Boston Beer Reports Second Quarter Financial Results
Rhea-AI Summary
Boston Beer (NYSE:SAM) reported second quarter 2026 net revenue of $568.3 million, down 3.3%, as depletions fell 6% and shipments declined 4.5%. Gross margin improved to 50.4%, up 60 basis points year over year, supported by brewery efficiencies, favorable mix, procurement savings and pricing, partly offset by inflation, commodities and tariffs.
GAAP diluted EPS was $4.96, including a $1.31 per share favorable non-recurring litigation adjustment; non-GAAP diluted EPS was $3.65. Year-to-date, net revenue was $1.002 billion (down 3.8%), with gross margin up 80 basis points to 49.9% and non-GAAP EPS of $5.28 versus a GAAP loss of $8.99 per share, heavily impacted by $192.6 million of supplier dispute litigation expense. The company ended the quarter with $265.5 million in cash, no debt, and has repurchased $54.1 million of stock year-to-date. Updated 2026 guidance maintains low- to mid-single-digit volume declines, raises gross margin range to 48.5%-50%, narrows projected GAAP loss per share to between $6.23 and $4.23, and cuts capital spending guidance to $60-$80 million.
Positive
- Gross margin improved to 50.4% in Q2 2026, up 60 bps year over year
- Year-to-date gross margin increased 80 bps to 49.9% versus 2025
- Q2 2026 non-GAAP diluted EPS of $3.65 despite lower volumes
- Cash balance of $265.5 million at quarter-end with no debt outstanding
- Share repurchases of $54.1 million year-to-date, $174 million buyback capacity remaining
- 2026 guidance raises gross margin range to 48.5%-50% and lowers capital spending to $60-$80 million
Negative
- Q2 2026 depletions decreased 6% and shipments fell 4.5% year over year
- Year-to-date depletions down 5% and shipments down 5.6% versus prior year
- Net revenue declined 3.3% in Q2 and 3.8% year-to-date
- Supplier dispute litigation expense of $192.6 million year-to-date, reducing EPS by $14.27
- Year-to-date GAAP net loss of $93.7 million, or $8.99 per share
- Advertising and selling expenses up $28.7 million (9.7%) year-to-date, and G&A up $7.5 million (8.0%)
News Explained
The supplier dispute remains unresolved through post-trial and appellate remedies; as of
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 30 | Q1 earnings report | Negative | -9.6% | Supplier litigation charge drove GAAP loss and full-year guidance narrowing. |
| Feb 24 | Q4 earnings report | Positive | -4.3% | Revenue declined despite margin expansion, cash generation, and buybacks. |
| Oct 23 | Q3 earnings report | Positive | +5.5% | Margin expansion and raised full-year guidance accompanied improved earnings. |
| Jul 24 | Q2 earnings report | Positive | +6.5% | Revenue, net income, margin, and EPS improved despite lower depletions. |
| Apr 24 | Q1 earnings report | Positive | +2.3% | Revenue, earnings, shipments, margin, and guidance improved year over year. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings reactions were mostly aligned with reported results, with one positive-result event followed by a negative 24-hour move.
Key Terms
depletions financial
gaap financial
non-gaap financial
pre-judgement interest regulatory
post-judgement interest regulatory
shortfall fees financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
BOSTON, July 23, 2026 (GLOBE NEWSWIRE) -- The Boston Beer Company, Inc. (NYSE: SAM), today reported financial results for the second quarter ended June 27, 2026. Key results were:
Second Quarter 2026 Summary:
- Depletions decreased
6% and shipments decreased4.5% - Net revenue of
$568.3 million decreased3.3% - Gross margin of
50.4% up 60 basis points year over year - GAAP diluted income per share of
$4.96 , which includes a previously disclosed favorable adjustment to non-recurring litigation expenses of$1.31 per share - Non-GAAP diluted earnings per share of
$3.65
Year-to-date 2026 Summary:
- Depletions decreased
5% and shipments decreased5.6% - Net revenue of
$1.002 billion decreased3.8% - Gross margin of
49.9% up 80 basis points year over year - GAAP diluted loss per share of
$8.99 , which includes non-recurring litigation expenses of$14.27 per share - Non-GAAP diluted earnings per share of
$5.28
Capital Structure
- Ended the second quarter with
$265.5 million in cash and no debt - Repurchased
$54 million in shares from December 29, 2025 to July 17, 2026
“As we continue to navigate a challenging operating environment, we are managing the business with discipline while investing behind our category-leading brands and bringing innovation to market” said Chairman, Founder and CEO Jim Koch. “We are highly focused on marketplace execution for the remainder of the summer selling season and improving market share trends. Our strong cash flow generation and healthy balance sheet provide flexibility to support our strategic priorities and drive long-term value.”
