BRC (BRCC) investor relations material

Executive summary

• Net revenue for Q1 2026 rose 21.4% year-over-year to $109.2 million, led by strong Wholesale and DTC channel growth and improved operational focus.

• Adjusted EBITDA surged to $7.3 million from $0.9 million, with margin improvement initiatives and cost discipline.

• Net income improved to breakeven from a $7.8 million loss in Q1 2025, reflecting operational cost reductions.

• Distribution gains and expanded shelf presence drove increased retailer velocity and profitability, with packaged coffee and RTD distribution expanding to over 55% ACV.

• Continued commitment to veteran, military, and first-responder communities, including new partnerships and limited-time roasts.

Financial highlights

• Net revenue reached $109.2 million, up 21.4% year-over-year, with Wholesale revenue up 31.5% to $74.7 million and DTC revenue up 7.2% to $29.7 million.

• Gross margin was 33.0%, down from 36.1% in Q1 2025 due to coffee inflation, tariffs, and non-cash write-downs.

• Adjusted EBITDA was $7.3 million, up 718% year-over-year, with margin expansion and operational efficiencies.

• Net income was $46,000, a turnaround from a $7.8 million net loss in Q1 2025.

• Cash and cash equivalents increased to $10.0 million at quarter end.

Outlook and guidance

• FY2026 guidance raised to at least 8% revenue growth (~$430 million) and at least 35% Adjusted EBITDA growth (~$29 million).

• Gross margin expected between 34% and 36% for 2026, with improvement in the back half as higher cost inventory is worked through.

• Revenue and EBITDA generation expected to be second-half weighted, consistent with prior year.

• Management believes liquidity is sufficient for at least the next twelve months.

• Adjusted EBITDA for Q2 expected at least $5 million, with further increases in the second half.