Slides
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Third Quarter 2025 Serving Those Who Serve
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2 DISCLAIMER Forward-Looking Statements This presentation contains forward-looking statements about BRC Inc. (the “Company,” “we,” “us,” and “our”) and its industry tha t involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this presentation, including statements regarding the Company’s intentions, beliefs or current expectations conc erning, among other things, the Company’s financial condition, liquidity, prospects, growth, strategies, future market conditions, developments in the capital and credit markets and expected future financial performance, as well a s any information concerning possible or assumed future results of operations, are forward -looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe ,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions, but the absence of these words does not mean that a sta tement is not forward-looking. The events and circumstances reflected in the Company’s forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Factors that may cause such forward-looking statements to differ from actual results include, but are not limited to: competition and our abi lity to grow, manage sustainable expansion, and retain key employees; failure to compete effectively with other producers, distributors and retailers of coffee and energy drinks; our limited operating history, which may hinder the successful execution of strategic initiatives and make it difficult to assess future risks and challenges; challenges in managing rapid growth, inventory needs, and relationships with key business partners; inability to raise additi onal capital necessary for business development; failure to achieve or sustain long-term profitability; inability to effectively manage debt obligations; failure to maximize the value of assets received through bartering transact ions; negative publicity affecting our brand, reputation, or that of key employees; failure to uphold our position as a supportive member of the Veteran, military and first -responder communities, or other factors negatively affecting brand perception; inability to establish and maintain strong brand recognition through intellectual property or other means; shifts in consumer spending, lack of interest in new products or changes in brand perception upon ev olving consumer preferences and tastes, including due to shifts in demographic or health and wellness trends, reduction in discretionary spending and price increases, and our ability to anticipate or react to these cha nges; price changes that are insufficient to offset cost increases and maintain profitability or that result in sales volume declines associated with pricing elasticity; unsuccessful marketing campaigns that incur costs without attractin g new customers or realizing higher revenue; failure to attract new customers or retain existing customers; risks associated with reliance on social media platforms, including dependence on third -party platforms for marketing and engagement; declining performance of the direct to consumer revenue channel; inability to effectively manage or scale distribution through Wholesale business partners, particularly key Wholesale partners; failure to manage supply chain operations effectively, including inaccurate forecasting of raw material and co - manufacturing requirements; loss of one or more co-manufacturers or production delays, quality issues, or labor-related disruptions affecting manufacturing output; supply chain disruptions or failures by third -party suppliers to deliver coffee, store supplies, RTD beverage ingredients, or merchandise, including disruptions caused by external factors; ongo ing risks related to supply chain volatility and reliability, including tariffs, political and climate risks; fluctuations in the market for high-quality coffee beans and other key commodities; unpredictable changes in the cost and availa bility of real estate, labor, raw materials, equipment, transportation, or shipping; failure to successfully improve profitability of existing Black Rifle Coffee shops, including challenges or delays with the implementati on of operational and strategic changes; risks related to long-term, non-cancelable lease obligations and other real estate-related concerns; inability of franchise partners to successfully operate and manage their franchise locations ; failure to maintain high-quality customer experiences for retail partners and end users, including production defects or issues caused by co-manufacturers that negatively impact product quality and brand reputation; failure to comply with food safety regulations or maintain product quality standards; difficulties in successfully expanding into new domestic and international markets; failure to comply with federal, state, and local laws and regulations, or inability to prevail in civil litigation matters; risks related to potential unionization of employees; failure to execute our operational improvement plan to reduce costs and improve efficiency of certain company -wide functions; failure to protect against cybersecurity threats, software vulnerabilities, or hardware security risks; and other risks and uncertainties indicated in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (the “SEC”) on March 3, 2025 including those set forth under “Item 1A. Risk Factors” included therein, as well as in our other filings with the SEC. Such forward -looking statements are based on information available as of the date of this presentation and the Company’s current beliefs and expectations concerning future developments and their effects on the Company, and speak only as of the date hereof. