BRC Inc.

Greetings and welcome to the Black Rifle Coffee Third Quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Matthew McGinley, Vice President, Investor Relations. Thank you. You may begin.

Good morning, everyone, and thank you for joining Black Rifle Coffee Company's third quarter 2026 financial results conference call. We released our results yesterday, and the earnings release and related materials are available on our investor relations website at ir.blackriflecoffee.com. Before we begin, I would like to remind you of the company's safe harbor provisions regarding forward-looking statements. During today's call, management may make forward-looking statements including guidance and the underlying assumptions. These statements are based on expectations that involve risks and uncertainties and could cause actual results to differ materially. For a discussion of these risks, please refer to our filings with the SEC. Additionally, this call will include non-GAAP financial measures such as adjusted EBITDA. Whenever we refer to EBITDA, we mean adjusted EBITDA unless otherwise noted. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in our earnings release, which was furnished to the SEC and is available on our investor relations website as well as in the investor presentation available there. Now, please refer to the presentation and turn to slide four. I would now like to turn the call over to Chris Mondzelewski, CEO of Black Rifle Coffee Company. Mondze?

Thanks, Matt. Good morning, everyone. Joining me today are Evan Hafer, our executive chairman, Matt Amy, our chief financial officer, and Matt McGinley, our head of investor relations. Through the first nine months of 2026, we've continued to make meaningful progress in growing our core coffee business and strengthening the Black Rifle brand. Revenue is up 14% year over year, and in the third quarter we delivered growth in both our wholesale and direct-to-consumer businesses. We're encouraged by these results, but we also recognize that we have a significant opportunity ahead of us to translate the strength of our brand and the growth of our core coffee business into higher profitability and stronger cash flow. That's really the focus of Project Core, which we launched during the third quarter. I'll come back to that in a few minutes, but first, we'll walk through the quarter. Turn to slide six. Our packaged coffee business continued to gain share in the third quarter. Growth was driven by expanded distribution and broad-based strength across our retail partners, even as we began to lap the pricing actions we took in 2025. Looking at the Nielsen data, Black Rifle packaged coffee sales grew 19.4% in the quarter, roughly 10 times the category's 2% growth rate. In looking at the trailing 52 weeks, Our retail sales increased 28.9%, nearly three times the category's 9.7% growth. We're seeing that outperformance translate directly into market share gains. Across Nielsen's total U.S. multi-outlet universe, our bagged coffee share increased approximately 65 basis points year over year to 3.4%, while our pod share grew nearly 30 basis points to 2.2%. Turn to slide seven. We continue to expand our retail distribution in the third quarter. Packaged coffee distribution reached 58.7% ACV across the total U.S. multi-outlet channel, up more than four and a half points from a year ago and approximately two points from the second quarter. In grocery specifically, distribution increased more than six points year over year to 54%. But importantly, we're not just adding new stores. We're also expanding our presence within the stores we already have. That's consistent with our land and expand strategy. Grocery stores carrying Black Rifle now stock approximately six of our items on average, compared with just over five a year ago. And we believe there's further opportunity to expand that shelf presence as our products continue to earn their place at retail. Slide eight. Beyond distribution, we're also seeing strong underlying volume growth. Over the latest 52 weeks, our packaged coffee unit sales increased 12.8%, while all but one of the other leading national brands we benchmark against experienced unit declines. That's an important distinction. We're growing because consumers are buying more Black Rifle coffee, not simply because they're paying more for it. And in a category where overall volumes remain under pressure, that's a meaningful point of differentiation for our retail partners. Turn to slide nine, please. Our direct-to-consumer business delivered its fourth consecutive quarter of growth. We're also continuing to evolve our strategy around the distinct roles that our different digital channels play. Third-party marketplaces are our fastest growing channel, allowing us to reach consumers on the platforms where they're already shopping. At the same time, BlackRifle.com remains the home for our subscriptions, exclusive products, and most loyal customers. We see these channels as complementary. Marketplaces help us broaden our reach while our owned platform supports retention and repeat purchase. Ultimately, our focus is on growing the overall