10-Q · May 4, 2026
BRC Inc. (BRCC) reported strong Q1 2026 results, achieving revenue of $109.2 million, a 21% increase year-over-year, driven mainly by the Wholesale segment's 32% growth. Despite marginal improvement in operating…
Earnings analysis · 10-Q
BRCC earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
BRCC delivered a substantially improved Q2: revenue grew 13% to $107.020 million, operating income reached $1.101 million, and net loss narrowed to $0.186 million. Wholesale and DTC growth offset a 15% Outpost decline,…
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BRCC delivered a substantially improved Q2: revenue grew 13% to $107.020 million, operating income reached $1.101 million, and net loss narrowed to $0.186 million. Wholesale and DTC growth offset a 15% Outpost decline, while Q2 gross margin improved 20 basis points year over year to 34.1%. Liquidity appears adequate with $12.0 million of cash, $30.8 million of working capital, and $50.4 million of available borrowings, but the new $1.00 NYSE compliance and potential 1-for-10 to 1-for-50 reverse-split risks remain material.
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
- $0.0
What stood out
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Revenue grew 13% YoY and beat consensus
Q2 net revenue rose $12.183 million, or 13%, to $107.020 million from $94.837 million. Revenue was down modestly from $109 million in Q1 2026, but exceeded the $103.700 million consensus estimate.
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Profitability improved sharply
Operating income was $1.101 million versus an operating loss of $12.624 million a year earlier, while net loss narrowed to $0.186 million from $14.512 million. Diluted EPS was $0.00 versus a $0.07 loss in Q2 2025.
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Wholesale and DTC powered growth
Wholesale revenue increased $9.307 million, or 15%, to $70.623 million and DTC increased $3.760 million, or 14%, to $31.400 million. Management cited FDM distribution and SKU expansion in Wholesale and third-party digital-marketplace growth in DTC.
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Gross margin stabilized above 34%
Gross margin improved to 34.1% from 33.9% a year earlier and from 33.0% in Q1 2026. Pricing, lower shipping and fulfillment costs, and inventory-reserve changes more than offset higher green-coffee costs, tariffs, and marketplace fees.
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Cash generation and capex efficiency improved
Six-month operating cash flow improved to an inflow of $12.635 million from a $7.464 million outflow, while investing cash use fell to $1.070 million from $2.147 million. Capital spending represented roughly 8% of six-month operating cash flow.
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Cost program is nearing targeted savings
The Operational Improvement Plan had realized approximately $10.4 million of savings by June 30, 2026, against expected annualized savings exceeding $12.2 million; plan costs were approximately $6.8 million, substantially incurred.
What to watch
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NYSE price-compliance and reverse-split risk
A new risk factor states BRCC could face NYSE delisting if its Class A shares again trade below the $1.00 minimum for 30 trading days. Stockholders authorized a potential reverse split between 1-for-10 and 1-for-50 on May 28, 2026.
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Reverse split and potential share-sale overhang
The filing adds that a reverse split may not sustain a higher share price and could reduce trading liquidity. Separately, an executive-chairman-managed entity adopted a plan that could sell up to 2,880,000 Class A shares beginning September 29, 2026.
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Outpost channel remains in decline
Outpost revenue declined $0.884 million, or 15%, to $4.997 million as both transactions and average order value fell. Management says operational changes may include closing underperforming Outposts.
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Input-cost and tariff pressure persists
For the first six months, gross margin fell to 34% from 35% as cost of goods sold increased 20%, faster than 17% revenue growth, driven by inflation and tariffs. Q2 pricing and productivity actions limited the quarterly margin pressure.
Management's outlook
The 10-Q contains no quantitative FY2026 revenue or EPS outlook; management states it expects continued Wholesale growth, consistent Outpost performance in 2026, and may close underperforming Outposts.
Earlier filings 4
10-K · March 2, 2026
The 2025 Form 10-K shows modest top-line growth driven by Wholesale (Wholesale sales of $258.0 million in 2025 vs. $245.0 million in 2024) while DTC and Outposts declined (DTC $117.6 million, down 5% from $123.8…
10-Q · November 3, 2025
BRC Inc. reported Q3 revenue of $100,712,000, up 3% year-over-year, driven by Wholesale growth, but gross margin compressed to 37% from 42% a year ago and operating income narrowed to $518,000. Management executed an…
10-Q · August 4, 2025
BRC Inc. reported Q2 2025 revenue of $94.8M, up 7% versus $89.0M in Q2 2024, driven by Wholesale growth. Gross margin compressed to 34% from 42% a year ago and the company posted an operating loss of $12.6M (vs.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.