“We delivered meaningful gross margin expansion and are maintaining our earnings outlook while navigating a dynamic consumer demand environment and input cost headwinds,” said CFO Diego Reynoso. “These results demonstrate the progress we continue to make through our multi-year supply chain transformation efforts, combined with a disciplined approach to investment.”
Details of the results were as follows:
Second Quarter 2026 (13 weeks ended June 27, 2026) Summary of Results
Depletions for the second quarter decreased
The Company believes distributor inventories as of June 27, 2026 were at appropriate levels and averaged approximately four and one half weeks on hand which was consistent with the weeks on hand at the end of June 2025.
Revenue for the quarter decreased
Gross margin of
The second quarter gross margin of
Advertising, promotional and selling expenses for the second quarter of 2026 increased
General and administrative expenses increased
Litigation reduction of
In the second quarter of 2026, the combined pre-tax income related to the supplier dispute litigation of
The Company’s effective tax rate for the second quarter was a provision of
Year-to-date 2026 (26 weeks ended June 27, 2026) Summary of Results
Depletions year-to-date decreased
Revenue year-to-date decreased
Gross margin year-to-date of
The year-to-date gross margin of
Advertising, promotional and selling expenses year-to-date increased
General and administrative expenses year-to-date increased
Litigation expense of
The litigation expense of
Impairment of brewery assets of
The Company’s effective tax rate year-to-date was a benefit of
The Company expects that its June 27, 2026 cash balance of
During the 26-week period ended June 27, 2026 and the period from June 29, 2026 through July 17, 2026, the Company repurchased shares of its Class A Common Stock in the amounts of
Depletions Estimate
Year-to-date depletions through the 29-week period ended July 18, 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 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 | Down low-single digits to 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-recurring Litigation Expenses impact per share | ($14.73) | ($15.52) | ||||
| Non GAAP EPS | ||||||
| Capital Spending($ million) | ||||||
Underlying the Company's current 2026 projections are the following full-year estimates and targets:
- The Company is monitoring changes 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.
- Supply chain improvements implemented during 2025 resulted in more consistent levels of distributor inventory in terms of weeks on hand. The impact of these initiatives on prior year shipment timing, together with expected timing of shipments to meet demand in 2026, is expected to affect second half 2026 shipment phasing. The Company expects shipments to decline low to mid-single digits year over year in the third quarter followed by modest shipment growth in the fourth quarter.
- The Company’s business is seasonal, with the fourth quarter typically a lower volume quarter and the lowest gross margin rate of the year. 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.
- 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 advertising, selling and promotional expense projection does not include any changes in freight costs for the shipment of products to the Company’s distributors. Advertising investment levels are expected to decline year over year in the fourth quarter as a result of lower full year investment levels and comparisons against high levels of investment in the fourth quarter of 2025 that included production costs associated with preparation for 2026 programming.
