Boston Beer Reports First Quarter Financial Results
Rhea-AI Summary
Boston Beer (NYSE: SAM) reported Q1 2026 results on April 30, 2026: net revenue $433.9M (-4.4%), shipments ~1.6M barrels (-6.9%), depletions -4%. GAAP diluted loss per share was $13.88 including a $216.0M pre-tax litigation charge ($15.52 per share). Cash was $164.1M with no debt; $31.2M of share repurchases year-to-date. Full-year guidance narrowed and now shows GAAP EPS loss range of ($7.02) to ($5.02), with Non-GAAP EPS of $8.50 to $10.50.
Positive
- Cash balance of $164.1 million and no debt at quarter end
- Year-to-date share repurchases of $31.2 million, $197 million remaining buyback capacity
- Non-GAAP EPS guidance of $8.50 to $10.50 for full-year 2026
Negative
- Recorded $216.0 million pre-tax litigation expense (including $175.5M damages) in Q1 2026
- GAAP EPS guidance narrowed to a loss range of ($7.02) to ($5.02) for full-year 2026
- Shipment volume down ~6.9% (~1.6 million barrels) and depletions down ~4% in Q1 2026
- General and administrative expenses up $4.4 million (9.1%), driven by higher legal and consulting costs
Key Figures
Market Reality Check
Peers on Argus
SAM slipped 0.72% with mixed peers: TAP up 0.38%, while ABEV, BUD, STZ and FMX fell between 0.87% and 2.02%, indicating a generally weak brewer tape alongside company-specific earnings news.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 24 | Q4 2025 earnings | Positive | -4.3% | Revenue declined but margins, cash, and buybacks remained strong for 2025. |
| Oct 23 | Q3 2025 earnings | Positive | +5.5% | Higher gross margin, solid cash and raised 2025 guidance despite revenue drop. |
| Jul 24 | Q2 2025 earnings | Positive | +6.5% | Net revenue, income, EPS and gross margin all improved versus prior year. |
| Apr 24 | Q1 2025 earnings | Positive | +2.3% | Strong revenue growth, shipment gains and sharply higher EPS with margin lift. |
| Feb 25 | Q4 2024 earnings | Neutral | +3.0% | Mixed quarter with GAAP loss but full-year growth, margin gains and buybacks. |
Recent earnings have often highlighted margin expansion and strong cash while share reactions skew modestly positive, with one notable selloff on otherwise solid fundamentals.
Over the last five earnings reports, Boston Beer repeatedly emphasized improving gross margins, healthy cash balances, and active share repurchases. Results have ranged from mixed to strong, with several quarters showing higher EPS and widened margins despite soft depletions. Price reactions were mostly positive, except for one decline after Q4 2025 results. Today’s Q1 2026 release adds a significant litigation-driven GAAP loss and a reset in GAAP EPS guidance while maintaining non-GAAP profitability and margin strength.
Historical Comparison
Past five earnings events saw an average move of 2.6%, with investors often rewarding margin expansion and cash strength despite volume headwinds.
Earnings updates from 2024–2025 show steady gross margin expansion, strong cash generation and recurring share repurchases leading into the litigation-impacted Q1 2026 results.
Market Pulse Summary
The stock is down -5.2% following this news. A negative reaction despite underlying non-GAAP profitability fits a pattern where large one-time charges and cautious volume outlooks weighed on sentiment. Q1 2026 included a $216.0M litigation expense and GAAP EPS guidance of ($7.02) to ($5.02), overshadowing a 49.3% gross margin and $1.64 non-GAAP EPS. Past earnings often saw modest moves, so a sharp decline would have reflected elevated concern about legal and cost pressures.
Key Terms
gaap financial
non-gaap financial
basis points financial
shortfall fees financial
AI-generated analysis. Not financial advice.
BOSTON, April 30, 2026 (GLOBE NEWSWIRE) -- The Boston Beer Company, Inc. (NYSE: SAM), today reported financial results for the first quarter ended March 28, 2026. Key results were:
First Quarter 2026 Summary:
- Depletions decreased
4% and shipments decreased6.9% - Net revenue of
$433.9 million decreased4.4% - Gross margin of
49.3% up 100 basis points year over year - GAAP diluted loss per share of
$13.88 , which includes non-recurring litigation expenses of$15.52 per share - Non-GAAP diluted earnings per share of
$1.64
Capital Structure
- Ended the first quarter with
$164.1 million in cash and no debt - Repurchased
$31 million in shares from December 29, 2025 to April 24, 2026
“We were encouraged by early signs of improvement in the total beer category in the first quarter,” said Chairman, Founder and CEO Jim Koch. “While our depletions improved and it remains early in the year, our portfolio has not yet fully matched the improvement in category trends. The operating environment is dynamic, and we are executing with focus against our summer plans, including meaningful advertising support. Our strong balance sheet and highly cash generative business position us to invest in our brands and return cash to shareholders, with the previously announced potential legal payment well within our capacity.”
