10-Q · May 12, 2026
Black Rock Coffee Bar reported Q1 2026 results with total revenue of $55.5 million, reflecting a 23.7% year-over-year increase, though it fell short of the consensus estimate of $56.6 million. Diluted EPS was $0.02,…
Earnings analysis · 10-Q
BRCB earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
Black Rock Coffee Bar delivered 25.0% year-over-year revenue growth to $62.999 million, expanded derived gross margin to approximately 73.1%, and returned to $3.218 million of net income from a $1.061 million loss.…
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Black Rock Coffee Bar delivered 25.0% year-over-year revenue growth to $62.999 million, expanded derived gross margin to approximately 73.1%, and returned to $3.218 million of net income from a $1.061 million loss. Store expansion and positive 4.2% same-store sales growth drove results, but lower traffic, a 100-basis-point decline in Adjusted EBITDA margin to 15.0%, and substantially higher investment spending temper the outlook. Liquidity improved through $19.187 million of six-month operating cash flow and $30.4 million of term-loan principal repayments, although cash fell to $16.0 million and contractual obligations totaled $279.124 million.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.06
What stood out
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Revenue growth remained strong
Total revenue increased 25.0% year over year to $62.999 million, versus $50.394 million in Q2 2025, and was approximately 14.5% above the $55 million reported in Q1 2026. Store revenue grew 25.0% to $62.933 million.
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Gross margin expanded
Derived gross margin increased to approximately 73.1% from approximately 70.9% year over year and 72.9% in Q1 2026. Beverage, food and packaging costs declined to 26.9% of revenue from 29.1% a year ago.
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Operating profit and net income improved
Income from operations rose 25.6% year over year to $4.102 million, while operating margin held at 6.5% versus 6.5% a year ago and improved from 4.8% in Q1 2026. Net income was $3.218 million versus a $1.061 million loss a year ago.
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Positive comps offset traffic decline
Same-store sales growth was 4.2%, supported by 2.4% from menu price increases and 3.8% from increased check size, partially offset by a 2.0% decline from lower traffic. Average unit volume increased to $1,288 from $1,226.
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Store expansion drove growth
The company opened 10 net new stores in the quarter and reached 200 stores as of June 30, 2026, up from 158 stores a year earlier. New stores opened after June 30, 2025 contributed $9.8 million of quarterly revenue.
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Cash generation and debt reduction
Operating cash flow for the six months increased 127.9% to $19.187 million from $8.419 million, although investing cash use rose to $33.885 million from $15.143 million. The company reduced New Term Loan principal to $19.6 million after making $30.4 million of principal payments.
What to watch
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Expansion is consuming cash
Cash and cash equivalents declined to $16.0 million at June 30, 2026 from $28.4 million at December 31, 2025. Six-month net cash used in investing activities was $33.885 million, versus $15.143 million a year earlier, reflecting elevated expansion spending.
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Large lease and TRA obligations
The company has $279.124 million of contractual cash requirements, including $230.098 million of operating lease obligations and $45.070 million of long-term debt payments. Management also expects Tax Receivable Agreement payments to be substantial, but cannot estimate their timing or amount.
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Traffic and demand pressure
Same-store sales growth slowed to 4.2% from 10.9% a year ago, with traffic decreasing 2.0% in the quarter. Management identifies macroeconomic conditions affecting guest demand as an external factor that could influence operating performance.
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Margin and wage inflation risk
Adjusted EBITDA margin declined to 15.0% from 16.0% year over year despite Adjusted EBITDA increasing to $9.427 million from $8.046 million. Labor expense rose 27.5% to $13.235 million, partly due to higher prevailing wage rates in three markets.
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Secured debt and covenant constraints
The New Credit Agreement is secured by liens on substantially all assets and includes maximum net rent-adjusted leverage and minimum fixed-charge coverage covenants. The company had $19.6 million outstanding under the New Term Loan and $25.0 million of revolving capacity at facility inception.
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Concentrated voting control
A new risk disclosure states that the founders and affiliates control approximately 55.6% of combined voting power, while an irrevocable proxy dated May 15, 2026 authorizes voting control over covered shares until the later of two years from May 15, 2026 or termination of the Founders Voting Agreement.
Management's outlook
The 10-Q does not provide explicit numeric revenue or EPS guidance. Management states that cash from operating activities, existing cash, remaining New Credit Facility capacity and tenant improvement allowance collections are expected to satisfy anticipated cash requirements for the next 12 months and the foreseeable future.
Earlier filings 3
10-K · March 4, 2026
Black Rock positions itself as a high-growth, company‑owned drive‑thru coffee bar chain focused on connection, premium beverages and digital loyalty; it operated 181 locations across seven states as of December 31, 2025…
10-Q · November 12, 2025
Black Rock Coffee Bar reported Q3 revenue of $51,468,000 (three months ended September 30, 2025), a 24.1% increase versus $41,455,000 in the prior-year quarter, while reporting a net loss attributable to the company of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.