BOSTON BEER CO INC
For the period ended Mar 28, 2026. Filed Apr 30, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 28, 2026 · Filed Apr 30, 2026
SAM$220.64-1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-27; filed 2025-10-23.
0001193125-25-248839
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-28; filed 2026-04-30.
0001193125-26-197491
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 49 previous paragraphs and 34 current paragraphs.
10 unchanged; 19 reworded; 5 added; 18 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 2 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Volume. Total shipment volume decreased by 6.9% to 1,561,000 barrels for the thirteen weeks ended March 28, 2026, as compared to 1,677,000 barrels for the thirteen weeks ended March 29, 2025. The decrease was primarily driven by declines in the Twisted Tea and Truly brands, partially offset by growth in the Sun Cruiser brand. The first quarter of 2026 reflects challenging year‑over‑year comparisons, as distributors built inventories in the first quarter of 2025 to support the Sun Cruiser and Truly Unruly innovations, as well as modestly lower overall distributor inventory levels in 2026 resulting from improved supply chain responsiveness.
Current report
Litigation expense. During the first quarter of 2026 the Company recorded a pre-tax non-recurring litigation expense of $175.5 million and related pre-judgement interest expense of $36.5 million resulting from a verdict entered on April 6, 2026 awarding damages to a supplier. The pre-judgement interest has not yet been determined and potential outcomes range between zero and $36.5 million. In addition to the damages and interest, the Company has recorded legal fees of $4.0 million in general and administrative expenses for a total of $216.0 million pre-tax. The Company denies that it breached the terms of the parties’ contract and intends to pursue all available post‑trial motions and appellate remedies. As of the filing date of this Quarterly Report, a final judgment has not been entered and post‑trial motions remain pending. The Company cannot estimate when or if damages or interest will ultimately be paid or when this matter will ultimately be resolved.
Current report
Impairment of brewery assets. There was less than $0.1 million impairment of brewery assets during the thirteen weeks ended March 28, 2026.
Current report
Income tax provision. The Company's effective tax rate was a benefit of 23.1%, decreased from 31.9% in the prior year. The change in the tax rate for the thirteen weeks ended March 28, 2026 as compared to the thirteen weeks ended March 29, 2025, is primarily due to a pre-tax loss in the first quarter of 2026 compared to pre-tax income in the first quarter of 2025 and the change in impact of non-deductible expenses.
Current report
Cash used in operating activities for the thirteen weeks ended March 28, 2026 was driven by a net loss of $145.3 million, adjusted for $191.1 million of non‑cash items, and net cash outflows of $66.2 million related to changes in operating assets and liabilities. The non‑cash items primarily consisted of $212.0 million of litigation expense, partially offset by other non‑cash items. Cash provided by operating activities for the thirteen weeks ended March 29, 2025 was comprised of net income of $24.4 million and non-cash items of $15.0 million, partially offset by net cash outflows for operating assets and liabilities of $37.5 million. The increase in cash used by operating activities for the thirteen weeks ended March 28, 2026 compared to the thirteen weeks ended March 29, 2025 was primarily attributable to unfavorable changes in working capital, including the timing of cash outflows related to accounts payable, as the increase in accounts payable in 2026 was lower than in the prior‑year period.
Removed paragraphs (18)
Previous report
Volume. Total shipment volume decreased by 13.7% to 1,936,000 barrels for the thirteen weeks ended September 27, 2025, as compared to 2,243,000 barrels for the thirteen weeks ended September 28, 2024, 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 and Angry Orchard brands.
Previous report
Impairment of intangible assets. Impairment of intangible assets in the comparable period of 2024 reflected a $42.6 million non-cash impairment charge or $29.1 million net of tax impact, 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.
Previous report
Impairment of brewery assets. Impairment of brewery assets of $1.4 million increased by $1.4 million from the comparable period of 2024, due to higher write-offs of equipment at Company-owned production facilities.
Previous report
Income tax provision. The Company's effective tax rate of 28.1% decreased from 31.7% in the prior year due primarily to lower non-deductible stock compensation.
Previous report
Thirty-Nine Weeks Ended September 27, 2025 compared to Thirty-Nine Weeks Ended September 28, 2024
Previous report
Net revenue. Net revenue decreased by $31.3 million, or 1.9%, to $1.579 billion for the thirty-nine weeks ended September 27, 2025, as compared to $1.611 billion for the thirty-nine weeks ended September 28, 2024, primarily due to decreased sales volume impacts of $64.8 million, partially offset by increased pricing of $20.3 million, and favorable product mix of $12.1 million.
