BRC (BRCC) AI Stock Analysis

• Market Cap: $345.03M
• Dividend Yield: N/A
• Average Volume (3M): 769.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: -4.59%
• EPS Growth: -19.09%
• Country: US
• Employees: 551
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): -0.07
• Shares Outstanding: 113,820,786
• 10 Day Avg. Volume: 553,469
• 30 Day Avg. Volume: 769,942
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 1.56
• Enterprise Value/Ebitda: -15.21
• 1Y Price Target: $2.13
• Price Target Upside: 50.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 49 Neutral
• Price Target: $1.50 ▲(5.63% Upside)

The overall score reflects significant financial challenges, including high leverage and negative profitability, which are partially offset by strong sales growth and strategic initiatives highlighted in the earnings call. Technical indicators suggest bearish momentum, and valuation metrics indicate ongoing losses.

Positive Factors

Sales Growth Outperformance

The company's ability to significantly outpace the U.S. coffee category's growth indicates strong market demand and effective sales strategies, which are crucial for long-term revenue expansion.

Energy Drink Expansion

The successful expansion into energy drinks demonstrates product diversification and new revenue streams, enhancing the company's market position and growth potential.

Wholesale Segment Growth

Strong growth in the wholesale segment indicates robust demand and effective distribution partnerships, supporting sustained revenue growth and market penetration.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities and weather economic downturns.

Gross Margin Decline

The decline in gross margins due to cost pressures suggests challenges in maintaining profitability, which could affect long-term financial health and competitive positioning.

Tariff-Related Cost Pressures

Tariff-related costs can erode profit margins, increasing operational expenses and potentially leading to higher prices or reduced competitiveness in the market.

BRC Business Overview & Revenue Model

Company Description

BRC 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 Money

BRC 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 1.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.42 is below the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.52, and below the 200-day MA of 1.92, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 43.65 is Neutral, neither overbought nor oversold. The STOCH value of 71.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRCC.

BRC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HLF	58 Neutral	$902.17M	2.68	―	―	-2.25%	288.79%
JVA	57 Neutral	$23.92M	12.99	7.17%	―	17.92%	64.96%
BRCC	49 Neutral	$345.03M	―	-89.88%	―	-4.59%	-19.09%
FARM	45 Neutral	$37.79M	-2.52	-32.58%	―	0.35%	-272.31%
LSF	43 Neutral	$52.47M	―	-8.34%	―	22.79%	74.00%
WEST	40 Underperform	$487.75M	―	-27.07%	―	13.05%	-72.80%

BRC Corporate Events

BRC Expands Board, Appoints Melvin Landis

On September 15, 2025, BRC Inc. expanded its Board of Directors from nine to ten members by appointing Melvin Landis as a Class III director, who will serve until the 2028 annual meeting of stockholders. Mr. Landis’s appointment followed a nomination and recommendation by the Nominating and Corporate Governance Committee, with no special arrangements or material interests disclosed. He will receive an annual cash compensation of $50,000 and was granted restricted stock units under the company’s Omnibus Incentive Plan, with additional future grants contingent on continued service.

The most recent analyst rating on (BRCC) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on BRC stock, see the BRCC Stock Forecast page.

Brc Inc.’s Workforce Reduction Plan: Balancing Efficiency Gains with Operational Risks

Brc Inc.’s recent implementation of its Operational Improvement Plan, starting in the second quarter of fiscal 2025, poses significant risks to its business operations. The plan, which includes an 8.7% workforce reduction, aims to enhance operational efficiencies and align resources with strategic priorities. However, this reduction may lead to a loss of institutional knowledge, strain on remaining employees, and potential delays in executing strategic plans. Additionally, the plan could negatively impact employee morale, hinder the company’s ability to attract and retain talent, and ultimately affect Brc Inc.’s financial condition and growth prospects.

BRC Inc. Reports Revenue Growth Amid Net Loss

BRC Inc., a Veteran-founded premium beverage company, is known for its mission-driven approach and commitment to supporting military and first responders while delivering high-quality coffee products. In its second quarter of 2025, the company reported a 6.5% increase in revenue compared to the same period in 2024, primarily driven by a significant rise in wholesale revenue. However, the company faced a net loss of $14.5 million, a substantial increase from the previous year’s loss, largely due to coffee inflation and increased marketing expenses.

Brc Inc. Earnings Call: Balanced Growth Amid Challenges

The recent earnings call for Brc Inc. presented a balanced sentiment, highlighting both significant achievements and notable challenges. The company showcased impressive sales growth, distribution expansion, and successful product launches. However, these successes were tempered by challenges in gross margin and increased operational costs. The company’s ability to outperform the market and expand its footprint was counterbalanced by pressures from costs and legal expenses, resulting in an overall balanced sentiment.