BRC falls 22.9% after quarterly results

What happened

BRC (BRCC) fell 22.9% on November 3, 2026, because quarterly results missed estimates and showed weaker margins and heavy share dilution. The stock opened 23.0% below the previous close and ended the session at $9.77 on trading volume 2.8 times its 20-day average. The company reported third-quarter fiscal 2026 revenue of $108 million, up 7.3% year over year, driven by growth in wholesale and direct-to-consumer channels that offset ongoing weakness in ready-to-drink coffee, according to Business Wire and Seeking Alpha.

How big was the move

The one-day decline was 4.8 times a typical daily move for this stock. It was 21.2 percentage points worse than the Consumer Defensive sector median, which fell 1.7% on the day, while the S&P 500 rose 0.4%. Over the last five sessions the stock fell 15.8%, compared with the S&P 500's five-session change of fell 2.0%.

The stock has a beta of 1.51, indicating it tends to move more than the market. The typical two-day reaction after recent reports was fell 2.8%, underscoring that this move was substantially larger than the company's usual post-earnings swings.

The technical picture

The stock was trading 9.9% below its 20-day moving average and 4.5% below its 200-day moving average, while it was 1.0% above its 50-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. BRC sat 47.5% below its 52-week high, with a 14-day relative strength index of 42, inside a neutral range.

Shorter-term performance showed a rise of 3.4% over one month and a fall of 3.3% over three months. Over one year the stock fell 23.1% and was 33.7 percentage points behind the S&P 500. Volatility was 76% annualized over 60 days, higher than 55% of its own readings over five years.

Fundamentals and valuation

For the four quarters through September 30, 2026, BRC reported revenue of $437.0 million, which grew 11.7% from a year earlier and accelerated from the prior quarter's revenue growth of 10.5%. Diluted earnings per share for that period were $-0.57. Gross margin was 34.1%, down from 36.3% a year earlier, and operating margin narrowed to 2.8% from 5.0% a year earlier.

Free-cash-flow margin was 0.1% and return on invested capital was 3.0%. The company’s share count increased by 51.4% over one year. On valuation measures, the stock trades at 52.8 times expected earnings on a price to forward earnings basis and shows a free-cash-flow yield of 0.2%. Market value was $400.9 million.

Earnings and analyst expectations

BRC’s last report, issued November 2, 2026, showed earnings per share of $-0.28 against $0.06 expected, 609.1% below estimates. The average surprise over the last four reports was 100.0% below estimates, and the stock has recorded zero consecutive quarters beating estimates.

Analysts’ consensus rating is Hold among 11 analysts, with 36% of ratings at Buy or Strong Buy. The consensus price target is $1.75, which is 82.1% below the closing price. Next report is scheduled for March 8, 2027.

The third-quarter revenue beat neither investor hopes nor analysts' estimates and the sharp rise in share count will weigh on per-share metrics. Gross and operating margins narrowed year over year, while free-cash-flow margin remained near zero, highlighting limited cash generation relative to the company’s market value.

What to watch

• Next report scheduled for March 8, 2027
• One-year share count increased by 51.4% (reported through September 30, 2026)
• Revenue for the latest quarter was $108 million, up 7.3% year over year (reported November 2, 2026)
• Consensus price target $1.75, 82.1% below the closing price
• PromtFinance Growth score 94 and Value score 12 within the sector