BRC Inc. (BRCC) Market Cap
BRC Inc. has a market capitalization of —.
No quote data available.
CEO: Christopher Mondzelewski
Sector: Consumer Defensive
Industry: Packaged Foods
IPO Date: 2022-02-10
Website: https://www.blackriflecoffee.com
BRC Inc. (BRCC) - Company Information
Market Cap: -|Sector: Consumer Defensive
Company Profile
BRC Inc., operating through its subsidiaries, focuses on sourcing, roasting, and distributing coffee, along with coffee accessories and branded apparel. The company also extends its activities to media production, including podcasts and both digital and print journals, and offers various coffee brewing equipment as well as outdoor and lifestyle gear. A core mission of BRC Inc. is to support active military members, veterans, and first responders. Consumers can purchase their products through a wide array of retail outlets, such as convenience, grocery, drug, and mass merchandise stores, as well as outdoor, DIY, and lifestyle retailers. Their offerings are also available at company-owned and franchised Black Rifle Coffee retail shops, in addition to their e-commerce platform. BRC Inc. was founded in 2014 and is headquartered in Salt Lake City, Utah.
Analyst Sentiment
From 2 Active Polls
1Y Forecast: $6.88
▲ +0.0% Potential Upside
Consensus Target Metrics
Low Bound
$2
Median
$3
High Bound
$19
Average
$7
Price & Moving Averages
🎯 Wall Street Analyst Intelligence Report
1-Year structural target targets, chart projections, and sentiment maps.
Consensus Trend Projection
Trailing closures vs. 12-month metrics map.
Analyst Vote Distribution
Aggregate institutional coverage sentiment weights.
Sentiment volume allocation data unavailable.
Historical valuation matrix unavailable.
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📊 AI Financial Analysis
Powered by StockMarketInfo"BRCC posted Q1 2026 revenue of $109.2M and net income of $0.05M (EPS $0.0004). Relative to Q1 2025, revenue rose ~21.5% YoY (from $89.97M to $109.23M) and net income improved sharply (from -$2.89M to +$0.05M). Sequentially, revenue eased ~3.1% QoQ (from $112.74M in Q4 2025 to $109.23M), while net income swung from -$3.21M to +$0.05M. Profitability improved markedly despite thin margins: gross margin expanded to ~33.0% in Q1 2026 (from ~32.1% in Q4 2025) after being higher (~36.1%) in Q1 2025. Operating profit turned positive (~$1.32M) versus operating losses in the prior two quarters (Q4 2025 and Q2/Q1 2025). Net margin in Q1 2026 is ~0.04%, up from -2.85% in Q4 2025 but still near breakeven. Cash flow strengthened: operating cash flow was $6.76M and free cash flow was $6.13M in Q1 2026, reversing the prior quarter’s outflow. Balance sheet liquidity improved with cash rising to ~$10.0M (from $4.3M in Q4 2025), while total assets were slightly higher at ~$217.0M. Shareholder returns are pressured by weak momentum—marketPerformance shows -57.14% over 1 year and no dividends/buybacks reported this quarter—so total shareholder return is largely negative. Price-to-fair-value context appears inconsistent (fair value ~1.91 vs price ~0.883), but without a large positive price trend the risk remains elevated."
Revenue Growth
Revenue grew ~21.5% YoY (Q1 2025 $89.97M to Q1 2026 $109.23M) but declined ~3.1% QoQ (Q4 2025 $112.74M to Q1 2026 $109.23M), indicating improving but not consistently accelerating top-line momentum.
Profitability
Net income improved from -$2.89M (Q1 2025) to +$0.05M (Q1 2026) and swung from -$3.21M in Q4 2025 to +$0.05M QoQ. However margins remain extremely thin (Q1 2026 net margin ~0.04%), so profitability is only modestly durable.
Cash Flow Quality
Operating cash flow turned positive to $6.76M and free cash flow to $6.13M in Q1 2026, reversing Q4 2025’s operating outflow (-$8.72M). Dividend payments are $0 and no meaningful repurchases were indicated, so cash is not yet translating into shareholder yield.
