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BRC
(NYSE:BRCC)
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Rating:57Neutral
Price Target:
$1.50
▲(70.45% Upside)
Action:Reiterated
Date:06/03/26
The score is held back primarily by weak financial performance—continued losses and negative free cash flow despite improving leverage—while supportive technical momentum and a more constructive earnings outlook (raised 2026 guidance and strong Q1 adjusted EBITDA/cash flow improvement) provide offsetting positives. Valuation remains constrained by negative earnings, and recent NYSE compliance improvement reduces a key near-term risk.
Positive Factors
Balance-sheet repair
Material deleveraging (debt-to-equity down to ~0.61 and positive equity) meaningfully reduces solvency and refinancing risk, giving management durable flexibility to fund distribution expansion, weather commodity cycles, or invest in productivity without immediate capital raises.
Negative Factors
Still not consistently profitable
Trailing profitability remains fragile: TTM EBIT/EBITDA and net margin are negative. Despite recent progress, the company has not established durable net profitability, leaving earnings sensitive to commodity swings, execution setbacks or investment pacing over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet repair
Material deleveraging (debt-to-equity down to ~0.61 and positive equity) meaningfully reduces solvency and refinancing risk, giving management durable flexibility to fund distribution expansion, weather commodity cycles, or invest in productivity without immediate capital raises.
Read all positive factors
BRC Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business units, highlighting which areas are driving growth and where strategic focus may be needed.
Breaks down revenue across different business units, highlighting which areas are driving growth and where strategic focus may be needed.
Data provided by:
The Fly
The FlyBRC (BRCC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$301.90M
Dividend YieldN/A
Average Volume (3M)1.39M
Price to Earnings (P/E)―
Beta (1Y)1.57
Revenue Growth8.99%
EPS Growth-20.05%
CountryUS
Employees551
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)-0.10
Shares Outstanding117,004,005
10 Day Avg. Volume808,175
30 Day Avg. Volume1,389,300
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)2.31
Price to Sales (P/S)0.27
P/FCF Ratio-7.85
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue1.11
Enterprise Value/Gross Profit3.28
Enterprise Value/Ebitda-76.70
Forecast
1Y Price Target
$2.50Price Target Upside184.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)$430.85M
BRC Business Overview & Revenue Model
Company Description
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 digit...
How the Company Makes Money
BRC primarily makes money by selling coffee and related products under the Black Rifle Coffee brand across multiple channels. A major revenue stream is direct-to-consumer (DTC) sales, including orders placed through its e-commerce platforms and re...
BRC Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call communicated strong commercial momentum and meaningful operational progress: double-digit revenue growth, substantial wholesale gains, shelf and ACV expansion, a large increase in adjusted EBITDA, improved cash flow and a stronger balance sheet. Management acknowledged near-term margin pressure from elevated green coffee costs, one-time write-downs and fuel/logistics pressures, and flagged RTD channel softness and a Q1 shipment timing benefit that will normalize. The company raised full-year revenue and EBITDA guidance and emphasized disciplined, confirmable drivers underpinning the outlook.Positive Updates
Strong Top-Line Growth
Net revenue increased 21% year-over-year in Q1 2026, with wholesale revenue up 31.5% and direct-to-consumer revenue up 7%, driven by distribution gains, pricing and marketplace growth.
Negative Updates
Gross Margin Contraction and Commodity Pressure
First-quarter gross margin was 33%, down 305 basis points year-over-year, pressured by elevated green coffee costs and carryover 2025 tariffs despite pricing actions.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Net revenue increased 21% year-over-year in Q1 2026, with wholesale revenue up 31.5% and direct-to-consumer revenue up 7%, driven by distribution gains, pricing and marketplace growth.
