Executive Summary

Q4 2025 net sales rose 16.6% year-over-year to $648.2M, while GAAP diluted EPS fell to $0.48; adjusted diluted EPS was flat at $0.51. Revenue beat S&P Global consensus, but EPS missed, and margins contracted on input cost inflation, heavier promotions, and packaging redesign costs .
FY 2025 net sales grew 16.1% to $2.3166B and adjusted EBITDA increased 9.4% to $481.6M; GAAP results were impacted by a $69.0M legal provision taken earlier in the year (excluded from non-GAAP) .
FY 2026 guidance introduced: net sales $2.41–$2.49B (4–8% growth), adjusted EBITDA $425–$455M (≈18% margin), with Q1 expected down ~5% year-over-year given tough club comps, non-repeating promotions, and a Dymatize sales pull-forward in Q4 .
Long-term algorithm lowered to 7–9% annual net sales growth (from low double digits), while the 18–20% adjusted EBITDA margin target was maintained; management flagged tariff headwinds (~120bps annualized margin impact) and higher advertising spend as near-term pressures .
Near-term stock narrative catalysts: Q1 softness, margin headwinds (whey and tariffs), and increased competitive intensity in club vs. counterbalancing drivers (distribution gains, stepped-up advertising, new innovation and FDM merchandising) .

What Went Well and What Went Wrong

What Went Well

Premier Protein continued to lead with strong consumption and household penetration: Premier RTD consumption +20.4% YoY in Q4 and household penetration reached 22.0%; RTD market share finished at 26.4% .
Dymatize net sales grew 32.9% YoY, aided by strong volumes and an ~$8M international timing shift ahead of FY26 pricing actions .
Management reinforced long-term positioning: “Premier is the #1 ready-to-drink protein shake brand… we are confident in our ability to sustain strong growth” and laid out brand investment, execution, and innovation priorities for 2026 .

What Went Wrong

Margin compression: Q4 gross margin fell to 28.9% (adjusted 29.7%), down sharply YoY on input cost inflation, increased promotional activity, and packaging redesign costs; adjusted gross profit down 3.5% YoY .
EPS and profitability declined: GAAP diluted EPS fell to $0.48 (from $0.55), operating profit declined 8.8% YoY, and adjusted EBITDA margin narrowed to 18.1% .
Near-term demand volatility: Q1 FY26 guided ~5% down YoY due to tough club comps, non-repeating promotions, and the Q4 Dymatize timing benefit; advertising and tariff costs to weigh on margins in 1H FY26 .

Financial Results

Metric	Q4 2024	Q3 2025	Q4 2025
Revenue ($USD Millions)	$555.8	$547.5	$648.2
Diluted EPS (GAAP, $)	$0.55	$0.16	$0.48
Adjusted Diluted EPS ($)	$0.51	$0.55	$0.51
Gross Margin %	36.9%	35.4%	28.9%
Adjusted Gross Margin %	35.9%	35.1%	29.7%
Adjusted EBITDA ($USD Millions)	$116.5	$120.3	$117.4
Adjusted EBITDA Margin %	21.0%	22.0%	18.1%
Operating Profit ($USD Millions)	$112.1	$44.8	$102.2
Net Earnings ($USD Millions)	$71.7	$21.0	$59.6

Segment/Brand detail (Q4 2025 YoY):

Premier Protein net sales +14.9% (volume +18.4%, price/mix −3.5%); RTD shakes net sales +14.1% (volume +18.4%, price/mix −4.3%) .
Dymatize net sales +32.9%; international benefited from an ~$8M timing shift ahead of price actions .

