Black Rock Coffee Bar — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue reached $66.8 million for the quarter, representing a 29.7% year-over-year increase compared to $51.5 million in the prior year period.
• Net income grew 116.4% to $2.7 million, reversing a net loss of $16.2 million in the prior year period.
• Income from operations was $2.8 million, a significant improvement from a $6.4 million loss in the prior year, resulting in an operating margin of 4.2%.
• Store-Level Profit increased to $19.3 million from $15.2 million in the prior year, with a Store-Level Profit Margin of 28.9% (down 0.7 percentage points from 29.6% in the prior year).
• Adjusted EBITDA grew 22.1% to $8.5 million from $6.9 million in the prior year.
• Selling, general, and administrative (SG&A) expenses decreased to $10.3 million (15.5% of revenue) from $17.2 million (33.3% of revenue) in the prior year.
• Adjusted SG&A expenses were $8.9 million (13.4% of revenue) compared to $6.9 million (13.3% of revenue) in the prior year.
• Cash and cash equivalents totaled $13.6 million as of September 30, 2026, down from $28.4 million at year-end 2025.
• Total debt was $38.1 million, consisting of $22.5 million in credit facility borrowings and $15.5 million in financing obligations related to reverse build-to-suit lease arrangements.
• Outstanding principal on the term loan facility was $19.5 million.
• The Company had $4.0 million outstanding under its $25 million revolving credit facility, leaving $21.0 million in remaining borrowing capacity.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $29.1 million, compared to a net cash used of $2.9 million in the prior year period.
• Net cash used in investing activities for the nine months ended September 30, 2026, was $53.0 million, compared to $23.2 million in the prior year period.

Guidance and Future Outlook:

• The Company updated its full-year 2026 guidance to include 40 new store openings, up from the previous plan.
• Full-year 2026 total revenue guidance is set at $255 million to $257 million.
• Full-year 2026 Same Store Sales Growth is guided to be in the mid-single digits.
• Full-year 2026 Adjusted EBITDA guidance is set at $34 million to $35 million.
• Full-year 2026 Capital Expenditures are guided to be in the range of $47 million to $48 million, including anticipated tenant improvement allowances.
• The Company reaffirmed its full-year revenue and adjusted EBITDA guidance based on confidence in its plan for the remainder of the year.
• Management highlighted early success in menu innovation, expanded operating hours, and enhanced loyalty capabilities as drivers for future growth.

Business Segments and Product Lines:

• The Company opened 11 new stores during the third quarter, bringing the total store count to 211 as of September 30, 2026, up from 169 in the prior year.
• Same Store Sales Growth was 5.8% year-over-year for the quarter, marking the 15th consecutive quarter of positive growth.
• On a two-year basis, Same Store Sales Growth was 16.6%.
• Total store operating weeks increased to 2,687 in the quarter compared to 2,108 in the prior year period.
• Average Unit Volume was $1,296 for the quarter, up $36 from $1,260 in the prior year period.
• The Company operates as a fully company-owned coffee retailer with locations in seven states from the Pacific Northwest to Texas.

Market and Competitive Landscape:

• Management noted positive transaction growth reinforcing confidence in the resilience of consumer demand.
• The Company described itself as the largest fully company-owned coffee retailer in the United States.
• Management cited a significant whitespace opportunity and a strong development pipeline as factors supporting long-term growth.

Risks and Challenges:

• Risks include the inability to successfully identify and secure appropriate sites and timely develop and expand operations.
• Potential risks involve the inability to protect the brand and reputation, secure intellectual property rights, and dependence on a small number of suppliers and two roasting facilities.
• The Company faces risks related to third-party IT systems, security breaches, and vulnerability to adverse weather conditions.
• Challenges include dependence on long-term non-cancelable leases, the effects of seasonal trends, and vulnerability to global financial market conditions including inflation and the ongoing conflict in the Middle East.
• The Company notes risks regarding the ability to attract, retain, and motivate skilled personnel and the increased expenses associated with being a public company.

Management Commentary and Tone:

• Mark Davis, Chief Executive Officer, described the quarter as "exceptional," citing revenue growth of approximately 30% and adjusted EBITDA growth of 22%.
• Management expressed confidence in the brand strength, customer engagement strategy, and operating model.
• The tone was optimistic regarding the resilience of consumer demand and the momentum being built across the business.
• Management believes the Company is well-positioned to deliver sustainable long-term growth due to its development pipeline, growing leadership bench, and whitespace opportunity.

Other Key Points:

• The Company is ahead of its development plan, prompting the increase in the full-year new store opening target to 40.
• The press release includes detailed reconciliations of non-GAAP measures (Store-Level Profit, Adjusted EBITDA, Adjusted SG&A) to GAAP financial measures.
• A conference call and webcast were scheduled for November 10, 2026, to discuss the results.
• The Company has a Tax Receivable Agreement liability of $64.6 million as of September 30, 2026, up from $38.9 million at December 31, 2025.
• Deferred income tax assets increased to $83.7 million as of September 30, 2026, from $52.8 million at December 31, 2025.