Leverage & Balance Sheet
Liquidity improved materially (cash $9.97M vs $4.33M QoQ). Total assets rose modestly (~$217.0M vs $209.2M). Leverage remains notable (net debt ~18.7M) but equity rose versus Q4 2025 (total stockholders’ equity $70.7M vs $68.0M), suggesting resilience improved from recent distress.
Shareholder Returns
Market performance is weak: 1Y change -57.14% with no dividend yield shown. With no clear buyback signal this quarter, total shareholder returns are likely strongly negative.
Analyst Sentiment & Valuation
Consensus price target is $2.50 (high/low/median all $2.50) versus current price ~$0.883, implying meaningful upside on paper. That said, the stock’s steep 1-year decline and very low earnings base keep valuation risk high.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Fundamentals Overview
BRCC’s Q1 2026 shows improving top-line delivery anchored in distribution and shelf execution rather than reliance on pricing alone. Net revenue grew 21% YoY (wholesale +31.5%; DTC +7%), supported by packaged coffee share gains (bagged dollar share +55 bps to 3.3%, pods +45 bps to 2.2%) and ~7 points ACV retail breadth expansion. Shelf productivity and deeper assortment are translating into stronger velocity and SKU performance, and management reiterated land-and-expand capacity for further ACV and item growth (grocery accounts up to 13–14 items). Margin was a mixed signal: gross margin fell to 33% (-305 bps) due to elevated coffee costs and nonrecurring drags (DTC fulfillment onboarding and extract write-down), though pricing limited tariffs/inflation to ~20 bps. Critically, adjusted EBITDA margin expanded +570 bps on expense efficiency, driving adjusted EBITDA from <$1M to >$7M. Guidance raised for 2026 (revenue +8% to ~$430M; adj. EBITDA +35% to ~$29M) while flagging tougher back-half comps and fuel risk.
Growth Catalysts
- Packaged coffee share gains: Nielsen reports BRCC up 34.6% in the quarter (>2.5x category growth); bagged dollar share +55 bps to 3.3% and pods +45 bps to 2.2%.
- Land-and-expand execution: +~7 points ACV YoY in retail breadth and shelf presence; grocers carry nearly two more BRCC items vs a year ago, deepening in-door assortment.
- Improved shelf productivity and velocity translating into stronger SKU-level performance at retail partners, supporting durable volume/units growth.
- DTC improvement: second consecutive quarter of YoY growth; marketplaces expanding top-of-funnel while blackriflecoffee.com remains focused on subscriptions, retention, and pricing discipline.
- Energy scaling with selectivity: 21% ACV across 22,000+ doors in Q1; measured expansion tied to early traction markets/channels.
- Wholesale momentum concentrated in mass and grocery: mass merchants sales up >20%, grocery sales nearly doubled; Walmart share growth in bags and pods.
Business Development
- Retail partnerships referenced via broad distribution wins (mass merchants, grocery, dollar channel) without named retailers beyond brand-level Walmart share metrics.
- Energy available across 22,000+ doors; expansion described as across retail environments where takeaway economics are compelling.
- Community/collaboration partnerships: Operation Homefront; Dallas Cowboys; Team Red, White & Blue; Beyond the Call (limited time roast).
Financial Highlights
- Net revenue +21% YoY in Q1 2026 (wholesale +31.5% YoY; DTC +7% YoY).
- Q1 gross margin 33.0%, down 305 bps YoY, driven by nonrecurring items and elevated coffee costs; pricing actions limited inflation/tariffs impact to ~20 bps.
- Nonrecurring gross margin drags: ~100 bps onboarding new DTC fulfillment provider; ~210 bps one-time noncash write-down from coffee extract formulation change (not added back to adjusted EBITDA).
- Adjusted EBITDA margin expanded +570 bps; adjusted EBITDA increased from < $1M to > $7M (more than 8x YoY) despite lower gross margin rate.
- 2026 gross margin guidance: 34%–36% (vs 34.6% in 2025).
