BellRing Brands Reports Results for the Third Quarter of Fiscal Year 2026; Updates Fiscal Year 2026 Outlook
Rhea-AI Summary
BellRing Brands (NYSE:BRBR) reported third quarter fiscal 2026 net sales of $570.4 million, up 4.2% year-over-year, driven by 1.7% higher volume and 2.5% favorable price/mix. Operating profit was $65.4 million and net earnings $34.2 million, including a pre-tax $10 million excess shake bottle inventory charge. Adjusted EBITDA was $78.3 million.
Premier Protein net sales rose 0.7%, while Dymatize grew 26.7%. Gross margin fell to 28.6% (adjusted 27.7%) on input cost inflation, tariffs, higher freight and inventory charges. For the first nine months, net sales grew 2.3% to $1.706 billion, but adjusted EBITDA declined to $222.4 million, including $21.3 million inventory-related charges.
BellRing updated fiscal 2026 guidance to net sales of $2.335–$2.375 billion (1–3% growth) and Adjusted EBITDA of $275–$295 million, approximately 12% of net sales, incorporating a full-year $28 million unfavorable inventory-related impact. The company repurchased 4.9 million shares for $133.1 million year-to-date, with $506.9 million remaining under authorization, and welcomed new CEO Michael Axelrod effective July 29, 2026.
Positive
- Q3 2026 net sales $570.4 million, up 4.2% year-over-year
- Dymatize net sales up 26.7% in Q3, with 20.7% price/mix benefit
- Premier Protein RTD shakes volume up 3.1% in Q3 2026
- Q3 operating profit increased to $65.4 million, up $20.6 million
- Share repurchases 4.9 million shares for $133.1 million at $27.41 average price
- Remaining buyback authorization $506.9 million as of June 30, 2026
Negative
- Q3 gross margin declined to 28.6% from 35.4% year-over-year
- Q3 adjusted gross profit down $34.5 million to $157.9 million
- Q3 Adjusted EBITDA fell to $78.3 million from $120.3 million
- Inventory-related charges $21.3 million year-to-date; $28 million full-year impact expected
- Nine-month adjusted EBITDA decreased to $222.4 million from $364.2 million
- Nine-month adjusted diluted EPS declined to $0.81 from $1.66
News Explained
BellRing’s fiscal 2026 profitability outlook includes about 7 million dollars of inventory costs expected in the fourth quarter.
BellRing Brands reported the quarter ended
The outlook separately lists
The release links higher interest expense to higher borrowings under the revolving credit facility; the latest supplied snapshot at
The fiscal fourth-quarter results are the named checkpoint for the approximately
Sources and calculations
- BellRing Brands third-quarter fiscal 2026 results release (2026-08-04)
- BellRing Brands latest supplied quarterly fundamentals (2026-03-31)
- Cash and equivalents vs quarterly operating cash outflow, in days of cash use $32,600,000 / ($11,200,000 / 90) = [object Object]
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 05 | Q2 earnings report | Negative | -38.8% | Inventory charge and lower guidance accompanied margin pressure from inflation, freight and promotions. |
| Feb 03 | Q1 earnings report | Negative | -14.4% | Higher whey costs and promotional frequency pressured the narrowed fiscal-year outlook. |
| Nov 18 | Q4 earnings report | Positive | +2.5% | Fiscal 2025 sales and Adjusted EBITDA increased, with fiscal 2026 guidance provided. |
| May 05 | Q2 earnings report | Positive | -19.0% | Strong sales growth and affirmed guidance were followed by a negative price reaction. |
| Feb 03 | Q1 earnings report | Positive | -4.3% | Raised fiscal-year guidance and strong quarterly results preceded a negative price reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings announcements produced negative reactions in four of five prior events, including two events with positive reported results.
Key Terms
non-gaap financial
adjusted ebitda financial
price/mix financial
mark-to-market adjustments financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
ST. LOUIS, Aug. 04, 2026 (GLOBE NEWSWIRE) -- BellRing Brands, Inc. (NYSE:BRBR) (“BellRing”), a holding company operating in the global proactive wellness category, today reported results for the third fiscal quarter ended June 30, 2026.