Read all positive updates
Company Guidance
Management raised 2026 guidance to at least 8% revenue growth (~$430M) and at least 35% adjusted EBITDA growth (~$29M, up from prior at least 30%), with full-year gross margin expected to be 34–36% (versus 34.6% in 2025). They expect revenue to build through the year but flagged a normalization after Q1 (Q1 revenue +21% likely benefited by a few million from shipment timing), and guide Q2 revenue to at least +10% YoY and Q2 adjusted EBITDA to at least $5M; Q1 adjusted EBITDA exceeded expectations at >$7M (an >8x YoY increase from < $1M) and adj. EBITDA margin expanded ~570 bps. Guidance is explicitly based on confirmed drivers only—in‑market pricing actions, secured distribution gains (ACV +~7 pts YoY, RTD ACV +~8 pts, Energy at 21% ACV in >22,000 doors) and productivity initiatives—and does not assume incremental wins. They closed the quarter with $39M debt (~1x net debt to TTM adj. EBITDA and ~1x on 2026 guidance), >$52M total liquidity, free cash flow improvement of ~$11M YoY ($6M generated in Q1 vs. >$5M use prior year), capex in line with last year, and an expectation of positive cash flow as margins and working capital improve.BRC Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 417.51M | 398.26M | 391.49M | 395.62M | 301.31M | 233.10M |
| Gross Profit | 141.56M | 137.95M | 161.17M | 125.45M | 99.18M | 89.69M |
| EBITDA | -6.06M | -12.40M | 13.90M | -42.94M | -332.43M | -9.54M |
| Net Income | -9.04M | -11.91M | -2.95M | -16.75M | -82.91M | -13.85M |
Balance Sheet | ||||||
| Total Assets | 217.04M | 209.24M | 227.38M | 235.78M | 225.33M | 87.08M |
| Cash, Cash Equivalents and Short-Term Investments | 9.97M | 4.33M | 6.81M | 12.45M | 38.99M | 18.33M |
| Total Debt | 61.30M | 62.03M | 96.70M | 109.24M | 70.30M | 35.00M |
| Total Liabilities | 146.33M | 141.23M | 177.89M | 189.27M | 129.40M | 236.57M |
| Stockholders Equity | 46.80M | 45.65M | 13.17M | 13.27M | 25.80M | -149.49M |
Cash Flow | ||||||
| Free Cash Flow | -2.02M | -13.47M | 2.64M | -52.19M | -146.59M | -26.98M |
| Operating Cash Flow | 1.09M | -9.81M | 11.31M | -24.97M | -116.19M | -7.69M |
| Investing Cash Flow | 1.96M | 1.42M | -7.71M | -21.51M | -30.40M | -19.29M |
| Financing Cash Flow | 3.01M | 5.91M | -10.70M | 21.40M | 167.25M | 9.68M |
BRC Technical Analysis
Neutral
0.88
Price Trends
1.34
Negative
1.07
Positive
1.15
Positive
Market Momentum
-0.06
Positive
44.61
Neutral
21.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRCC, the sentiment is Neutral. The current price of 0.88 is below the 20-day moving average (MA) of 1.25, below the 50-day MA of 1.34, and below the 200-day MA of 1.15, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 44.61 is Neutral, neither overbought nor oversold. The STOCH value of 21.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BRCC.
BRC Risk Analysis
BRC disclosed 61 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 | $19.52M | 12.86 | 6.84% | ― | 17.36% | -58.85% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $1.36B | 5.63 | -43.03% | ― | 3.69% | -16.34% | |
58 Neutral | $53.81M | -28.04 | -5.35% | ― | 15.84% | -45.39% | |
57 Neutral | $301.90M | -11.82 | -24.02% | ― | 8.99% | -20.05% | |
51 Neutral | $688.76M | -9.41 | -26.05% | ― | 47.24% | 17.97% |
* Consumer Defensive Sector Average
BRCC
BRC
1.21
-0.37
-23.42%
JVA
Coffee Holding Co
3.42
-0.83
-19.45%
HLF
Herbalife
13.11
3.47
36.00%
LSF
Laird Superfood
4.89
-1.59
-24.54%
WEST
Westrock Coffee
7.06
0.76
12.06%
BRC Corporate Events
Executive/Board ChangesDelistings and Listing ChangesRegulatory Filings and ComplianceShareholder MeetingsStock Split
BRC Regains NYSE Compliance After Share Price Recovery
Positive
Jun 2, 2026
On May 28, 2026, BRC Inc. held its annual shareholder meeting, where investors elected three Class I directors to serve until 2029, ratified Ernst Young as auditor for 2026, approved a potential reverse stock split in a range of 1-for-10 to 1-for...
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.