Revenue growth has moderated from 40% in 2024Q2 to roughly 30% in 2026Q3, while operating margin fell to 9.6% and net margin to 4.9%, suggesting per-shop economics are under pressure as expansion accelerates.
Dutch Bros Inc. (BROS) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 2.01B | 1.64B | 1.28B | 965.78M | 739.01M | 497.88M | 327.41M | 238.37M |
| Revenue Growth % | 30.66% | 27.88% | 32.64% | 30.68% | 48.43% | 52.06% | 37.36% | - |
| Cost of Goods Sold | 1.51B | 1.21B | 940.89M | 714.48M | 558.1M | 344.57M | 211.48M | 142.31M |
| COGS % of Revenue | - | 74.12% | 73.45% | 73.98% | 75.52% | 69.21% | 64.59% | 59.7% |
| Gross Profit | 496M | 423.95M | 340.13M | 251.3M | 180.92M | 153.3M | 115.94M | 96.06M |
| Gross Margin % | 24.69% | 25.88% | 26.55% | 26.02% | 24.48% | 30.79% | 35.41% | 40.3% |
| Gross Profit Growth % | - | 24.64% | 35.35% | 38.9% | 18.01% | 32.23% | 20.69% | - |
| Operating Expenses | 302.91M | 262.77M | 234.04M | 205.07M | 183.53M | 264.53M | 104.94M | 65.76M |
| OpEx % of Revenue | - | 16.04% | 18.27% | 21.23% | 24.83% | 53.13% | 32.05% | 27.59% |
| Selling, General & Admin | 301.67M | 259.39M | 234.04M | 205.07M | 183.53M | 264.53M | 104.94M | 65.76M |
| SG&A % of Revenue | - | 15.83% | 18.27% | 21.23% | 24.83% | 53.13% | 32.05% | 27.59% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 3.38M | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 193.09M | 161.18M | 106.09M | 46.22M | -2.61M | -111.23M | 11M | 30.3M |
| Operating Margin % | 9.61% | 9.84% | 8.28% | 4.79% | -0.35% | -22.34% | 3.36% | 12.71% |
| Operating Income Growth % | - | 51.92% | 129.53% | 1869.6% | 97.65% | -1111.15% | -63.69% | - |
| EBITDA | 330.46M | 276.31M | 199.1M | 115.36M | 42.12M | -86.01M | 26.54M | 39.97M |
| EBITDA Margin % | 16.45% | 16.87% | 15.54% | 11.94% | 5.7% | -17.28% | 8.11% | 16.77% |
| EBITDA Growth % | 31.18% | 38.78% | 72.59% | 173.9% | 148.97% | -424.11% | -33.6% | - |
| D&A (Non-Cash Add-back) | 137.37M | 115.13M | 93M | 69.14M | 44.73M | 25.22M | 15.54M | 9.67M |
| EBIT | 181M | 163.93M | 111.91M | 49.24M | 1.36M | -112.47M | 10.64M | 30.82M |
| Net Interest Income | -14.32M | -28.3M | -27.02M | -32.32M | -18.02M | -7.09M | -3.74M | -2.35M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 14.32M | 28.3M | 27.02M | 32.32M | 18.02M | 7.09M | 3.74M | 2.35M |
| Other Income/Expense | -24.68M | -25.56M | -21.21M | -29.3M | -14.04M | -8.33M | -4.1M | -1.82M |
| Pretax Income | 168.41M | 135.62M | 84.89M | 16.92M | -16.65M | -119.56M | 6.9M | 28.48M |
| Pretax Margin % | 8.38% | 8.28% | 6.63% | 1.75% | -2.25% | -24.01% | 2.11% | 11.95% |
| Income Tax | 26.76M | 18.35M | 18.43M | 6.97M | 2.6M | -1.63M | 1.18M | 89K |
| Effective Tax Rate % | 15.89% | 13.53% | 21.72% | 41.18% | -15.61% | 1.36% | 17.04% | 0.31% |
| Net Income | 102.03M | 79.84M | 35.26M | 1.72M | -4.75M | -12.68M | 5.72M | 28.39M |
| Net Margin % | 5.08% | 4.87% | 2.75% | 0.18% | -0.64% | -2.55% | 1.75% | 11.91% |
| Net Income Growth % | 64.35% | 126.45% | 1952.27% | 136.15% | 62.51% | -321.47% | -79.83% | - |
| Net Income (Continuing) | 141.65M | 117.28M | 66.45M | 9.95M | -19.25M | -117.93M | 5.72M | 28.39M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 179.34M | 217.05M | 226.5M | 311.58M | 122.86M | 119.21M | 0 | 0 |
| EPS (Diluted) | 0.74 | 0.63 | 0.31 | 0.03 | -0.09 | -0.28 | 0.00 | 0.61 |
| EPS Growth % | 55.6% | 103.23% | 1019.13% | 130.24% | 67.29% | - | -100% | - |
| EPS (Basic) | - | 0.64 | 0.31 | 0.03 | -0.09 | -0.28 | 0.00 | 0.61 |
| Diluted Shares Outstanding | 138.18M | 125.76M | 114.75M | 62.07M | 51.87M | 45.86M | 46.75M | 46.75M |
| Basic Shares Outstanding | 137.94M | 125.33M | 114.24M | 62.07M | 51.87M | 45.86M | 46.75M | 46.75M |
| Dividend Payout Ratio | - | - | - | - | - | - | 135.37% | - |
Quick answers to the most common questions about buying BROS stock.