Previous report
Volume. Total shipment volume decreased by 3.7% to 5,776,000 barrels for the thirty-nine weeks ended September 27, 2025, as compared to 5,997,000 barrels for the thirty-nine weeks ended September 28, 2024, primarily due to declines in Twisted Tea and Truly Hard Seltzer brands that were only partially offset by growth in the Company’s Sun Cruiser brand.
Previous report
Cost of goods sold. Cost of goods sold was $137.54 per barrel for the thirty-nine weeks ended September 27, 2025, as compared to $146.34 per barrel for the thirty-nine weeks ended September 28, 2024. The 2025 decrease in cost of goods sold of $8.80, or 6.0% per barrel was primarily due to contract renegotiations and recipe optimization savings of $31.7 million, or $5.51 per barrel, improved brewery efficiencies of $26.8 million, or $4.66 per barrel, lower third-party production costs of $10.8 million, or $1.88 per barrel, and decreases in inventory obsolescence of $6.3 million, or $1.09 per barrel, partially offset by inflationary impacts, including tariffs, of $26.6 million, or $4.62 per barrel.
Previous report
Inflationary impacts of $26.6 million consist primarily of increased raw material costs of $21.8 million, inclusive of $6.5 million impact from tariffs, and increased internal brewery costs of $4.8 million.
Previous report
Gross profit. Gross profit was $135.89 per barrel for the thirty-nine weeks ended September 27, 2025, as compared to $122.23 per barrel for the thirty-nine weeks ended September 28, 2024.
Previous report
Advertising, promotional, and selling expenses. Advertising, promotional and selling expenses increased by $49.5 million, or 12.0%, to $462.0 million for the thirty-nine weeks ended September 27, 2025, as compared to $412.5 million for thirty-nine weeks ended September
Previous report
28, 2024, primarily due to increased brand media and local marketing investments of $53.0 million partially offset by lower freight costs of $3.5 million due to lower volumes.
Previous report
General and administrative expenses. General and administrative expenses decreased by $3.6 million, or 2.5%, to $138.6 million for the thirty-nine weeks ended September 27, 2025, as compared to $142.2 million for the thirty-nine weeks ended September 28, 2024, primarily due to lower salaries and benefits costs.
Previous report
Impairment of intangible assets. Impairment of intangible assets in the comparable period of 2024 reflected a $42.6 million non-cash impairment charge or $29.1 million net of tax impact, 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.
Previous report
Impairment of brewery assets. Impairment of brewery assets of $6.4 million increased by $2.7 million from the comparable period of 2024, due to higher write-offs of equipment at third party and Company-owned production facilities.
Previous report
Income tax provision. The Company’s effective tax rate of 28.8% decreased from 30.3% in the prior year due primarily to lower non-deductible stock compensation.
Previous report
Cash provided by operating activities for the thirty-nine weeks ended September 27, 2025 was comprised of net income of $131.0 million and non-cash items of $67.3 million, and net inflows from operating assets and liabilities of $31.9 million. Cash provided by operating activities for the thirty-nine weeks ended September 28, 2024 was comprised of net income of $98.5 million and non-cash items of $118.4 million, partially offset by net outflows from operating assets and liabilities of $9.9 million. The increase in cash provided by operating activities for the thirty-nine weeks ended September 27, 2025 compared to September 28, 2024 is primarily driven by lower inventory levels, reflecting improved supply chain performance and reduced shipment volumes, and lower accounts receivable balances due to decreased shipment volume.
Previous report
During the thirteen weeks ended September 27, 2025, the Company incurred $4.1 million in tariff costs, of which $3.9 million impacted gross margin. During the thirty-nine weeks ended September 27, 2025, the Company incurred $7.1 million in tariff costs, of which $6.5 million impacted gross margin.
Reworded paragraphs (19)
Previous wording
The following is a discussion of the significant factors affecting the consolidated operating results, financial condition and liquidity and cash flows of the Company for the thirteen and thirty-nine week periods ended September 27, 2025, as compared to the thirteen and thirty-nine week period ended September 28, 2024. This discussion should be read in conjunction with the Management’s Discussion and Analysis of Financial Condition and Results of Operations, and the Consolidated Financial Statements of the Company and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024.
Current wording
The following is a discussion of the significant factors affecting the consolidated operating results, financial condition and liquidity and cash flows of the Company for the thirteen week periods ended March 28, 2026, as compared to the thirteen week period ended March 29, 2025. This discussion should be read in conjunction with the Management’s Discussion and Analysis of Financial Condition and Results of Operations, and the Consolidated Financial Statements of the Company and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2025.
