Black Rifle Direct-to-Consumer Growth Reaccelerates

The Tip Desk · August 3, 2026 · 3 min read

Second-quarter net revenue was $107.0 million, up 12.8% from a year earlier, as Direct-to-Consumer sales rose 13.6% and Adjusted EBITDA reached $6.3 million.

BRC Inc. (BRCC), the veteran-founded premium coffee company, reported second-quarter net revenue of $107.0 million, up 12.8% from $94.8 million a year earlier, after 21.4% growth in the first quarter.

Wholesale remained the larger channel. Wholesale revenue increased 15.2% to $70.6 million, after 31.5% growth in the first quarter. The company said the increase was driven primarily by expanded distribution of packaged coffee, which lifted unit volumes across food and mass retailers, as well as by higher pricing.

Direct-to-Consumer revenue accelerated to 13.6% growth, reaching $31.4 million, after 7.2% growth in the first quarter. The company called it DTC’s strongest quarterly growth in more than four years and attributed the increase primarily to third-party digital retail marketplaces, partially offset by lower subscription revenue.

Revenue from Black Rifle Coffee shops, or Outposts, decreased 15.0% to $5.0 million, on lower transaction volumes and lower average order value in company-operated locations.

Gross profit increased 13.4% to $36.5 million. Gross margin expanded 15 basis points to 34.1% from 33.9% a year earlier, after a 310-basis-point compression in the first quarter. The company said the second-quarter improvement was driven primarily by pricing actions, lower shipping and fulfillment costs from productivity gains under its Operational Improvement Plan, and a decrease in the reserve for excess and obsolete inventory. Those benefits were partially offset by higher green coffee input costs and tariffs, as well as higher third-party e-commerce marketplace fees that scale with marketplace sales.

Chief Financial Officer Matt Amigh said gross margin stabilized during the first half of 2026, including modest expansion in the second quarter, and that the company expects greater improvement in the second half as lower green coffee costs begin to flow through cost of sales, supported by portfolio mix and productivity initiatives.

Adjusted EBITDA rose to $6.3 million from $2.4 million a year earlier. Net loss narrowed to $0.2 million from $14.5 million.

General and administrative expenses decreased 35.2% to $9.3 million, or 8.7% of revenue, from 15.1% a year earlier, on lower legal fees, consulting and professional fees, and depreciation and amortization. Other operating expenses, net, fell 97.7% to $0.1 million as prior-year legal contingency charges were absent.

Salaries, wages and benefits decreased 2.0% to $15.5 million, or 14.5% of revenue, on lower fixed personnel costs from reduced headcount, partially offset by higher incentive-based compensation. Marketing expenses increased 7.8% to $10.5 million but fell 50 basis points to 9.8% of revenue, which the company said reflected operating leverage as revenue growth outpaced the marketing increase.

Packaged coffee distribution rose 2.6 points to 56.5% All Commodity Volume as of June 30, 2026, after a 7.0-point expansion to 55.4% in the first quarter. Ready-to-Drink coffee ACV was 52.4%. Total Outposts numbered 38, including 17 company-owned and 21 franchise stores.

Cash and cash equivalents were $12.0 million at June 30, 2026. For the six months ended June 30, 2026, net cash provided by operating activities was $12.6 million, compared with a use of $7.5 million a year earlier.

The company affirmed full-year 2026 guidance of at least 8% revenue growth and at least 35% Adjusted EBITDA growth, with gross margin of 34% to 36%, the same outlook it had raised to in the first quarter from a prior at-least-7% revenue and 30% Adjusted EBITDA guide.