumer segment revenue was down 4% year over year, but adjusted results were slightly positive after accounting for prior year benefits [14][8] - The outpost segment revenue grew by 6%, benefiting from higher franchise fees and improved merchandising [14] Market Data and Key Metrics Changes - Nielsen data indicated that the U.S. coffee category grew by 13.2%, while Black Rifle Coffee Company outperformed with sales up 36.7% year over year [4][5] - The ready-to-drink coffee category faced a 3.1% decline, but Black Rifle's performance was resilient, down only 0.6% overall [9] - Black Rifle Energy expanded its footprint to nearly 20,000 retail locations, achieving approximately 22% ACV [10] Company Strategy and Development Direction - The company aims to drive strong on-shelf execution, maintain cost discipline, and build a scalable platform for long-term success [4] - Focus on expanding distribution and driving velocity with key retail partners while advancing the product lineup [4][5] - The company is committed to supporting veterans through initiatives like forgiving medical debt for veterans [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the opportunities ahead, despite challenges in the cost environment [4] - The company expects to finish the year with at least $395 million in revenue and a gross margin of at least 35% [17] - Management acknowledged ongoing pressures from commodity inflation and tariffs but remains focused on operational improvements [20][19] Other Important Information - The company raised $40.25 million through an equity offering to strengthen its cash position [16] - The brand continues to gain share at retail, with unit gains up more than 20% year to date, reflecting real consumer demand [6] Q&A Session Summary Question: Guidance language appears more cautious than before, is that correct? - Management confirmed that while guidance remains unchanged, they are guiding towards the lower end of the range due to ongoing coffee inflation and trade investment [24] Question: Confidence in long-term growth targets? - Management expressed confidence in achieving a 10%-15% CAGR on the top line and approaching 40% margins by 2027, driven by distribution gains [26][28] Question: Consumer acceptance of energy drinks? - Management reported positive performance in initial markets and plans to expand strategically while maintaining focus on coffee [30] Question: Expansion of the energy category? - Management highlighted the launch of new flavors and the importance of staying relevant in the energy segment to drive distribution [32][34] Question: Marketing spend outlook for next year? - Management plans to maintain marketing spend as a percentage of net sales while shifting focus towards more effective working marketing strategies [36][38]

Financial Performance - Wholesale revenue increased by 5.3% year-over-year (YoY) to $67.0 million, or 9.4% YoY excluding barter[13] - Net revenue increased by 2.6% YoY to $100.7 million[13] - Adjusted EBITDA increased by 18.6% YoY to $8.4 million[13] - Gross margin was 36.9%, compared to 42.1% in Q3 2024, representing a decrease of 520 basis points[13, 32] Channel Performance - Black Rifle Coffee Company (BRCC) is outperforming the category through distribution and velocity, with a strong ACV (All Commodity Volume) trajectory[16] - BRCC's branding and focus on quality products have driven outsized unit growth compared to legacy brands[18] - DTC (Direct-to-Consumer) remains a valuable channel for innovation, loyalty, and direct engagement with passionate fans, with new subscriber AOV (Average Order Value) +27% higher than existing subscribers[21] - Black Rifle Ready-to-Drink (RTD) Coffee remains a top-3 brand in the category[22] Strategic Initiatives and Outlook - The company is targeting a long-term gross margin of 40%+[36] - The company reaffirms its 2025 financial guidance, expecting at least $395 million in net revenues, at least 35% gross margin, and at least $20 million in Adjusted EBITDA[43, 45, 46] - The company anticipates a revenue CAGR (Compound Annual Growth Rate) of 10%-15% through 2027[50]

