BRC (BRCC) investor relations material

Executive summary

• Net revenue for Q1 2026 increased 21.4% year-over-year to $109.2 million, led by strong Wholesale and DTC channel growth and improved operational focus.

• Adjusted EBITDA surged to $7.3 million from $0.9 million, reflecting operational efficiencies and cost discipline.

• Net income improved to breakeven from a $7.8 million loss in Q1 2025, with operational cost reductions and realized savings from the Operational Improvement Plan.

• Community engagement and veteran support initiatives remained central, with partnerships and events supporting military families and veterans.

• Marketing and G&A expenses both decreased as a percentage of revenue, reflecting improved cost discipline.

Financial highlights

• Net revenue reached $109.2 million, up 21.4% year-over-year, with Wholesale revenue up 31.5% to $74.7 million and DTC revenue up 7.2% to $29.7 million.

• Gross margin was 33.0%, down from 36.1% in Q1 2025 due to coffee inflation, tariffs, and a non-cash write-down.

• Adjusted EBITDA rose to $7.3 million, up 718% year-over-year, with margin improvement initiatives underway.

• Net income was $46,000, a turnaround from a net loss of $7.8 million in Q1 2025.

• Cash and cash equivalents increased to $10.0 million at quarter end.

Outlook and guidance

• FY2026 revenue outlook raised to at least 8% growth (~$430 million); adjusted EBITDA guidance increased to at least 35% growth (~$29 million).

• Gross margin guidance for 2026 is 34–36%, with improvement expected in the back half as higher cost inventory is worked through.

• Revenue and EBITDA generation expected to be second-half weighted, consistent with prior year.

• Management believes liquidity is sufficient for at least the next twelve months.

• Q2 revenue expected at least 10% higher year-over-year; adjusted EBITDA for Q2 expected at least $5 million.