Black Rifle Coffee Company BRC (NYSE:BRCC) executives told investors the company made “measurable operating progress” in fiscal 2025, led by strong packaged coffee performance and a stabilizing direct-to-consumer business, while navigating volatility in coffee markets and continued consumer pressure.
CEO Chris Mondzelewski said packaged coffee grew 31.1% for the year, roughly three times the broader category growth rate, with units up more than 22% and national bagged coffee share up 60 basis points. He added that momentum accelerated in the fourth quarter as expanded distribution translated into better productivity and share with key retail partners.
Packaged coffee growth accelerates and share rises
Management emphasized that gains were supported by improving shelf productivity and velocity, not only by getting into more stores. Mondzelewski said velocity reached parity with the overall bagged coffee category in grocery despite Black Rifle’s pricing being about 40% above the category average, which he framed as evidence of stronger consumer takeaway and repeat purchase.
The company also discussed its “land and expand” retail strategy, which starts with a focused assortment and then grows shelf space as performance improves. Mondzelewski said 2025 distribution reach increased nearly eight points, taking ACV to 54.9%, and that grocers added an average of two incremental Black Rifle items during the year. Since entering grocery three years ago, he said the company has “nearly tripled” its shelf presence.
In response to a question about SKU penetration, Mondzelewski said Black Rifle starts with “two to three” best items per segment (such as bags and pods) and earns expansion as velocity improves. Without naming retailers, he said the company’s largest retailer has 20 items on shelf, while other large accounts have 14, 12, and eight items. He said management believes reaching “12–15” items in more accounts is achievable.
Direct-to-consumer stabilizes; RTD and energy expand distribution
Management said direct-to-consumer performance stabilized in 2025 and returned to growth in the fourth quarter. Mondzelewski described the company’s owned website as strategically important for engaging loyal customers and gathering insights, while also pointing to continued growth across third-party marketplaces.
In ready-to-drink (RTD) coffee, the company said performance varied by channel. Mondzelewski said RTD ACV expanded by 10 points to 55.9%, with the strongest performance in grocery, mass, and dollar, where the company outperformed the category for the full year. He also noted that the category remained under pressure in convenience stores—more than half of tracked RTD sales—contributing to fourth-quarter softness. Management said it is not assuming a category recovery and is focused on improving shelf productivity and using “disciplined” innovation, including new Cold Brew flavors intended to drive incremental takeaway within existing distribution.
For Black Rifle Energy, Mondzelewski said distribution reached about 22% ACV across nearly 20,000 retail doors in 2025. He said the company’s 2026 focus shifts from launch execution to scaling “in the right markets with the right partners,” prioritizing velocity and returns rather than distribution for its own sake.
In Q&A, Mondzelewski called 2025 a “great learning year” for energy and said performance varied by market, with better results where the company had stronger placement, distribution, and marketing support. He said the plan for 2026 is to maintain a regional focus—citing the “smile states” as areas of brand strength—while working with partner KDP on execution, and keeping coffee as the top resource priority.
Results show wholesale strength but margin pressure from coffee inflation and tariffs
Chief Financial Officer Matt Amigh said net revenue increased 2% year-over-year for fiscal 2025. Excluding the impact of a 2024 loyalty rewards accrual change and other non-recurring items, he said net revenue increased 8%, primarily driven by wholesale growth.
Amigh said wholesale revenue grew 5% year-over-year (13% excluding non-recurring items), reflecting stronger velocity, expanded distribution, and contribution from Black Rifle Energy. He added that sales to mass merchants increased double digits and grocery sales more than doubled. Direct-to-consumer declined 5% for the year but was slightly positive excluding the 2024 loyalty benefit, and he said the channel is “no longer a material offset” to growth elsewhere.
Profitability was pressured by commodity costs. Amigh said operating efficiency gains from restructuring and resource reallocation partially offset higher commodity costs and tariffs, but gross margins declined 6.5 points for the year and EBITDA declined more than 40%. In the fourth quarter, revenue increased 7% year-over-year (11% excluding non-recurring items), with wholesale up 8% (16% excluding non-recurring items) and direct-to-consumer up 7%, which he said marked the first quarterly growth in that segment in more than three years. He also said fourth-quarter EBITDA decline was limited to 2% as revenue improved against a reduced cost structure.
