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 [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 ...

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 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]

Second Quarter 2025 Financial Highlights - Net revenue reached $948 million, a 65% increase year-over-year, representing a $58 million rise[13] - Wholesale revenue increased by 141% year-over-year, reaching $613 million, or a 210% increase excluding barter, amounting to $76 million and $106 million respectively[13] - Gross margin was 339%, compared to 419% in Q2 2024[13] - Adjusted EBITDA was $24 million, a decrease of $51 million year-over-year[13] Channel Performance - DTC revenue decreased by 78% year-over-year in Q2 2025, but increased by 03% excluding the impact of loyalty point expirations in Q2 2024[18,22] - Black Rifle Ready to Drink Coffee remains a Top-3 brand in Q2 2025[23] - Black Rifle Energy achieved approximately 23% ACV with distribution in 15200 doors, including 2800 Walmart locations (~66% Walmart ACV), 8900 convenience stores (~7% Convenience Store ACV), and 3250 grocery stores (~12% Grocery Store ACV)[27] Financial Outlook - The company projects net revenues between $395 million and $425 million for 2025, representing a 1% to 9% growth[40] - Gross margin is expected to be in the range of 35% to 37%[40] - Adjusted EBITDA is projected to be between $20 million and $30 million[41]

Financial Data and Key Metrics Changes - First quarter revenue declined by 9% year over year, primarily due to $8.5 million in barter transactions and a $3.4 million benefit from a change in loyalty rewards accruals in the previous year. Excluding these items, revenue increased by 4% [18] - Adjusted EBITDA declined by $11.6 million compared to the first quarter of last year, totaling approximately $1 million in Q1 2025 [21] - Gross margin decreased by 680 basis points to 36% of sales, impacted by increased trade investment, green coffee inflation, and changes in loyalty rewards [20] Business Line Data and Key Metrics Changes - The wholesale segment, primarily selling packaged coffee and ready-to-drink beverages, declined by 6% year over year. Excluding non-recurring revenue from the previous year, sales in this segment grew by 9% [18] - Direct-to-consumer (DTC) revenue declined by 15% in the first quarter, but adjusted for last year's loyalty reserve, the decline was closer to 5% [19] - The Outpost segment grew revenue by 2%, driven by higher franchise revenue and increased average order value [19] Market Data and Key Metrics Changes - In the U.S. Food, Drug, and Mass channels, the coffee category declined in unit volume during the first quarter, but Black Rifle Coffee Company achieved 21% sales growth, significantly outperforming the category's 4% increase [8] - The ready-to-drink coffee business saw first-quarter sales up 7% in a category that declined by 6% [12] - Distribution in grocery increased by 25 percentage points year over year to reach 45% [9] Company Strategy and Development Direction - The company is focused on long-term growth by scaling the brand, deepening retail partnerships, and ensuring effective investment in the business [6] - The launch of Black Rifle Energy is a key initiative, with plans to expand distribution and marketing efforts in priority markets [14] - The company is committed to cost reduction and efficiency initiatives, aiming for annualized cost savings of $8 million to $10 million [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating environment but expressed confidence in the company's positioning and operational progress [28] - The impact of tariffs and green coffee inflation was highlighted, with an estimated $5 million impact on EBITDA in 2025 [24] - The company maintains its full-year revenue guidance of $395 million to $425 million, expecting sequential growth throughout the year [22] Other Important Information - The company continues to make monetary and product donations to military units and first responder organizations, emphasizing its mission-driven approach [15] - The company has implemented a price increase to offset rising green coffee prices, which have more than doubled since early 2024 [25] Q&A Session Summary Question: How does the business react to an economic slowdown? - Management noted that during economic slowdowns, consumers tend to shift from coffee shops to at-home coffee, which can benefit premium brands like Black Rifle [32] Question: What is the outlook on guidance and gross margin changes? - Management explained that increased trade spending and coffee inflation have impacted gross margin, but they expect to manage these challenges effectively [35][36] Question: Can you share early feedback on the energy drink launch? - Management reported positive early feedback on the energy drink launch, with distribution already reaching over 20% of the market [40][41] Question: What strategies are being implemented to stabilize the DTC business? - Management is focusing on improving conversion rates, particularly through the mobile app, while reallocating resources towards wholesale and energy initiatives [51][53] Question: How is pricing being managed in relation to competitors? - Management indicated that pricing actions are being taken carefully to remain competitive while also considering the elasticity of demand [59] Question: What is the status of hedging for coffee purchases? - Management stated that they are approximately 95% hedged for 2025, which positions them better than competitors who are less hedged [61]

