BRC Inc. reported fourth quarter 2024 net revenue of $105.9 million, an 11.5% decrease from $119.7 million in Q4 2023. Wholesale revenue decreased 8.6% to $67.2 million, primarily due to a $12.7 million net reduction in barter transaction revenue, partially offset by distribution gains and initial shipments of Black Rifle Energy™. Direct-to-Consumer (DTC) revenue declined 17.7% to $32.2 million, impacted by a strategic reallocation of advertising spend.
For the full fiscal year 2024, net revenue was $391.5 million, a 1% decrease from $395.6 million in fiscal year 2023. Despite the revenue decline, gross profit for FY 2024 increased 29% to $161.2 million, with gross margin expanding to 41.2% from 31.7% in FY 2023. This improvement was driven by cycling prior-year supply chain transformation costs and productivity enhancements.
The company achieved a net loss of $7.6 million for FY 2024, a significant improvement from a net loss of $56.7 million in FY 2023. Adjusted EBITDA for FY 2024 was $39.3 million, up from $12.8 million in FY 2023, and free cash flow was $2.6 million compared to negative $52 million in FY 2023. For Q4 2024, Adjusted EBITDA was $9.9 million, down from $12.1 million in Q4 2023.
BRC Inc. provided full-year fiscal 2025 guidance, expecting net revenue between $395.0 million and $425.0 million, representing 1% to 9% growth from FY 2024. Gross margin is projected between 37% and 39%, and Adjusted EBITDA is expected to be between $20.0 million and $30.0 million. The company noted that in 2024, adjusted EBITDA included $2.3 million in RTD transformation costs, which will be excluded moving forward.
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