The Boston Beer Company (SAM) Q1 2026 earnings summary

Executive summary

• Net revenue for Q1 2026 was $433.9 million, down 4.4% year-over-year, with depletions down 4% and shipments down 6.9%; beyond beer outperformed traditional beer with 3% volume growth.

• The company reported a net loss of $145.3 million for Q1 2026, compared to net income of $24.4 million in Q1 2025, primarily due to a $216 million non-recurring litigation expense.

• Gross margin improved by 100 basis points to 49.3% year-over-year, benefiting from price increases, procurement savings, and improved efficiencies.

• Ended the quarter with $164.1 million in cash and no debt; $31.2 million in share repurchases year-to-date, with $197 million remaining on authorization.

• Ongoing focus on supporting leading brands, innovation, and margin expansion, with flexibility to adjust spending based on energy costs.

Financial highlights

• Net revenue: $433.9 million (down 4.4% year-over-year); gross profit: $214.0 million (down from $219.3 million year-over-year).

• Operating loss: $190.5 million (vs. operating income of $33.8 million in Q1 2025), mainly due to litigation expense.

• EPS: $(13.88) basic and diluted (vs. $2.16 in Q1 2025); non-GAAP EPS: $1.64 per diluted share (excluding litigation expense).

• Cash balance at quarter-end was $164.1 million, with $150 million available on the line of credit.

• Cash flow from operations was negative $20.44 million, with $26.5 million used in financing activities.

Outlook and guidance

• 2026 volume guidance narrowed to down low single digits to mid-single digits; price increases of 1–2% expected.

• Non-GAAP EPS guidance narrowed to $8.50–$10.50; GAAP EPS guidance is a loss of $7.02 to $5.02, including litigation expense.

• Full-year gross margin expected between 48% and 50%, with tariff costs projected at $20–$30 million.

• Advertising, promotional, and selling expenses to increase $20–$40 million, with flexibility to adjust based on commodity and energy costs.

• Capital expenditures projected at $70–$90 million for 2026, focused on brewery capabilities and innovation.