Previous wording
Net revenue. Net revenue decreased by $68.0 million, or 11.2%, to $537.5 million for the thirteen weeks ended September 27, 2025, as compared to $605.5 million for the thirteen weeks ended September 28, 2024 primarily due to decreased sales volume impacts of $82.9 million, partially offset by increased pricing of $6.3 million, and favorable product mix of $6.1 million.
Current wording
Net revenue. Net revenue decreased by $19.9 million, or 4.4%, to $433.9 million for the thirteen weeks ended March 28, 2026, as compared to $453.9 million for the thirteen weeks ended March 29, 2025 primarily due to decreased sales volume impacts of $31.4 million, partially offset by increased pricing of $9.1 million, and favorable product mix of $0.9 million.
Previous wording
The Company believes distributor inventory as of September 27, 2025 were at appropriate levels and averaged approximately four and one half weeks on hand which is within our target wholesaler inventory levels of four to five weeks. At the end of September 2024, wholesaler inventory levels were slightly above our target at five and one half weeks.
Current wording
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.
Previous wording
Net revenue per barrel. Net revenue per barrel increased by 2.8% to $277.63 per barrel for the thirteen weeks ended September 27, 2025, as compared to $269.94 per barrel for the comparable period in 2024, primarily due to increased pricing and favorable product mix.
Current wording
Net revenue per barrel. Net revenue per barrel increased by 2.7% to $277.98 per barrel for the thirteen weeks ended March 28, 2026, as compared to $270.64 per barrel for the comparable period in 2025, primarily due to increased pricing and favorable product mix.
Previous wording
Cost of goods sold. Cost of goods sold was $136.56 per barrel for the thirteen weeks ended September 27, 2025, as compared to $145.00 per barrel for the thirteen weeks ended September 28, 2024. The 2025 decrease in cost of goods sold of $8.44, or 5.8% per barrel was primarily due to contract renegotiations and recipe optimization savings of $11.3 million, or $5.84 per barrel, decreases in inventory obsolescence of $7.6 million, or $3.93 per barrel, lower third-party production costs of $6.8 million, or $3.51 per barrel, and improved brewery efficiencies of $3.0 million, or $1.55 per barrel, partially offset by inflationary impacts, including tariffs, of $12.0 million, or $6.20 per barrel.
Current wording
Cost of goods sold. Cost of goods sold was $140.92 per barrel for the thirteen weeks ended March 28, 2026, as compared to $139.90 per barrel for the thirteen weeks ended March 29, 2025. The 2026 increase in cost of goods sold of $1.02, or 0.7% per barrel was primarily due to inflationary impacts of $12.5 million, or $8.01 per barrel, partially offset by contract renegotiations and recipe optimization savings of $5.5 million, or $3.52 per barrel, improved logistics optimization of $2.7 million, or $1.73 per barrel, lower third-party production payment amortization of $2.0 million, or $1.28 per barrel, and decreases in inventory obsolescence of $0.9 million, or $0.58 per barrel.
Previous wording
Inflationary impacts of $12.0 million consist primarily of increased raw material costs of $10.4 million, inclusive of $3.5 million impact from tariffs, and increased internal brewery costs of $1.6 million.
Current wording
Inflationary impacts of $12.5 million consist primarily of increased aluminum costs of $11.0 million, inclusive of $4.3 million aluminum impact from tariffs, with total tariff-related impacts to cost of goods sold of $5.2 million, and increased internal brewery costs of $1.5 million.
Previous wording
Gross profit. Gross profit was $141.07 per barrel for the thirteen weeks ended September 27, 2025, as compared to $124.94 per barrel for the thirteen weeks ended September 28, 2024.
Current wording
Gross profit. Gross profit was $137.06 per barrel for the thirteen weeks ended March 28, 2026, as compared to $130.74 per barrel for the thirteen weeks ended March 29, 2025.
Previous wording
Advertising, promotional, and selling expenses. Advertising, promotional and selling expenses increased by $16.8 million, or 11.3%, to $164.7 million for the thirteen weeks ended September 27, 2025, as compared to $148.0 million for the thirteen weeks ended September 28, 2024, primarily due to increased brand media and local marketing investments of $20.9 million partially offset by lower freight costs of $4.1 million due to lower volumes.
Current wording
Advertising, promotional, and selling expenses. Advertising, promotional and selling expenses increased by $2.5 million, or 1.8%, to $140.1 million for the thirteen weeks ended March 28, 2026, as compared to $137.5 million for the thirteen weeks ended March 29, 2025 resulting from higher freight costs of $2.5 million due to higher rates partially offset by lower volumes. The Company’s brand investments were flat compared to the first quarter of 2025.