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not place undue reliance on these forward-looking statements as predictions of future events. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this presentation, the Company cannot guarantee that the future results, growth, performance or events or circumstances reflected in these forward-looking statements will be achieved or occur at all. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Non-GAAP Financial Measures To evaluate the performance of our business, we rely on both our results of operations recorded in accordance with generally accepted accounting principles in the United States ("GAAP") and certain non-GAAP financial measures, including EBITDA and Adjusted EBITDA. These measures, as defined below, are not defined or calculated under principles , standards or rules that comprise GAAP. Accordingly, the non-GAAP financial measures we use and refer to should not be viewed as a substitute for performance measures derived in accordance with GAAP. Our definitio ns of EBITDA and Adjusted EBITDA described below are specific to our business and you should not assume that they are comparable to similarly titled financial measures of other companies. Further information relevant t o the interpretation of non-GAAP financial measures, and reconciliations of these non-GAAP financial measures to the most comparable GAAP measures, may be found in Slide 25 of this presentation. We define EBITDA as net income (loss) before interest, tax expense, depreciation and amortization expense. We define Adjusted EBITDA, as adjusted for equity-based compensation, system implementation costs, executive recruiting and severance, write-off of site development costs, strategic initiative related costs, non-routine legal expenses, RTD start-up production issues, (gain) loss on assets held for sale, contract termination costs and restructuring fees and related costs. When used in conjunction with GAAP financial measures, we believe that EBITDA and Adjusted EBITDA are useful supplemental mea sures of operating performance and liquidity because these measures facilitate comparisons of historical performance by excluding non-cash items such as equity-based compensation and other amounts not directly attributable to our primary operations, such as system implementation costs, write-off of site development costs, non-routing legal expense, restructuring fees and related costs, RTD transformation costs and loss on impairm ent of assets. Adjusted EBITDA is also a key metric used internally by our management to evaluate performance and develop internal budgets and forecasts. EBITDA and Adjusted EBITDA have limitations as an analytical tool and should not be considered in isolation or as a substitute for analyzing our results as reported under GAAP and may not provide a complete understanding of our operating results as a whole. Some of these limitations are (i) they do not reflect changes in, or cash requirements for, our working capital needs, (ii) they do not reflect our interest expense or the cash requirements necessary to service interest or principal payments on our debt, (iii) they do not reflect our tax expense or the cash requirements to pay our taxes, (iv) they do not reflect historical capital expenditures or future requirements for capital expenditures or contractual commitments, (v) altho ugh equity-based compensation expenses are non-cash charges, we rely on equity compensation to compensate and incentivize employees, directors and certain consultants, and we may continue to do so in the future and (vi) although depreciation, amortization and impairments are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and these non -GAAP measures do not reflect any cash requirements for such replacements. Forward Looking Non-GAAP Financial Measures This presentation also includes certain forward-looking non-GAAP financial measures, specifically Adjusted EBITDA. We have not reconciled forward-looking Adjusted EBITDA to its most directly comparable GAAP measure, net income (loss), in reliance on the unreasonable efforts exception provided under Item 10(e)(1)( i)(B) of Regulation S-K. We cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliation, including market-related assumptions that are not within our control, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net income (loss). See “Non -GAAP Financial Measures” for additional important information regarding Adjusted EBITDA.
