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BRC (BRCC)
NYSE:BRCC
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BRC
(NYSE:BRCC)
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Rating:48Neutral
Price Target:
$1.50
▼(-3.85% Downside)
BRCC's overall score is primarily impacted by financial performance challenges, including high leverage and negative margins. While technical indicators suggest potential stabilization, valuation concerns and margin pressures from the earnings call weigh on the stock's outlook.
Positive Factors
Sales Growth Outperformance
The company's ability to significantly outperform the U.S. coffee category's growth indicates strong market demand and effective sales strategies, which can drive long-term revenue expansion and strengthen market position.
Energy Drink Expansion
The rapid expansion of the energy drink line into numerous retail locations demonstrates successful product diversification and potential for sustained revenue growth in a competitive market.
Operational Cost Efficiency
Improved cost efficiency through headcount reduction and reinvestment into marketing can enhance profitability and support strategic growth initiatives, contributing to long-term financial health.
Negative Factors
High Leverage
Significant reliance on debt financing increases financial risk and can limit the company's ability to invest in growth opportunities, potentially impacting long-term stability.
Gross Margin Decline
The decline in gross margin due to cost pressures can affect profitability and indicates challenges in maintaining cost efficiency, which may hinder long-term financial performance.
Tariff-Related Cost Pressures
Tariff-related costs add pressure on margins, potentially affecting pricing strategies and profitability, which could challenge the company's ability to sustain its competitive edge.
BRC (BRCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$387.23M
Dividend YieldN/A
Average Volume (3M)816.35K
Price to Earnings (P/E)―
Beta (1Y)1.64
Revenue Growth-4.59%
EPS Growth-19.09%
CountryUS
Employees551
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)-0.07
Shares Outstanding113,820,786
10 Day Avg. Volume1,252,228
30 Day Avg. Volume816,345
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.59
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit1.56
Enterprise Value/Ebitda-15.21
Forecast
1Y Price Target
$2.13Price Target Upside36.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
BRC Business Overview & Revenue Model
Company DescriptionBRC Inc., through its subsidiaries, purchases, roasts, and sells coffee, coffee accessories, and branded apparel. The company also produces media content; podcasts; and digital and print journals, as well as sells coffee brewing equipment, and outdoor and lifestyle gear. It supports active military, veterans, and first responders. The company offers its products through convenience, grocery, drug, and mass merchandise stores; outdoor, do it yourself, and lifestyle retailers; and company operated and franchised Black Rifle Coffee retail coffee shop locations, as well as through e-commerce. BRC Inc. was founded in 2014 and is based in Salt Lake City, Utah.
How the Company Makes MoneyBRC generates revenue through multiple key streams, primarily by selling its coffee products directly to consumers via its e-commerce platform and through retail partnerships. The company offers subscriptions for regular deliveries, which provides a steady income stream. Additionally, BRC has established partnerships with various military organizations and events, allowing for promotional collaborations that further enhance brand visibility and sales. The brand's focus on community engagement and veteran support also fosters customer loyalty, driving repeat purchases and enhancing overall revenue.
BRC Earnings Call Summary
Earnings Call Date:Aug 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong sales growth outperformance across various segments, effective cost management strategies, and successful new product launches. However, these positive aspects were tempered by significant gross margin pressure, tariff-related costs, and potential challenges in achieving the upper range of revenue guidance. Despite these challenges, the company's strategic focus on growth opportunities and operational efficiencies provides a balanced outlook.Q2-2025 Updates
Positive Updates
Sales Growth Outperformance
Black Rifle Coffee Company achieved a 32% sales growth on a 29% increase in unit volume, outperforming the U.S. coffee category's 9.6% sales growth and 1% decline in units.
Direct-to-Consumer Channel Stabilization
Despite a 7.8% decrease in year-over-year direct-to-consumer revenue, adjusted sales showed slight positive growth after accounting for a $2.4 million loyalty reserve benefit from the prior year.
Ready-to-Drink Coffee Segment Success
The company delivered 7% sales growth in its ready-to-drink coffee segment, outperforming a category that declined by 4%. Unit volume was up 9% against a 6% decline in category units.
Energy Drink Expansion
Black Rifle Energy reached distribution in over 15,000 retail locations with a 23% ACV since launching in January, showing strong momentum in a competitive category.
Wholesale Segment Growth
The wholesale segment grew 14% year-over-year, and after adjusting for $3 million in nonrecurring revenue, sales increased by 21% in the second quarter.
Operational Cost Efficiency
Headcount was reduced by approximately 20% year-over-year, resulting in lower salaries, wages, and benefits, which were reinvested into marketing.
Negative Updates
Gross Margin Decline
Gross margin fell to 33.9%, a 790 basis point reduction compared to the prior year, primarily due to green coffee inflation, trade and pricing impacts, and loyalty rewards.
Tariff-Related Cost Pressures
Recently implemented import duties are expected to have at least a 100 basis point margin impact in the second half of the year.
Potential Revenue Guidance Challenge
The company may finish towards the lower end of its full-year revenue guidance due to a $30.4 million headwind from prior year non-recurring revenue.
Legal Costs and Depreciation Impact
General and administrative expenses increased by 31%, primarily due to legal costs and higher depreciation tied to capitalized software.
