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SAMNYSE· Malt Beverages· CIK 0000949870

THE BOSTON BEER COMPANY, INC.

The Boston Beer Company, Inc. · SAM2026-07-27

Boston Beer SAM Q2 2026 Earnings: The $212M Verdict Behind the Q1 Loss

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Boston Beer $SAM lost $145.3 million in the first quarter of 2026. For a company that sells Sam Adams, Truly and Twisted Tea and had earned $24.4 million in the same quarter a year earlier, that looks like a business coming apart.

It is not. Almost the entire swing was a courtroom. As a result of a jury verdict, Boston Beer recorded a non-recurring pre-tax litigation expense of $175.5 million in Q1, plus $36.5 million of accrued pre-judgment interest. Call it $212 million charged against a company whose entire market capitalization is around $1.9 billion.

Then the second quarter arrived and the beer business did what it has been doing all along: $568.3 million of net revenue, $286.4 million of gross profit, and $51.6 million of net income. The interesting question in this filing is not whether Boston Beer is broken. It is how much of a legal charge a stable, cash-generative, debt-free company can absorb before it matters.

Company Snapshot

The Boston Beer Company brews and sells Samuel Adams, Truly Hard Seltzer, Twisted Tea, Angry Orchard, Hard Mountain Dew and Sun Cruiser. It is unusual among consumer names for its share count: roughly 10.4 million shares, which makes per-share figures large and headline earnings volatile.

This analysis covers the Form 10-Q for the thirteen weeks ended June 27, 2026, filed July 23, 2026, with reference to the Q1 filing of April 30, 2026. All figures come from those filings unless attributed otherwise.

The Financial Story

Take the second quarter on its own terms first, because it is the clean look at the business.

Q2 2026vs Q2 2025
Net revenue$568.3M-3.3% from $587.9M
Gross profit$286.4M50.4% margin
Operating income$70.8M
Net income$51.6M-14.6% from $60.4M
Diluted EPS$4.96

Revenue slipped 3.3%. Gross margin held above 50%, which is the number that matters most for a brewer and is genuinely strong. Advertising, promotional and selling expense ran $185.9 million, with brand and selling costs up $17.6 million on increased local marketing. General and administrative was $48.9 million. Net income of $51.6 million on $568.3 million of revenue is a 9.1% net margin.

This is a slightly shrinking, highly profitable consumer business. Nothing in that paragraph is a crisis.

Now the litigation. The Q1 charge was $175.5 million of pre-tax litigation expense plus $36.5 million of estimated pre-judgment interest, recorded following a jury verdict. That single item is the difference between a normal quarter and a $145.3 million loss. In Q2, the company recorded a partial reversal: the filing describes a net pre-tax benefit of $18.0 million from these items in the second quarter, which shows up in the income statement as a $19.4 million litigation settlement expense reduction.

So the running tally is roughly $212 million charged, about $18 million credited back, and an outcome that is not yet final.

Two things are worth holding onto here. First, this is an accrual, not a cash payment: the company has recorded the expense based on the verdict, and pre-judgment interest continues to accrue while the matter proceeds. Second, the reversal in Q2 tells you the estimate is being actively revised, which cuts both ways.

The Q1 revenue comparison also deserves a caveat that most coverage skipped. Management attributes the difficult Q1 comparison partly to distributors having built inventories in Q1 2025 to support the Sun Cruiser and Truly Unruly launches. That is a shipment-timing effect, not a demand collapse.

The balance sheet is the reason this is survivable. Cash is $265.5 million. Total assets are $1,255.1 million against total liabilities of $540.5 million, leaving $714.6 million of shareholders' equity and no meaningful debt. A company with no debt and a quarter-billion in cash can absorb a nine-figure legal charge in a way a levered one cannot.

Valuation

At roughly $180 per share (stockanalysis.com, July 2026), market capitalization sits near $1.9 billion on about 10.4 million shares. Net of $265.5 million of cash and with no meaningful debt, enterprise value is approximately $1.6 billion.

The valuation question reduces to what you believe normalized earnings are. Q2 delivered $51.6 million of net income. Annualizing a single quarter is crude for a seasonal brewer, but four quarters at that level would be roughly $200 million, which puts the enterprise near 8x normalized earnings. That is not a growth multiple; it is a multiple for a business the market expects to keep shrinking slowly.

ScenarioRevenue trajectoryNormalized net incomeImplied EVImplied per share
Bearkeeps declining 4-5%/yr~$140M~$1.1B~$132
Baseroughly flat~$190M~$1.5B~$170
Bullstabilizes, seltzer bottoms~$240M~$1.9B~$208

Assumptions, stated plainly: an 8x EV to net income multiple typical of a slow-declining branded consumer business, cash held at $265.5 million with no debt, share count flat at 10.4 million, and the litigation resolved without further material charge. That last assumption is doing real work and is the single largest uncertainty in the table. Implied values under stated assumptions. Not price targets, not investment advice.

Risks

The obvious risk is the verdict itself. The amount is accrued, not settled, and pre-judgment interest accrues while it remains open. An adverse final outcome larger than the accrual would take another bite; a favorable appeal would release part of it. The $18.0 million Q2 benefit shows the number moves.