“Today we are modestly narrowing our guidance range to reflect our latest volume outlook and a more challenging cost environment,” said CFO Diego Reynoso. “We continue to deliver strong gross margin performance and expect our savings agenda to help mitigate tariff and commodity headwinds as we move through the year.”
Details of the results were as follows:
First Quarter 2026 (13 weeks ended March 28, 2026) Summary of Results
Depletions for the first quarter decreased
Consistent with the Company’s plans, shipments declined at a higher rate than depletions. Shipment volume for the quarter was approximately 1.6 million barrels, a
The Company believes distributor inventory as of March 28, 2026 was at an appropriate level for each of its brands and averaged approximately four and a half weeks on hand compared to five weeks at the end of the first quarter of 2025.
Revenue for the quarter decreased
Gross margin of
The first quarter gross margin of
Advertising, promotional and selling expenses for the first quarter of 2026 increased
General and administrative expenses increased by
In the first quarter, the Company recorded a previously announced non-recurring pre-tax litigation expense of
The Company’s effective tax rate for the first quarter was a benefit of
The Company expects that its March 28, 2026 cash balance of
During the 13-week period ended March 28, 2026 and the period from March 30, 2026 through April 24, 2026, the Company repurchased shares of its Class A Common Stock in the amounts of
Depletions Estimate
Year-to-date depletions through the 17-week period ended April 24, 2026 are estimated by the Company to have decreased approximately
Full-Year 2026 Projections
The Company has updated its financial guidance for the full year 2026. The litigation related expenses of
The Company’s actual 2026 results could vary significantly from the current projection and are highly sensitive to changes in volume projections, supply chain performance, inflationary and commodity impacts and tariff policy. Tariff cost projections below are consistent with tariffs currently being charged by the Company’s suppliers and that the Company currently expects to continue for the remainder of 2026.
| Full Year 2026 | Current Guidance | Previous Guidance |
| Depletions and Shipments Percentage Change | Down low-single digits to mid-single digits | Flat to down mid-single digits |
| Price Increases | ||
| Gross Margin (including Tariffs) | ||
| Tariff Costs($ million) | ||
| Advertising, Promotion, and Selling ExpenseYear Over Year Change($ million) | ||
| GAAP Tax Rate (Benefit)/ Provision | ( | |
| Non GAAP Tax Rate Provision | - | |
| GAAP EPS (Income/ (Loss)) | ( | |
| Non GAAP EPS | - | |
| Capital Spending($ million) |
Underlying the Company's current 2026 projections are the following full-year estimates and targets:
- The Company is monitoring recent increases in commodity costs driven by macroeconomic factors, particularly energy, which impacts freight expense as well as aluminum expense given the energy intensive nature of aluminum production. The Company’s current estimates of these cost increases are reflected in its guidance. The Company is continuing to execute savings initiatives to help offset these pressures, along with maintaining flexibility to reduce planned incremental advertising investment to the lower end of its guidance range as needed.
- The Company’s business is seasonal, with the first quarter and fourth quarter being lower volume quarters and the fourth quarter typically the lowest absolute gross margin rate of the year.
- The Company continues to expect first half shipments to decline toward the lower end of its full year volume guidance with better shipment performance later in the year. This is due to higher shipment comparisons in the first half of the year as the company shipped ahead of depletions in 2025 to support innovation and build distributor inventories, as well as 2026 innovation launches which are second half weighted. Additionally, improvements in the Company’s supply chain responsiveness that enable modestly lower distributor inventory levels are expected to have a more meaningful impact on the first half and begin to be lapped throughout the second half.
- During full year 2026, the Company estimates shortfall fees and non-cash expense of third-party production pre-payments in total will negatively impact gross margins by 40 to 60 basis points.
- The Company expects year over year gross margin rate improvement to be the most meaningful in the fourth quarter as shortfall fees are expected to be lower in 2026 versus 2025 and the Company typically expenses the majority of its shortfall fees in the fourth quarter.
- The advertising, selling and promotional expense projection does not include any changes in freight costs for the shipment of products to the Company’s distributors. Incremental advertising investment is expected to be weighted to the second and third quarters to support the key summer selling season.
