Boston Beer Reports Fourth Quarter Financial Results

BOSTON, Feb. 24, 2026 — The Boston Beer Company, Inc. (NYSE: SAM), today reported financial results for the fourth quarter ended December 27, 2025. Key results were:

Fourth Quarter 2025 Summary:
Depletions decreased 6% and shipments decreased 7.5%
Net revenue of $385.7 million, a decrease of 4.1%
Gross margin of 43.5% up 360 basis points year over year
Net loss of $22.5 million, a decrease of $16.2 million. Excluding the impact of a prior year contract settlement charge, net loss increased $3.3 million
Diluted loss per share of $2.12


Full Year 2025 Summary:
Depletions decreased 4% and shipments decreased 4.7%
Net revenue of $1.965 billion, a decrease of 2.4%
Gross margin of 48.5% up 410 basis points year over year
Net income of $108.5 million, an increase of $48.8 million. Excluding the impact of the prior year non-cash brand impairment and contract settlement charges, net income decreased $2.8 million or 2.5%
Diluted income per share of $9.89 or a 95.4% increase year over year. Excluding the impact of the prior year impairment and contract settlement charges, diluted income per share increased 4.7%


Capital Structure
Generated $270.2 million in operating cash flow for the full year 2025
Ended the year with $223.4 million in cash and no debt
Repurchased $199.2 million in shares in 2025 and $13.7 million in 2026 through February 20, 2026


“We were pleased to deliver on our financial commitments in 2025 while maintaining market share in a challenging operating environment,” said Chairman, Founder and CEO Jim Koch. “Looking ahead, we are highly focused on operational excellence, including investing in our portfolio of iconic brands, developing a strong innovation pipeline and continuing to execute on our multi-year productivity initiatives. We believe this disciplined focus positions us to improve performance over time and create long-term value for shareholders.”
“2025 was a year of continued progress for Boston Beer, highlighted by meaningful gross margin improvement and strong cash generation, while significantly increasing advertising support behind our brands,” said CFO Diego Reynoso. “In 2026, we exp
ect continued progress on our multi-year supply chain initiatives which will be reinvested to support our brands.”
Details of the results were as follows:
Fourth Quarter 2025 (13 weeks ended December 27, 2025) Summary of Results
Depletions for the fourth quarter decreased 6% from the prior year. Shipment volume for the quarter was approximately 1.4 million barrels, a 7.5% decrease from the prior year, primarily due to declines in Twisted Tea, Truly Hard Seltzer and Samuel Adams brands that were only partially offset by growth in the Company’s Sun Cruiser, Angry Orchard and Dogfish Head brands.

The Company believes distributor inventories as of December 27, 2025 were at appropriate levels and averaged approximately four weeks on hand which is within the Company’s target distributor inventory levels.
Revenue for the quarter decreased 4.1% due to lower volumes that were partially offset by increased pricing and favorable product mix.

Gross margin of 43.5% increased 360 basis points from the 39.9% margin realized in the prior year. Gross margin primarily benefited from improved brewery efficiencies, procurement savings, price increases and product mix, and lower inventory obsolescence. These benefits were partially offset by increased inflationary and tariff costs and shortfall fees. The negative impact of tariffs was $3.6 million in the fourth quarter.

The fourth quarter gross margin of 43.5% includes $13.9 million of shortfall fees and $1.3 million of non-cash expense of third-party production pre-payments that combined to impact gross margins negatively by 394 basis points on an absolute basis.

Advertising, promotional and selling expenses increased $8.4 million or 6.0% from the fourth quarter of 2024, primarily due to increased salaries and benefit costs, brand media and local marketing investments of $8.0 million and higher freight costs of $0.4 million due to higher rates partially offset by lower volumes.
General and administrative expenses increased by $4.5 million or 9.4% from the fourth quarter of 2024, primarily due to higher salaries and benefits costs.

