Brc Inc. · NYSE:BRCC
Brc — Q3 2025 Earnings Presentation
26 slides from Brc's earnings presentation, 2025
Slide 1: Third Quarter 2025: Serving Those Who Serve
Third Quarter 2025 Serving Those Who Serve
Slide 2: Forward-Looking Statements
DISCLAIMER Forward-Looking Statements This presentation contains forward-looking statements about BRC Inc. (the “Company,” “we,” “us,” and “our”) and its industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this presentation,
Slide 3: Today's Speakers
TODAY’S SPEAKERS Evan Chris Matthew Matt Hafer Mondzelewski Amigh McGinley Executive Chairman President and Chief Chief Financial Officer VP Investor Relations Executive Officer Black Rifle’s third-quarter results highlight strong execution in a dynamic environment as we continue to grow distributio
Slide 4: 2025 Third Quarter Highlights
2025 THIRD QUARTER HIGHLIGHTS Gross Revenue Margin Net Revenue Gross Margin of $100.7 million 36.9% up 2.6% or $2.5M YoY compared to 42.1% in Q3 2024 Wholesale Profitability Revenue Wholesale Revenue Adjusted EBITDA1 $8.4 million $67.0 million up 5.3% or $3.4M YoY up $1.3M or 18.6% YoY up 9.4% or $5
Slide 5: Channel Highlights
. ‘ J a a Ye BLACK RIFLE \ ENERGY a 10 SUGAR Channel Highlights on ay “See ee
Slide 6: Outpacing Category Through Distribution and Velocity
OUTPACING CATEGORY THROUGH DISTRIBUTION AND VELOCITY STRONG ACV TRAJECTORY WITH FURTHER EXPANSION Dollar Growth OPPORTUNITY AHEAD Coffee xAOC BRCC xAOC BRCC xAOC BRCC Grocery 36.7% 54.1 29.7% 45.0 47.6 29.7 41.7 ACV % 22.7 13.2% 8.3 8.7% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 20
Slide 7: Unit Driven Growth Reflects Real Consumer Demand
UNIT DRIVEN GROWTH REFLECTS REAL CONSUMER DEMAND BRCC’s branding and focus on quality products have driven outsized growth compared to legacy brands PACKAGED COFFEE RETAIL SALES 463 185 2,005 640 1,863 355 78 874 237 504 487 Annual Retail Sales ($ million)1 Retail Sales Growth YTD2 30.5% 28.5% BRCC
Slide 8: Leveraging Digital Channels as a Strategic Enabler
LEVERAGING DIGITAL CHANNELS AS A STRATEGIC ENABLER DTC / eCommerce provides brand access, drives engagement, and fuels omni-channel success New Subscriber ~166k AOV +27% Total Subscribers Higher than Existing Subscribers STRATEGIC SUMMARY EXCLUSIVE COFFEE SUBSCRIPTION • DTC remains a valuable channe
Slide 9: Gaining Ground in RTD Coffee Despite Category Headwinds
GAINING GROUND IN RTD COFFEE DESPITE CATEGORY HEADWINDS Black Rifle Ready-to-Drink Coffee Remains a Top-3 Brand in Category Dollar & Unit Growth YTD BRCC RTD ACV Dollar Growth Unit Growth BRCC xAOC + Convenience 4.8% 4.3% 53.3 46.0 40.4 37.0 ACV % (4.3)% (4.6)% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 10: Targeted Growth Strategy Driving Energy Distribution Gains
TARGETED GROWTH STRATEGY DRIVING ENERGY DISTRIBUTION GAINS By concentrating on core markets in 2025, we’re building the foundation for a broader national rollout in 2026 through proven retail and distribution channels. BLACK RIFLE ENERGY INITIAL LAUNCH STATISTICS – SEPTEMBER 20251 ~22% 19,725 3,050
Slide 11: Operational Performance & Financial Results
Operational Performance & Financial Results
Slide 12: Quarterly Financials
QUARTERLY FINANCIALS $ million 3% (520) bps GROSS MARGIN NET REVENUE $100.7 42.1% $98.2 36.9% Q3 2024 Q3 2025 Q3 2024 Q3 2025 WHOLESALE REVENUE MIX2 19% 180 bps ADJUSTED EBITDA1 $8.4 67% 65% $7.1 Q3 2024 Q3 2025 Q3 2024 Q3 2025 12 1 Refer to slide 25 for a reconciliation of “Adjusted EBITDA” 2 Whole
Slide 13: Gross Margin Pressured Near-Term, 40%+ Target Intact