Financial Performance - Total revenue for Q3 2025 was $100,712,000, a 2% increase from $98,204,000 in Q3 2024[18] - Gross profit for Q3 2025 decreased to $37,149,000, down 10.6% from $41,348,000 in Q3 2024[18] - Operating income for Q3 2025 was $518,000, compared to $1,106,000 in Q3 2024, indicating a decline in operational performance[18] - Net loss attributable to BRC Inc. for Q3 2025 was $486,000, slightly improved from a loss of $535,000 in Q3 2024[18] - For the nine months ended September 30, 2025, the net loss was $23,595 thousand, compared to a net loss of $916 thousand for the same period in 2024[28] - Gross profit for the nine months ended September 30, 2025 decreased by $19.0 million, or 16%, to $101.8 million compared to $120.8 million in 2024, with gross margin decreasing to 36% from 42%[190] - Net revenue for the nine months ended September 30, 2025 remained flat at $285.5 million compared to $285.6 million in 2024[191] Cash and Liquidity - Cash and cash equivalents increased to $9,482,000 as of September 30, 2025, up from $6,810,000 at the end of 2024[15] - The cash and cash equivalents at the end of the period were $9,482 thousand for September 30, 2025, compared to $7,336 thousand for the same date in 2024[28] - Net cash used in operating activities was $1.1 million for the nine months ended September 30, 2025, a decrease of $10.2 million compared to net cash provided of $9.1 million in 2024, primarily due to a net loss of $23.6 million[206] - Net cash provided by financing activities increased by $15.9 million to $6.6 million for the nine months ended September 30, 2025, compared to a net cash used of $9.3 million in the same period of 2024, primarily due to $37.4 million from a public offering[208] Assets and Liabilities - Total current assets rose to $108,595,000, a 13.7% increase from $95,471,000 at the end of 2024[15] - Total liabilities decreased to $148,207,000, down 16.7% from $177,886,000 at the end of 2024[15] - Stockholders' equity increased to $74,194,000 as of September 30, 2025, compared to $49,496,000 at the end of 2024[15] - Long-term debt, net, decreased to $35,009 thousand as of September 30, 2025, from $65,074 thousand as of December 31, 2024, indicating a reduction of approximately 46.2%[106] - Total accrued liabilities increased to $36,755 thousand as of September 30, 2025, from $27,900 thousand as of December 31, 2024, representing a growth of approximately 31.5%[104] Revenue Streams - The DTC channel generated $27,842,000 in revenue for the three months ended September 30, 2025, a decrease of 4% from $29,044,000 in 2024[60] - Wholesale channel revenue increased by $3.4 million, or 5%, to $67.0 million, driven by growth in Energy revenue and SKU expansion at FDM retailers[179] - DTC channel revenue decreased by $1.2 million, or 4%, to $27.8 million, primarily due to lower customer acquisition and a strategic reallocation of advertising spend[180] - Outpost channel revenue increased by $0.3 million, or 6%, to $5.8 million, supported by higher franchise fees and increased average order values[181] Expenses - Marketing and advertising expenses for Q3 2025 were $8,707,000, a decrease of 13.9% from $10,109,000 in Q3 2024[18] - Total operating expenses decreased by $3.6 million, or 9%, to $36.6 million compared to $40.2 million for the same period in 2024[184] - Salaries, wages, and benefits expenses for the three months ended September 30, 2025 decreased by $2.2 million, or 13%, to $14.4 million compared to $16.5 million in 2024, primarily due to headcount reductions[186] Stock and Equity - The company reported a total of 114,593,285 shares of Class A Common Stock outstanding as of September 30, 2025, up from 78,286,909 shares at the end of 2024[21] - The weighted-average shares of Class A Common Stock outstanding increased to 107,994,798 in Q3 2025 from 72,154,931 in Q3 2024[146] - The Company issued 32,200,000 shares of Class A Common Stock at an offering price of $1.25 per share, resulting in net proceeds of $37,426 after issuance costs of $2,824[127] Operational Changes - The Operational Improvement Plan is expected to yield annualized cost savings of over $8.6 million, with approximately $3.1 million realized as of September 30, 2025[163] - The company reduced its headcount by approximately 48 employees as part of the Operational Improvement Plan, with an additional reduction of 15 employees in Q3 2025[158] Legal and Compliance - The company settled a lawsuit with Tang Capital for a total consideration of $8,250,000, with insurance proceeds of $3,948,000 received in Q3 2025[152] - The company has accrued $320,000 related to potential sales and other tax exposure as of September 30, 2025[151]