Highlights:
- Third quarter net sales of
$570.4 million , up4% year-over-year - Operating profit of
$65.4 million , net earnings of$34.2 million and Adjusted EBITDA* of$78.3 million , each of which included a pre-tax$10 million inventory-related charge - Updated fiscal year 2026 net sales outlook of
$2.335 -$2.375 billion and Adjusted EBITDA* outlook of$275 -$295 million , inclusive of full year pre-tax$28 million unfavorable impact of inventory-related actions
*Adjusted EBITDA is a non-GAAP measure. For additional information regarding non-GAAP measures, see the related explanations presented under “Use of Non-GAAP Measures” later in this release. BellRing provides Adjusted EBITDA guidance only on a non-GAAP basis and does not provide a reconciliation of its forward-looking Adjusted EBITDA non-GAAP guidance measure to the most directly comparable GAAP measure due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including the adjustments described under “Outlook” later in this release.
“I am honored to lead BellRing into its next chapter of growth and value creation in a category with attractive long-term fundamentals,” said Michael Axelrod, President and Chief Executive Officer of BellRing, effective July 29, 2026. “Premier Protein is the clear leader in ready-to-drink shakes backed by a powerful brand and deep consumer loyalty. We have a strong foundation and meaningful opportunity to strengthen execution, reinforce our market leadership and deliver more consistent, profitable growth over time. As I begin meeting with our employees, customers and partners, I am energized by the talent across the organization and confident in our ability to create long-term value for shareholders.”
“Our third quarter revenue exceeded our expectations, driven by strong performance from both Premier Protein and Dymatize,” said Paul Rode, Chief Financial Officer of BellRing. “While profitability was impacted by inventory-related charges and continued input cost pressures, the underlying demand trends for our brands remain healthy. Our updated fiscal 2026 outlook reflects these factors, and we are taking decisive actions through pricing, productivity initiatives and disciplined cost management to improve profitability while continuing to invest behind our brands to support long-term growth.”
Third Quarter Consumption Trends
Dollar consumption of Premier Protein ready-to-drink (“RTD”) shakes increased
Third Quarter Operating Results
Net sales were
Premier Protein net sales increased
Dymatize net sales increased
Gross profit was
*Adjusted gross profit and adjusted gross profit margin are non-GAAP measures that exclude mark-to-market adjustments on commodity hedges. For additional information regarding non-GAAP measures, see the related explanations presented under “Use of Non-GAAP Measures” later in this release.
Selling, general and administrative (“SG&A”) expenses were
Operating profit was
Interest expense, net was
Net earnings were
Adjusted EBITDA* was
*Adjusted net earnings, Adjusted diluted earnings per common share and Adjusted EBITDA are non-GAAP measures. For additional information regarding non-GAAP measures, see the related explanations presented under “Use of Non-GAAP Measures” later in this release.
Nine Month Operating Results
Net sales were
Gross profit was
*Adjusted gross profit and adjusted gross profit margin are non-GAAP measures that exclude mark-to-market adjustments on commodity hedges. For additional information regarding non-GAAP measures, see the related explanations presented under “Use of Non-GAAP Measures” later in this release.
SG&A expenses were
Operating profit was
Interest expense, net was
Net earnings were
Adjusted EBITDA* was
*Adjusted net earnings, Adjusted diluted earnings per common share and Adjusted EBITDA are non-GAAP measures. For additional information regarding non-GAAP measures, see the related explanations presented under “Use of Non-GAAP Measures” later in this release.
