BRC maintains full-year 2026 guidance of at least 8% revenue growth
Company expects 2026 gross margin of 34% to 36%
BRC sees at least 35% adjusted EBITDA growth for full-year 2026
Overview
U.S. premium coffee company's Q2 revenue rose 12.8% yr/yr, led by Wholesale and DTC growth
Net loss narrowed to $0.2 mln from $14.5 mln a year earlier
Company reaffirmed full-year outlook for at least 8% revenue and 35% Adjusted EBITDA growth
Result drivers
Wholesale expansion - Growth in Wholesale revenue was driven by expanded distribution of packaged coffee and higher pricing
DTC marketplace growth - Direct-to-Consumer revenue rose due to growth through third-party digital retail marketplaces, partially offset by lower subscription revenue
Margin improvement - Gross margin increased due to pricing actions, lower shipping and fulfillment costs, and a decrease in inventory reserves, partly offset by higher green coffee costs and marketplace fees
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for BRC Inc is $2.50, about 142.7% above its July 31 closing price of $1.03
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