Financial Data and Key Metrics Changes - First quarter revenue declined by 9% year-over-year, primarily due to $8.5 million in barter transactions and a $3.4 million benefit from a change in loyalty rewards accruals in the previous year. Excluding these items, revenue increased by 4% [17] - Adjusted EBITDA declined by $11.6 million compared to the first quarter of the previous year, totaling approximately $1 million for Q1 2025 [21] - Gross margin decreased by 680 basis points to 36% of sales, impacted by increased trade investment, green coffee inflation, and changes in loyalty rewards [20] Business Line Data and Key Metrics Changes - The wholesale segment, which sells packaged coffee and ready-to-drink beverages, declined by 6% year-over-year. However, excluding non-recurring revenue from the previous year, sales in this segment grew by 9% [17] - Direct-to-consumer (DTC) revenue declined by 15% in the first quarter, but adjusting for last year's loyalty reserve, the decline was closer to 5% [19] - The Outpost segment grew revenue by 2%, driven by higher franchise revenue and increased average order value [19] Market Data and Key Metrics Changes - In the U.S. Food, Drug, and Mass channels, the coffee category declined in unit volume during the first quarter, but Black Rifle Coffee Company achieved 21% sales growth, significantly outpacing the category's 4% increase [6] - The ready-to-drink coffee business saw first-quarter sales up 7% in a category that declined by 6%, maintaining the company's position as the third-largest RTD coffee brand in the U.S. [11] Company Strategy and Development Direction - The company is focused on long-term growth by scaling the brand, deepening retail partnerships, and ensuring efficient investment in the business [5] - The launch of Black Rifle Energy is a key initiative, with plans to expand distribution and marketing efforts in priority markets [12][13] - The company is committed to cost reduction and efficiency initiatives, aiming for annualized cost savings of $8 million to $10 million [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating environment but expressed confidence in the company's positioning for growth in 2025 and beyond [4] - The impact of tariffs and green coffee inflation was highlighted, with an estimated $5 million impact on EBITDA in 2025 [24] - The company maintains its full-year revenue guidance of $395 million to $425 million, expecting sequential growth throughout the year [22] Other Important Information - The company continues to make monetary and product donations to military units and first responder organizations, emphasizing its mission-driven approach [14][15] - The company has implemented a price increase to offset rising green coffee prices, which have more than doubled since early 2024 [25] Q&A Session Summary Question: How does the business react to an economic slowdown? - Management noted that during economic slowdowns, consumers tend to shift from coffee shops to at-home coffee, which can benefit premium brands like Black Rifle [33] Question: What is the outlook on guidance, particularly regarding gross margin? - Management indicated that increased trade spending and coffee inflation have impacted gross margin expectations, but they remain confident in achieving their EBITDA range [36][37] Question: Can you share early feedback on the energy drink launch? - Early feedback has been positive, with strong distribution and marketing efforts planned to support the launch [41][43] Question: What strategies are being implemented to stabilize the DTC business? - The company is focusing on improving conversion rates, particularly through its mobile app, while reallocating resources towards wholesale and energy initiatives [52][55] Question: How is pricing being managed in light of inflation and tariffs? - Management stated that pricing actions are being taken strategically to remain competitive while managing the impact of tariffs and inflation on costs [60][62]

Financial Data and Key Metrics Changes - Revenue declined by 1% in 2024 compared to 2023, with solid growth in bag coffee, pods, RTD coffee, and energy [32] - Adjusted EBITDA tripled in 2024, with adjusted EBITDA margin improving from 3.2% in 2023 to 10% in 2024 [38] - Gross margin improved by 950 basis points to 41.2% in 2024, driven by supply chain productivity [36] - Free cash flow generation improved by over $55 million compared to 2023, with positive cash flow from operations [39] Business Line Data and Key Metrics Changes - Wholesale revenue increased from 57% of total sales in 2023 to 63% in 2024, growing 9% or 13% excluding barter transactions [34] - Direct-to-consumer (DTC) segment revenue declined by 14% in 2024, driven by increased retail availability and shifting consumer preferences [35] - Packaged coffee saw outstanding distribution growth, with ACV increasing by 28 points to 45% in grocery [8] Market Data and Key Metrics Changes - Black Rifle sales grew by 22% in 2024, while the overall coffee category declined by 0.5% [11] - In the Ready to Drink (RTD) coffee category, Black Rifle maintained a market share of 4.6%, making it the 3 brand behind Starbucks and Monster [19] - The energy drink category generated over $20 billion in sales in 2024, significantly larger than the packaged coffee category at $12 billion [24] Company Strategy and Development Direction - The company is focused on strengthening its core business and expanding distribution while driving brand awareness and product innovation [7][9] - Plans to revitalize the DTC segment in 2025 while prioritizing growth in the wholesale channel [15] - The launch of Black Rifle Energy is expected to be a significant contributor to growth in 2025, with a focus on 12 key launch markets [22][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 3-year financial targets, including expectations for 10% to 15% revenue CAGR and adjusted EBITDA growth at 15% to 25% CAGR [46] - The company anticipates revenue in 2025 to range between $395 million and $425 million, with gross margin expected to be in the 37% to 39% range [47][49] - Management noted that the first quarter of 2025 is expected to be the lowest for revenue generation, followed by sequential increases throughout the year [48] Other Important Information - The company is committed to supporting active-duty service members, veterans, and first responders, emphasizing community outreach efforts [27][30] - The CFO announced plans to transition to a role on the Board of Directors, with a search for a new CFO underway [59] Q&A Session Summary Question: What is the expected distribution for Energy drinks by the end of the year? - Management indicated that distribution is growing rapidly, with a goal of reaching between 20% and 30% ACV by year-end [65] Question: When will marketing spend for Energy products ramp up? - Marketing spend is expected to start in March, with a significant increase as the summer selling season approaches [70] Question: What are the plans to stabilize the DTC business? - The focus will be on subscription-based programs and stabilizing subscriber counts, with limited spending on acquiring new one-time buyers [76][78] Question: What is the trend with the largest customer? - The largest customer remains a significant source of revenue, with an 8% year-over-year growth in 2024, despite some flattening expected [87][93] Question: How will barter transactions impact the P&L in 2025? - Media credits from barter transactions will be used efficiently in marketing expenses, providing a cost-effective way to support growth [90][91]