BRC (BRCC) investor relations material

Executive summary

• Net revenue grew 13% year-over-year to $107.0 million in Q2 2026, driven by strong Wholesale and Direct-to-Consumer (DTC) channel expansion and execution on 2026 priorities.

• Adjusted EBITDA increased over 160% to $6.3 million, with gross margin improving to 34.1% from 33.9% year-over-year.

• Net loss narrowed significantly to $0.2 million from $14.5 million in the prior year quarter, and operating income reached $1.1 million, reversing a $12.6 million loss.

• Packaged coffee distribution expanded to 56.5% ACV, supporting broader market reach and outpacing category growth.

• Programming around America's 250th anniversary and community initiatives enhanced brand reach and supported veterans and first responders.

Financial highlights

• Wholesale revenue increased 15.2% to $70.6 million, DTC revenue rose 13.6% to $31.4 million, and Outpost revenue declined 15% to $5.0 million.

• Gross profit increased 13.4% to $36.5 million; Adjusted EBITDA margin expanded to 5.9% from 2.5% year-over-year.

• Free cash flow was $5.4 million in Q2 and $11.5 million year-to-date, a $21 million improvement year-over-year.

• Operating expenses decreased 21% to $35.4 million, led by a 35% reduction in G&A costs.

• Cash and cash equivalents increased to $12.0 million as of June 30, 2026.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: at least 8% revenue growth (~$430 million) and at least 35% Adjusted EBITDA growth (~$29 million).

• Gross margin expected between 34% and 36% for FY2026, with Q3 and Q4 margins approaching 36%.

• Q3 revenue expected to grow at least 5% year-over-year, with Adjusted EBITDA of ~$7 million.

• Operational Improvement Plan projected to yield over $12.2 million in annualized cost savings and reduce SG&A dollars.

• Revenue growth in H2 will be more evenly weighted due to earlier pipeline fills and non-recurring 2025 liquidation revenue.