Fourth-quarter gross margin was 32.1%, down 610 basis points year-over-year. Amigh attributed 270 basis points of pressure to one-time items, including startup costs from onboarding a new direct-to-consumer fulfillment provider and a non-cash impairment of coffee extract tied to a formulation change. He said those were partially offset by 170 basis points of productivity and favorable mix.
Amigh said coffee inflation and tariffs net of pricing were the largest headwind, impacting gross margin by about 420 basis points in the fourth quarter and 350 basis points for the year. He said coffee prices nearly doubled from 2024 to 2025, driven by weather-related yield declines and tariff-driven shifts in global supply, while noting U.S. tariffs on coffee were fully removed in November. He also said improved harvest expectations have contributed to recent price moderation, with Arabica peaking near $3.75 in early January and declining into the high $2 range.
Expense actions and balance sheet updates
Amigh said operating expenses increased 1% year-over-year on a reported basis, but excluding non-recurring restructuring and certain legal expenses, operating expenses were down 7%. Marketing expense decreased 10% due to lower non-working spend and a reallocation toward programs more directly tied to revenue. He said salaries, wages, and benefits were flat despite a 15% headcount reduction, largely due to lapping a $3 million incentive compensation reduction in the prior year.
On the balance sheet, Amigh said the company used proceeds from a July equity offering to repay its asset-based lending facility and reduced total debt by more than $30 million in 2025. The company ended the year with $39 million of debt and more than $50 million in total liquidity, including cash and available credit capacity. Cash used in operating activities was about $10 million in 2025, including roughly $9 million tied to working capital normalization; Amigh said the company does not expect working capital to be a comparable use of cash in 2026.
Amigh also said the company received a notice from the New York Stock Exchange regarding the minimum price requirement, adding that it has no immediate impact on listing status, operations, or reporting obligations, and that the company has the standard cure period.
2026 guidance: revenue at least $425 million, EBITDA growth at least 30%
For 2026, the company guided for revenue growth of at least 7%, or approximately $425 million. Amigh said the outlook reflects current visibility into demand trends, pricing already in market, and distribution gains that are secured and operationally in place, while incorporating continued volatility in the ready-to-drink category. He said guidance does not assume incremental distribution wins that remain pending.
The company expects first-quarter 2026 revenue growth of at least 10% versus the prior year’s first quarter, citing momentum and the early-year benefit of distribution gains implemented late in 2025. For full-year 2026, management expects gross margin of 34% to 36% compared with 34.6% in 2025, noting the benefit of pricing actions, productivity, and mix, offset by coffee costs that remain above 2025 average levels and residual tariff impacts early in the year.
Amigh said the company expects at least 30% EBITDA growth in 2026 compared with $21.4 million in 2025, driven by higher gross profit dollars and lower operating expenses, particularly general and administrative costs. He said EBITDA is expected to remain second-half weighted, with the first half representing roughly one-quarter to one-third of full-year EBITDA.
In Q&A on coffee pricing, Amigh said the company took two price increases in 2025—one in the third quarter and another that “settled in late Q4”—both in the upper single-digit range. He said consumer response was “in line with expectations,” with relatively low elasticity of less than 0.5, and that the company will continue to monitor performance and adjust as needed.
Separately, Mondzelewski reiterated the company’s veteran-focused mission, noting that Black Rifle exceeded a prior commitment to eliminate $25 million in medical debt for veterans, ultimately wiping out more than $34 million and helping about 15,000 veterans.
About BRC (NYSE:BRCC)
Black Rifle Coffee Company, Inc is a veteran-owned specialty coffee roaster and retailer that offers a range of coffee products, merchandise and subscription services. The company sources, roasts and distributes its own blends and single-origin coffees, as well as ready-to-drink beverages and branded apparel. Its product lineup includes whole-bean and ground coffees, cold brew concentrates, K-cup pods and limited-edition small-batch offerings designed to appeal to active lifestyle and patriotic consumers.
Founded in 2014 by U.S.
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