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 relating to a supplier dispute 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, July 23, 2026
| THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Thirteen weeks ended | Twenty-six weeks ended | |||||||||||||||
| June 27, 2026 | June 28, 2025 | June 27, 2026 | June 28, 2025 | |||||||||||||
| Revenue | $ | 607,757 | $ | 625,425 | $ | 1,069,333 | $ | 1,106,782 | ||||||||
| Less excise taxes | 39,419 | 37,476 | 67,065 | 64,966 | ||||||||||||
| Net revenue | 568,338 | 587,949 | 1,002,268 | 1,041,816 | ||||||||||||
| Cost of goods sold | 281,968 | 295,431 | 501,937 | 530,035 | ||||||||||||
| Gross profit | 286,370 | 292,518 | 500,331 | 511,781 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Advertising, promotional, and selling expenses | 185,881 | 159,713 | 325,957 | 297,249 | ||||||||||||
| General and administrative expenses | 48,878 | 45,751 | 101,180 | 93,702 | ||||||||||||
| Impairment of brewery assets | 234 | 4,985 | 236 | 4,985 | ||||||||||||
| Litigation (reduction) expense | (19,389 | ) | — | 192,646 | — | |||||||||||
| Total operating expenses | 215,604 | 210,449 | 620,019 | 395,936 | ||||||||||||
| Operating income (loss) | 70,766 | 82,069 | (119,688 | ) | 115,845 | |||||||||||
| Other income (expense), net: | ||||||||||||||||
| Interest income, net | 2,001 | 2,294 | 3,890 | 4,625 | ||||||||||||
| Other expense, net | (449 | ) | (309 | ) | (812 | ) | (574 | ) | ||||||||
| Total other income (expense), net | 1,552 | 1,985 | 3,078 | 4,051 | ||||||||||||
| Income (loss) before income tax provision (benefit) | 72,318 | 84,054 | (116,610 | ) | 119,896 | |||||||||||
| Income tax provision (benefit) | 20,751 | 23,621 | (22,916 | ) | 35,051 | |||||||||||
| Net income (loss) | $ | 51,567 | $ | 60,433 | $ | (93,694 | ) | $ | 84,845 | |||||||
| Net income (loss) per common share – basic | $ | 4.96 | $ | 5.45 | $ | (8.99 | ) | $ | 7.59 | |||||||
| Net income (loss) per common share – diluted | $ | 4.96 | $ | 5.45 | $ | (8.99 | ) | $ | 7.58 | |||||||
| Weighted-average number of common shares – basic | 10,387 | 11,090 | 10,427 | 11,183 | ||||||||||||
| Weighted-average number of common shares – diluted | 10,358 | 11,067 | 10,427 | 11,163 | ||||||||||||
| Net income (loss) | $ | 51,567 | $ | 60,433 | $ | (93,694 | ) | $ | 84,845 | |||||||
| Other comprehensive (loss) income: | ||||||||||||||||
| Foreign currency translation adjustment | (127 | ) | 245 | (235 | ) | 394 | ||||||||||
| Total other comprehensive (loss) income | (127 | ) | 245 | (235 | ) | 394 | ||||||||||
| Comprehensive income (loss) | $ | 51,440 | $ | 60,678 | $ | (93,929 | ) | $ | 85,239 | |||||||
| THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except share data) | ||||||||
| (unaudited) | ||||||||
| June 27, 2026 | December 27, 2025 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 265,549 | $ | 223,378 | ||||
| Accounts receivable, net | 100,495 | 57,094 | ||||||
| Inventories, net | 118,118 | 92,532 | ||||||
| Prepaid expenses and other current assets | 27,184 | 20,316 | ||||||
| Income tax receivable | 4,466 | 24,259 | ||||||
| Total current assets | 515,812 | 417,579 | ||||||
| Property, plant, and equipment, net | 554,911 | 578,125 | ||||||
| Operating right-of-use assets | 24,716 | 30,229 | ||||||
| Goodwill | 112,529 | 112,529 | ||||||
| Intangible assets, net | 13,907 | 14,753 | ||||||
| Third-party production prepayments | 5,916 | 7,099 | ||||||
| Note receivable | 7,783 | 11,218 | ||||||
| Other assets | 19,520 | 22,063 | ||||||
