BRC Q1 revenue rises, driven by wholesale, DTC growth

BRC

04/05/2026 21:31

Overview

U.S. premium coffee seller's Q1 revenue rose 21% yr/yr, driven by wholesale and DTC growth

Net income reached breakeven, while adjusted EBITDA rose sharply from prior year

Gross margin declined due to coffee inflation, tariffs, and a non-cash write-down

Outlook

BRC expects at least 8% revenue growth for full-year 2026

Company raises full-year Adjusted EBITDA growth outlook to at least 35%

BRC maintains full-year gross margin guidance of 34% to 36%

Result Drivers

WHOLESALE EXPANSION - Revenue growth in wholesale channel was driven by expanded packaged coffee distribution and higher unit volumes, along with pricing

DTC MARKETPLACE GROWTH - Direct-to-consumer revenue growth was led by increased sales through third-party digital retail marketplaces

GROSS MARGIN PRESSURE - Gross margin declined due to green coffee inflation, tariffs, and a non-cash write-down of raw material inputs related to a formulation change

Company press release: ID:nBwQ8lx0a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$109.2 mln
$96.93 mln (2 Analysts)
Q1 Gross Margin
33.00%
Q1 Gross Profit
$36.1 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "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 129.4% above its May 1 closing price of $1.09

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)