Use of Non-GAAP Measures
Non-GAAP EPS and Non-GAAP Tax Rate are not defined terms under U.S. generally accepted accounting principles (“GAAP”). Non-GAAP EPS, or Non-GAAP earnings per diluted share, excludes from projected GAAP EPS the impact of the non-recurring litigation expense of
Forward-Looking Statements
Statements made in this press release that state the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, including, but not limited to, the Company’s report on Form 10-K for the year ended December 27, 2025 and subsequent reports filed by the Company with the SEC on Forms 10-Q and 8-K. Copies of these documents are available from the SEC and may be found on the Company’s website, www.bostonbeer.com. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements.
About the Company
The Boston Beer Company, Inc. (NYSE: SAM) began in 1984 brewing Samuel Adams beer and has since grown to become one of the largest and most respected craft brewers in the United States. We consistently offer the highest-quality products to our drinkers, and we apply what we’ve learned from making great-tasting craft beer to making great-tasting and innovative “beyond beer” products. Boston Beer Company has pioneered not only craft beer but also hard cider, hard seltzer and hard tea. Our core brands include household names like Angry Orchard Hard Cider, Dogfish Head, Sun Cruiser, Truly Hard Seltzer, Twisted Tea Hard Iced Tea, and Samuel Adams. We have taprooms and hospitality locations in Delaware, Massachusetts, New York and Ohio. For more information, please visit our website at www.bostonbeer.com, which includes links to our respective brand websites.
Thursday, April 30, 2026
| THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||
| (in thousands, except per share data) | ||||||||
| (unaudited) | ||||||||
| Thirteen weeks ended | ||||||||
| March 28, 2026 | March 29, 2025 | |||||||
| Revenue | $ | 461,576 | $ | 481,357 | ||||
| Less excise taxes | 27,646 | 27,490 | ||||||
| Net revenue | 433,930 | 453,867 | ||||||
| Cost of goods sold | 219,969 | 234,604 | ||||||
| Gross profit | 213,961 | 219,263 | ||||||
| Operating expenses: | ||||||||
| Advertising, promotional, and selling expenses | 140,076 | 137,535 | ||||||
| General and administrative expenses | 52,303 | 47,952 | ||||||
| Impairment of brewery assets | 2 | — | ||||||
| Litigation expense | 212,035 | — | ||||||
| Total operating expenses | 404,416 | 185,487 | ||||||
| Operating (loss) income | (190,455 | ) | 33,776 | |||||
| Other income (expense), net: | ||||||||
| Interest income, net | 1,890 | 2,331 | ||||||
| Other expense, net | (363 | ) | (264 | ) | ||||
| Total other income (expense), net | 1,527 | 2,067 | ||||||
| (Loss) income before income tax (benefit) provision | (188,928 | ) | 35,843 | |||||
| Income tax (benefit) provision | (43,667 | ) | 11,431 | |||||
| Net (loss) income | $ | (145,261 | ) | $ | 24,412 | |||
| Net (loss) income per common share – basic | $ | (13.88 | ) | $ | 2.16 | |||
| Net (loss) income per common share – diluted | $ | (13.88 | ) | $ | 2.16 | |||
| Weighted-average number of common shares – basic | 10,467 | 11,277 | ||||||
| Weighted-average number of common shares – diluted | 10,467 | 11,259 | ||||||
| Net (loss) income | $ | (145,261 | ) | $ | 24,412 | |||
| Other comprehensive (loss) income: | ||||||||
| Foreign currency translation adjustment | (107 | ) | 149 | |||||
| Total other comprehensive (loss) income | (107 | ) | 149 | |||||
| Comprehensive (loss) income | $ | (145,368 | ) | $ | 24,561 | |||
| THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except share data) | ||||||||
| (unaudited) | ||||||||
| March 28, 2026 | December 27, 2025 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 164,124 | $ | 223,378 | ||||
| Accounts receivable, net | 86,935 | 57,094 | ||||||
| Inventories, net | 118,950 | 92,532 | ||||||
| Prepaid expenses and other current assets | 30,904 | 20,316 | ||||||
| Income tax receivable | 16,370 | 24,259 | ||||||
| Total current assets | 417,283 | 417,579 | ||||||
| Property, plant, and equipment, net | 563,757 | 578,125 | ||||||
| Operating right-of-use assets | 27,487 | 30,229 | ||||||