- 2026 revenue guidance raised: at least +8% growth or ~$430M; adjusted EBITDA raised: at least +35% growth or ~$29M (up from prior at least +30%).
Capital Funding
- Debt: $39M outstanding; ~1.0x net debt to trailing 12-month adjusted EBITDA; also ~1.0x based on 2026 guidance.
- Liquidity: >$52M total liquidity at quarter-end (cash plus available credit facility).
- Free cash flow: +~$11M YoY; $6M generated in Q1 2026 vs use of >$5M in prior-year Q1.
- No buyback amount or share repurchase program figures disclosed in the transcript.
Strategy & Ops
- Trade/supply chain productivity: ~50 bps benefit from supply chain initiatives and mix; improvements in trade efficiency and supply chain partially mitigated gross margin pressure.
- Operating expense discipline: total operating expenses down >8% YoY; marketing expense -10%; G&A -14%.
- Marketing allocation change: shifting spend upper funnel and reducing lower ROAS bottom-funnel activity; marketing dollars down YoY, but marketing spend as % of sales expected to be ~same YoY with total marketing dollars increasing later in 2H.
- DTC fulfillment: onboarding costs associated with new fulfillment provider (~100 bps drag in gross margin) referenced as nonrecurring.
- RTD strategy focus: prioritize channels/partners with stronger demand and takeaway consistency; align innovation platforms with occasions where performance/economics are most compelling.
- Energy expansion method: selectively expand markets/channels showing early traction; aim for measured pace rather than broad acceleration.
Market Outlook
- 2026 revenue: at least +8% growth, ~$430M; cadence expects revenue to build through the year broadly consistent with 2025 progression.
- Q2 2026 revenue: at least +10% YoY; explicitly noted Q1 timing benefited revenue by a few million dollars and will normalize in Q2.
- Q2 gross margin: expected consistent with Q1 (reflecting coffee inflation and higher fuel costs impacts).
- 2026 adjusted EBITDA: at least +35% growth, ~$29M; Q2 adjusted EBITDA: at least $5M.
- Margin recovery expectation: gross margin improves in back half as higher-cost inventory is worked through and productivity/mix benefits build.
Risks & Headwinds
- Gross margin pressure from elevated green coffee costs and carryover impact of 2025 tariffs embedded in inventory.
- Nonrecurring items impacted Q1 gross margin: new DTC fulfillment provider onboarding and extract write-down (formulation change).
- Back-half comp headwinds: tougher year-over-year due to (1) pricing actions in 2025 (midyear and early Q4), (2) ~7-point+ ACV gains with midyear timing of customer resets, and (3) marketplace acceleration initiative starting mid-2025.
- Fuel cost risk: management cited ~$1.4M fuel risk related to fuel surcharges/parcel linehaul rates incorporated in guidance bridge.
- Category/environmental dynamics remain dynamic; retail traffic impacts from fuel costs are being monitored, though management reported no impact observed as of March-April checks.
Q&A: Analyst Interest
- Topic: Reconciling 2026 growth cadence (raised at least +8%) with historical quarter-to-quarter ramps and timing benefits: Management said guidance reflects only confirmed pricing/distribution wins, not unrealized tailwinds. They highlighted tougher back-half comps from 2025 pricing resets and marketplace acceleration, plus normalization of Q1 shipment timing.
- Topic: SKU density spread on shelves within land-and-expand: Management explained average items per door rose as grocers expanded from “only a couple” items to +2 items YoY, now averaging ~5.5. New retailers typically enter with 2–4 SKUs, expand to 6–8, and top grocery accounts can run 13–14, potentially rising further with innovation.
- Topic: Wholesale growth split between price and volume, and fuel-cost consumer behavior: Management quantified Q1 wholesale growth as ~21% total with ~6% from pricing and the vast majority from unit growth. They also said higher fuel costs could reduce traffic, but their checks from March-April found no measurable impact yet; RTD declines stabilizing into low single digits.
Sentiment: MIXED
Note: This summary was synthesized by AI from the BRCC Q1 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.