Share Repurchases
During the nine months ended June 30, 2026, BellRing repurchased 4.9 million shares for
Outlook
For fiscal year 2026, BellRing management has updated its previously issued guidance, as shown in the table below. Adjusted EBITDA outlook includes
| Metric | Fiscal Year 2026 |
| Net Sales | |
| Net Sales Growth | |
| Adjusted EBITDA | |
| Adjusted EBITDA as a percentage of Net Sales | Approximately |
| Capital Expenditures | |
BellRing provides Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales guidance only on a non-GAAP basis and does not provide a reconciliation of its forward-looking Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales non-GAAP guidance measures to the most directly comparable GAAP measures due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including adjustments that could be made for mark-to-market adjustments on commodity hedges, office relocation costs, executive transition costs and other charges reflected in BellRing’s reconciliation of historical numbers, the amounts of which, based on historical experience, could be significant. For additional information regarding BellRing’s non-GAAP measures, see the related explanations presented under “Use of Non-GAAP Measures.”
Use of Non-GAAP Measures
BellRing uses certain non-GAAP measures in this release to supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures include Adjusted gross profit, Adjusted gross profit margin, Adjusted net earnings, Adjusted diluted earnings per common share, Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales. The reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is provided later in this release under “Explanation and Reconciliation of Non-GAAP Measures.”
Management uses certain of these non-GAAP measures, including Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales, as key metrics in the evaluation of underlying company performance, in making financial, operating and planning decisions and, in part, in the determination of bonuses for its executive officers and employees. Additionally, BellRing is required to comply with certain covenants and limitations that are based on variations of EBITDA in its financing documents. Management believes the use of these non-GAAP measures provides increased transparency and assists investors in understanding the underlying operating performance of BellRing and in the analysis of ongoing operating trends. Non-GAAP measures are not prepared in accordance with GAAP, as they exclude certain items as described later in this release. These non-GAAP measures may not be comparable to similarly titled measures of other companies. For additional information regarding BellRing’s non-GAAP measures, see the related explanations provided under “Explanation and Reconciliation of Non-GAAP Measures” later in this release.
Conference Call to Discuss Earnings Results and Outlook
BellRing will host a conference call on Tuesday, August 4, 2026 at 8:30 a.m. ET to discuss financial results for the third quarter of fiscal year 2026 and fiscal year 2026 outlook and to respond to questions. Michael C. Axelrod, President and Chief Executive Officer, and Paul A. Rode, Chief Financial Officer, will participate in the call.
Interested parties may join the conference call by registering in advance at the following link: BellRing Q3 2026 Earnings Conference Call. Upon registration, participants will receive a dial-in number and a unique passcode to access the conference call. Interested parties are invited to listen to the webcast of the conference call, which can be accessed by visiting the Investor Relations section of BellRing’s website at www.bellring.com. A slide presentation containing supplemental material will also be available at the same location on BellRing’s website. A webcast replay also will be available for a limited period on BellRing’s website in the Investor Relations section.
Prospective Financial Information
Prospective financial information is necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the prospective financial information described above will not materialize or will vary significantly from actual results. For further discussion of some of the factors that may cause actual results to vary materially from the information provided above, see “Forward-Looking Statements” below. Accordingly, the prospective financial information provided above is only an estimate of what BellRing’s management believes is realizable as of the date of this release. It also should be recognized that the reliability of any forecasted financial data diminishes the farther in the future that the data is forecasted. In light of the foregoing, the information should be viewed in context and undue reliance should not be placed upon it.
