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BRCC Stock Analysis - BRC Inc. AI Rating

BRCC NYSE Beverages DE CIK: 0001891101
Recently Updated • Analysis: Mar 21, 2026 • SEC Data: 2025-12-31
AI Rating
STRONG SELL
85% Confidence

📊 BRCC Key Takeaways

Revenue: $398.3M
Net Margin: -3.0%
Free Cash Flow: $-13.5M
Current Ratio: 1.32x
Debt/Equity: 0.76x
EPS: $-0.13
AI Rating: STRONG SELL with 85% confidence

Investment Thesis

BRC Inc. exhibits severe operational distress with negative operating income (-6.2% margin), negative free cash flow (-$13.5M), and deteriorating profitability despite modest revenue growth of 1.7%. The company is burning cash operationally while carrying significant debt ($34.7M), creating substantial financial stress that threatens sustainability without major operational improvements.

BRCC Strengths

  • + Positive gross margin of 34.6% demonstrates product-level profitability in the beverage sector
  • + Revenue growth of 1.7% YoY shows market presence despite operational challenges
  • + Debt-to-equity ratio of 0.76x is moderate relative to total liabilities, providing some capital structure stability

BRCC Risks

  • ! Negative operating cash flow of -$9.8M indicates the core business cannot fund operations, requiring external financing
  • ! Operating losses of -$24.6M on $398.3M revenue reveal severe cost structure misalignment and inability to scale profitably
  • ! Interest coverage ratio of -12.0x demonstrates inability to service debt from operations, creating default risk
  • ! Quick ratio of 0.67x combined with $4.3M cash and -$13.5M free cash flow indicates acute liquidity risk
  • ! Negative ROE (-26.1%) and ROA (-5.7%) show destruction of shareholder and asset value

Key Metrics to Watch

BRCC Financial Metrics

Revenue
$398.3M
Net Income
$-11.9M
EPS (Diluted)
$-0.13
Free Cash Flow
$-13.5M
Total Assets
$209.2M
Cash Position
$4.3M

💡 AI Analyst Insight

BRC Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

BRCC Profitability Ratios

Gross Margin 34.6%
Operating Margin -6.2%
Net Margin -3.0%
ROE -26.1%
ROA -5.7%
FCF Margin -3.4%

BRCC vs Default Sector

How BRC Inc. compares to Default sector averages

Net Margin
BRCC -3.0%
vs
Sector Avg 12.0%
BRCC Sector
ROE
BRCC -26.1%
vs
Sector Avg 15.0%
BRCC Sector
Current Ratio
BRCC 1.3x
vs
Sector Avg 1.8x
BRCC Sector
Debt/Equity
BRCC 0.8x
vs
Sector Avg 0.7x
BRCC Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

BRCC Balance Sheet & Liquidity

Current Ratio
1.32x
Quick Ratio
0.67x
Debt/Equity
0.76x
Debt/Assets
67.5%
Interest Coverage
-11.99x
Long-term Debt
$34.7M

BRCC 5-Year Financial Trend

BRCC 5-year financial data: Year 2021: Revenue $233.1M, Net Income -$772.0K, EPS N/A. Year 2022: Revenue $301.3M, Net Income -$82.9M, EPS $-1.62. Year 2023: Revenue $395.6M, Net Income -$82.9M, EPS $-1.62. Year 2024: Revenue $395.6M, Net Income -$82.9M, EPS $-1.62. Year 2025: Revenue $398.3M, Net Income -$16.7M, EPS $-0.27.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: BRC Inc.'s revenue has grown significantly by 71% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.27 indicates the company is currently unprofitable.

BRCC Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-3.4%
Free cash flow / Revenue

BRCC Quarterly Performance

Quarterly financial performance data for BRC Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $98.2M -$470.0K $0.00
Q2 2025 $89.0M $67.0K $0.00
Q1 2025 $90.0M $548.0K $0.01
Q3 2024 $98.2M -$470.0K $-0.01
Q2 2024 $89.0M $67.0K $0.00
Q1 2024 $83.5M $548.0K $0.01
Q3 2023 $75.5M -$3.2M $-0.05
Q2 2023 $66.4M -$4.2M $-0.07

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

BRCC Capital Allocation

Operating Cash Flow
-$9.8M
Cash generated from operations
Capital Expenditures
$3.7M
Investment in assets
Dividends
None
No dividend program

BRCC SEC Filings

Access official SEC EDGAR filings for BRC Inc. (CIK: 0001891101)

📋 Recent SEC Filings

Date Form Document Action
Mar 9, 2026 4 xslF345X05/wk-form4_1773090481.xml View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773088242.xml View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773088120.xml View →
Mar 9, 2026 4 xslF345X05/wk-form4_1773088046.xml View →
Mar 6, 2026 4 xslF345X05/wk-form4_1772831477.xml View →

Frequently Asked Questions about BRCC

What is the AI rating for BRCC?

BRC Inc. (BRCC) has an AI rating of STRONG SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.

What are BRCC's key strengths?

Positive gross margin of 34.6% demonstrates product-level profitability in the beverage sector. Revenue growth of 1.7% YoY shows market presence despite operational challenges.

What are the risks of investing in BRCC?

Negative operating cash flow of -$9.8M indicates the core business cannot fund operations, requiring external financing. Operating losses of -$24.6M on $398.3M revenue reveal severe cost structure misalignment and inability to scale profitably.

What is BRCC's revenue and growth?

BRC Inc. reported revenue of $398.3M.

Does BRCC pay dividends?

BRC Inc. does not currently pay dividends.

Where can I find BRCC SEC filings?

Official SEC filings for BRC Inc. (CIK: 0001891101) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is BRCC's EPS?

BRC Inc. has a diluted EPS of $-0.13.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 21, 2026 | Data as of: 2025-12-31 | Powered by Claude AI