BRC (BRCC) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 7.3% YoY to $108.0M and Adjusted EBITDA increased 12.3% to $9.5M; GAAP net loss widened to $8.7M.

• Nine-month revenue grew 14% to $324.3M; net loss narrowed to $8.8M from $23.6M, and operating loss narrowed to $5.1M from $17.5M.

• Project Core targets a focus on core coffee, stronger profitability and earnings quality, simpler operations, and lower capital intensity; FY2026 guidance was reaffirmed.

Financial highlights

• Q3 gross profit increased 8.0% YoY to $40.1M; gross margin was 37.1%, up 25 bps, including a $3.5M tariff refund benefit.

• Q3 operating expenses were $47.6M versus $36.6M, including $11.7M of non-cash Project Core impairment charges; operating loss was $7.5M versus income of $0.5M.

• Q3 net loss was $8.7M versus $1.2M; diluted loss per share was $0.28 versus $0.05. Nine-month gross profit rose 11% to $112.7M.

• Nine-month operating expenses fell 1% to $117.8M; G&A declined 18% to $32.0M, reflecting lower legal, consulting, software and depreciation costs.

Outlook and guidance

• FY2026 guidance reaffirmed: revenue growth of at least 8%, implying at least $430M, gross margin of 34%–36%, and Adjusted EBITDA growth of at least 35%, implying at least ~$29M.

• Guidance includes an expected ~$3M Q4 revenue headwind from the non-core DTC brand divestiture and Outpost closures; Q4 revenue guidance floor is $106M.

• Q4 gross margin is expected at ~34%; trade investment and higher transportation costs pressure the outlook, and holiday marketing is expected to be the year's highest quarterly spend.

• Management expects earnings to grow faster than revenue in 2027, with higher margin, EBITDA and free cash flow; 2027 guidance is due on the Q4 call.