Black Rifle Coffee Company (BRCC) confirmed its fiscal‑year 2025 guidance, projecting revenue of at least $395 million and adjusted EBITDA of $20 million or more. The company also disclosed a $1.4 million non‑cash impairment related to raw‑material inventory changes that will slightly compress the gross‑margin outlook to 34.5‑34.7%, a touch below the prior guidance of at least 35%.
The guidance aligns with the company’s 2024 performance, where full‑year revenue was $391.5 million and adjusted EBITDA reached $39.3 million. In the second quarter of 2025, revenue grew 6.5% year‑over‑year to $94.8 million, indicating a steady demand trajectory that supports the FY2025 revenue target. The $1.4 million impairment stems from excess inventory rendered unusable by a formulation change; management emphasized that the charge is non‑operational and does not reflect underlying consumer demand or operating performance.
Gross margin compression is largely attributable to the one‑time inventory write‑down. Excluding the impairment, the company’s core margin would have remained near the 35% level, suggesting that pricing power and cost control remain intact. The guidance for adjusted EBITDA reflects confidence that the company can maintain profitability once the inventory charge is removed, even as it continues to invest in expanding its Black Rifle Energy line and broadening distribution across retail, wholesale, and direct‑to‑consumer channels.
Management highlighted that the formulation change was a strategic move to improve product quality and meet evolving consumer preferences. CEO and CFO statements underscored that the impairment does not signal a decline in demand, and that the company’s operating performance remains strong. The company’s mission‑driven brand, targeting veterans, first responders, and active military, continues to resonate with its core customer base, supporting the revenue outlook.
Financial health indicators point to ongoing challenges: the company’s Altman Z‑Score sits at 1.25, indicating a potential bankruptcy risk within two years, and its debt‑to‑equity ratio is high. Despite these risks, the company’s guidance demonstrates a focus on cost discipline and strategic growth, suggesting that management believes the current trajectory is sustainable over the medium term.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.