BRC (BRCC) Q4 2024 earnings summary

Executive summary

• Achieved significant operational improvements, expanded market presence, and improved profitability in 2024, with strategic investments in operations, infrastructure, and brand supporting scalable growth and community impact.

• Expanded coffee distribution, launched Black Rifle Energy™, and deepened partnerships, notably with Keurig Dr Pepper.

• Adjusted EBITDA tripled to $39.3M, gross margin improved by 9.5 percentage points to 41.2%, and distribution in packaged coffee at grocery increased ACV by 28 points to 45%.

• Net loss improved to $7.6M in 2024, a $49.1M improvement year-over-year.

• Distribution growth, financial improvements, and expansion into adjacent categories, including the launch of Black Rifle Energy™, were key achievements.

Financial highlights

• FY2024 net revenue was $391.5M, down 1% year-over-year, with wholesale revenue up 9% and growth in bagged coffee, pods, RTD coffee, and energy offset by declines in Outposts, DTC, and liquidation-related revenue.

• Gross margin expanded to 41.2% from 31.7% in FY2023, driven by supply chain productivity and reduced RTD transformation costs.

• Adjusted EBITDA reached $39.3M, up $26.5M from FY2023, with margin rising from 3.2% to 10% of sales.

• Free cash flow improved to $2.6M from $(52.2)M in FY2023, turning positive.

• Q4 2024 net revenue was $105.9M, with gross margin rising to 38.1% from 26.5% in Q4 2023; adjusted EBITDA was $9.9M.

Outlook and guidance

• FY2025 net revenue expected between $395M and $425M, representing 1% to 9% growth over 2024, with growth weighted to the back half of the year.

• Gross margin guidance for 2025 is 37%-39%, down from 41.2% in 2024, due to green coffee inflation, loyalty reserve cycling, and trade investments.

• Adjusted EBITDA expected at $20-$30M in 2025, compared to $39.3M in 2024, reflecting margin pressures and investment in energy launch.

• Three-year targets remain: 10%-15% revenue CAGR, 15%-25% adjusted EBITDA CAGR, and 40%+ gross margin by 2027.

• Barter transactions favorably impacted net revenue by $23.9M in 2024; this will not recur in 2025.