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3 Evan Hafer Executive Chairman Chris Mondzelewski President and Chief Executive Officer Matthew Amigh Chief Financial Officer Matt McGinley VP Investor Relations TODAY’S SPEAKERS 3 Black Rifle’s third-quarter results highlight strong execution in a dynamic environment as we continue to grow distribution, strengthen retail partnerships, and expand our presence across channels. We’ve delivered meaningful distribution growth in both packaged coffee and our Ready-to-Drink product lines this year, reinforcing the strength of our brand and positioning us well as we build a true multi-category beverage platform. Black Rifle is gaining share across every category where we compete, and we’re excited to continue reaching more consumers and accelerating growth into 2026. As we do, we remain deeply committed to advancing our mission to support the military, veteran, and first-responder communities from which we came. - Chris Mondzelewski, President and CEO
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4 Wholesale Revenue $67.0 million up 5.3% or $3.4M YoY up 9.4% or $5.7M YoY excluding barter 2025 THIRD QUARTER HIGHLIGHTS Net Revenue $100.7 million up 2.6% or $2.5M YoY Revenue Adjusted EBITDA1 $8.4 million up $1.3M or 18.6% YoY Wholesale Revenue Gross Margin of 36.9% compared to 42.1% in Q3 2024 Gross Margin 1 Refer to slide 25 for a reconciliation of ”Adjusted EBITDA” Profitability
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Channel Highlights
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6 22.7 29.7 45.0 54.1 8.3 41.7 47.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ACV % BRCC xAOC BRCC Grocery OUTPACING CATEGORY THROUGH DISTRIBUTION AND VELOCITY STRONG ACV TRAJECTORY WITH FURTHER EXPANSION OPPORTUNITY AHEAD Nielsen Total US Food, Total US xAOC Dollar Growth & ACV: Calculated as the sum of “Coffee” + “Espresso” categories within Nielsen Left: YTD 2025 39 weeks period ending 9/27/25, Q3 2025 – JAS week ending 09/27/25 Right: 4-Week periods ending closest to each Quarter's end-date Note: In September 2025, Nielsen expanded and recalibrated its retail coverage across major channels, resulting in modest historical shifts in previously reported values. 2022 2023 2024 8.7% 13.2% 29.7% 36.7% YTD 2025 Q3 2025 Dollar Growth Coffee xAOC BRCC xAOC 2025
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7 30.5% 28.5% 15.7% 6.9% 4.5% 3.0% 1.2% (0.1)% (1.3)% (2.8)% (3.2)% UNIT DRIVEN GROWTH REFLECTS REAL CONSUMER DEMAND BRCC’s branding and focus on quality products have driven outsized growth compared to legacy brands PACKAGED COFFEE RETAIL SALES 463 Annual Retail Sales ($ million)1 185 640 2372,005 1,863 78355 504874 487 BRCC Stands Out for Unit Growth in a Price -Driven Category Unit Growth3 10.3% 20.7% (1.0)% (12.7)% 0.4% (2.0)% 1.1% (5.4)% (7.3)% (11.0)% (9.3)% Pricing Growth4 18.3% 6.4% 16.9% 22.4% 4.1% 5.0% 0.1% 5.6% 6.5% 9.3% 6.7% Retail Sales Growth YTD2 1Nielsen IQ, Total US xAOC, Dollar Sales, Total Packaged Coffee Sales, L52 through 9/27/2025 2Nielsen IQ, Total US xAOC, % Change in Dollar Sales, Total Packaged Coffee Sales, YTD through 9/27/2025 3Nielsen IQ, Total US xAOC, EQ % Change, Total Packaged Coffee Sales, YTD through 9/27/2025 4Nielsen IQ, Total US xAOC, Average EQ % Price Change, Total Packaged Coffee Sales, YTD through 9/27/2025
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8 LEVERAGING DIGITAL CHANNELS AS A STRATEGIC ENABLER DTC / eCommerce provides brand access, drives engagement, and fuels omni-channel success ~166k Total Subscribers New Subscriber AOV +27% Higher than Existing Subscribers • DTC remains a valuable channel for innovation, loyalty, and direct engagement with our most passionate fans • BRCC is expanding presence where consumers shop most, including Wholesale, Convenience, Amazon, and Walmart.com • We continue to optimize the DTC experience by removing friction, improving conversion, and exceeding customer expectations STRATEGIC SUMMARY EXCLUSIVE COFFEE SUBSCRIPTION July ‘25 June ‘25 March ‘25 April ‘25 May ‘25 August ‘25 September ‘25 October ‘25
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9 GAINING GROUND IN RTD COFFEE DESPITE CATEGORY HEADWINDS Black Rifle Ready-to-Drink Coffee Remains a Top-3 Brand in Category Nielsen Total US xAOC + Conv, YTD through 9/27/2025 ACV: 4-Week periods ending closest to each Quarter's end-date. Calculated for the “RTD Coffee” category (Plus Monster-Java) for Single-Serve* within Nielsen *Single-Serve RTD-Coffee Market excludes large-format brands like Stok, Bizzy, etc. Note: In September 2025, Nielsen expanded and recalibrated its retail coverage across major channels, resulting in modest historical shifts in previously reported values. 37.0 40.4 46.0 53.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ACV % BRCC RTD ACV BRCC xAOC + Convenience 2022 2023 2024 2025 4.3% (4.3)% 4.8% (4.6)% Black Rifle RTD Category * Dollar & Unit Growth YTD Dollar Growth Unit Growth