DTC business while maintaining pricing discipline and improving profitability over time. Move to slide 10. Our largest mass retail customer is a great example of what BlackRifle can achieve as we build distribution and expand our assortment. Today we hold nearly 10% share in bagged coffee and approximately 5% in pods at that customer. Compare that with less than 2% share in either format across the largest online marketplace in grocery, and you can see where the opportunity is ahead for us. These are substantial markets. The largest online marketplace and our largest mass retail customer each represent more than $4 billion in annual packaged coffee sales. Our grocery represents another $6.8 billion. Now the opportunity isn't identical across these channels. Marketplaces and mass retail are more heavily weighted toward pods, with online purchases skewing towards larger pack sizes. Grocery, on the other hand, has a more balanced mix of bags and pods. Our strategy is to tailor our assortment to those different purchasing patterns while continuing to build distribution and expand our shelf presence. Slide 11. In ready-to-drink coffee, Black Rifle has established a significant national presence. We remain the number three brand in single-serve RTD coffee with distribution of approximately 53% ACV. That said, category conditions remain challenging. Over the past 52 weeks, single-serve RTD coffee category sales declined 4%, while Black Rifle's RTD retail sales declined 7%. Our focus now is on generating stronger returns from the foundation we've built. That means concentrating our investments on our strongest customers and products, improving productivity across our existing distribution, and lowering our cost to serve. And this is a good example of the more disciplined approach we're taking to investment and resource allocation across the company. Which brings me to Project Core. Turn to slide 12, please. Project Core is our multi-year initiative to sharpen our focus on Black Rifle's core coffee business and brand. The objective is straightforward. Improve profitability and earnings quality, simplify our operations, and reduce the capital intensity of our business. At the center of this work is a very clear understanding of who we are. Black Rifle is a mission-driven, brand-first premium coffee company, and our goal is to combine the strength of that brand with best-in-class execution. We've organized Project Core around five strategies aligned to the three priorities you see on the slide. First, media and mission remain our engine for building consumer demand. We're bringing greater rigor to measuring how those investments translate into retail sales. Second, we're focused on winning in grocery and mass retail, customer by customer. Third, we're building our presence on the digital shelf, led by third-party marketplaces, while BlackRifleCoffee.com remains the home for our subscribers and most loyal customers. were taking a more integrated approach to managing pricing, trade spending, product costs, and overhead with the goal of building a business where earnings grow faster than revenue. And fifth, we're simplifying operations outside our core business. Those operations need to justify their place in the portfolio. If they can't, we'll look to partner or exit them. Across all five strategies, we're applying a simple test to every initiative. Does it grow demand for the brand, improve margins, free up capital, We've already begun taking meaningful action. That includes the planned sale of our Manchester roasting facility, the restructuring currently underway in our outpost business, and the divestiture of a non-core brand. Matt Amigh will walk through those actions in more detail shortly. But I want to emphasize one important point. Our increased focus on profitability does not diminish our ambition for growth. Project CORE is about making sure we capture more of the value that growth creates. Before I turn the call over to Matt, I want to spend a moment on something that's been central to Black Rifles since the very beginning, our mission. And that commitment was on full display again this quarter. We supported 10 charitable events and initiatives, contributed more than $590,000 to organizations serving veterans, active duty military personnel, first responders, and their families, and delivered more than 4,300 bags of coffee to 45 military units around the world. To commemorate the 25th anniversary of September 11th, we partnered with the Gary Sinise Foundation to deliver 300 appreciation packages to New York City fire stations. We also joined the Major Brent Taylor Foundation to bring 30 Gold Star families together for a weekend of remembrance. and we delivered 1,000 appreciation gifts to service members, caregivers and medical staff at Walter Reed. Behind every one of these efforts are people who have dedicated their lives to serving others and families who have made sacrifices that too often go unseen. We owe them a tremendous debt of gratitude and having the opportunity to give something back is one of the most meaningful parts of what we do at Black Rifle. With that, I'll turn it over to Matt.