Black Rifle Coffee has announced a $35 million stock sale to strengthen its finances and tackle debt. The veteran-founded company plans to issue 28 million shares of Class A Common Stock in July 2025, pricing the offering publicly on July 17. Proceeds will help reduce its debt load and enhance financial flexibility, allowing it to fund operations without relying heavily on borrowing. This financial maneuver follows a challenging Q1 2025 revenue decline of 8.6%, with the company reporting a net loss of $7.8 million compared to a profit in the previous year.
The move comes as the company navigates mixed financial results. In early 2025, revenue from its physical stores—called Outposts—rose 2.1% to $5.5 million compared to late 2024. However, total revenue growth faced pressure due to costs tied to new product launches like Black Rifle Energy. These launches temporarily squeezed profit margins, contributing to a decline in quarterly earnings.
Black Rifle’s Outpost revenue climbed 2.1% to $5.5 million, but new product launch costs squeezed margins, denting quarterly earnings.
Executives expect revenue growth to slow in 2025 but project stronger numbers in later years as new products gain traction. Black Rifle aims to use the $35 million to stabilize its balance sheet and support expansion plans. The funds could help grow its retail and online sales channels while funding innovation in beverages and energy drinks.
The company has prioritized equity financing over taking on more debt, signaling a cautious approach to managing financial risks. Black Rifle Coffee has reaffirmed its 2024 revenue guidance of $390 million–$395 million alongside a gross margin target of 40-42%. Despite short-term challenges, the firm reaffirmed its 2024 financial targets and outlined long-term growth goals. It forecasts a 10–15% annual revenue increase through 2027, with adjusted profits expected to climb even faster.
Gross margins—currently below 40% due to launch costs—are projected to rebound above that level in future years. Investments in new product categories and “dayparts” like afternoon snack occasions are seen as key drivers of growth.
Founded by veterans, Black Rifle Coffee markets itself as a premium, mission-driven brand catering to military personnel, emergency responders, and patriotic consumers. Its strategy leans on expanding distribution and building loyalty within these communities.
While recent earnings dipped, the stock sale reflects confidence in its ability to balance near-term hurdles with longer-term ambitions, betting that debt reduction and product diversity will steady its financial footing.