For fiscal year 2025, Dutch Bros Inc. (BROS) reported total revenue of $1.64B. This represents a 587.2% increase compared to $238.4M in 2019.
Dutch Bros Inc. (BROS) is profitable, generating $79.8M in net income for the fiscal year ending 2025 with a net profit margin of 4.9%.
Dutch Bros Inc. (BROS) reported an operating income of $161.2M, resulting in an operating profit margin of 9.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Dutch Bros Inc. (BROS) generated $423.9M in gross profit for the year, representing a gross profit margin of 25.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
California wage mandate pressure
Metrics are mathematically derived from official filings.
Revenue Growth Moderating From Peak Pace
Based on reported figures, BROS revenue growth stepped down from 40% in 2024Q2 to roughly 30% in 2026Q3, with Q3 revenue of $549.8M still expanding but at a slower rate than the prior year.
The deceleration appears to reflect a maturing of the early high-growth cohort rather than a demand break, since same-shop metrics cited in recent disclosures remain positive. The growth mix is weighted toward company-operated shop additions, which suggests absolute dollar growth is being bought through unit expansion rather than pricing or traffic alone. Investors should monitor whether growth holds in the high-20s range as the base enlarges, because sustaining that pace increasingly depends on opening cadence.
Gross Margin Tied to Shop Mix
As reported in financial statements, BROS gross margin ranged between 22.8% and 28.9% over ten quarters, with the most recent 24.0% sitting below the 2025Q2 peak of 28.9%.
The swing in gross margin appears structurally linked to the company-operated mix, where labor and dairy costs sit directly in cost of sales rather than being absorbed by franchisees. Compression in the most recent quarters is consistent with rising labor intensity and newer shops not yet at mature throughput. This suggests gross margin recovery depends more on AUV maturation than on pricing power alone.
Operating Leverage Weakening Recently
Based on EDBL-style reporting logic applied to BROS figures, operating margin fell from 13.1% in 2025Q2 to 9.6% in 2026Q3 as SG&A grew to $79.0M, outpacing gross profit gains.
Operating income declined in the last two quarters even as gross profit held near $131.8M to $151.1M, indicating overhead and pre-opening costs absorbed incremental gross profit. This pattern may indicate that expansion spending is currently suppressing the leverage a maturing unit base would otherwise produce. Investors should watch whether SG&A growth decelerates relative to revenue in coming periods.
Net Income Thinner Than Operating Trend
According to recent SEC filings, BROS net margin of 4.9% in 2026Q3 sits roughly half its 9.6% operating margin, implying a substantial gap between operating and bottom-line profitability.
The spread between operating and net margin is wide, which may reflect tax, interest, or other non-operating items that the supplied data does not break out. Stock-based compensation of $7.0M per quarter is a recurring bridge item that reduces comparability with non-GAAP figures. Investors should treat reported EPS of $0.20 with caution until the drivers of the operating-to-net gap are clarified.
Expansion Could Dilute Shop Economics
Based on reported figures, BROS operating margin compressed from 13.1% to 9.6% within a year while unit expansion accelerated, raising the possibility that new shops are diluting per-unit returns.
The bear case is that aggressive density-driven openings may cannibalize existing shops and carry pre-opening costs that flatter future growth at the expense of current margins. California's minimum wage step-up applies to one of the densest markets, leaving limited margin cushion at a 9.8% operating margin. If same-shop growth weakens while labor costs rise, the margin compression observed recently could persist longer than the market currently assumes.