Black Rifle Coffee Revenue Rises 7.3% to $108 Million in Third Quarter

Key Facts

Black Rifle Coffee said revenue in the third quarter of fiscal 2026 rose 7.3% year over year to $108.0 million, topping Wall Street’s estimate of $105.88 million. But earnings per share showed a loss of $0.28, versus expectations for a profit of $0.05, while net loss widened to $8.7 million from $1.2 million a year earlier. Adjusted EBITDA, meanwhile, increased 12.3% to $9.5 million, compared with $8.4 million in the year-earlier quarter. The results show a split between revenue growth and improvement in that operating measure on one hand, and a decline in per-share profitability and a wider net loss on the other. The company said net revenue was $108.0 million, compared with $100.7 million in the third quarter of 2025.

Wholesale led growth, with revenue rising 8.1% to $72.5 million from $67.0 million a year earlier. The company attributed the increase to expanded distribution of packaged coffee, including entry into the dollar-store channel, as well as continued gains in grocery stores and the effect of pricing. Weighted distribution of packaged coffee also rose to 58.7% of the measured category, up 4.6 percentage points from the comparison period. The chief executive said the company expanded distribution through new retail partners and strengthened its presence with existing accounts. He added that the campaign celebrating the U.S. 250th anniversary “helped expand awareness” of the brand.

Direct-to-consumer revenue rose 8.5% to $30.2 million, compared with $27.8 million in the third quarter of 2025. The company said growth came mainly from third-party digital marketplaces, while lower subscription revenue and the exit from a noncore brand weighed on results. The company did not break out the impact attributable to subscriptions and the exited brand. Revenue in the Outposts segment fell 8.0% to $5.4 million from $5.8 million. The company attributed the decline to weaker sales at company-operated locations, partly offset by growth at franchised and nontraditional locations.

Gross profit rose 8.0% to $40.1 million, compared with $37.1 million a year earlier, and its margin increased to 37.1% from 36.9%. The company attributed the margin improvement to pricing and productivity gains, as well as the recovery of about $3.5 million in previously paid tariffs. It had recorded a gross margin of 34.1% in the second quarter of 2026, compared with 33.9% in the second quarter of 2025, before rising in the third quarter. On costs, operating expenses increased to $47.613 million from $36.631 million. Pressures included other operating expenses rising to $9.3 million from $0.6 million, with the company attributing the increase mainly to impairment at some locations and a legal provision.

Marketing and advertising expenses rose 18.1% to $10.3 million, compared with $8.7 million in the year-earlier quarter. The company attributed the increase to spending on content, media, influencers, agency support and advertising. Meanwhile, the company launched Project Core, a multiyear initiative to simplify operations, improve profitability and earnings quality, and reduce capital intensity. It began plans to close 12 company-operated stores and amended 8 leases for locations it no longer intends to develop. The steps are part of an effort to change the operating model as the company recorded a larger net loss than a year earlier.

The company signed a definitive agreement to sell its Manchester roasting facility to a long-term manufacturing partner, while maintaining a long-term production relationship with the partner. It said the agreement secures continued manufacturing with the partner and supports a less asset-intensive model. The company reaffirmed its fiscal 2026 guidance, expecting revenue growth of at least 8% and adjusted EBITDA growth of at least 35%. But it expects the brand exit and planned Outposts closures to reduce fourth-quarter revenue by about $3 million. The chief financial officer said on the earnings call that the company had secured more than 90% of its projected green coffee needs for 2027 at prices below the contracts signed for 2026. He added that the company would wait until its fourth-quarter earnings call before providing 2027 guidance.