Company Guidance
During Black Rifle Coffee Company's second quarter 2025 earnings call, the management provided guidance reflecting a positive outlook for the remainder of the fiscal year and beyond. The company maintained its full-year revenue guidance of $395 million to $425 million, expecting a sequential step-up in revenue due to ongoing distribution gains in packaged coffee and energy drinks. Despite a challenging macro cost environment, Black Rifle delivered a 32% sales growth on a 29% increase in unit volume, significantly outpacing the U.S. coffee category's growth. The company also reported a 7% increase in net revenue year-over-year, driven primarily by a 14% growth in the wholesale segment. Gross margins were expected to range between 35% and 37% for the year, with adjusted EBITDA anticipated to be between $20 million and $30 million. The management highlighted a strategic focus on expanding the retail footprint, particularly in grocery and mass merchandise channels, and improving direct-to-consumer sales, which showed signs of stabilization and growth. The launch of Black Rifle Energy, now available in over 15,000 retail locations, and the favorable performance of ready-to-drink coffee further underscore the company's strategic initiatives to drive long-term growth.BRC Financial Statement Overview
Summary
BRCC faces challenges in profitability and leverage, with high debt levels and negative margins. While revenue growth and free cash flow improvements are positive signs, the company needs to address operational inefficiencies and manage its debt to enhance financial stability.Income Statement
The income statement shows a mixed performance. The company has experienced revenue growth in recent periods, with a TTM revenue growth rate of 1.52%. However, profitability remains a concern with negative net profit margins and EBIT margins, indicating ongoing operational challenges. The gross profit margin has decreased from previous periods, suggesting pressure on cost management.45
Neutral
Balance Sheet
The balance sheet reflects high leverage with a TTM debt-to-equity ratio of 3.26, indicating significant reliance on debt financing. The return on equity is negative, highlighting challenges in generating returns for shareholders. The equity ratio is low, suggesting limited equity buffer against liabilities.40
Negative
Cash Flow
Cash flow analysis reveals improvement in free cash flow growth, with a significant increase in TTM. However, operating cash flow remains negative, indicating potential liquidity issues. The free cash flow to net income ratio is strong, suggesting efficient cash generation relative to reported losses.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 388.89M | 391.49M | 395.62M | 301.31M | 233.10M | 163.91M |
| Gross Profit | 146.38M | 161.17M | 125.45M | 99.18M | 89.69M | 69.41M |
| EBITDA | -15.01M | 13.90M | -42.94M | -64.11M | -9.48M | 7.02M |
| Net Income | -20.42M | -2.95M | -16.75M | -82.91M | -13.85M | 4.32M |
Balance Sheet | ||||||
| Total Assets | 225.25M | 227.38M | 235.78M | 225.33M | 87.08M | 72.54M |
| Cash, Cash Equivalents and Short-Term Investments | 4.30M | 6.81M | 12.45M | 38.99M | 18.33M | 35.23M |
| Total Debt | 32.90M | 96.70M | 109.24M | 70.30M | 35.00M | 14.23M |
| Total Liabilities | 189.60M | 177.89M | 189.27M | 129.40M | 236.57M | 175.42M |
| Stockholders Equity | 10.10M | 13.17M | 13.27M | 25.80M | -149.49M | -102.88M |
Cash Flow | ||||||
| Free Cash Flow | -9.31M | 2.64M | -52.19M | -146.59M | -26.98M | 1.79M |
| Operating Cash Flow | -3.37M | 11.31M | -24.97M | -116.19M | -7.69M | 11.55M |
| Investing Cash Flow | -5.88M | -7.71M | -21.51M | -30.40M | -19.29M | -9.76M |
| Financing Cash Flow | 3.60M | -10.70M | 21.40M | 167.25M | 9.68M | 28.81M |
BRC Technical Analysis
Negative
1.56
Price Trends
1.61
Negative
1.62
Negative
2.07
Negative
Market Momentum
<0.01
Positive
47.86
Neutral
13.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRCC, the sentiment is Negative. The current price of 1.56 is below the 20-day moving average (MA) of 1.59, below the 50-day MA of 1.61, and below the 200-day MA of 2.07, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.86 is Neutral, neither overbought nor oversold. The STOCH value of 13.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRCC.
BRC Risk Analysis
BRC disclosed 59 risk factors in its most recent earnings report. BRC reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BRC Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $914.55M | 2.79 | -49.21% | ― | -2.25% | 288.79% | |
59 Neutral | $25.86M | 13.95 | 6.93% | ― | 17.92% | 64.96% | |
50 Neutral | $38.43M | -2.62 | -33.33% | ― | 0.35% | -272.31% | |
49 Neutral | $62.17M | -55.84 | -13.79% | ― | 22.79% | 74.00% | |
48 Neutral | $387.23M | ― | -89.88% | ― | -4.59% | -19.09% | |
41 Neutral | $442.29M | -4.99 | -30.02% | ― | 13.05% | -72.80% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
BRCC
BRC
1.56
-1.86
-54.39%
JVA
Coffee Holding Co
4.53
1.30
40.25%
FARM
Farmer Brothers Company
1.78
-0.20
-10.10%
HLF
Herbalife
8.87
1.68
23.37%
LSF
Laird Superfood
5.83
0.87
17.54%
WEST
Westrock Coffee
4.67
-1.83
-28.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.