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10 TARGETED GROWTH STRATEGY DRIVING ENERGY DISTRIBUTION GAINS By concentrating on core markets in 2025, we’re building the foundation for a broader national rollout in 2026 through proven retail and distribution channels. 1. Nielsen Total US xAOC + Conv as of 5 w/e 9/27/25. ACV chart displays weekly values. Note: In September 2025, Nielsen expanded and recalibrated its retail coverage across major channels, resulting in modest historical shifts in previously reported values. ~22% ACV 19,725 Doors of Distribution 3,050 Walmart Locations ~68% Walmart ACV 12,175 Convenience Stores ~7% Convenience Store ACV 3,925 Grocery Stores ~12% Grocery Store ACV BLACK RIFLE ENERGY INITIAL LAUNCH STATISTICS – SEPTEMBER 20251 21.8 12.1 01/04/25 01/18/25 02/01/25 02/15/25 03/01/25 03/15/25 03/29/25 04/12/25 04/26/25 05/10/25 05/24/25 06/07/25 06/21/25 07/05/25 07/19/25 08/02/25 08/16/25 08/30/25 09/13/25 09/27/25 ACV % BRCC Energy ACV Total US xAOC + Conv Grocery Q3 2025Q1 2025 Q2 2025
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Operational Performance & Financial Results
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12 $98.2 $100.7 Q3 2024 Q3 2025 QUARTERLY FINANCIALS 3% 42.1% 36.9% Q3 2024 Q3 2025 (520) bps NET REVENUE GROSS MARGINWHOLESALE REVENUE MIX2 ADJUSTED EBITDA1 65% 67% Q3 2024 Q3 2025 $ million $7.1 $8.4 Q3 2024 Q3 2025 19% 180 bps 1 Refer to slide 25 for a reconciliation of “Adjusted EBITDA” 2 Wholesale Revenue Mix defined as Wholesale Revenue as a percentage of Net Revenue
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13 GROSS MARGIN PRESSURED NEAR-TERM, 40%+ TARGET INTACT We are constantly looking to optimize our gross margin through productivity and other initiatives as part of our disciplined culture and to offset challenging environment (3.0)% (3.9)% 0.9% 0.8% 36.9% 42.1% Q3 2024 Gross Margin Coffee Inflation & Tariffs Net of Pricing Higher Trade Promo / Timing Productivity Mix & Other Q3 2025 Gross Margin Q3 YoY Gross Margin Gross Margin 33.9% 26.5% 42.9% 41.9% 42.1% 38.1% 36.1% 33.9% 36.9% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 35%+ 40% 2025 Guidance Long-Term Target
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14 ($4.2) $5.5 $8.4 $7.1 Q3 2024 Adj. EBITDA Gross Profit SG&A Q3 2025 Adj. EBITDA Q3 Adj. EBITDA 8.4% EBITDA Margin 7.2% EBITDA Margin STRONG EXECUTION DROVE EBITDA GROWTH DESPITE COST PRESSURE Focus remains on operational efficiency through disciplined cost management Reduced Reliance on External Consultants Aligned Headcount with FDM Focus Mix Between Channels and Products Focused Margin Improvement Initiatives $ million 1 Refer to slide 25 for a reconciliation of ”Adjusted EBITDA” 1 1
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Outlook
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16 2025 FINANCIAL GUIDANCE Net Revenues Gross Margin Adjusted EBITDA At least $395M 1%+ Growth in 2025 At least 35% Gross Margin Minimum At least $20M Adj. EBITDA Minimum Cycling $30.4M of barter revenue and loyalty reserve benefits that will not recur in 2025 Non-recurring revenue impact expected to be $11.8M in Q1, $5.8M in Q2, $3.6M in Q3, and $9.1M in Q4 Revenue expected to be lower early in the year, with sequential increases each quarter Key 2025 headwinds include: • At least 3-point impact from green coffee inflation (net of pricing) • Approximately 2.5-point impact from trade investment and normal promotional cadence • At least a 1-point impact each from loyalty reserve and tariffs Gross margins will benefit from an ongoing mix shift into FDM channels and productivity Dollar decline YoY driven by gross margin and marketing investments Key dollar impacts include $10M+ green coffee, $10M trade/promo, $6.5M loyalty, $5M tariffs; partially offset by productivity, mix, and pricing Limited EBITDA generation in 1H25; ramp up expected in 2H25 on revenue growth and expense leverage Expect $8-10M in annualized cost savings in 2H25 related to Operational Improvement Plan
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Appendix
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18 3-YEAR FINANCIAL TARGETS Revenues Gross Margin Adjusted EBITDA 10%-15% Revenue CAGR Through 2027 40%+ Target Gross Margin 15%-25% EBITDA CAGR Through 2027 Anticipate a higher rate of growth in 2026 and 2027 as Black Rifle Energy launch fees phase out and ongoing benefits from distribution gains take effect Gross margins will benefit from an ongoing mix shift into FDM channels and growth in the energy segment Gross margin improvement and SG&A leverage are anticipated to drive EBITDA growth and improve the EBITDA rate in 2026 and 2027
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FINANCIAL HIGHLIGHTS 19 1 Refer to slide 25 for a reconciliation of ”Adjusted EBITDA”
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INCOME STATEMENT 20
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21 BALANCE SHEET
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CASH FLOW 22
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CASH FLOW (CONTINUED) 23
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KEY OPERATIONAL METRICS 24
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RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA 25
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2025 OUTLOOK 26