Specialty coffee firm BRC Q3 revenue rises 2.6% on wholesale growth

BRC

03/11/2025 21:42

Overview

BRC Q3 2025 revenue grows 2.6% yr/yr but misses analyst expectations

Net loss for Q3 2025 was $1.2 mln, a decrease from $1.4 mln in Q3 2024

Adjusted EBITDA increased to $8.4 mln, up from $7.1 mln in Q3 2024

Outlook

Company maintains full-year revenue guidance at least $395 mln

BRC expects full-year gross margin to be at least 35%

Company sees full-year adjusted EBITDA at least $20 mln

Result Drivers

WHOLESALE REVENUE - Growth in wholesale revenue driven by distribution gains and increased sales volume at food and mass retailers

DISTRIBUTION GAINS - Packaged coffee and RTD coffee distribution increased significantly, contributing to revenue growth

GROSS MARGIN PRESSURE - Gross margin declined due to green coffee inflation and higher trade and slotting adjustments

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$100.70 mln
$101.79 mln (4 Analysts)
Q3 Net Income
-$1.20 mln
Q3 Gross Margin
36.90%
Q3 Gross Profit
$37.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "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 49.2% above its October 31 closing price of $1.27

Press Release: ID:nBw3FFhNta

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(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.)