Segment/KPIs

Metric	Q4 2025
Premier Protein RTD Consumption YoY (13-week)	+20.4%
Premier Protein Powder Consumption YoY (13-week)	+16.9%
Dymatize Total Consumption YoY (13-week)	−1.5%
Household Penetration (Premier Protein)	22.0%
RTD Market Share (Premier Protein)	26.4%
Q4 Marketing & Consumer Advertising Expense	$16.2M

Results vs Wall Street Consensus (S&P Global)

Metric (Q4 2025)	Consensus*	Actual
Revenue ($USD Millions)	633.8*	$648.2
Primary EPS ($)	0.5474*	0.51 (Adjusted diluted EPS)
EBITDA ($USD Millions)	120.9*	107.0* (SPGI actual); Company Adjusted EBITDA $117.4

Values retrieved from S&P Global.
Note: SPGI’s EBITDA methodology may differ from company-reported Adjusted EBITDA, which was $117.4M for Q4 2025 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales	FY 2026	—	$2.41–$2.49B	New
Net Sales Growth	FY 2026	—	4%–8%	New
Adjusted EBITDA	FY 2026	—	$425–$455M	New
Adjusted EBITDA Margin	FY 2026	—	≈18%	New
Capital Expenditures	FY 2026	—	$8M	New
Net Sales (YoY)	Q1 2026	—	≈−5%	New
Adjusted EBITDA Margin	Q1 2026	—	≈16%	New
Long-Term Net Sales Growth Algorithm	Ongoing	Low double digits	7%–9%	Lowered
Long-Term Adjusted EBITDA Margin Algorithm	Ongoing	18%–20%	18%–20%	Maintained

Phasing Commentary: Q1 headwinds include tough club comparisons and non-repeating promotions (Premier and Dymatize), plus an ~$8M Dymatize timing shift into Q4; growth expected to accelerate beyond Q1 as merchandising, advertising, and innovation scale .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
Category Growth & GLP-1 tailwind	RTD category up high teens; momentum with 52% household penetration; retailers expanding space; GLP-1 usage supportive	RTD category grew ~15%; household penetration ~54% and long runway; expect high-single-digit category growth in 2026 (volume-led)	Stable to slightly moderating growth
Competitive Intensity (Club)	Short-term club space expansion; increased promos; temporary competitive pressure	Expanded club assortment assumed to continue; Q1 club comps toughest; insurgent brands face thresholds; expect consolidation around top brands	Elevated near term; medium-term consolidation
Pricing/Promotions	Shift from pricing to promotion; Q4 promotions stepped up to drive household penetration	Promotional investments to increase in FDM; Q1 non-repeating promos create 4ppt growth headwind	Increased promo depth/frequency
Tariffs & Input Costs	FY26 tariff risk (NZ/EU dairy inputs), low-single-digit COGS impact; whey inflation rising	Tariffs ~80bps gross margin impact, ~120bps annualized to EBITDA margins; whey inflation significant in 1H FY26; Dymatize pricing in late Q1	Headwinds intensifying in 1H
Distribution & Merchandising	TDP gains, single-serve/coolers, in-aisle displays; category captain roles emerging	TDPs at all-time highs; major mass partnership launching late Q1 with pharmacy/grocery placements and end caps	Expanding footprint
Innovation	Indulgence line incremental; almond milk launch; broader pipeline planned	Coffee house “profi” shakes (30g protein + caffeine) launching mid-Dec; continued flavor/format innovation	Accelerating
Legal/Non-GAAP	Q3 legal settlement provision ($68.1M); FY25 legal provision $69.0M (excluded from non-GAAP)	Non-GAAP excludes commodity hedge MTM, legal provisions; reiterated reconciliations –	Resolved/managed via non-GAAP

Management Commentary

“We delivered strong results in 2025… Premier is the #1 ready-to-drink protein shake brand… In 2026, we are stepping up brand investment, accelerating our innovation pipeline and sharpening multi-channel execution” — Darcy Davenport, CEO .
“We now target long-term annual net sales growth of 7%–9%… maintaining our adjusted EBITDA margin algorithm of 18%–20%… adjusted margins reflect higher brand investment enabled by cost savings and incorporate the impact of tariffs” — Management remarks .
“Specific to Q1, total net sales are expected to be down approximately 5%… non-repeating promotions and sales pull forward are a 4 percentage point headwind… we expect acceleration in consumption and net sales starting in mid-December” — CFO .
“We saw a strong return on investment in fiscal 2025 and decided to further invest and elevate our creative in 2026… campaign kicks off in late December” — CEO .

