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SALT LAKE CITY, USA – BRC Inc., a Veteran-founded, mission-driven premium beverage company, has announced financial results for the first quarter of fiscal year 2025. First quarter 2025 net revenue decreased 8.6% to $90.0 million from $98.4 million in the first quarter of 2024. Wholesale revenue decreased 6.0% to $56.8 million in the first quarter of 2025 from $60.4 million in the first quarter of 2024.
Performance in the Wholesale channel was primarily impacted by a net reduction of $8.5 million in barter transaction revenue, partially offset by continued distribution gains at FDM retailers and sales growth within the channel.
Direct-to-Consumer (“DTC”) revenue decreased 15.0% to $27.7 million in the first quarter of 2025 from $32.6 million in the first quarter of 2024.
DTC revenue was primarily impacted by a $3.4 million decrease in the accrual for loyalty rewards, following a change in the expiration policy implemented in the first quarter of 2024, and by lower customer acquisition as the Company strategically reallocated advertising spend to higher-return areas of the business.
Revenue from Black Rifle Coffee shops (“Outposts”) increased 2.1% to $5.5 million in the first quarter of 2025 from $5.4 million in the first quarter of 2024. The increase in Outpost revenue was driven by higher franchise fees and increased average order values at company-operated locations, as we promoted add-on and bundled purchases through retail stores.
Gross profit decreased to $32.5 million in the first quarter of 2025, down from $42.2 million in the first quarter of 2024, representing a 23.0% year-over-year decrease. Gross margin decreased 680 basis points to 36.1% in the first quarter of 2025, down from 42.9% for the first quarter of 2024. The decline was driven by higher trade and price adjustments, green coffee inflation, and the impact of cycling a prior-year change to our loyalty rewards program, partially offset by productivity gains and favorable mix.
Net loss for the first quarter of 2025 was $7.8 million and Adjusted EBITDA was $0.9 million. This compares to net income of $1.9 million and Adjusted EBITDA of $12.5 million for the first quarter of 2024.