GROSS MARGIN PRESSURED NEAR-TERM, 40%+ TARGET INTACT Q3 YoY Gross Margin 42.1% (3.0)% 0.9% 0.8% 36.9% (3.9)% Q3 2024 Coffee Inflation Higher Trade Productivity Mix & Other Q3 2025 Gross Margin & Tariffs Net of Pricing Promo / Timing Gross Margin We are constantly looking to optimize our gross margin
Slide 14: Strong Execution Drove EBITDA Growth Despite Cost Pressure
STRONG EXECUTION DROVE EBITDA GROWTH DESPITE COST PRESSURE $ million 8.4% Q3 Adj. EBITDA EBITDA Margin 7.2% EBITDA Margin $5.5 $8.4 $7.1 ($4.2) Q3 2024 Gross Profit SG&A Q3 2025 Adj. EBITDA Adj. EBITDA 1 1 Focus remains on operational efficiency through disciplined cost management Focused Margin Red
Slide 15: Outlook
Outlook
Slide 16: 2025 Financial Guidance
2025 FINANCIAL GUIDANCE Net Revenues Gross Margin Adjusted EBITDA At least $395M At least 35% At least $20M 1%+ Growth in 2025 Gross Margin Minimum Adj. EBITDA Minimum Cycling $30.4M of barter revenue and Key 2025 headwinds include: Dollar decline YoY driven by gross margin loyalty reserve benefits
Slide 17: Appendix
Appendix
Slide 18: 3-Year Financial Targets
3-YEAR FINANCIAL TARGETS Revenues Gross Margin Adjusted EBITDA 10%-15% 40%+ 15%-25% Revenue CAGR Through 2027 Target Gross Margin EBITDA CAGR Through 2027 Anticipate a higher rate of Gross margins will benefit Gross margin improvement and growth in 2026 and 2027 as from an ongoing mix shift into SG&
Slide 19: Financial Highlights
FINANCIAL HIGHLIGHTS 1 Refer to slide 25 for a reconciliation of ”Adjusted EBITDA” 19
Slide 20: Income Statement
INCOME STATEMENT Consolidated Statements of Operations (in thousands, except share and per share amounts) Three Months Ended September 30, _ Nine Months Ended September 30, 2025 2024 2025 2024 Revenue, net $ 100,712 $ 98,204 $§ 285,524 $ 285,613 Cost of goods sold 63,563 56,856 183,729 164,822 Gross
Slide 21: Balance Sheet
BALANCE SHEET Consolidated Balance Sheets (in thousands, except share and par value amounts) September 30, 2025 Current assets: ‘Cash and cash equivalents $ 9,482 Accounts receivable, net 30.449 Inventories, net 53,021 Prepaid expenses and other current assets, 11,349 Assets held for sale 4,294 Tota
Slide 22: Cash Flow
CASH FLOW Consolidated Statements of Cash Flows (in thousands) Operating activities Net loss Adjustments to reconcile net los to net cash provided by (used in) operating activities: Depreciation and amortization Equity-based compensation Settlement of litigation by issuance of stock Amortization of
Slide 23: Cash Flow (Continued)
CASH FLOW (CONTINUED) Consolidated Statements of Cash Flows (continued) (in thousands) Non-cash operating activities Derecognition of right-of-use operating lease assets Recognition of revenue for inventory exchanged for prepaid advertising Non-cash investing and financing activities Property and eq
Slide 24: Key Operational Metrics
KEY OPERATIONAL METRICS Key Operating and Financial Metrics Revenue by Sales Channel (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Wholesale $s 67,032 $ 63,655 $ 185,139 $ 177,844 DIC 27,842 29,044 83,203 91,628 Outpost 5,838 5,505 17,182 16,141
Slide 25: Reconciliation of Net Loss to Adjusted EBITDA
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA 25
Slide 26: 2025 Outlook
2025 OUTLOOK For full-year fiscal 2025, the Company provides the following updated guidance: (in millions, except % data) Current FY2025 FY2024 Prior FY2025 Guidance Guidance Actual Low High Net Revenue® $ 391.5 $ 395.0 $ 425.0 At least $395.0 Growth (1)% 1% 9% At least 1% Gross Margin 41.2% 35% 37%