BRC (BRCC) AI Stock Analysis

• Market Cap: $374.82M
• Dividend Yield: N/A
• Average Volume (3M): 849.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: -4.59%
• EPS Growth: -19.09%
• Country: US
• Employees: 551
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Packaged Foods
• EPS (TTM): -0.07
• Shares Outstanding: 113,820,786
• 10 Day Avg. Volume: 543,590
• 30 Day Avg. Volume: 849,961
• 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: 0.61
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 1.56
• Enterprise Value/Ebitda: -15.21
• 1Y Price Target: $2.13
• Price Target Upside: 39.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: $1.50 ▼(-1.96% Downside)

BRCC's overall stock score reflects significant financial challenges, including high leverage and negative profitability, which weigh heavily on the score. While technical indicators and valuation metrics are not favorable, recent earnings call insights and corporate events provide some optimism for future growth and operational improvements.

Positive Factors

EBITDA Performance

Fourth-quarter EBITDA of $10 million were above our estimate of $7 million.

Sales Growth

Second-quarter sales increased 6.5%, driven primarily by growth in the wholesale segment.

Wholesale Performance

Wholesale sales grew 14%, driven by strong performance of Black Rifle Energy, as well as new distribution gains and expanded shelf presence in grocery and mass.

Negative Factors

Earnings Quality

Earnings quality was mixed, with sales above, gross margin below, and the operating expense ratio higher than forecast.

Guidance

Management provided initial 2025 EBITDA guidance below our forecast.

Wholesale Sales Decline

Headline wholesale sales fell 9%.

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

Black Rifle Coffee Company generates revenue through the sale of coffee products, including whole bean and ground coffee, coffee pods, and ready-to-drink beverages. The company employs a direct-to-consumer model via its website, which is a significant revenue stream, allowing customers to purchase products through one-time purchases or subscription services. Additionally, BRCC sells its products through retail partnerships with major retailers, expanding its market reach. The company also generates income from branded merchandise, such as apparel and accessories, which complements its core coffee offerings. BRCC's unique brand positioning and strong community engagement help maintain customer loyalty and drive sales.

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: 1.53
• 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 1.53 is above the 20-day moving average (MA) of 1.52, below the 50-day MA of 1.58, and below the 200-day MA of 2.18, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.03 is Neutral, neither overbought nor oversold. The STOCH value of 32.31 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
NATR	80 Outperform	$305.80M	22.98	9.15%	―	4.33%	-6.33%
LWAY	77 Outperform	$470.50M	45.03	14.46%	―	9.19%	-23.91%
Sector *	63 Neutral	$20.52B	14.79	-2.72%	3.09%	1.95%	-4.74%
STKL	60 Neutral	$759.94M	―	-1.34%	―	10.90%	96.02%
BGS	51 Neutral	$372.02M	―	-35.36%	16.27%	-6.91%	-83.51%
BRCC	48 Neutral	$374.82M	―	-89.88%	―	-4.59%	-19.09%
WEST	41 Neutral	$498.16M	―	-27.07%	―	13.05%	-72.80%

BRC Corporate Events

BRC Reaffirms Annual Guidance for 2025

On July 16, 2025, BRC Inc. reaffirmed its annual guidance for the fiscal year ending December 31, 2025, which was initially provided in its earnings release for the first quarter of 2025 on May 5, 2025. This announcement underscores the company’s confidence in its financial performance and stability for the remainder of the year, potentially reassuring stakeholders and investors about its market position.

BRC Announces Elimination of Key Executive Position

On June 23, 2025, BRC Inc. announced the elimination of the Chief Technology and Operations Officer position, effective with the departure of Christopher Clark on July 4, 2025. Following his departure, Mr. Clark will receive severance payments, including twelve months of salary and health coverage, and accelerated vesting of certain stock units. This decision reflects a strategic shift in the company’s operational structure, potentially impacting its technological and operational strategies.

BRC Appoints New CFO to Drive Growth

On June 18, 2025, BRC, Inc. announced the appointment of Matthew Amigh as Chief Financial Officer, effective July 7, 2025. Mr. Amigh, a seasoned financial executive with extensive experience in the consumer-packaged goods industry, will play a crucial role in driving BRCC’s profitable growth and delivering long-term shareholder value. His previous roles include CFO positions at Ethos Pet Nutrition and Bulletproof 360, Inc., where he led significant financial turnarounds and strategic exits. This appointment is expected to enhance BRCC’s operational efficiency and execution towards its long-term vision.

BRC Settles Lawsuit with Alta Partners

On June 20, 2025, BRC Inc. entered into a settlement agreement with Alta Partners, LLC, resolving a lawsuit filed by Alta. The lawsuit, which was filed in the Southern District of New York, alleged breach of contract and sought damages due to BRC’s refusal to allow Alta to exercise warrants in 2022. As part of the settlement, Alta will pay BRC $1,000,000, and BRC will issue 2,300,100 shares of its Class A common stock to Alta.

BRC Inc. Holds Annual Stockholders Meeting and Elections

On May 28, 2025, BRC Inc. held its Annual Meeting of Stockholders, where a quorum of 119,977,998 shares was represented. During the meeting, stockholders elected Evan Hafer, Steven Taslitz, and Glenn Welling as Class III directors until 2028 and ratified Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.