BRC (US:BRCC)2025-11-03 21:17Revenue 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]