BellRing Cuts Fiscal 2026 Adjusted EBITDA Outlook

The Tip Desk · August 4, 2026 · 4 min read

The wellness company now sees Adjusted EBITDA of $275 million to $295 million after a $10 million shake-bottle inventory charge in the June quarter.

BellRing Brands (BRBR), the holding company behind Premier Protein and Dymatize, cut its fiscal 2026 Adjusted EBITDA outlook to $275 million to $295 million after a $10 million charge for excess shake-bottle inventory in the third fiscal quarter ended June 30, 2026.

The new range is about 12% of net sales and sits well below the $315 million to $335 million outlook issued after the second quarter. The updated Adjusted EBITDA outlook includes $28 million of unfavorable inventory-related impacts, of which $21.3 million were recorded in the second and third quarters, including an $11.3 million charge for a third-party-supplied ingredient that did not meet quality requirements and the $10.0 million excess-bottle charge.

Net sales were $570.4 million, up 4.2% from a year earlier, a faster year-over-year rate than the 1.8% increase in the second quarter. The lift came from a 1.7% increase in volume and a 2.5% increase in price/mix. Fiscal 2026 net sales guidance was raised to $2.335 billion to $2.375 billion, or 1% to 3% growth, from $2.325 billion to $2.365 billion.

Dymatize was the inflection. Net sales for the sports-nutrition brand increased 26.7%, reversing a 1.9% decline in the prior quarter. The gain came from a 6.0% increase in volume and a 20.7% increase in price/mix, with higher average net selling prices tied to inflation-driven price increases and international distribution gains. Dollar consumption of Dymatize powder and RTD products increased 2.7% in the 13 weeks ended June 28, 2026, versus a 6.0% increase in the prior 13-week period.

Premier Protein net sales increased 0.7%, after a 1.7% increase in the second quarter. Premier Protein RTD shake net sales increased 1.2%, with volume up 3.1% on distribution gains and price/mix down 1.9% on incremental promotional investment. Dollar consumption of Premier Protein RTD shakes increased 6.0% in the 13 weeks ended June 28, 2026, versus a 2.9% increase in the prior 13-week period. Premier Protein powder dollar consumption decreased 4.2%, versus a 3.1% increase in the prior 13-week period.

Gross profit was $163.3 million, or 28.6% of net sales, down from $193.6 million, or 35.4% of net sales, a year earlier. Adjusted gross profit was $157.9 million, or 27.7% of net sales. Gross profit and adjusted gross profit were impacted by significant input cost inflation, including tariffs, and higher freight. The $10.0 million excess-bottle charge reduced gross margin and adjusted gross margin by 180 basis points.

Selling, general and administrative expenses were $93.7 million, or 16.4% of net sales, including $5.4 million of reorganization charges. A year earlier, the line included a $68.1 million provision for legal matters. Marketing and consumer advertising expenses were $23.1 million, up $6.7 million on increased Premier Protein spend. Operating profit was $65.4 million. Net earnings were $34.2 million, or $0.29 a share. Adjusted EBITDA was $78.3 million, down from $120.3 million a year earlier, and included the $10.0 million inventory charge.

Chief Financial Officer Paul Rode said third-quarter revenue exceeded expectations, driven by strong performance from both Premier Protein and Dymatize, and that profitability was impacted by inventory-related charges and continued input cost pressures. He said the company is taking actions through pricing, productivity initiatives and disciplined cost management while continuing to invest behind its brands.

Michael Axelrod became President and Chief Executive Officer effective July 29, 2026. He said Premier Protein is the clear leader in ready-to-drink shakes and that the company has a strong foundation to strengthen execution.

Adjusted EBITDA is expected to be unfavorably impacted by approximately $7 million in the fourth quarter, primarily from targeted trade spend to support sell-through of excess shake-bottle inventory and to optimize inventory levels ahead of fiscal year-end. Capital expenditures for fiscal 2026 are guided at $10 million.