Black Rifle Launches Project Core, Reaffirms 2026 Outlook

The Tip Desk · November 2, 2026 · 4 min read

Third-quarter net revenue was $108.0 million, up 7.3% from a year earlier, as the company agreed to sell its Manchester roaster and planned 12 Outpost closures.

BRC Inc. (BRCC), the veteran-founded premium coffee company, reported third-quarter 2026 net revenue of $108.0 million, up 7.3% from $100.7 million a year earlier, as year-over-year growth slowed from 12.8% in the second quarter and 21.4% in the first.

The company also launched Project Core, a multi-year effort to sharpen focus on coffee, improve profitability, simplify operations and reduce capital intensity. Chief Executive Officer Chris Mondzelewski said a key third-quarter priority was making Black Rifle more accessible and expanding retail distribution.

Wholesale revenue rose 8.1% to $72.5 million from $67.0 million, after 15.2% growth in the second quarter and 31.5% in the first. The company said the increase was driven primarily by expanded packaged-coffee distribution, including entry into the dollar channel, continued grocery gains and pricing. Direct-to-consumer revenue increased 8.5% to $30.2 million from $27.8 million, the fourth consecutive quarter of year-over-year DTC growth. The company attributed the DTC increase primarily to third-party digital marketplaces, partially offset by lower subscription revenue and the quarter’s non-core brand divestiture.

Outpost revenue declined 8.0% to $5.4 million from $5.8 million, which the company said reflected lower sales at company-operated stores, partly offset by franchise and non-traditional locations. Packaged coffee distribution rose 4.6 percentage points to 58.7% on an All Commodity Volume weighted basis, after 2.6-point and 7.0-point increases in the second and first quarters. Ready-to-drink coffee ACV slipped to 52.8% from 53.3%. Company-owned Outposts remained at 17; franchise stores rose to 22 from 20, for a total of 39.

Gross profit increased 8.0% to $40.1 million. Gross margin expanded 25 basis points to 37.1% from 36.9%, after a 20-basis-point expansion in the second quarter and a 310-basis-point contraction in the first. The company said the margin increase was driven primarily by pricing, about $3.5 million in refunds of previously paid tariffs and productivity, partly offset by higher green coffee costs, trade spending, marketplace fees and transportation.

Marketing expenses rose 18.1% to $10.3 million, or 9.5% of revenue, from 8.6%, which the company said was driven by content, media, influencer programs and agency support, partly offset by lower shopper marketing and events. Salaries, wages and benefits increased 7.5% to $15.5 million and remained 14.3% of revenue. General and administrative expenses fell 2.7% to $12.6 million, or 11.7% of revenue, from 12.9%, on lower depreciation, outside services, software and legal fees, partly offset by Outpost lease-termination costs tied to Project Core.

Other operating expenses, net, increased to $9.3 million from $0.6 million, or 8.6% of revenue from 0.6%. The company said the increase was primarily due to impairment of certain Outpost locations under Project Core and a legal contingency accrual, partly offset by gains on lease terminations and the brand divestiture. Net loss was $8.7 million, compared with a $1.2 million net loss a year earlier, after a $0.2 million net loss in the second quarter and approximately breakeven in the first. Adjusted EBITDA increased 12.3% to $9.5 million from $8.4 million, after 163.5% growth in the second quarter and 717.9% in the first.

Chief Financial Officer Matt Amigh said the company signed a definitive agreement to sell its Manchester roasting facility to a manufacturing partner, initiated plans to close 12 company-operated Outposts, modified eight leases and completed the divestiture of a non-core DTC brand, steps toward a more asset-light model.

BRC reaffirmed full-year 2026 guidance of at least 8% revenue growth and at least 35% Adjusted EBITDA growth, incorporating about $3 million of expected fourth-quarter revenue headwinds from the brand divestiture and planned Outpost closures. Current gross-margin guidance is 34% to 36%.