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NEW YORK - Black Rifle Coffee Company (NYSE:BRCC) reported fourth-quarter results that fell short of analyst expectations, sending shares down 4.7% in after-hours trading.
The veteran-founded premium beverage company posted a net loss of $0.03 per share for the quarter, missing the consensus estimate for breakeven earnings. Revenue came in at $105.9 million, slightly below analysts’ projections of $106.2 million and down 11.5% YoY.
Black Rifle’s wholesale revenue decreased 8.6% to $67.2 million, primarily due to a $12.7 million reduction in barter transaction revenue. This was partially offset by distribution gains in food, drug and mass retailers, growth in ready-to-drink coffee, and initial shipments of the new Black Rifle Energy drink.
Direct-to-consumer revenue fell 17.7% to $32.2 million as the company reallocated advertising spend. Revenue from Black Rifle Coffee shops declined 7.4% to $6.5 million on lower transaction volumes.
Despite the top-line weakness, gross profit rose 27.5% YoY to $40.4 million, with gross margin expanding to 38.1% from 26.5% a year ago.
"Black Rifle made significant progress in strengthening our operations, bolstering our market presence, and improving profitability over the past year," said CEO Chris Mondzelewski.
For fiscal 2025, Black Rifle projects revenue of $395 million to $425 million, representing growth of 1% to 9%. The company expects adjusted EBITDA of $20 million to $30 million.
The stock’s decline suggests investors were disappointed by the quarterly miss and outlook, which implies a potential slowdown in growth and profitability compared to 2024 results.
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