BRC Inc. reported second quarter 2025 net revenue of $94.8 million, a 6.5% increase from $89.0 million in Q2 2024. Wholesale revenue increased 14.1% to $61.3 million, driven by distribution gains and sales of Black Rifle Energy, partially offset by a $3.0 million net reduction in barter transaction revenue. Direct-to-Consumer (DTC) revenue decreased 7.8% to $27.6 million, primarily due to a reduction in loyalty rewards accrual and lower customer acquisition.
Gross profit for the second quarter of 2025 decreased 13.7% year-over-year to $32.2 million, resulting in a gross margin of 33.9%, down 790 basis points from 41.9% in Q2 2024. This decline was driven by green coffee inflation, higher trade and price adjustments, and the impact of cycling a prior-year change to the loyalty rewards program. The company reported a net loss of $14.5 million, compared to a net loss of $1.4 million in Q2 2024.
Adjusted EBITDA for Q2 2025 was $2.4 million, a 68.3% decrease from $7.5 million in Q2 2024. The company reaffirmed its full-year fiscal 2025 guidance for net revenue of $395.0-$425.0 million, gross margin of 35%-37%, and Adjusted EBITDA of $20.0-$30.0 million. Post-quarter-end, the company raised $40.25 million in a follow-on equity offering, which reduced net debt and is expected to lower annual interest expense by over $2 million.
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