Forward-Looking Statements
Certain matters discussed in this release and on BellRing’s conference call are forward-looking statements, including BellRing’s net sales, Adjusted EBITDA, Adjusted EBITDA as a percentage of net sales and capital expenditures outlook for fiscal year 2026. These forward-looking statements are sometimes identified from the use of forward-looking words such as “believe,” “should,” “could,” “potential,” “continue,” “expect,” “project,” “estimate,” “predict,” “anticipate,” “aim,” “intend,” “plan,” “forecast,” “target,” “is likely,” “will,” “can,” “may” or “would” or the negative of these terms or similar expressions, and include all statements regarding future performance, earnings projections, events or developments. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. These risks and uncertainties include, but are not limited to, the following:
- BellRing’s dependence on sales from its RTD protein shakes;
- BellRing’s ability to continue to compete in its product categories and its ability to retain its market position and favorable perceptions of its brands;
- disruptions or inefficiencies in BellRing’s supply chain, including as a result of BellRing’s reliance on third-party suppliers or manufacturers for the manufacturing of many of its products, pandemics and other outbreaks of contagious diseases, labor shortages, fires and evacuations related thereto, changes in weather conditions, natural disasters, agricultural diseases and pests and other events beyond BellRing’s control;
- BellRing’s dependence on third-party contract manufacturers for the manufacture of most of its products, including one manufacturer for nearly half of its RTD protein shakes;
- the ability of BellRing’s third-party contract manufacturers to produce an amount of BellRing’s products that enables BellRing to meet customer and consumer demand for the products;
- BellRing’s reliance on a limited number of third-party suppliers to provide certain ingredients and packaging;
- significant volatility in the cost or availability of inputs to BellRing’s business (including freight, raw materials, packaging, energy, labor and other supplies), including as a result of tariffs or inflationary pressures;
- BellRing’s ability to anticipate and respond to changes in consumer and customer preferences and behaviors and introduce new products;
- BellRing’s ability to expand existing market penetration and enter into new markets;
- consolidation in BellRing’s distribution channels;
- the loss of, a significant reduction of purchases by or the bankruptcy of a major customer;
- legal and regulatory factors, such as compliance with existing laws and regulations, as well as new laws and regulations and changes to existing laws and regulations and interpretations thereof, affecting BellRing’s business, including current and future laws and regulations regarding food safety, advertising, labeling, tax matters and environmental matters;
- fluctuations in BellRing’s business due to changes in its promotional activities and seasonality;
- BellRing’s ability to maintain the net selling prices of its products and manage promotional activities with respect to its products;
- BellRing’s ability to obtain additional financing (including both secured and unsecured debt) and its ability to service its outstanding debt (including covenants that restrict the operation of its business);
- the ultimate impact litigation or other regulatory matters may have on BellRing;
- the accuracy of BellRing’s market data and attributes and related information;
- changes in critical accounting estimates;
- uncertain or unfavorable economic conditions that limit customer and consumer demand for BellRing’s products or increase its costs;
- risks related to BellRing’s ongoing relationship with Post Holdings, Inc. (“Post”) following BellRing’s separation from Post and Post’s distribution of BellRing stock to Post’s shareholders (“the Spin-off”), including BellRing’s obligations under various agreements with Post;
- conflicting interests or the appearance of conflicting interests resulting from certain of BellRing’s directors also serving as officers and/or directors of Post;
- risks related to the previously completed Spin-off;
- risks associated with BellRing’s international business;
- BellRing’s ability to protect its intellectual property and other assets and to continue to use third-party intellectual property subject to intellectual property licenses;
- costs, business disruptions and reputational damage associated with technology failures, cybersecurity incidents and corruption of BellRing’s data privacy protections;
- impairment in the carrying value of goodwill or other intangible assets or other long-lived assets;
- BellRing’s ability to identify, complete and integrate or otherwise effectively execute acquisitions or other strategic transactions and effectively manage its growth;
- BellRing’s ability to hire and retain talented personnel, employee absenteeism, labor strikes, work stoppages or unionization efforts;
- BellRing’s ability to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act of 2002;
- significant differences in BellRing’s actual operating results from any guidance BellRing may give regarding its performance; and
- other risks and uncertainties described in BellRing’s filings with the Securities and Exchange Commission.
These forward-looking statements represent BellRing’s judgment as of the date of this release. BellRing disclaims, however, any intent or obligation to update these forward-looking statements.
About BellRing Brands, Inc.
