BRC Inc. (NYSE: BRCC) reported fourth‑quarter and full‑year 2025 results that show continued revenue growth but widening margin pressure. Net revenue for the quarter rose 6.5% to $112.7 million, while full‑year revenue increased 2% to $398.3 million. The company posted a net loss of $8.6 million for the quarter and $32.2 million for the year. Adjusted EBITDA fell to $9.7 million in Q4 from $9.9 million in the same period a year earlier, and to $21.4 million for the year from $37.1 million in 2024.
In Q4, gross profit declined 10.5% to $36.2 million, reflecting higher commodity and tariff costs and a non‑cash impairment. Gross margin contracted to 32.1% from 38.1% in the prior year, while the full‑year margin fell to 34.6% from 41.2% in 2024. The company’s adjusted EBITDA margin also slipped, underscoring the impact of cost inflation on profitability.
Full‑year gross profit fell 14.4% to $137.9 million, a sharper decline than the quarter’s 10.5% drop. Despite the loss, the company highlighted that pricing actions and operational efficiencies are expected to support incremental profitability in 2026. Management noted that commodity pressures were mitigated through targeted pricing and that the balance sheet was strengthened by substantial debt reduction.
CEO Chris Mondzelewski said that 2025 was a year of measurable operating progress, led by strong performance in packaged coffee, which grew 31.1% and captured a 60‑basis‑point share increase in bagged coffee. CFO Matthew Amigh added that net revenue grew 2% year‑over‑year excluding non‑recurring items, with an 8% increase driven primarily by wholesale growth. He emphasized that commodity pressures were addressed through pricing actions and operating efficiencies, and that the company’s balance sheet was improved by reducing debt and enhancing liquidity.
For fiscal 2026, BRC guided for at least 7% revenue growth, a gross margin of 34% to 36%, and at least 30% growth in adjusted EBITDA. The guidance reflects confidence in expanding wholesale distribution and the energy segment, which reached 22% of annual contract value across nearly 20,000 retail locations. The company also noted a NYSE minimum‑price notice, stating it was within the cure period and would not impact operations.
The results underscore a strategic shift toward a wholesale‑driven beverage platform. Packaged coffee remains a key growth engine, while the energy segment’s expanding distribution network provides a new revenue source. Management’s focus on pricing, operational efficiencies, and balance‑sheet strength signals a disciplined approach to navigating commodity cost inflation and positioning the company for future profitability.
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