BRC (US:BRCC)2025-11-03 21:24Financial 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]