BellRing Brands, Inc. (NYSE: BRBR) is a dynamic and fast-growing consumer brands business with the purpose of Changing Lives with Good Energy. Focused on growing the proactive wellness category, the company’s brands include Premier Protein, the #1 ready-to-drink protein and proactive wellness brand, and Dymatize, the brand behind the #1 hydrolyzed protein powder. A culture-driven, pure-play company, BellRing Brands believes nutrition is at the core of a healthy world and produces products with best-in-class nutritional profiles and exceptional flavors. Its products are distributed in over 90 countries across club, mass, food, eCommerce, specialty, drug and convenience. To learn more visit www.bellring.com.
Contact:
Investor Relations
Jennifer Meyer
jennifer.meyer@bellringbrands.com
(415) 814-9388
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) (in millions, except for per share data) | |||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||
| Net Sales | $ | 570.4 | $ | 547.5 | $ | 1,706.4 | $ | 1,668.4 | |||
| Cost of goods sold | 407.1 | 353.9 | 1,220.6 | 1,085.4 | |||||||
| Gross Profit | 163.3 | 193.6 | 485.8 | 583.0 | |||||||
| Selling, general and administrative expenses | 93.7 | 144.5 | 263.2 | 315.1 | |||||||
| Amortization of intangible assets | 4.2 | 4.3 | 12.7 | 12.7 | |||||||
| Operating Profit | 65.4 | 44.8 | 209.9 | 255.2 | |||||||
| Interest expense, net | 19.9 | 18.4 | 60.0 | 49.3 | |||||||
| Earnings before Income Taxes | 45.5 | 26.4 | 149.9 | 205.9 | |||||||
| Income tax expense | 11.3 | 5.4 | 38.1 | 49.3 | |||||||
| Net Earnings | $ | 34.2 | $ | 21.0 | $ | 111.8 | $ | 156.6 | |||
| Earnings per Common Share: | |||||||||||
| Basic | $ | 0.29 | $ | 0.17 | $ | 0.95 | $ | 1.22 | |||
| Diluted | $ | 0.29 | $ | 0.16 | $ | 0.95 | $ | 1.21 | |||
| Weighted-Average Common Shares Outstanding: | |||||||||||
| Basic | 116.4 | 126.6 | 117.7 | 127.9 | |||||||
| Diluted | 116.6 | 128.0 | 118.0 | 129.7 | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions) | |||||||
| June 30, 2026 | September 30, 2025 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 50.4 | $ | 71.8 | |||
| Restricted cash | 0.6 | 17.3 | |||||
| Receivables, net | 216.3 | 223.4 | |||||
| Inventories | 480.6 | 330.4 | |||||
| Prepaid expenses and other current assets | 31.6 | 22.6 | |||||
| Total Current Assets | 779.5 | 665.5 | |||||
| Property, net | 30.5 | 19.0 | |||||
| Goodwill | 65.9 | 65.9 | |||||
| Intangible assets, net | 112.2 | 125.0 | |||||
| Deferred income taxes | 24.9 | 32.4 | |||||
| Other assets | 39.1 | 33.2 | |||||
| Total Assets | $ | 1,052.1 | $ | 941.0 | |||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||
| Current Liabilities | |||||||
| Accounts payable | $ | 167.7 | $ | 119.5 | |||
| Other current liabilities | 178.1 | 163.3 | |||||
| Total Current Liabilities | 345.8 | 282.8 | |||||
| Long-term debt | 1,135.3 | 1,084.3 | |||||
| Deferred income taxes | 0.4 | 0.4 | |||||
| Other liabilities | 37.8 | 27.4 | |||||
| Total Liabilities | 1,519.3 | 1,394.9 | |||||
| Stockholders’ Deficit | |||||||
| Common stock | 1.4 | 1.4 | |||||
| Additional paid-in capital | 58.6 | 48.7 | |||||
| Retained earnings | 384.4 | 272.6 | |||||
| Accumulated other comprehensive loss | (1.5 | ) | (1.0 | ) | |||
| Treasury stock, at cost | (910.1 | ) | (775.6 | ) | |||
| Total Stockholders’ Deficit | (467.2 | ) | (453.9 | ) | |||
| Total Liabilities and Stockholders’ Deficit | $ | 1,052.1 | $ | 941.0 | |||
| SELECTED CONDENSED CONSOLIDATED CASH FLOWS INFORMATION (Unaudited) (in millions) | |||||||
| Nine Months Ended June 30, | |||||||
| 2026 | 2025 | ||||||
| Cash provided by (used in): | |||||||
| Operating activities | $ | 65.0 | $ | 91.5 | |||
| Investing activities | (8.1 | ) | (3.7 | ) | |||
| Financing activities | (95.5 | ) | (104.4 | ) | |||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.5 | 0.4 | |||||
| Net decrease in cash, cash equivalents and restricted cash | $ | (38.1 | ) | $ | (16.2 | ) | |
EXPLANATION AND RECONCILIATION OF NON-GAAP MEASURES
BellRing uses certain non-GAAP measures in this release to supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures include Adjusted gross profit, Adjusted gross profit margin, Adjusted net earnings, Adjusted diluted earnings per common share, Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales. The reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure is provided in the tables following this section. Non-GAAP measures are not prepared in accordance with GAAP, as they exclude certain items as described below. These non-GAAP measures may not be comparable to similarly titled measures of other companies.
