BRC Inc. Reports $94.8 Million Revenue in Q2 2025, Faces $14.5 Million Net Loss

BRC Inc., the parent company of Black Rifle Coffee Company, reported a net revenue of $94.8 million for the second quarter of 2025, marking a 7% increase from $89.0 million in the same period last year. However, the company experienced a net loss of $14.5 million, compared to a loss of $1.4 million in the prior year. For the first half of 2025, total revenue decreased slightly to $184.8 million from $187.4 million in 2024, with a net loss of $22.4 million compared to a profit of $0.5 million in the previous year. The decline in profitability was attributed to increased costs of goods sold, which rose by 21% year-over-year, driven by inflationary pressures on raw materials and shipping.

The company’s operational expenses also saw a significant rise, increasing by 23% to $44.8 million in the second quarter, primarily due to higher marketing and advertising costs, which surged by 32% to support the launch of new products, including the Black Rifle Energy line. General and administrative expenses rose by 31%, largely due to increased legal fees related to ongoing litigation. The company has implemented an Operational Improvement Plan aimed at reducing costs and improving efficiency, which has already resulted in a headcount reduction of approximately 48 employees.

In terms of strategic developments, BRC Inc. has focused on expanding its Wholesale channel, which saw a revenue increase of 14% to $61.3 million, driven by new customer acquisitions and increased distribution in retail markets. Conversely, the Direct-to-Consumer (DTC) channel experienced an 8% decline in revenue, attributed to lower customer acquisition rates and a strategic reallocation of advertising spend. The Outpost channel, which includes company-operated stores, reported an 11% increase in revenue, reflecting higher franchise fees and improved average order values.

As of June 30, 2025, BRC Inc. reported total assets of $225.3 million, a slight decrease from $227.4 million at the end of 2024. The company’s cash and cash equivalents stood at $4.3 million, down from $6.8 million at the end of the previous fiscal year. The company has also entered into a public offering agreement to sell 28 million shares of Class A Common Stock at $1.25 per share, which is expected to generate approximately $38 million in net proceeds. Looking ahead, BRC Inc. anticipates continued growth in its Wholesale channel while addressing challenges in the DTC segment, with a focus on enhancing customer engagement and optimizing marketing strategies.