BellRing Brands Inc (NYSE:BRBR) Reports Mixed Q4 2025 Results; Revenue Beats but EPS Misses

BellRing Brands Inc (NYSE:BRBR) reported financial results for its fourth fiscal quarter and full year ended September 30, 2025. The company's performance presented a mixed picture, with revenue exceeding expectations but profitability metrics falling short, which appears to have influenced a negative market reaction in after-hours trading.

Earnings and Revenue Performance Versus Estimates

The nutrition company posted quarterly revenue of $648.2 million, representing a 16.6% year-over-year increase. This figure modestly surpassed analyst expectations of approximately $646.4 million. However, the company's non-GAAP earnings per share of $0.51 fell below the estimated $0.56, creating a divergence between top-line growth and bottom-line performance.

Key quarterly financial metrics include:

• Net sales: $648.2 million (actual) vs. $646.4 million (estimate)
• Non-GAAP EPS: $0.51 (actual) vs. $0.56 (estimate)
• Adjusted EBITDA: $117.4 million, a slight increase of 0.8% year-over-year

For the full fiscal year 2025, BellRing achieved net sales of $2.32 billion, an increase of 16.1% compared to the prior year. The company also generated $260.6 million in cash from operations and repurchased 7% of its common shares outstanding.

Market Reaction and Forward Guidance

The market's response to the earnings release was notably negative, with the stock declining approximately 8.3% following the announcement. This reaction likely reflects investor concern over the earnings miss and the company's forward-looking guidance for fiscal 2026.

BellRing provided net sales guidance ranging between $2.41 billion and $2.49 billion for fiscal 2026, with the midpoint of $2.45 billion coming in slightly below the analyst consensus estimate of $2.46 billion. Similarly, the company's Adjusted EBITDA guidance of $425-$455 million fell short of expectations.

The company specifically noted that first-quarter fiscal 2026 net sales are expected to decline approximately 5% year-over-year, citing tough comparisons in the club channel and certain one-time factors. Management expects growth to accelerate beyond the first quarter as merchandising initiatives and innovation become more meaningful.

Updated Long-Term Financial Algorithm

BellRing updated its long-term financial targets, establishing a new net sales growth algorithm of 7% to 9% annually, while reiterating its Adjusted EBITDA margin target of 18% to 20% of net sales. This revised sales growth target reflects what the company describes as "the larger size of the ready-to-drink shake category and more dynamic near-term industry trends."

President and CEO Darcy Davenport commented on the results, stating, "We delivered strong results in 2025, with sales up 16% driven by expanding household penetration, continued distribution gains and meaningful innovation performance." Davenport expressed confidence in the company's ability to "sustain strong growth, deliver on our financial targets and drive long-term shareholder value."

Brand Performance and Operational Challenges

The company's flagship Premier Protein brand saw ready-to-drink shake net sales increase 14.1% in the quarter, driven by an 18.4% volume growth, though this was partially offset by a 4.3% decrease in price/mix due to incremental promotional activity. The Dymatize brand experienced stronger growth with a 32.9% net sales increase.

Despite solid revenue growth, the company faced margin pressures during the quarter. Gross profit declined to 28.9% of net sales from 36.9% in the prior year period, impacted by input cost inflation, increased promotional activity, and packaging redesign costs.

For more detailed earnings information and future estimates, readers can access additional data through the company's earnings portal.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with financial advisors before making investment decisions.