| Goodwill | 112,529 | 112,529 | ||||||
| Intangible assets, net | 14,330 | 14,753 | ||||||
| Third-party production prepayments | 6,507 | 7,099 | ||||||
| Note receivable | 7,740 | 11,218 | ||||||
| Other assets | 21,416 | 22,063 | ||||||
| Total assets | $ | 1,171,049 | $ | 1,193,595 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 100,214 | $ | 94,975 | ||||
| Accrued expenses and other current liabilities | 336,808 | 144,797 | ||||||
| Current operating lease liabilities | 11,547 | 12,762 | ||||||
| Total current liabilities | 448,569 | 252,534 | ||||||
| Deferred income taxes, net | 13,249 | 64,785 | ||||||
| Non-current operating lease liabilities | 23,196 | 25,111 | ||||||
| Other liabilities | 3,441 | 4,885 | ||||||
| Total liabilities | 488,455 | 347,315 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders' Equity: | ||||||||
| Class A Common Stock, | 83 | 84 | ||||||
| Class B Common Stock, issued and outstanding as of March 28, 2026 and December 27, 2025 | 21 | 21 | ||||||
| Additional paid-in capital | 704,344 | 698,811 | ||||||
| Accumulated other comprehensive loss | (487 | ) | (380 | ) | ||||
| (Accumulated deficit), retained earnings | (21,367 | ) | 147,744 | |||||
| Total stockholders' equity | 682,594 | 846,280 | ||||||
| Total liabilities and stockholders' equity | $ | 1,171,049 | $ | 1,193,595 | ||||
| THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| Thirteen weeks ended | ||||||||
| March 28, 2026 | March 29, 2025 | |||||||
| Cash flows (used in) provided by operating activities: | ||||||||
| Net (loss) income | $ | (145,261 | ) | $ | 24,412 | |||
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization | 21,583 | 22,814 | ||||||
| Impairment of brewery assets | 2 | — | ||||||
| (Gain) loss on sale of property, plant, and equipment | — | (42 | ) | |||||
| Litigation expense | 212,035 | — | ||||||
| Change in right-of-use assets | 2,742 | (11,161 | ) | |||||
| Stock-based compensation expense | 6,404 | 5,870 | ||||||
| Deferred income taxes | (51,536 | ) | (2,587 | ) | ||||
| Other non-cash (income) expense | (175 | ) | 120 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (29,832 | ) | (26,402 | ) | ||||
| Inventories | (27,030 | ) | (26,827 | ) | ||||
| Prepaid expenses and other current assets | (10,883 | ) | (8,625 | ) | ||||
| Income tax receivable | 7,889 | 6,582 | ||||||
| Third-party production prepayments | 592 | 2,575 | ||||||
| Brewery-related assets and cloud computing | 985 | 1,098 | ||||||
| Other non-current assets | 275 | (15 | ) | |||||
| Accounts payable | 11,039 | 23,004 | ||||||
| Accrued expenses and other current liabilities | (16,022 | ) | (19,950 | ) | ||||
| Operating lease liabilities | (3,130 | ) | 10,911 | |||||
| Other non-current liabilities | (112 | ) | 162 | |||||
| Net cash (used in) provided by operating activities | (20,435 | ) | 1,939 | |||||
| Cash flows used in investing activities: | ||||||||
| Purchases of property, plant, and equipment | (12,322 | ) | (9,921 | ) | ||||
| Proceeds from disposal of property, plant, and equipment | — | 42 | ||||||
| Net cash used in investing activities | (12,322 | ) | (9,879 | ) | ||||
| Cash flows used in financing activities: | ||||||||
| Repurchases and retirement of Class A common stock | (23,348 | ) | (49,394 | ) | ||||
| Proceeds from exercise of stock options and sale of investment shares | 367 | 446 | ||||||
| Cash paid on finance leases | (581 | ) | (420 | ) | ||||
| Payment of tax withholding on stock-based payment awards and investment shares | (2,935 | ) | (2,057 | ) | ||||
| Net cash used in financing activities | (26,497 | ) | (51,425 | ) | ||||
| Change in cash and cash equivalents | (59,254 | ) | (59,365 | ) | ||||
| Cash and cash equivalents at beginning of period | 223,378 | 211,819 | ||||||
| Cash and cash equivalents at end of period | $ | 164,124 | $ | 152,454 | ||||
| Copies of The Boston Beer Company's press releases, including quarterly financial results, are available at www.bostonbeer.com | ||||||||
| Investor Relations Contact: | Media Contact: |
| Nora Doherty | Dave DeCecco |
| (617) 368-5390 | (914) 261-6572 |
| nora.doherty@bostonbeer.com | dave.dececco@bostonbeer.com |
