BRC Inc. (NYSE: BRCC) announced its financial results for the third quarter of fiscal year 2026 on November 2, 2026. The company reported net revenue of $108.0 million for the quarter, representing a 7.3% increase compared to the same period in the prior year. This growth was driven by expansion in the Wholesale and Direct-to-Consumer (DTC) channels, with Wholesale revenue rising 8.1% to $72.5 million and DTC revenue increasing 8.5% to $30.2 million. However, revenue from Company-operated Black Rifle Coffee shops, known as Outposts, decreased 8.0% to $5.4 million.
Despite the revenue increase, the company reported a net loss of $8.7 million for the quarter, compared to a net loss of $1.2 million in Q3 2025. Adjusted EBITDA improved by 12.3% year-over-year, reaching $9.5 million. The company noted that the net loss was driven by higher marketing expenses, which increased 18.1% to $10.3 million, and increased other operating expenses related to the impairment of Outpost locations and a legal contingency accrual.
BRC Inc. also provided an update on its Project Core initiative, a multi-year strategy to sharpen focus on its core coffee business. The company signed a definitive agreement to sell its Manchester roasting facility and initiated plans to close 12 company-operated Outposts. Additionally, the company completed the divestiture of a non-core DTC brand.
Regarding its full-year 2026 outlook, the company reaffirmed its guidance of at least 8% revenue growth and at least 35% Adjusted EBITDA growth. The guidance incorporates an expected fourth-quarter revenue headwind of approximately $3 million due to the divestiture of the non-core brand and planned Outpost closures.
