Financial Highlights
-- Net revenue increased 12.8% compared to Q2 2025, driven primarily by
growth in Wholesale and Direct-to-Consumer channels.
-- Wholesale revenue increased 15.2%, while Direct-to-Consumer ("DTC")
revenue increased 13.6%, marking DTC's strongest quarterly growth in over
four years.
-- Packaged coffee distribution increased 2.6 points to 56.5% All
Commodity Volume ("ACV").
-- Net loss improved to $0.2 million in Q2 2026, compared to a net loss of
$14.5 million in Q2 2025, while Adjusted EBITDA increased to $6.3 million
from $2.4 million in the prior year.
-- For the full year 2026, the Company continues to expect at least 8%
revenue growth and at least 35% Adjusted EBITDA growth, reflecting
continued strength in the Company's operating performance.
SALT LAKE CITY--(BUSINESS WIRE)--August 03, 2026--
BRC Inc. (NYSE: BRCC, the "Company" or "Black Rifle"), a Veteran-founded, mission-driven premium beverage company, today announced financial results for the second quarter of fiscal year 2026.
"Our second quarter performance reflects continued execution against the priorities we established for 2026 and the strength of our core coffee business," said BRCC Chief Executive Officer Chris Mondzelewski. "Expanded distribution and increased shelf presence drove strong Wholesale growth as part of our land-and-expand strategy, while Direct-to-Consumer delivered its strongest year-over-year growth rate in more than four years. Our programming around America's 250th anniversary has been in market since the beginning of the year and ramped up throughout the second quarter. These efforts give us a timely way to reach more consumers, reinforce the values that define BRCC and expand our support for veterans, service members and first responders."
"The business delivered strong second quarter revenue and Adjusted EBITDA growth while continuing to improve cash conversion," said BRCC Chief Financial Officer Matt Amigh. "Gross margin stabilized during the first half of 2026, including modest expansion in the second quarter, and we expect greater improvement in the second half of 2026 as lower green coffee costs begin to flow through cost of sales, supported by ongoing portfolio mix and productivity initiatives. We remain highly focused on driving structural improvements across the operating model to support earnings growth and improve working capital efficiency. These initiatives are already increasing cash generation and strengthening the balance sheet, while building a foundation to support sustained progress as the business grows. Based on our first-half results and execution against our full-year plan, we are maintaining our outlook of at least 8% revenue growth and at least 35% Adjusted EBITDA growth."
Second Quarter 2026 Financial Highlights (in millions, except % data)
Second Quarter Comparisons
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2026 2025 $ Change % Change
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Net Revenue $107.0 $ 94.8 $ 12.2 12.8%
Gross Profit $ 36.5 $ 32.2 $ 4.3 13.4%
Gross Margin 34.1% 33.9%
Net Loss $ (0.2) $(14.5) $ 14.3
Adjusted EBITDA $ 6.3 $ 2.4 $ 3.9 163.5%
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Second Quarter 2026 Results
Net revenue for the second quarter of 2026 increased 12.8% to $107.0 million, compared to $94.8 million in the second quarter of 2025. Wholesale revenue increased 15.2% to $70.6 million in the second quarter of 2026, compared to $61.3 million in the second quarter of 2025. Growth in the Wholesale channel was primarily driven by expanded distribution of packaged coffee, which increased unit volumes across food and mass retailers, as well as by higher pricing.
Direct-to-Consumer ("DTC") revenue increased 13.6% to $31.4 million in the second quarter of 2026, compared to $27.6 million in the second quarter of 2025. The increase was primarily driven by growth through third-party digital retail marketplaces, partially offset by lower subscription revenue. Revenue from Black Rifle Coffee shops ("Outposts") decreased 15.0% to $5.0 million in the second quarter of 2026, compared to $5.9 million in the second quarter of 2025. The decline was driven by lower transaction volumes and lower average order value in Company-operated Outposts.
Gross profit increased 13.4% to $36.5 million in the second quarter of 2026, compared to $32.2 million in the second quarter of 2025. Gross margin increased 15 basis points to 34.1% in the second quarter of 2026, from 33.9% in the second quarter of 2025. The improvement was primarily driven by pricing actions, lower shipping and fulfillment costs resulting from productivity gains under our Operational Improvement Plan, and a decrease in the reserve for excess and obsolete inventory. These benefits were partially offset by higher green coffee input costs and tariffs, as well as higher third-party e-commerce marketplace fees, which scale with strong growth in marketplace channel sales.
Marketing expenses increased 7.8% to $10.5 million in the second quarter of 2026, compared to $9.8 million in the second quarter of 2025. As a percentage of revenue, marketing expenses decreased 50 basis points to 9.8% in the second quarter of 2026, compared to 10.3% in the second quarter of 2025. The dollar increase was driven by higher investment in content production, agency support, and partnerships, partially offset by reduced spending on ad placement and in-store marketing. The decline as a percentage of revenue reflects operating leverage, as revenue growth outpaced the increase in marketing spend.
Salaries, wages and benefits expenses decreased 2.0% to $15.5 million in the second quarter of 2026, compared to $15.8 million in the second quarter of 2025. As a percentage of revenue, salaries, wages and benefits expenses decreased 220 basis points to 14.5% in the second quarter of 2026, compared to 16.7% in the second quarter of 2025. The decrease reflects lower fixed personnel costs due to reduced headcount, partially offset by higher incentive-based compensation.
General and administrative ("G&A") expenses decreased 35.2% to $9.3 million in the second quarter of 2026, compared to $14.3 million in the second quarter of 2025. As a percentage of revenue, G&A expenses decreased 640 basis points to 8.7% in the second quarter of 2026, compared to 15.1% in the second quarter of 2025. The decrease was primarily driven by lower legal fees, consulting and professional fees, and depreciation and amortization expense.
Other operating expenses, net decreased 97.7% to $0.1 million in the second quarter of 2026, compared to $4.9 million in the second quarter of 2025. As a percentage of revenue, other operating expenses decreased 510 basis points to 0.1% in the second quarter of 2026, compared to 5.2% in the second quarter of 2025. The decrease was primarily due to the absence of legal contingency charges recorded in the prior-year period.
Net loss for the second quarter of 2026 was $0.2 million, and Adjusted EBITDA was $6.3 million, compared to a net loss of $14.5 million and Adjusted EBITDA of $2.4 million in the second quarter of 2025.
Financial Outlook
The Company affirms the following guidance based on current market conditions and expectations for revenue, gross margin, and adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure.
The Company's fiscal 2026 guidance reflects a disciplined and measured approach to forecasting, incorporating current commodity conditions and planned growth investments. Management remains focused on consistent execution to drive steady revenue progression, margin improvement, EBITDA expansion, and strengthened cash generation.
For full-year fiscal 2026, the Company affirms the following guidance (in millions, except % data):
FY2025 FY2026
Actual Guidance
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Net Revenue $398.3 At least 8% growth
Gross Margin 34.6% 34% to 36%
Adj. EBITDA $21.4 At least 35% growth
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The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the "Forward-Looking Statements" safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
We have not reconciled forward-looking Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss), in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)$(B)$ of Regulation S-K. We cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliation, including market-related assumptions that are not within our control, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net income (loss). See "Non-GAAP Financial Measures" for additional important information regarding Adjusted EBITDA.
Conference Call
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