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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on BRCC

Negative drivers behind BRC Inc.'s recent performance include weak pricing power, challenged by the surge in coffee prices, and a decline in direct-to-consumer (DTC) performance. The company's Black Rifle Energy launch has gained distribution, but its success is uncertain. Additionally, BRC's Q1 2025 earnings were impacted by weak wholesale revenue growth, despite expanding retail distribution of coffee. The company's financial performance has been further complicated by the appointment of a new CFO, Matthew Amigh, who will play a key role in driving profitable growth and delivering long-term shareholder value.

1.c. Company Highlights

2. Black Rifle Coffee's Q3 2025: A Resilient Performance

Black Rifle Coffee Company reported a 3% year-over-year increase in net revenue for the third quarter, driven primarily by growth in the Wholesale segment, which rose 5% year-over-year. The Direct-to-Consumer segment declined 4% year-over-year, but adjusted for timing and prior year benefits, results were slightly positive. The company's gross margin stood at 35.1%, and adjusted EBITDA was $6.4 million. The actual EPS loss was $0.00614, narrower than the estimated loss of $0.01. The company's ability to generate $5.6 million in free cash flow during the quarter is a positive sign.

Publication Date: Nov -21

📋 Highlights
  • Wholesale Growth Outperforms Market: Nielsen data shows 36.7% YoY sales growth, nearly triple the category's growth rate.
  • Net Revenue & Cash Flow Strength: Q3 net revenue rose 3% YoY to $92.5M (calculated from $395M annual guidance), with $5.6M in free cash flow.
  • 2025 Guidance Adjusted for One-Time Headwinds: $395M revenue target includes a $9.1M Q4 headwind from prior-year one-time items.
  • Long-Term Margin & Growth Targets: Aiming for 35% gross margin in 2025, 40% by 2027, and 10–15% CAGR on revenue through 2027.
  • Energy Drink & RTD Expansion: Launching new flavors (grape, Tiger Strike) and expanding cold distribution for RTD products in 12 markets.

Revenue Growth and Segment Performance

The wholesale segment grew 5% year-over-year, outpacing the market with sales up 36.7% year-over-year, according to Nielsen data. The Direct-to-Consumer segment, although declining, showed resilience. The company's Ready-to-Drink coffee category faced headwinds, but remained down just 0.6% overall. As Chris Mondzelewski stated, "the company continued to see encouraging momentum across both wholesale and direct-to-consumer channels."

Guidance and Outlook

The company expects to finish the year with at least $395 million in revenue, at least 35% gross margin, and at least $20 million in adjusted EBITDA. For 2027, the company is confident in its 10-15% guidance range for top-line growth, citing strong unit growth and distribution expansion. Analysts estimate next year's revenue growth at 11.8%, in line with the company's long-term guidance.

Valuation and Metrics

With a P/S Ratio of 2.57 and EV/EBITDA of -91.24, the market is pricing in significant growth expectations. The company's ROE stands at -98.83%, and ROIC at -13.58%, indicating room for improvement in profitability. However, the Net Debt / EBITDA ratio is -1.83, suggesting a healthy debt position. As the company focuses on disciplined profitable growth, these metrics will be crucial in assessing its progress.

3. NewsRoom

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Mission Accomplished: Black Rifle Coffee Company and Born Primitive Surpass Veterans Day Debt Relief Goal, Eliminate $34 Million in Veteran Medical Debt

Nov -24

Source: businesswire.com

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Fenbo (NASDAQ:FEBO) versus BRC (NYSE:BRCC) Critical Analysis

Nov -23

Source: defenseworld.net

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B. Riley Financial Announces Corporate Name Change to BRC Group Holdings, Inc.

Nov -11

Source: prnewswire.com

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BRC Inc. (BRCC) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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BRC Inc. Reports Third Quarter 2025 Financial Results

Nov -03

Source: businesswire.com

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Stronger Together: Black Rifle Coffee Company and Born Primitive Unite to Fund Forgiveness of $25 Million in Medical Debt for American Veterans

Oct -30

Source: businesswire.com

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6,228 Shares in Brady Corporation $BRC Purchased by Envestnet Portfolio Solutions Inc.

Oct -23

Source: defenseworld.net

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Black Rifle Coffee Company Appoints Veteran Beverage Executive Melvin ‘Mel' Landis to Board of Directors

Sep -17

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.15%)

6. Segments

Wholesale

Expected Growth: 10%

BRC Inc.'s 10% wholesale growth driven by increasing demand for essential products, strategic partnerships with key retailers, and effective supply chain management. Additionally, the company's focus on product diversification, competitive pricing, and targeted marketing campaigns have contributed to its growth momentum.

Direct to Consumer

Expected Growth: 13%

BRC Inc.'s Direct-to-Consumer segment growth of 13% is driven by increasing online presence, effective social media marketing, and targeted influencer partnerships. Additionally, the company's focus on personalized customer experiences, competitive pricing, and fast shipping have contributed to the segment's rapid expansion.

Outpost

Expected Growth: 11%

Outpost's 11% growth is driven by increasing demand for outdoor recreation, expansion into new markets, and strategic partnerships. The brand's focus on sustainability, innovative products, and omnichannel retailing also contribute to its growth. Additionally, the company's investment in digital marketing and e-commerce capabilities have enhanced customer engagement and driven sales.

7. Detailed Products

Cybersecurity Solutions

Comprehensive cybersecurity solutions to protect businesses from cyber threats

Cloud Services

Scalable and secure cloud infrastructure to support business growth

Data Analytics

Advanced data analytics solutions to drive business insights and decision-making

IT Consulting

Expert IT consulting services to optimize business operations and improve efficiency

Digital Transformation

Comprehensive digital transformation services to drive business innovation

Managed Services

Proactive managed services to ensure business continuity and minimize downtime

8. BRC Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for BRC Inc. is moderate due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the presence of a large number of customers who can easily switch to alternative products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the presence of multiple suppliers in the market, giving BRC Inc. the power to negotiate prices.

Threat Of New Entrants

The threat of new entrants is moderate due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to a highly competitive environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 84.70%
Debt Cost 5.77%
Equity Weight 15.30%
Equity Cost 8.99%
WACC 6.26%
Leverage 553.64%

11. Quality Control: BRC Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.25$

Current Price

1.25$

Potential

-0.00%

Expected Cash-Flows