Q&A Highlights

Club channel dynamics: Expanded competitive set at key club accounts; management assumes expanded assortment persists in FY26; Premier’s temporary fifth pallet transitions out in Q2; growth increasingly driven outside club (FDM, eCommerce) .
Promotional strategy: Slight uptick in promotion, especially in FDM to drive trial; focus on singles and entry-priced multipacks with new broker and internal retail team .
Tariffs and cost inflation: Tariffs ~80bps gross margin headwind and ~120bps EBITDA margin annualized; whey protein costs elevated (pricing actions on Dymatize late Q1); cost savings and easing inflation expected to help in 2H .
Innovation trajectory: Coffee house/profi line launches mid-December; almond milk shakes early results promising; indulgence line shows incrementality and new consumers .
Long-term competitive landscape: Expect consolidation around top-performing brands; insurgent brands face supply chain and threshold hurdles; Premier’s mainstream appeal and execution underpin share durability .

Estimates Context

Q4 2025: Revenue beat consensus ($648.2M vs $633.8M)* and adjusted EPS missed (0.51 vs 0.5474*); EBITDA was below consensus depending on metric definition (SPGI actual 107.0* vs 120.9*, vs company Adjusted EBITDA $117.4) .
FY26 outlook implies near-term estimate pressure in Q1 from ~5% net sales decline and ~16% EBITDA margin, with acceleration expected from Q2 as merchandising, advertising, and innovation scale .
Forward S&P Global consensus (next 3 quarters): Q1 2026 revenue 522.8M, EPS 0.3658*; Q2 2026 revenue 621.9M*, EPS 0.4274*; Q3 2026 revenue 601.8M*, EPS 0.5970*. Values retrieved from S&P Global.

Key Takeaways for Investors

Q4 printed a clean revenue beat but a profitability reset: margins compressed on input costs, heavier promotions, and one-time packaging costs; adjusted EPS flat YoY and below consensus .
Near-term caution: Q1 FY26 guide (~5% sales decline; ~16% margin) and tariff/whey headwinds point to 1H pressure before 2H margin recovery via pricing, cost savings, and easing inflation .
Strategic pivot to brand building: advertising raised to ~4–5% of sales over time; more FDM merchandising and singles to broaden household penetration; expect mix shift toward non-club channels .
Innovation supports incremental occasions and consumers: indulgence line, almond milk, and coffee house shakes expand use cases beyond core meal replacement; distribution gains should amplify impact .
Competitive intensity is elevated, particularly in club; management expects medium-term consolidation favoring scaled leaders; Premier’s mainstream positioning and execution remain advantages .
Long-term growth algorithm lowered to 7–9% (realistic off larger base) with margin framework intact (18–20%); asset-light model and strong cash generation (FY25 CFO $260.6M) underpin ongoing buybacks and optionality .
Trading lens: Expect intra-quarter debate on Q1 softness and margin compression; watch December/January consumption and the mass retail partnership rollout as early indicators of reacceleration .

Appendix: Additional Data Points

FY 2025 results: Net sales $2,316.6M (+16.1%), operating profit $357.4M (−7.8%), net earnings $216.2M (−12.3%), adjusted EBITDA $481.6M (+9.4%) .
Non-GAAP adjustments: FY25 included a $69.0M provision for legal matters excluded from non-GAAP metrics; commodity hedge MTM adjustments and FX on intercompany loans also excluded with tax effects applied .
Share repurchases: Q4 FY25 repurchases of 5.2M shares for $206.9M (avg $40.04); FY25 total 9.0M shares for $472.5M (avg $52.62); $276.5M authorization remaining as of Nov 17, 2025 .
Balance sheet highlights (Sep 30, 2025): Total assets $941.0M; long-term debt $1,084.3M; cash and equivalents $71.8M; net leverage 2.1x per management commentary .

BELLRING BRANDS, INC. (BRBR)·Q4 2025 Earnings Summary