MeritValue

BRC Inc.

BRCCdata completeness 100%7 fiscal years on file
The thesis, from the filings

BRC Inc. earns about -92% on invested capital, but has diluted owners by 102650% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$233.1M1$301.3M2$395.6M3$391.5M3$398.3M3
Net income−$13.8M4−$82.9M5−$16.7M6−$2.95M6−$11.9M6
Operating cash flow−$7.69M7−$116.2M8−$25M9$11.3M9−$9.81M9
Capital expenditure$19.3M10$30.4M11$27.2M12$8.67M12$3.66M12
Free cash flow (derived)−$27M7−$146.6M8−$52.2M9$2.64M9−$13.5M9
Total debt$69.4M13$98.3M14$142M15$130.1M16$69.4M16
Cash & equivalents$18.3M17$39M18$12.4M18$6.81M18$4.33M18
Diluted shares92,65951.2M60.9M71.1M95.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$4.8
your share of equity
Profit it earned you last year
−$1.25
Free cash flow it threw off
−$1.41
Debt you’d be carrying
$7.29

10 shares is a claim on $4.8 of net worth that earned you −$1.25 and generated −$1.41 of cash last year, against $7.29 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-92% avg · 5y
FY21 —FY22 -312%FY23 -28%FY24 -4%FY25 -23%

It earned an average -92% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+102650% shares · 5y

Share count is up 102650% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001891101-24-000008 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001891101-25-000006 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001891101-26-000022 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001104659-22-034159 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001891101-25-000006 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001891101-26-000022 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001891101-24-000008 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001891101-25-000006 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001891101-26-000022 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001891101-24-000008 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001891101-25-000006 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001891101-26-000022 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001891101-23-000006 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0001891101-24-000008 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0001891101-25-000006 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0001891101-26-000022 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0001891101-23-000006 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001891101-26-000022 (CashAndCashEquivalentsAtCarryingValue)