BRC (BRCC) - 2025 Q1 - Quarterly Results

Financial Performance - Net revenue for Q1 2025 decreased by 8.6% to $90.0 million compared to$ 98.4 million in Q1 2024[5] - Gross profit fell to $32.5 million, a 23.0% decrease year-over-year, with gross margin declining to 36.1% from 42.9%[8] - The net loss for Q1 2025 was$ 7.8 million, a decrease of $9.7 million compared to net income of$ 1.9 million in Q1 2024[12] - Adjusted EBITDA for Q1 2025 was $0.9 million, down from$ 12.5 million in Q1 2024[12] - Operating income for Q1 2025 was a loss of $5,432,000, compared to an operating income of$ 3,955,000 in Q1 2024[28] - Net income attributable to BRC Inc. for Q1 2025 was a loss of $2,888,000, compared to a net income of$ 548,000 in Q1 2024[28] - For the three months ended March 31, 2025, the company reported a net loss of $7.846 million compared to a net income of$ 1.855 million in the same period of 2024[46] - EBITDA for the three months ended March 31, 2025, was $(2.856) million, a decrease from$ 6.368 million in 2024[46] - Adjusted EBITDA for the three months ended March 31, 2025, was $897,000, down from$ 12.518 million in 2024[46] Revenue Channels - The wholesale revenue channel generated $56,791,000 in Q1 2025, down from$ 60,428,000 in Q1 2024, a decrease of 4.3%[38] - Revenue for the three months ended March 31, 2025, was $89,974,000, a decrease of 8.5% compared to$ 98,392,000 in the same period of 2024[28] Distribution and Market Performance - Black Rifle Energy™ achieved 21% All Commodity Volume (ACV) within its first three months of retail distribution[6] - Packaged coffee distribution increased by 12.2 percentage points to 50.2% ACV, while Ready-to-Drink coffee distribution grew by 5.1 percentage points to 47.9% ACV compared to Q1 2024[6] - The company continues to focus on expanding distribution across traditional retail, online platforms, and new beverage categories[4] Expenses and Costs - Marketing expenses rose by 48.8% to $11.3 million, representing 12.6% of revenue, up from 7.7% in Q1 2024[9] - The company incurred$ 2.590 million in equity-based compensation for the three months ended March 31, 2025, compared to $1.952 million in 2024[46] - Non-routine legal expenses for the three months ended March 31, 2025, amounted to$ 338,000, significantly lower than $2.371 million in 2024[46] - The company wrote off$ 825,000 in site development costs for the three months ended March 31, 2025, compared to $1.181 million in 2024[46] - Interest expense increased to$ 2.370 million for the three months ended March 31, 2025, from $2.051 million in 2024[46] - Depreciation and amortization costs rose to$ 2.576 million for the three months ended March 31, 2025, from $2.413 million in 2024[46] - Tax expense remained relatively stable at$ 44,000 for the three months ended March 31, 2025, compared to $49,000 in 2024[46] Guidance and Future Expectations - Full-year revenue guidance for FY2025 is maintained at$ 395.0 million to $425.0 million, with a growth expectation of 1% to 9%[14] - Gross margin for FY2025 is now expected to be in the range of 35% to 37% due to tariff impacts[6] Assets and Liabilities - Total current assets as of March 31, 2025, were$ 95,062,000, slightly down from $95,471,000 at the end of 2024[31] - Total liabilities increased to$ 178,705,000 as of March 31, 2025, compared to $177,886,000 at the end of 2024[31] - Cash and cash equivalents decreased to$ 3,902,000 at the end of Q1 2025 from $6,810,000 at the beginning of the period[33] - The company reported a net cash used in operating activities of$ 4,141,000 for Q1 2025, compared to net cash provided of $4,914,000 in Q1 2024[33] Subscriber Metrics - DTC subscribers decreased to 181,900 in Q1 2025 from 209,000 in Q1 2024, reflecting a decline of 13.0%[39]