Adjusted gross profit and Adjusted gross profit margin
BellRing believes Adjusted gross profit is useful to investors in evaluating BellRing’s underlying profitability of its revenue-generating activities as it excludes mark-to-market adjustments on commodity hedges (which are primarily non-cash and not consistent across periods; see the explanation below for more information). BellRing believes Adjusted gross profit margin (Adjusted gross profit as a percentage of net sales) is useful to investors in evaluating BellRing’s operating performance because it allows for more meaningful comparison of operating performance across periods.
Adjusted net earnings and Adjusted diluted earnings per common share
BellRing believes Adjusted net earnings and Adjusted diluted earnings per common share are useful to investors in evaluating BellRing’s operating performance because they exclude items that affect the comparability of BellRing’s financial results and could potentially distort an understanding of the trends in business performance.
Adjusted net earnings and Adjusted diluted earnings per common share are adjusted for the following items:
- Provision for legal matters: BellRing has excluded gains and losses recorded to recognize the anticipated or actual resolution of certain litigation as BellRing believes such gains and losses do not reflect expected ongoing future operating income and expenses and do not contribute to a meaningful evaluation of BellRing’s current operating performance or comparisons of BellRing’s operating performance to other periods.
- Mark-to-market adjustments on commodity hedges: BellRing has excluded the impact of mark-to-market adjustments on commodity hedges due to the inherent uncertainty and volatility associated with such amounts based on changes in assumptions with respect to fair value estimates. Additionally, these adjustments are primarily non-cash items and the amount and frequency of such adjustments are not consistent.
- Reorganization costs: BellRing has excluded certain one-time costs associated with internal reorganizations, as the amount and frequency of such adjustments are not consistent. Additionally, BellRing believes that these costs do not reflect expected ongoing future operating expenses and do not contribute to a meaningful evaluation of BellRing’s current operating performance or comparisons of BellRing’s operating performance to other periods.
- Office relocation costs: BellRing has excluded certain duplicative costs associated with new office moves as the amount and frequency of such expenses are not consistent. Additionally, BellRing believes that these costs do not reflect expected ongoing future operating expenses and do not contribute to a meaningful evaluation of BellRing’s current operating performance or comparisons of BellRing’s operating performance to other periods.
- Executive transition costs: BellRing has excluded certain advisory, hiring and other transition related costs associated with its Chief Executive Officer transition, as the amount and frequency of such expenses are not consistent. Additionally, BellRing believes that these costs do not reflect expected ongoing future operating expenses and do not contribute to a meaningful evaluation of BellRing’s current operating performance or comparisons of BellRing’s operating performance to other periods.
- Separation costs: BellRing has excluded certain expenses incurred to transition services to BellRing from Post prior to the expiration of the master services agreement with Post, as the amount and frequency of such expenses are not consistent. Additionally, BellRing believes that these costs do not reflect expected ongoing future operating expenses and do not contribute to a meaningful evaluation of BellRing’s current operating performance or comparisons of BellRing’s operating performance to other periods.
