BRC Inc. reported first quarter 2025 net revenue of $90.0 million, an 8.6% decrease from $98.4 million in Q1 2024. Wholesale revenue decreased 6.0% to $56.8 million, primarily impacted by an $8.5 million net reduction in barter transaction revenue. Direct-to-Consumer (DTC) revenue decreased 15.0% to $27.7 million, influenced by a $3.4 million decrease in loyalty rewards accrual and lower customer acquisition due to strategic reallocation of advertising spend.
Gross profit for the first quarter of 2025 decreased 23.0% year-over-year to $32.5 million, resulting in a gross margin of 36.1%, down 680 basis points from 42.9% in Q1 2024. This decline was driven by higher trade and price adjustments, green coffee inflation, and the impact of cycling a prior-year change to the loyalty rewards program. The company reported a net loss of $7.8 million, compared to a net income of $1.9 million in Q1 2024.
Adjusted EBITDA for Q1 2025 was $0.9 million, a significant decrease from $12.5 million in Q1 2024. The company updated its full-year fiscal 2025 guidance for gross margin to 35%-37%, down from the previously reported 37%-39%, while reaffirming net revenue guidance of $395.0-$425.0 million and Adjusted EBITDA guidance of $20.0-$30.0 million.
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