BRC Inc. (NYSE: BRCC, the "Company" or "Black Rifle"), a Salt Lake City, Utah-headquartered Veteran-founded, mission-driven premium beverage company, sells premium coffee and related products through three primary channels: Wholesale (selling to food, mass, club, and convenience retailers), Direct-to-Consumer (selling through third-party digital retail marketplaces and the subscription service), and Outposts (the Company-operated Black Rifle Coffee retail shops). For the second quarter of fiscal year 2026, the Company generated net revenue of $107.0 million, up 12.8 percent year-over-year from $94.8 million in Q2 2025, with the Wholesale channel revenue up 15.2 percent to $70.6 million and the Direct-to-Consumer (DTC) channel revenue up 13.6 percent to $31.4 million, marking DTC's strongest quarterly growth in over four years, partially offset by the Outposts revenue down 15.0 percent to $5.0 million driven by lower transaction volumes and lower average order value in Company-operated Outposts. The Q2 2026 net loss improved meaningfully to $(0.2) million from the $(14.5) million net loss in Q2 2025, and the Q2 2026 Adjusted EBITDA increased 163.5 percent to $6.3 million from $2.4 million in the prior-year quarter. The packaged coffee distribution increased 2.6 points to 56.5 percent All Commodity Volume (ACV), reflecting the continued strength of the land-and-expand distribution strategy. The Company continues to expect at least 8 percent revenue growth and at least 35 percent Adjusted EBITDA growth for full year 2026, reflecting the continued strength in the operating performance.
The investment thesis rests on three variables. The Wholesale channel expansion trajectory is the load-bearing distribution variable, with the Q2 2026 Wholesale revenue up 15.2 percent year-over-year driven by expanded distribution of packaged coffee across food and mass retailers and by higher pricing, and the packaged coffee distribution increased 2.6 points to 56.5 percent ACV, a meaningful distribution expansion. The Direct-to-Consumer channel momentum trajectory is the load-bearing DTC variable, with the Q2 2026 DTC revenue up 13.6 percent year-over-year (the strongest quarterly growth in over four years) driven by growth through third-party digital retail marketplaces. The Adjusted EBITDA growth trajectory is the load-bearing earnings variable, with the Q2 2026 Adjusted EBITDA growth of 163.5 percent year-over-year and the Company guiding to at least 35 percent Adjusted EBITDA growth for full year 2026, a meaningful earnings growth trajectory.
The Company operates in the U.S. premium coffee and specialty coffee market, where the relevant peer set includes the much larger U.S. coffee and beverage companies (the Starbucks, the Dutch Bros, the Dunkin', the Keurig Dr Pepper, the Coca-Cola, the PepsiCo, the Monster Beverage, the Celsius Holdings, the Vita Coco, the Beyond Meat, the Oatly, the Kellanova, the General Mills, the McCormick, the JM Smucker, the TreeHouse Foods, the Flowers Foods, the Lancaster Colony, the Hain Celestial, the B&G Foods, the Mission Produce, the Lamb Weston, and the Post Holdings), the much larger U.S. specialty coffee and beverage companies (the Peet's Coffee, the Stumptown Coffee, the Blue Bottle Coffee, the Intelligentsia Coffee, the La Colombe Coffee, the Counter Culture Coffee, the Verve Coffee Roasters, the Philz Coffee, the Black Rock Coffee Bar, the Scooter's Coffee, the Biggby Coffee, the 7 Brew, the Foxtail Coffee, the Kaldi's Coffee, the Quills Coffee, the Café Du Monde, the New England Coffee, the Green Mountain Coffee, the Caribou Coffee, the Tully's Coffee, and the Seattle's Best Coffee), and a broader set of regional and specialty coffee and beverage companies. The Company's strategic positioning is differentiated by the Veteran-founded, mission-driven brand positioning, the Wholesale and DTC omnichannel distribution platform, the Outposts retail footprint, the broader U.S. premium coffee and specialty coffee market positioning, and the broader U.S. consumer environment.