Bolstered by a recent $35 million capital raise, Black Rifle Coffee Company posted double-digit net revenue growth for its wholesale business in its Q2 2025 earnings report on Tuesday morning, but rising coffee prices, higher marketing expenses and declining ecomm sales proved tumultuous for the veteran-owned company’s profits.
Total net revenue for the quarter rose 6.5% to $94.8 million, fueled by 14.1% wholesale revenue growth to $61.3 million. Packaged coffee distribution was up 14.9 percentage points year-over-year, achieving a 46.6% ACV, while the brand’s RTD coffee line increased ACV by 6.1 percentage points to 53.5%.
Black Rifle Energy, which launched earlier this year with distribution by Keurig Dr Pepper (KDP), grew at a slower rate, up 1.7 points to 22.5% ACV.
“We continue to execute against our strategic plan, with second-quarter results highlighting strong distribution gains and expanded shelf presence across key categories,” said CEO Chris Mondzelewski in a press release. “Growth in packaged coffee and Ready-to-Drink reflects the strength of our brand and commercial strategy, and we are encouraged by the early momentum of Black Rifle Energy as it begins to scale nationally.”
However, gross profit remains a challenge, falling 13.7% to $32.2 million, while gross margin fell to 33.9%, compared to 41.9% last year. The net loss in the quarter was $14.5 million, expanding significantly from a loss of just $1.4 million in the same period 2024.
DTC revenue was also down 7.8% to $27.6 million in Q2, compared with $30 million last year, with the company citing a “reduction in the accrual for loyalty rewards” after a change in its expiration policy and reduced sign-ups following a decision to cut back on marketing the program.
Incoming CFO Matt Amigh said that the company sees “a clear opportunity to scale operations and accelerate growth across channels,” despite headwinds from high coffee price inflation.
“While near-term profitability was affected by coffee inflation, we have begun to mitigate these pressures even as we continue investing in marketing, retail activation, and infrastructure to support long-term growth,” Amigh said in a statement. “With the recent capital raise, we are well positioned to fund strategic initiatives including the expansion of Black Rifle Energy through 2026.”
The new financing also helped the company to reduce net debt and it is expected to also lower annual interest expenses, Amigh added.
Speaking to investors and analysts during the Q&A portion of today’s earnings call, Mondzelewski sought to quell concerns about rising competition from similarly positioned brands, namely first responder-founded Fire Department Coffee, noting that the Black Rifle doesn’t “look at it as direct competition.”
“I think for us, we’re going to continue to play our game across every segment,” he said. “In grocery, and in Walmart, we continue to be able to demonstrate growth at the register, which is what really counts; where that consumer takes it away. So while the competition will always be fierce in these categories, we continue to believe that our distinctive brand positioning is protecting us.”
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