Contract settlement costs in the comparable period of 2024 reflected a $26 million cash payment resulting from an amendment of a supplier contract.


Impairment of brewery assets of $0.6 million decreased by $2.9 million from the fourth quarter of 2024, due to lower write-offs of equipment at Company-owned and third-party breweries.
The Company’s effective tax rate for the fourth quarter of 26.3% decreased from 27.7% in the prior year, due primarily to a decreased negative impact of non-deductible stock compensation.
Full year 2025 (52 weeks ended December 27, 2025) Summary of Results
Revenue for full year 2025 of $1.965 billion decreased 2.4% compared to full year 2024, due to lower volumes that were partially offset by increased pricing and favorable product mix.

Depletions for full year 2025 decreased 4% from the prior year. Shipment volume was approximately 7.1 million barrels, a 4.7% decrease from the prior year, primarily due to decreases in Twisted Tea, Truly Hard Seltzer and Samuel Adams brands that were only partially offset by growth in the Company’s Sun Cruiser, Angry Orchard and Dogfish Head brands.

Gross margin full year 2025 of 48.5% increased from the 44.4% margin realized in full year 2024, or an increase of 410 basis points year over year. Gross margin primarily benefited from improved procurement savings, brewery efficiencies, price increases and product mix. These benefits were partially offset by increased inflationary and tariff costs. The negative impact of tariffs for the full year was $10.1 million.

The full year 2025 gross margin of 48.5% includes $21.4 million of shortfall fees and $8.4 million of non-cash expense of third-party production pre-payments that combined to impact gross margins negatively by 152 basis points on an absolute basis.

Advertising, promotional and selling expenses for full year 2025 increased $58.0 million or 10.5% from full year 2024, primarily due to increased brand media and local marketing investments of $61.0 million, that were partially offset by lower freight costs of $3.0 million due to lower volumes.
Full year 2025 general and administrative expenses increased $0.8 million, or essentially flat from full year 2024.
Impairment of intangible assets in full year 2024 reflected a $42.6 million non-cash impairment charge recorded primarily for the Dogfish Head brand, taken as a result of the Company’s annual impairment analysis as of September 1, 2024. Beginning in the fourth quarter of 2024 the Company began amortizing the remaining intangible asset over a 10 year life and does not expect any future impairments related to the Dogfish Head brand.
Impairment of brewery assets of $7.0 million decreased by $0.2 million from full year 2024, due to slightly lower write-offs of equipment at Company-owned and third-party breweries.

The Company’s effective tax rate for full year 2025 of 29.3% decreased from 31.9% in full year 2024, due primarily to a decreased negative impact of non-deductible stock compensation.

Full year 2025 net income of $108.5 million or $9.89 per diluted share, represented an increase of $48.8 million or $4.83 per diluted share compared to full year 2024. This increase between periods was primarily driven by the comparison against a $42.6 million brand impairment charge and a $26.0 million contract settlement charge in the prior year. Excluding the net of tax impact of these prior year items, net income decreased $2.8 million, as lower volumes and higher advertising, promotional and selling expenses were partially offset by higher gross margins.
The Company expects that its December 27, 2025 cash balance of $223.4 million, together with its projected future operating cash flows and the unused balance on its $150.0 million line of credit, will be sufficient to fund future cash requirements.

During the 52-week period ended December 27, 2025 and the period from December 29, 2025 through February 20, 2026, the Company repurchased shares of its Class A Common Stock in the amounts of $199.2 million and $13.7 million, respectively. As of February 20, 2026, the Company had approximately $214.7 million remaining on the $1.6 billion share buyback expenditure limit set by the Board of Directors.

Depletions Estimate
Year-to-date depletions through the 8-week period ended February 21, 2026 are estimated by the Company to have decreased approximately 3% from the comparable period in 2025.

Full-Year 2026 Projections
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 impacts and tariff policy. Tariff cost projections below are based upon tariffs in place prior to the February 20, 2026 Supreme Court ruling.