Previous wording
Advertising, promotional and selling expenses were 30.6% of net revenue, or $85.09 per barrel, for the thirteen weeks ended September 27, 2025, as compared to 24.4% of net revenue, or $65.98 per barrel, for the thirteen weeks ended September 28, 2024. This increase per barrel is primarily due to lower shipment volume and increased brand media and local marketing investments. The Company invests in advertising and promotional campaigns that it believes will be effective, but there is no guarantee that such investments will generate sales growth.
Current wording
Advertising, promotional and selling expenses were 32.3% of net revenue, or $89.73 per barrel, for the thirteen weeks ended March 28, 2026, as compared to 30.3% of net revenue, or $82.01 per barrel, for the thirteen weeks ended March 29, 2025. This increase per barrel is primarily due to increased freight rates. The Company invests in advertising and promotional campaigns that it believes will be effective, but there is no guarantee that such investments will generate sales growth.
Previous wording
General and administrative expenses. General and administrative expenses increased by $1.1 million, or 2.5%, to $44.9 million for the thirteen weeks ended September 27, 2025, as compared to $43.8 million for the thirteen weeks ended September 28, 2024, primarily due to higher salaries and benefits costs.
Current wording
General and administrative expenses. General and administrative expenses increased by $4.4 million, or 9.1%, to $52.3 million for the thirteen weeks ended March 28, 2026, as compared to $48.0 million for the thirteen weeks ended March 29, 2025, primarily due to higher legal and consulting costs. Excluding legal costs related to the non-recurring litigation expense discussed below, general and administrative expenses increased by $0.4 million from the first quarter of 2025 primarily due to increased consulting costs.
Previous wording
Cash and cash equivalents increased to $250.5 million as of September 27, 2025 from $211.8 million as of December 28, 2024, primarily reflecting cash provided by operating activities, partially offset by the repurchases of the Company's Class A common stock, and purchases of property, plant, and equipment.
Current wording
Cash decreased to $164.1 million as of March 28, 2026 from $223.4 million as of December 27, 2025, primarily reflecting repurchases of the Company's Class A common stock, purchases of property, plant, and equipment and changes in operating assets and liabilities that resulted in net cash used in operating activities.
Previous wording
Cash provided by operating activities consists of net income, adjusted for certain non-cash items, such as depreciation and amortization, stock-based compensation expense, and other non-cash items included in operating results, and changes in operating assets and liabilities, such as accounts receivable, inventory, accounts payable, and accrued expenses.
Current wording
Cash used in or provided by operating activities consists of net (loss) income, adjusted for certain non-cash items, such as depreciation and amortization, stock-based compensation expense, and other non-cash items included in operating results, and changes in operating assets and liabilities, such as accounts receivable, inventory, accounts payable, and accrued expenses.
Previous wording
The Company used $36.7 million in investing activities during the thirty-nine weeks ended September 27, 2025, as compared to $72.7 million during the thirty-nine weeks ended September 28, 2024. The decrease in investing activity cash outflows is due to a $20.0 million note receivable issued in the prior year and lower capital investments. For both periods, capital investments were made mostly for the Company’s production facilities to drive efficiencies and cost reductions and support product innovation and future growth.
Current wording
The Company used $12.3 million in investing activities during the thirteen weeks ended March 28, 2026, as compared to $9.8 million during the thirteen weeks ended March 29, 2025. The increase in investing activity cash outflows is due to higher investment in the breweries during the current year. For both periods, capital investments were made mostly in the Company’s breweries to drive efficiencies and cost reductions and support product innovation and future growth.
Previous wording
Cash used in financing activities was $154.9 million during the thirty-nine weeks ended September 27, 2025, as compared to $177.1 million during the thirty-nine weeks ended September 28, 2024. The financing activity cash outflows in 2025 and 2024 are comprised mostly of the repurchases of the Company's Class A common stock in the periods.
Current wording
Cash used in financing activities was $26.5 million during the thirteen weeks ended March 28, 2026, as compared to $51.4 million during the thirteen weeks ended March 29, 2025. The financing activity cash outflows in 2026 and 2025 comprised mostly of the repurchases of the Company's Class A common stock in the period.
