Executive Summary

Q3 2025 delivered strong top-line growth with total revenue of $51.5M (+24.2% YoY) and same store sales growth of 10.8%, while GAAP profitability was pressured by IPO-related and restructuring items; Adjusted EBITDA rose to $6.9M (+35% YoY) and margin expanded 100 bps to 13.4% .
Guidance reaffirmed for FY 2025: revenue $199–$200M, high-single-digit same store sales, Adjusted EBITDA $26.5–$27.0M, capex $30–$32M; October comps tracked +8.7% despite a 13.6% prior-year lap, supporting momentum into Q4 .
Cost control was evident: COGS and labor rates improved YoY (27.8% and 21.0% of revenue, respectively), with occupancy neutral; adjusted SG&A at 13.3% of revenue reflects disciplined overhead growth vs significant GAAP SG&A tied to IPO and restructuring .
Balance sheet strengthened post-IPO (cash $32.6M, term debt $18.9M, net cash $13.7M, undrawn $25M revolver), enabling continued store growth (11 openings in Q3; total stores 169) .
Near-term stock reaction catalysts: sustained double-digit comp growth, evidence of food mix/loyalty-driven engagement, and initial public guidance with expanding Adjusted EBITDA margin; key watch items include execution on 30 FY openings and normalization of non-GAAP adjustments in 2026 .

What Went Well and What Went Wrong

What Went Well

Strong revenue and comps: Total revenue $51.5M (+24.2% YoY) and same store sales +10.8%, with transactions +6.1% and price +3.9% supporting comp quality .
Margin expansion on operations: Store-level profit $15.2M (+30.7% YoY) and margin 29.6% (+150 bps); Adjusted EBITDA $6.9M (+35% YoY) and 13.4% margin (+100 bps) .
Strategic progress: 11 new stores opened; food mix rose to 12.6% (+210 bps YoY) aided by egg bites and seasonal LTOs; loyalty penetration reached 64% of transactions, with top quartile visiting ~10x/month (management) .
- Quote: “Same store sales finished ahead of expectations at 10.8%... Digital sales continued to grow sequentially... following our native OLO launch last year.” .

What Went Wrong

GAAP profitability headwinds: Income from operations swung to a loss of $6.4M (vs $3.1M profit LY) and net loss widened to $16.2M, driven by transaction costs ($9.1M), capital restructuring ($6.9M), and other items tied to IPO and debt extinguishment .
GAAP SG&A surge: SG&A rose to $17.2M (33.3% of revenue) vs $4.9M last year, with adjusted SG&A at $6.9M (13.3%) highlighting non-recurring charges; investors will scrutinize normalization cadence .
Timing challenges on openings: Permitting/pre-construction delays pushed many Q3 openings later in the quarter, impacting new unit productivity optics near term (management commentary) .

Financial Results

Metric	Q3 2024	Q3 2025	YoY Change	Notes
Total Revenue ($USD Millions)	$41.455	$51.468	+24.2%	Press release headline confirms growth
Income (Loss) from Operations ($USD Millions)	$3.138	$(6.407)	-	Impacted by IPO/restructuring costs
Net Loss ($USD Millions)	$(0.722)	$(16.175)	-	Includes capital restructuring & transaction costs
Diluted EPS ($USD)	N/A	$(0.05)	-	Applicable only 9/12–9/30 post-IPO
Adjusted EBITDA ($USD Millions)	$5.122	$6.922	+35.1%	Non-GAAP reconciliation provided
Adjusted EBITDA Margin (%)	12.4%	13.4%	+100 bps	From KPI table
Store-Level Profit ($USD Millions)	$11.653	$15.226	+30.7%	KPI table and CFO remarks
Store-Level Profit Margin (%)	28.1%	29.6%	+150 bps	CFO remarks
Same Store Sales Growth (%)	8.6%	10.8%	+220 bps	KPI and press release
Same Store Transactions Growth (%)	—	6.1%	—	From call
Price Contribution to Comps (%)	—	~3.9%	—	From Q&A
Check Growth (%)	—	~0.8%	—	From Q&A

Estimates comparison: S&P Global consensus estimates were unavailable for BRCB at this time due to missing mapping; therefore, no vs-estimate comparison can be provided.

Segment Breakdown

Reporting appears focused on company-operated store performance; no distinct operating segments disclosed. Store revenue was $51.410M in Q3 2025 vs $41.399M in Q3 2024 .

