Dutch Bros Q2 2026 Earnings: Revenue Climbs 32.5% as Guidance Rises

Dutch Bros (NYSE: BROS) reported Q2 2026 revenue of $550.9 million, up 32.5% from $415.8 million, while diluted EPS increased to $0.28 from $0.20. Growth came from both shop expansion and comparable-shop demand: Dutch Bros opened 48 shops, company-operated same-shop sales rose 8.3%, and adjusted EBITDA increased 27.8% to $113.7 million, although adjusted EBITDA margin narrowed.

Core earnings data

Revenue growth exceeded growth in operating income and adjusted EBITDA during the quarter ended June 30, 2026. GAAP net income increased 34.5%, while net income attributable to Dutch Bros rose 46.0%; the difference reflects income allocated to non-controlling interests.

Company-operated shop gross profit grew broadly in line with revenue, but its margin was nearly unchanged. Adjusted EBITDA margin declined by 0.8 percentage points as expansion-related and store-level costs offset part of the operating leverage from higher sales.

Adjusted EBITDA is a non-GAAP measure that excludes items including equity-based compensation, acquisition costs and certain restructuring expenses.

Business and shop performance

Company-operated shops remained the primary growth driver, with revenue increasing 34.0%. Franchising and other revenue grew at a slower 15.6% rate, while systemwide sales—which include franchise shop sales not recorded as Dutch Bros revenue—rose 23.1%.

The composition of comparable sales shifted toward ticket growth. Company-operated same-shop sales included a 4.9% increase in ticket and 3.4% transaction growth, compared with 1.9% ticket growth and 5.9% transaction growth a year earlier. Systemwide ticket increased 4.1%, while transactions rose 1.7%, down from 3.7% transaction growth in Q2 2025.

Dutch Bros ended the quarter with 888 company-operated shops and 337 franchised shops. Of the 48 openings during the quarter, 44 were company-operated.

New shops and higher sales did not fully translate into margin expansion

Company-operated shop gross margin was 24.2%, compared with 24.3% a year earlier. Labor costs improved to 25.4% of company-operated revenue from 26.6%, but that benefit was offset by beverage, food and packaging costs rising to 26.1% from 25.3%, occupancy and other costs increasing to 16.3% from 15.8%, and pre-opening costs reaching 1.6% from 1.2%.

Company-operated shop contribution margin, which excludes depreciation and amortization, declined to 30.6% from 31.1%. Adjusted EBITDA margin also fell to 20.6% from 21.4%, while GAAP operating margin decreased by approximately 0.4 percentage points to 12.8%.

Corporate expense leverage provided a partial offset. Selling, general and administrative expenses increased in dollars but declined to 14.6% of revenue from 15.7% a year earlier.

Cash flow and balance sheet

For the first six months of 2026—not the second quarter alone—operating cash flow increased 55.3% to $196.9 million from $126.8 million. Dutch Bros used $149.0 million in investing activities and $48.7 million in financing activities, leaving cash nearly unchanged at $268.6 million versus $269.4 million at the end of 2025.

Current and long-term debt totaled approximately $198.5 million at June 30. Current and long-term lease liabilities totaled approximately $1.01 billion, up from $888.8 million at year-end, alongside the company’s continued shop expansion.

2026 guidance

Dutch Bros raised its full-year revenue, systemwide same-shop sales and adjusted EBITDA guidance based on year-to-date performance and the recent acquisition of shops from a Phoenix franchisee. The company maintained its target of at least 185 systemwide openings.

The release did not provide the previous numerical ranges, so the size of the guidance increases cannot be quantified. The updated outlook also excludes any impact from the Salad and Go transaction announced on August 5, 2026.

Recent insider transactions

The supplied insider data shows recent reported sales concentrated among founder Travis Boersma, affiliated DM entities and CEO Christine Barone. Because transactions involving Boersma and the DM entities were reported on the same dates and have overlapping values, they may represent related filings and should not automatically be added together as independent sales.

A July 1 filing associated with executive Tana Davila was excluded because the supplied data did not identify its transaction direction or value. The reported sales do not, by themselves, establish insiders’ views on Dutch Bros’ outlook.

Risks investors should monitor

• Store-level cost pressure: Higher beverage, packaging, occupancy and pre-opening cost ratios offset improved labor efficiency. Continued pressure in these categories could keep adjusted EBITDA growth below revenue growth.
• Greater reliance on ticket growth: Systemwide transaction growth slowed to 1.7% from 3.7%, while ticket growth accelerated to 4.1%. Comparable sales could become more difficult to sustain if ticket growth moderates without stronger traffic.
• Capital-intensive expansion: Dutch Bros expects at least 185 openings and $350 million to $370 million of capital expenditures in 2026. Higher pre-opening costs and lease obligations increase the importance of executing new-shop development efficiently.
• Guidance scope and acquisition integration: The raised outlook partly reflects the Phoenix franchise acquisition and excludes the Salad and Go transaction. Integration expenses or future changes to the guidance scope could affect reported margins and cash requirements.

Summary

Dutch Bros combined rapid unit expansion with positive transaction growth to deliver a 32.5% revenue increase in Q2 2026 and raise several full-year targets. The central issue for upcoming quarters is whether higher shop volumes and corporate expense leverage can outweigh store-level cost pressure, slower transaction growth and the capital demands of an accelerating development program.