Previous wording
During the period from December 29, 2024 through October 17, 2025, the Company repurchased and subsequently retired 709,491 shares of its Class A Common Stock for an aggregate purchase price of $161.3 million. As of October 17, 2025, the Company had repurchased a cumulative total of approximately 15.6 million shares of its Class A Common Stock for an aggregate purchase price of approximately $1.33 billion and had approximately $266 million remaining on the $1.6 billion stock repurchase expenditure limit set by the Board of Directors.
Current wording
During the period from December 28, 2025 through April 24, 2026, the Company repurchased and subs equently retired 137,912 shares of its Class A Common Stock for an aggregate purchase price of $31.2 million. As of April 25, 2026, the Company had repurchased a cumulative total of approximately 15.9 million shares of its Class A Common Stock for an aggregate purchase price of approximately $1.4 billion and had approximately $197 million remaining on the $1.6 billion stock repurchase expenditure limit set by the Board of Directors.
Previous wording
The Company expects that its cash and cash equivalents balance as of September 27, 2025 of $250.5 million, along with its projected future operating cash flow and its unused line of credit balance of $150.0 million, will be sufficient to fund future cash requirements. The Company’s $150.0 million credit facility has a term not scheduled to expire until December 16, 2027. As of the date of this filing, the Company was in compliance with its covenants to the lender under the credit facility.
Current wording
The Company expects that its cash balance as of March 28, 2026 of $164.1 million, along with its projected future operating cash flow and its unused line of credit balance of $150.0 million, will be sufficient to fund future cash requirements, including the potential litigation-related payments. The Company’s $150.0 million credit facility has a term not scheduled to expire until December 16, 2027. As of the date of this filing, the Company was not in violation of any of its covenants to the lender under the credit facility.
Previous wording
There were no material changes to the Company’s critical accounting policies during the thirteen weeks and thirty-nine weeks ended September 27, 2025.
Current wording
There were no material changes to the Company’s critical accounting policies during the three-month period ended March 28, 2026.
Previous wording
Based on the information currently available and tariff programs announced by the U.S. government as of October 17, 2025, the Company estimates tariffs will have an unfavorable cost impact for the full year 2025 of approximately $9 to $13 million or $0.60 to $0.80 earnings per diluted share. These estimates include an unfavorable gross margin impact of between 40 to 60 basis points.
Current wording
Based on the information currently available and tariff programs announced by the U.S. government, the Company estimates tariffs will have an unfavorable cost impact for the full year 2026 of approximately $20 million to $30 million.
Previous wording
In this Quarterly Report on Form 10-Q and in other documents incorporated herein, as well as in oral statements made by the Company, statements that are prefaced with the words “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “project,” “intend,” “designed” and similar expressions, are intended to identify forward-looking statements regarding events, conditions, and financial trends that may affect the Company’s future plans of operations, business strategy, results of operations and financial position. These statements are based on the Company’s current expectations and estimates as to prospective events and circumstances about which the Company can give no firm assurance. Further, any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward-looking statement to reflect subsequent events or circumstances. Forward-looking statements should not be relied upon as a prediction of actual future financial condition or results. These forward-looking statements, like any forward-looking statements, involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include the factors set forth in this Quarterly Report on Form 10-Q and in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 28, 2024.
Current wording
In this Quarterly Report on Form 10-Q and in other documents incorporated herein, as well as in oral statements made by the Company, statements that are prefaced with the words “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “project,” “intend,” “designed” and similar expressions, are intended to identify forward-looking statements regarding events, conditions, and financial trends that may affect the Company’s future plans of operations, business strategy, results of operations and financial position. These statements are based on the Company’s current expectations and estimates as to prospective events and circumstances about which the Company can give no firm assurance. Further, any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward-looking statement to reflect subsequent events or circumstances. Forward-looking statements should not be relied upon as a prediction of actual future financial condition or results. These forward-looking statements, like any forward-looking statements, involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include the factors set forth below in addition to the other information set forth in this Quarterly Report on Form 10-Q and in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 27, 2025.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Net revenue per barrel. Net revenue per barrel increased by 1.8% to $273.43 per barrel for the thirty-nine weeks ended September 27, 2025, as compared to $268.57 per barrel for the comparable period in 2024, primarily due to pricing and favorable product mix.
Previous report — wording carried elsewhere
Advertising, promotional and selling expenses were 29.3% of net revenue, or $79.98 per barrel, for the thirty-nine weeks ended September 27, 2025, as compared to 25.6% of net revenue, or $68.78 per barrel, for the thirty-nine weeks ended September 28, 2024. This increase per barrel is primarily due to lower shipment volume and increased brand media and local marketing investments. The Company invests in advertising and promotional campaigns that it believes will be effective, but there is no guarantee that such investments will generate sales growth.