SAM earnings analysis
What we found in SAM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Boston Beer Company (SAM) reported Q1 2026 net revenue of $433.9 million, a decrease of 4.4% from $453.9 million in Q1 2025, missing estimates slightly. The company faced significant challenges including a non-recurring litigation expense of $216 million that contributed to a diluted EPS loss of $1.64, considerably worse than the $1.95 expected profit. Despite these challenges, gross margins improved year-over-year from 48.3% to 49.3%.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline
- Net revenue decreased by $19.9 million (4.4%) to $433.9 million compared to $453.9 million in Q1 2025.
- EPS Loss
- Diluted EPS was reported at $1.64, significantly lower than the estimated EPS of $1.95.
- Litigation Expense Impact
- The company incurred a one-time litigation expense of $216 million, impacting financials substantially.
- Improved Gross Margin
- Gross margin improved to 49.3%, up from 48.3% year-over-year, due to price increases.
- Segment Performance
- Total barrels sold decreased by 6.9% to 1,561,000 barrels, with particular declines in Twisted Tea and Truly brands.
- Operating Cash Flow
- Operating cash flow showed significant stress, with net cash used driven by a net loss of $145.3 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Legal Liabilities
- The company recorded a substantial litigation expense of $216 million, potentially impacting liquidity.
- Declining Sales Volume
- Overall shipment volume decreased by 6.9% year-over-year, indicating ongoing challenges in market demand.
- Capex and Cash Flow Stress
- Cash decreased from $223.4 million to $164.1 million as of March 28, 2026, reflecting high capital expenditures and negative cash flow.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.64
- Gross margin
- 49.3%
What they said about what is next.
Management anticipates low to mid-single digit declines in depletions and shipments for the year.
The filing reads worse than the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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