Specialty coffee firm BRC Q3 revenue rises 2.6% on wholesale growth

Overview

• BRC Q3 2025 revenue grows 2.6% yr/yr but misses analyst expectations

• Net loss for Q3 2025 was $1.2 mln, a decrease from $1.4 mln in Q3 2024

• Adjusted EBITDA increased to $8.4 mln, up from $7.1 mln in Q3 2024

Outlook

• Company maintains full-year revenue guidance at least $395 mln

• BRC expects full-year gross margin to be at least 35%

• Company sees full-year adjusted EBITDA at least $20 mln

Result Drivers

• WHOLESALE REVENUE - Growth in wholesale revenue driven by distribution gains and increased sales volume at food and mass retailers

• DISTRIBUTION GAINS - Packaged coffee and RTD coffee distribution increased significantly, contributing to revenue growth

• GROSS MARGIN PRESSURE - Gross margin declined due to green coffee inflation and higher trade and slotting adjustments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy"

• Wall Street's median 12-month price target for BRC Inc is $2.50, about 49.2% above its October 31 closing price of $1.27

Press Release: ID:nBw3FFhNta

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