KPIs

KPI	Q3 2024	Q3 2025	YoY Change
Total Stores (End of Period)	144	169	+25
Net New Store Openings (Quarter)	7	11	+4
Average Unit Volume ($USD Thousands)	$1,168	$1,260	+$92
Food Mix (%)	10.5%	12.6%	+210 bps
Adjusted SG&A ($USD Millions)	$5.441	$6.859	+$1.418
Cash & Cash Equivalents ($USD Millions)	—	$32.646	—
Total Term Debt ($USD Millions)	—	$18.865	—
Net Cash ($USD Millions)	—	$13.7	—

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
New Store Openings (units)	FY 2025	N/A	30	Initial public guidance
Total Revenue ($USD Millions)	FY 2025	N/A	$199–$200	Initial public guidance
Same Store Sales Growth (%)	FY 2025	N/A	High-single digits	Initial public guidance
Consolidated Adjusted EBITDA ($USD Millions)	FY 2025	N/A	$26.5–$27.0	Initial public guidance
Capital Expenditures ($USD Millions)	FY 2025	N/A	$30–$32	Initial public guidance

Note: No prior public guidance available; company completed IPO in September 2025 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 & Q-1)	Current Period (Q3 2025)	Trend
Loyalty & Digital	Not publicly disclosed pre-IPO	Loyalty penetration ~64% of transactions; top 25% visit ~10x/month; digital sales growing sequentially post native OLO launch	Improving engagement and frequency
Product Innovation & Food Mix	Not publicly disclosed pre-IPO	Egg bites launched July; food mix to 12.6% (+210 bps YoY); strong seasonal LTOs (Pumpkin Blondie, Butterscotch Breve)	Positive mix shift toward savory/coffee-forward
New Unit Growth & Pipeline	Not publicly disclosed pre-IPO	11 openings; disciplined, lobby-inclusive format; modular prototype pilots; permitting delays noted	Robust pipeline with timing variability
Tariffs/Macro	Not publicly disclosed pre-IPO	Limited tariff exposure; managed via procurement/pricing; cost basket stable into Q4	Managed risk; stable near-term costs
Cost Structure & Margins	Not publicly disclosed pre-IPO	COGS and labor leverage; occupancy neutral; adjusted SG&A disciplined vs GAAP elevated by IPO/restructuring	Operational leverage vs transitory non-GAAP adds
Regional Trends	Not publicly disclosed pre-IPO	Southern California first lobby/DT performing well; Texas strong food/AUV; positive comps across all markets	Broad-based strength

Management Commentary

“Black Rock delivered excellent third quarter results... revenue and Adjusted EBITDA growth of 24% and 35%... Same store sales finished ahead of expectations at 10.8%... Digital sales continued to grow sequentially...” — Mark Davis, CEO .
“Store-level profit was $15.2 million... margin 29.6%... Adjusted EBITDA $6.9 million... Beverage, food, and packaging costs 27.8%... labor 21%... occupancy 7.8%...” — Rodd Booth, CFO .
“Import tariffs... we believe our tariff exposure is limited... maintained healthy margins year over year.” — Rodd Booth .
“We opened 11 new locations... first drive-thru with a lobby in Southern California... early traction reinforces our confidence.” — Mark Davis .
“October same store sales growth of 8.7%, lapping 13.6%... positions us well to sustain strong momentum.” — Rodd Booth .

Q&A Highlights

New unit productivity and timing: Several Q3 openings occurred later than anticipated due to permitting/pre-construction delays; confidence in delivering 30 FY openings and 2026 pipeline remains intact .
Pricing/check dynamics: Q3 comp comprised ~6.1% transactions, ~3.9% price, ~0.8% check; pricing used to offset inflation while maintaining margin neutrality .
Loyalty offers cadence: Minimal 2025 marketing given strong comps; segmentation and increased offer cadence planned for 2026 to drive frequency and personalization .
Food mix/regional optimization: Food mix rose to 12.6% (+210 bps YoY) with focus on savory; Texas highlighted for strong food growth and AUV benefits .
Cost outlook: Commodity and labor costs in Q4 tracking similar to Q3; continued efficiency initiatives to support margin stability .

Estimates Context

Wall Street consensus via S&P Global was unavailable for BRCB (missing mapping), so we cannot provide an actual vs estimate comparison. Given strong comps and margin leverage, sell-side models may need to reflect higher Q4 run-rate assumptions for SSS, store-level margins, and Adjusted EBITDA, while normalizing non-recurring IPO/restructuring charges over the next 12–24 months .

Key Takeaways for Investors

Momentum into Q4: October comps +8.7% despite tough lap; watch for sustained high-single-digit SSS and continued digital/loyalty traction .
Margin quality: Store-level margin expansion (+150 bps) and Adjusted EBITDA margin (+100 bps) show operational leverage; monitor adjusted SG&A trajectory vs GAAP normalization post-IPO .
Expansion discipline: 11 Q3 openings, lobby-forward format, and modular prototype should support AUV/cash-on-cash returns; timing risks (permits) are the main near-term execution variable .
Mix tailwinds: Food mix at 12.6% and coffee-forward LTOs bolster ticket and all-day engagement; regional optimization (e.g., Texas) a lever for AUVs .
Balance sheet optionality: $32.6M cash, $18.9M term debt, $25M undrawn revolver; net cash of $13.7M supports accelerated unit growth and capex plan .
Tariff/macros manageable: Limited tariff exposure and stable cost basket into Q4 underpin margin resilience; pricing used selectively to offset inflation .
Catalysts: Execution on 30 FY openings, ongoing comps strength, and visibility on 2026 normalization of non-GAAP adjustments; initial public guidance provides anchors for investor expectations .

Black Rock Coffee Bar, Inc. (BRCB)·Q3 2025 Earnings Summary