- Foreign currency gain/loss on intercompany loans: BellRing has excluded the impact of foreign currency fluctuations related to intercompany loans denominated in currencies other than the functional currency of the respective legal entity in evaluating BellRing’s performance to allow for more meaningful comparisons of performance to other periods.
- Income tax effect on adjustments: BellRing has included the income tax impact of the non-GAAP adjustments using a rate described in the applicable footnote of the reconciliation tables, as BellRing believes that its GAAP effective income tax rate as reported is not representative of the income tax expense impact of the adjustments.
Adjusted EBITDA and Adjusted EBITDA as a percentage of net sales
BellRing believes that Adjusted EBITDA is useful to investors in evaluating BellRing’s operating performance and liquidity because (i) BellRing believes it is widely used to measure a company’s operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, (ii) it presents a measure of corporate performance exclusive of BellRing’s capital structure and the method by which the assets were acquired and (iii) it is a financial indicator of a company’s ability to service its debt, as BellRing is required to comply with certain covenants and limitations that are based on variations of EBITDA in its financing documents. Management uses Adjusted EBITDA to provide forward-looking guidance and to forecast future results. BellRing believes that Adjusted EBITDA as a percentage of net sales is useful to investors in evaluating BellRing’s operating performance because it allows for more meaningful comparison of operating performance across periods.
Adjusted EBITDA reflects adjustments for income tax expense, interest expense, net and depreciation and amortization, and the following adjustments discussed above: provision for legal matters, mark-to-market adjustments on commodity hedges, reorganization costs, office relocation costs, executive transition costs, separation costs and foreign currency gain/loss on intercompany loans. Additionally, Adjusted EBITDA reflects an adjustment for the following item:
- Stock-based compensation: BellRing’s compensation strategy includes the use of BellRing stock-based compensation to attract and retain executives and employees by aligning their long-term compensation interests with BellRing’s stockholders’ investment interests. BellRing’s director compensation strategy includes an election by any director who earns retainers in which the director may elect to defer compensation granted as a director to BellRing common stock, earning a match on the deferral, both of which are stock-settled upon the director’s retirement from the BellRing board of directors. BellRing has excluded stock-based compensation as stock-based compensation can vary significantly based on reasons such as the timing, size and nature of the awards granted and subjective assumptions which are unrelated to operational decisions and performance in any particular period and does not contribute to meaningful comparisons of BellRing’s operating performance to other periods.
| RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT (Unaudited) (in millions) | |||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Gross Profit | $ | 163.3 | $ | 193.6 | $ | 485.8 | $ | 583.0 | |||||||
| Mark-to-market adjustments on commodity hedges | (5.4 | ) | (1.2 | ) | (31.1 | ) | 10.2 | ||||||||
| Adjusted Gross Profit | $ | 157.9 | $ | 192.4 | $ | 454.7 | $ | 593.2 | |||||||
| Gross Profit as a percentage of Net Sales | 28.6 | % | 35.4 | % | 28.5 | % | 34.9 | % | |||||||