| Total assets | $ | 1,255,094 | $ | 1,193,595 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 125,029 | $ | 94,975 | ||||
| Accrued expenses and other current liabilities | 166,201 | 144,797 | ||||||
| Accrued litigation expenses | 192,646 | - | ||||||
| Current operating lease liabilities | 9,687 | 12,762 | ||||||
| Total current liabilities | 493,563 | 252,534 | ||||||
| Deferred income taxes, net | 21,347 | 64,785 | ||||||
| Non-current operating lease liabilities | 21,863 | 25,111 | ||||||
| Other liabilities | 3,749 | 4,885 | ||||||
| Total liabilities | 540,522 | 347,315 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders' Equity: | ||||||||
| Class A Common Stock, | 82 | 84 | ||||||
| Class B Common Stock, issued and outstanding as of June 27, 2026 and December 27, 2025 | 21 | 21 | ||||||
| Additional paid-in capital | 709,867 | 698,811 | ||||||
| Accumulated other comprehensive loss | (614 | ) | (380 | ) | ||||
| Retained earnings | 5,216 | 147,744 | ||||||
| Total stockholders' equity | 714,572 | 846,280 | ||||||
| Total liabilities and stockholders' equity | $ | 1,255,094 | $ | 1,193,595 | ||||
| THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| Twenty-six weeks ended | ||||||||
| June 27, 2026 | June 28, 2025 | |||||||
| Cash flows provided by operating activities: | ||||||||
| Net (loss) income | $ | (93,694 | ) | $ | 84,845 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 42,563 | 45,178 | ||||||
| Impairment of brewery assets | 236 | 4,985 | ||||||
| Gain on sale of property, plant, and equipment | (78 | ) | (42 | ) | ||||
| Litigation expense | 192,646 | — | ||||||
| Change in right-of-use assets | 5,513 | (8,405 | ) | |||||
| Stock-based compensation expense | 11,470 | 10,924 | ||||||
| Deferred income taxes | (43,439 | ) | (10,517 | ) | ||||
| Other non-cash income | (282 | ) | (20 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (43,399 | ) | (31,388 | ) | ||||
| Inventories | (25,801 | ) | (17,404 | ) | ||||
| Prepaid expenses and other current assets | (7,091 | ) | (6,625 | ) | ||||
| Income tax receivable | 19,793 | 6,643 | ||||||
| Third-party production prepayments | 1,183 | 5,151 | ||||||
| Brewery-related assets and cloud computing | 3,000 | 2,673 | ||||||
| Other non-current assets | (242 | ) | (1,042 | ) | ||||
| Accounts payable | 34,452 | 25,449 | ||||||
| Accrued expenses and other current liabilities | 27,322 | 9,668 | ||||||
| Operating lease liabilities | (6,323 | ) | 7,923 | |||||
| Other non-current liabilities | (254 | ) | 423 | |||||
| Net cash provided by operating activities | 117,575 | 128,419 | ||||||
| Cash flows used in investing activities: | ||||||||
| Purchases of property, plant, and equipment | (22,865 | ) | (24,156 | ) | ||||
| Proceeds from disposal of property, plant, and equipment | 78 | 42 | ||||||
| Net cash used in investing activities | (22,787 | ) | (24,114 | ) | ||||
| Cash flows used in financing activities: | ||||||||
| Repurchases and retirement of Class A common stock | (49,957 | ) | (101,617 | ) | ||||
| Proceeds from exercise of stock options and sale of investment shares | 1,158 | 833 | ||||||
| Cash paid on finance leases | (847 | ) | (848 | ) | ||||
| Payment of tax withholding on stock-based payment awards and investment shares | (2,971 | ) | (2,060 | ) | ||||
| Net cash used in financing activities | (52,617 | ) | (103,692 | ) | ||||
| Change in cash and cash equivalents | 42,171 | 613 | ||||||
| Cash and cash equivalents at beginning of period | 223,378 | 211,819 | ||||||
| Cash and cash equivalents at end of period | $ | 265,549 | $ | 212,432 | ||||
| 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 |
