The Boston Beer Company (SAM) Q3 2025 earnings summary

Executive summary

• Leadership transition with Jim Koch returning as CEO and Phil Hodges named COO, effective August 15, 2025, to drive operational execution and margin initiatives.

• Q3 2025 net revenue decreased 11.2% year-over-year to $537.5 million, driven by a 13.7% decline in shipment volume, partially offset by higher pricing and favorable product mix.

• Net income for Q3 2025 rose 37.7% to $46.2 million, with EPS up to $4.25 from $2.87 in Q3 2024.

• Gross margin for Q3 2025 reached 50.8%, up 450 bps year-over-year, the highest since 2018, supported by supply chain efficiencies and product mix.

• Focus remains on innovation, brand investment, and margin improvement amid challenging macroeconomic and industry conditions.

Financial highlights

• Q3 2025 net revenue: $537.5 million (down 11.2% YoY); year-to-date: $1.58 billion (down 1.9%).

• Q3 2025 net income: $46.2 million (up 37.7% YoY); year-to-date: $131.0 million (up 33.1% YoY).

• Q3 gross margin: 50.8% (up from 46.3% YoY); year-to-date: 49.7% (up from 45.5% YoY).

• Operating cash flow for the first nine months: $230.2 million.

• Cash and cash equivalents at quarter-end: $250.5 million; unused credit line: $150 million.

Outlook and guidance

• Full-year volume expected to be down high single digit to low single digit percent; price increases of 1%-2% anticipated.

• Gross margin guidance raised to 47%-48% due to strong performance and lower-than-expected tariffs.

• Full-year EPS guidance increased to $7.80-$9.80, with tariffs expected to impact EPS by $0.60-$0.80.

• Advertising, promotional, and selling expenses guidance raised to $50-$60 million for the year.

• Capital expenditure guidance lowered to $50-$70 million for 2025.