| Adjusted Gross Profit as a percentage of Net Sales | 27.7 | % | 35.1 | % | 26.6 | % | 35.6 | % | |||||||
| RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS (Unaudited) (in millions) | |||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net Earnings | $ | 34.2 | $ | 21.0 | $ | 111.8 | $ | 156.6 | |||||||
| Adjustments: | |||||||||||||||
| Provision for legal matters | — | 68.1 | — | 69.0 | |||||||||||
| Mark-to-market adjustments on commodity hedges | (5.4 | ) | (1.2 | ) | (31.1 | ) | 10.2 | ||||||||
| Reorganization costs | 5.4 | — | 5.9 | — | |||||||||||
| Office relocation costs | 0.4 | — | 1.7 | — | |||||||||||
| Executive transition costs | 0.7 | — | 1.2 | — | |||||||||||
| Separation costs | — | — | 1.0 | — | |||||||||||
| Foreign currency (gain) loss on intercompany loans | — | (1.4 | ) | 0.5 | (1.4 | ) | |||||||||
| Total Net Adjustments | 1.1 | 65.5 | (20.8 | ) | 77.8 | ||||||||||
| Income tax effect on adjustments(1) | (0.3 | ) | (15.7 | ) | 5.0 | (18.7 | ) | ||||||||
| Adjusted Net Earnings | $ | 35.0 | $ | 70.8 | $ | 96.0 | $ | 215.7 | |||||||
| (1)Income tax effect on adjustments was calculated on all items using a rate of | |||||||||||||||
| RECONCILIATION OF DILUTED EARNINGS PER COMMON SHARE TO ADJUSTED DILUTED EARNINGS PER COMMON SHARE (Unaudited) | |||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Diluted Earnings per Common Share | $ | 0.29 | $ | 0.16 | $ | 0.95 | $ | 1.21 | |||||||
| Adjustments: | |||||||||||||||
| Provision for legal matters | — | 0.53 | — | 0.53 | |||||||||||
| Mark-to-market adjustments on commodity hedges | (0.05 | ) | (0.01 | ) | (0.26 | ) | 0.07 | ||||||||
| Reorganization costs | 0.05 | — | 0.05 | — | |||||||||||
| Office relocation costs | — | — | 0.01 | — | |||||||||||
| Executive transition costs | 0.01 | — | 0.01 | — | |||||||||||
| Separation costs | — | — | 0.01 | — | |||||||||||
| Foreign currency (gain) loss on intercompany loans | — | (0.01 | ) | — | (0.01 | ) | |||||||||
| Total Net Adjustments | 0.01 | 0.51 | (0.18 | ) | 0.59 | ||||||||||
| Income tax effect on adjustments(1) | — | (0.12 | ) | 0.04 | (0.14 | ) | |||||||||
| Adjusted Diluted Earnings per Common Share | $ | 0.30 | $ | 0.55 | $ | 0.81 | $ | 1.66 | |||||||
| (1)Income tax effect on adjustments was calculated on all items using a rate of | |||||||||||||||
| RECONCILIATION OF NET EARNINGS TO ADJUSTED EBITDA (Unaudited) (in millions) | |||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net Earnings | $ | 34.2 | $ | 21.0 | $ | 111.8 | $ | 156.6 | |||||||
| Income tax expense | 11.3 | 5.4 | 38.1 | 49.3 | |||||||||||
| Interest expense, net | 19.9 | 18.4 | 60.0 | 49.3 | |||||||||||
| Depreciation and amortization | 5.2 | 4.6 | 15.0 | 13.8 | |||||||||||
| Provision for legal matters | — | 68.1 | — | 69.0 | |||||||||||
| Mark-to-market adjustments on commodity hedges | (5.4 | ) | (1.2 | ) | (31.1 | ) | 10.2 | ||||||||
| Stock-based compensation | 6.6 | 5.4 | 18.3 | 17.4 | |||||||||||
| Reorganization costs | 5.4 | — | 5.9 | — | |||||||||||
| Office relocation costs | 0.4 | — | 1.7 | — | |||||||||||
| Executive transition costs | 0.7 | — | 1.2 | — | |||||||||||
| Separation costs | — | — | 1.0 | — | |||||||||||
| Foreign currency (gain) loss on intercompany loans | — | (1.4 | ) | 0.5 | (1.4 | ) | |||||||||
| Adjusted EBITDA | $ | 78.3 | $ | 120.3 | $ | 222.4 | $ | 364.2 | |||||||
| Net Earnings as a percentage of Net Sales | 6.0 | % | 3.8 | % | 6.6 | % | 9.4 | % | |||||||
| Adjusted EBITDA as a percentage of Net Sales | 13.7 | % | 22.0 | % | 13.0 | % | 21.8 | % | |||||||
