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]

Financial Data and Key Metrics Changes - In Q2 2025, net revenue increased by 7% year over year, primarily driven by growth in the wholesale segment [20] - Adjusted EBITDA declined by $5.1 million year over year, totaling $2.4 million for the quarter [23] - Gross margin was 33.9%, reflecting a 790 basis point reduction compared to the prior year, primarily due to green coffee inflation and trade pricing impacts [22][26] Business Line Data and Key Metrics Changes - The wholesale segment, which includes packaged coffee and ready-to-drink beverages, grew by 14% year over year, with a 21% increase when excluding non-recurring revenue from the prior year [20] - Direct-to-consumer (DTC) revenue was 8% lower year over year, but showed slight positive growth when adjusted for prior year loyalty rewards accrual changes [21] - The Outpost segment grew revenue by 11.3%, driven by higher franchise fees and increased average order value [21] Market Data and Key Metrics Changes - Nielsen data indicated a modest decline in unit volume for the U.S. coffee category, while Black Rifle Coffee Company outperformed the category with a 32% sales growth and a 29% increase in unit volume [6][7] - The ready-to-drink coffee business delivered 7% sales growth in a category that declined by 4%, with Black Rifle's unit volume up by 9% [12] - The energy drink segment reached over 15,000 retail locations, achieving 23% ACV [14] Company Strategy and Development Direction - The company is focused on long-term growth by expanding its footprint with key retail partners and investing in critical capabilities [5] - A land and expand strategy is being employed to increase shelf space and product assortment in grocery and mass retailers [9] - The company aims to maintain brand authenticity and community engagement, particularly with service members and veterans [16][96] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro cost environment but expressed confidence in the company's ability to navigate changes and position for long-term growth [5] - The company anticipates a sequential increase in revenue and EBITDA in the second half of the year, driven by distribution gains and marketing investments [24][80] - Full-year revenue guidance is maintained at $395 million to $425 million, with expectations of finishing towards the lower end of the range due to prior year revenue headwinds [24] Other Important Information - The company raised $40.25 million in gross proceeds through an equity offering to support the rollout of the energy portfolio and strengthen its balance sheet [28] - The Salt Lake property is currently held for sale as the company seeks a facility more suitable for its current size [62] Q&A Session Summary Question: What are the key drivers for the three-year outlook? - Management indicated that all aspects of the business are growing, including packaged coffee, ready-to-drink, and energy segments, contributing to the long-term growth outlook [34][36] Question: Why did Walmart sales decline year over year? - Management explained that internal sales can fluctuate due to timing of shipments and noted a lost item last year that impacted sales, but takeaway growth remains strong [38][40] Question: How will the company drive higher market share in the RTD segment? - Management emphasized that increasing ACV is a leading indicator for future sales and that they are investing in sales force enhancements to drive share growth [46][49] Question: What are the expectations for pricing in the back half of the year? - Management confirmed that pricing actions were executed in May, which will impact the market in the upcoming quarters [58] Question: What is the strategy for the energy drink rollout? - Management stated that the rollout is disciplined, focusing on limited geographies and national customers, with plans for expansion based on initial successes [66][90]