BRC Inc. reported third‑quarter 2025 financial results, posting net revenue of $100.7 million, a 2.6 % year‑over‑year increase that fell short of the consensus estimate of $101.79 million.
Wholesale revenue grew 5.3 % to $67.0 million, while direct‑to‑consumer sales declined 4.1 % to $27.8 million, and Outpost revenue rose 6.0 % to $5.8 million.
Gross profit declined 10.2 % to $37.1 million, and gross margin contracted to 36.9 % from 42.1 % in Q3 2024, largely due to higher green coffee costs and increased trade and slotting adjustments.
Net loss narrowed to $1.2 million from $1.4 million in the same quarter of 2024, and adjusted EBITDA increased 18.6 % to $8.4 million from $7.1 million.
BRC Inc. reported break‑even earnings per share, beating the consensus estimate of a $0.01 loss, representing a 100 % earnings surprise.
The company reiterated its full‑year 2025 guidance, maintaining a net revenue range of $391.5 million to $425.0 million, a gross margin range of 35 % to 37 %, and an adjusted EBITDA range of $20 million to $30 million.
Management highlighted that the July equity offering helped retire the company’s revolver and strengthen liquidity, while noting that one wholesale customer accounts for 30 % of revenue, underscoring concentration risk.
The company operates in the Consumer Products – Staples industry, which is currently in the lower tier of industry performance, and it faces ongoing pressure from commodity price volatility and competitive dynamics.
Management said the decline in direct‑to‑consumer sales was driven by a strategic reallocation of advertising spend toward higher‑margin channels, which temporarily reduced direct‑to‑consumer volume.
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