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BRC (BRCC) investor relations material

BRC Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary5 Aug, 2025

Executive summary

  • Revenue grew 6.5%–7% year-over-year to $94.8M in Q2 2025, led by 14%–14.1% wholesale growth and expanded distribution in packaged and RTD coffee, but net loss widened to $14.5M from $1.4M last year.

  • Ready-to-drink (RTD) coffee and new energy drink launches showed strong momentum, with Black Rifle Energy reaching over 15,000 retail locations and 22.5% ACV.

  • DTC revenue declined 7.8%–8% year-over-year, but stabilized after adjusting for loyalty accruals; Outpost revenue grew 11%–11.3%.

  • Operational Improvement Plan reduced headcount, incurring $2.1M in severance, with $6.5M–$10M annualized cost savings expected.

  • Continued community engagement and brand-building activities, supporting military and first responder communities.

Financial highlights

  • Q2 2025 net revenue: $94.8M, up 6.5%–7% year-over-year; gross margin declined to 33.9%–34% from 41.9%–42% year-over-year.

  • Adjusted EBITDA was $2.4M, down $5.1M or 68% year-over-year; net loss widened to $14.5M from $1.4M.

  • Wholesale revenue grew 14%–14.1% to $61.3M; DTC revenue decreased 7.8%–8% to $27.6M; Outpost revenue up 11%–11.3% to $5.9M.

  • Gross profit for Q2: $32.2M, down 13.7%–14% year-over-year.

  • Operating expenses up 23%–31% year-over-year, driven by higher marketing and legal costs.

Outlook and guidance

  • Full-year 2025 guidance reaffirmed: revenue $395M–$425M, gross margin 35%–37%, adjusted EBITDA $20M–$30M, with sequential revenue growth and margin recovery expected in 2H25.

  • Three-year targets: 10%–15% revenue CAGR and 40%+ gross margin through 2027.

  • Key headwinds: green coffee inflation, trade spending, loyalty reserve, and tariffs.

  • Management expects $6.5M–$10M in annualized cost savings from efficiency initiatives.

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Frequently asked questions

BRC Inc., also known as Black Rifle Coffee Company, is a veteran-owned coffee company that specializes in premium, small-batch roasted coffee. The company offers a variety of coffee products, including whole beans, ground coffee, and ready-to-drink options, which are sold through both e-commerce platforms and retail outlets. In addition to coffee, BRC sells branded merchandise such as apparel and accessories. The company focuses on serving the veteran and first responder communities, often incorporating themes of military service into its branding. The company is headquartered in Salt Lake City, Utah, USA, and its shares are listed on the NYSE.

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