Revenue Performance - Net revenue for Q3 2025 increased by 2.6% to $100.7 million, compared to $98.2 million in Q3 2024[5] - Wholesale revenue grew by 5.3% to $67.0 million in Q3 2025, driven by distribution gains and increased sales volume[7] - Revenue for the three months ended September 30, 2025, was $100,712 thousand, an increase of 2% compared to $98,204 thousand in the same period of 2024[28] - Total net sales for the nine months ended September 30, 2025, were $285,524 thousand, slightly down from $285,613 thousand in 2024, a decrease of 0.03%[38] - Full-year revenue guidance for FY2025 is updated to at least $395.0 million, with growth expectations of at least 1%[15] Profitability Metrics - Adjusted EBITDA for Q3 2025 was $8.4 million, an increase of 18.6% from $7.1 million in Q3 2024[5] - Operating income for the three months ended September 30, 2025, was $518 thousand, down from $1,106 thousand in 2024, indicating a decrease of 53.2%[28] - Gross profit decreased by 10.2% to $37.1 million in Q3 2025, with gross margin declining to 36.9%[9] - Gross profit for the nine months ended September 30, 2025, decreased to $101,795 thousand from $120,791 thousand in 2024, representing a decline of 15.7%[28] Losses and Expenses - The net loss for Q3 2025 was $1.2 million, an improvement from a net loss of $1.4 million in Q3 2024[13] - Net loss attributable to BRC Inc. for the nine months ended September 30, 2025, was $8,702 thousand, compared to a net loss of $470 thousand in 2024, reflecting a significant increase in losses[28] - For the nine months ended September 30, 2025, the company’s net loss was $23,595,000, a significant increase from a net loss of $916,000 in 2024[45] - General and administrative expenses increased by 5.1% to $12.9 million, primarily due to changes in logistics and depreciation[12] Cash and Assets - Cash and cash equivalents increased to $9,482 thousand as of September 30, 2025, from $6,810 thousand at the end of 2024, marking a growth of 39%[31] - Total current assets rose to $108,595 thousand as of September 30, 2025, compared to $95,471 thousand at the end of 2024, an increase of 13.7%[31] Customer Metrics - Direct-to-Consumer (DTC) revenue decreased by 4.1% to $27.8 million in Q3 2025, primarily due to lower customer acquisition[8] - DTC subscribers decreased to 165,500 as of September 30, 2025, down from 194,000 in 2024, representing a decline of 14.7%[39] Debt and Financial Obligations - Long-term debt decreased to $32,859 thousand as of September 30, 2025, from $63,027 thousand at the end of 2024, a reduction of 47.8%[31] - The company incurred interest expenses of $1,712,000 for the three months ended September 30, 2025, down from $2,453,000 in 2024, indicating a reduction of about 30.2%[45] Other Expenses - Marketing expenses decreased by 13.9% to $8.7 million, reflecting a strategic reallocation of advertising spend[10] - Non-routine legal expenses for the nine months ended September 30, 2025, totaled $6,039,000, compared to $2,335,000 in 2024, indicating a substantial increase[47] - Restructuring fees and related costs amounted to $1,490,000 for the three months ended September 30, 2025, with a total of $3,639,000 for the nine months ended September 30, 2025[49] - The company recognized equity-based compensation expenses of $2,354,000 for the three months ended September 30, 2025, slightly down from $2,605,000 in 2024[45] - The company reported a total of $7,685,000 in equity-based compensation for the nine months ended September 30, 2025, compared to $7,862,000 in 2024[45] - Depreciation and amortization expenses increased to $3,055,000 for the three months ended September 30, 2025, compared to $2,661,000 in 2024, representing a rise of approximately 14.8%[45] - The company incurred $0.3 million in costs related to ERP system implementation and $0.2 million for the e-commerce platform implementation for the nine months ended September 30, 2024[46]

Core Points - BRC Inc. (Black Rifle Coffee Company) will release its third quarter 2025 financial results on November 3, 2025, after market close [1] - A conference call to discuss the financial results will be held on November 4, 2025, at 8:30 a.m. ET [1] - The conference call will be available via webcast on the Company's investor relations page [1]

Core Viewpoint - Black Rifle Coffee Company has appointed Melvin Landis to its Board of Directors, effective September 15, 2025, highlighting the company's commitment to leadership in the consumer products and beverages sector [1]. Company Summary - Black Rifle Coffee Company is a veteran-founded and mission-driven premium coffee and beverage company [1]. - The appointment of Melvin Landis is seen as a strategic move to enhance the company's leadership experience in the consumer products and beverages industry [1].

Core Insights - British shoppers increased their spending in August, driven by favorable summer weather and heightened demand for food, furniture, and back-to-school computers [1] - The rise in spending was partially influenced by higher food prices, indicating inflationary pressures in the market [1] Spending Trends - The increase in consumer spending reflects a broader trend of recovery in the retail sector, particularly in categories such as food and home goods [1] - The demand for back-to-school items suggests a seasonal boost in retail activity, which may benefit companies in the education and technology sectors [1] Economic Indicators - The data indicates a positive shift in consumer confidence, which could lead to sustained growth in retail spending if the trend continues [1] - The impact of weather on spending patterns highlights the importance of external factors in consumer behavior and retail performance [1]