Second, the underlying trend is down, not flat. Revenue fell 3.3% in a quarter with increased brand spending behind it, and the hard-seltzer category that carried this company through the last cycle is no longer a growth engine. Spending $17.6 million more on brand marketing to still print a 3.3% decline is not a comfortable combination.

Third, the small share count amplifies everything. With 10.4 million shares, per-share results swing hard on items that would be noise at a larger company, and the stock reflects that volatility.

The Bottom Line

Boston Beer is the cleanest recent example of why reading past the headline number matters. A $145.3 million quarterly loss and a $51.6 million quarterly profit, two quarters apart, describe the same company doing roughly the same thing. The difference was a jury.

What to watch is not the legal docket but the line beneath it: net revenue and gross margin. Gross margin above 50% with no debt and $265 million of cash is what makes the litigation an event rather than a threat. If revenue keeps sliding 3% a quarter while marketing spend rises, that will matter long after the verdict is settled.


Every figure in this analysis was pulled directly from Boston Beer's SEC filings via the RoboSystems shared data repository. Run your own queries on any public company at robosystems.ai.

This is not investment advice. No price targets. Implied values are illustrative under the stated assumptions.

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Financial statements

Financial statements from the 10-Q for Q3 2026 (unaudited), filed 2026-10-22. Every figure is traceable to the filing's XBRL facts.

Revenue
$520.1M
Quarter ending 2026-09-26
Net income
$43.2M
Quarter ending 2026-09-26
Total assets
$1.2B
as of 2026-09-26
Cash
$308.1M
as of 2026-09-26

Condensed Consolidated Balance Sheets

In thousands
Reporting EntityTHE BOSTON BEER COMPANY, INC.
Dec 27, 2025Sep 26, 2026
Statement of Financial Position
Assets
Current Assets:
Cash and cash equivalents$223,400$308,100
Accounts receivable, net$57,094$83,032
Inventories, net$92,532$98,078
Prepaid expenses and other current assets$20,316$24,668
Income tax receivable$24,259$2,096
Total current assets$417,579$515,946
Property, plant, and equipment, net$578,125$542,645
Operating right-of-use assets$30,229$23,000
Goodwill$112,529$112,529
Intangible assets, net$14,753$13,483
Third-party production prepayments$7,099$5,324
Note receivable$11,218$7,826
Other assets$22,063$18,635
Total assets$1,193,595$1,239,388
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable$94,975$107,640
Accrued expenses and other current liabilities$144,797$146,382
Accrued litigation expenses$194,471
Current operating lease liabilities$12,762$7,871
Total current liabilities$252,534$456,364
Deferred income taxes, net$64,785$21,524
Non-current operating lease liabilities$25,111$21,667
Other liabilities$4,885$4,103
Total liabilities$347,315$503,658
Commitments and Contingencies (See Note I)——
Stockholders' Equity:
Common Stock
Common Class A$84$81
Common Class B$21$21
Additional paid-in capital$698,811$713,081
Accumulated other comprehensive loss$(380)$(587)
Retained earnings$147,744$23,134
Total stockholders' equity$846,280$735,730
Total liabilities and stockholders' equity$1,193,595$1,239,388

Condensed Consolidated Statements of Comprehensive Operations

In thousands, except per-share amounts
Reporting EntityTHE BOSTON BEER COMPANY, INC.
Three months endedNine months ended
Sep 27, 2025Sep 26, 2026Sep 27, 2025Sep 26, 2026
Income Statement
Revenue$571,476$555,458$1,678,258$1,624,792
Less excise taxes$33,982$35,357$98,948$102,423
Net revenue$537,494$520,101$1,579,310$1,522,369
Cost of goods sold$264,377$251,023$794,412$752,960
Gross profit$273,117$269,078$784,898$769,409
Operating expenses:
Advertising, promotional, and selling expenses$164,739$165,182$461,987$491,138
General and administrative expenses$44,913$42,855$138,615$144,035
Impairment of brewery assets$1,416$2,888$6,401$3,124
Litigation expense$1,824$194,471
Total operating expenses$211,068$212,749$607,003$832,768
Operating income (loss)$62,049$56,329$177,895$(63,359)
Other income, net:
Interest income, net$2,696$2,714$7,320$6,604
Other expense, net$(595)$(138)$(1,168)$(950)
Total other income, net$2,101$2,576$6,152$5,654
Income (loss) before income tax provision (benefit)$64,150$58,905$184,047$(57,705)
Income tax provision (benefit)$17,995$15,739$53,047$(7,176)
Net income (loss)$46,155$43,166$131,000$(50,529)
Net income (loss) per common share - basic$4.25$4.21$11.83$(4.87)
Net income (loss) per common share - diluted$4.25$4.21$11.82$(4.87)
Weighted-average number of common shares - basic10,855,00010,254,00011,073,00010,369,000
Weighted-average number of common shares - diluted10,830,00010,224,00011,050,00010,369,000
Other comprehensive income (loss):
Foreign currency translation adjustment$(161)$27$233$(207)
Total other comprehensive income (loss)$(161)$27$233$(207)
Comprehensive income (loss)$45,994$43,193$131,233$(50,736)

Condensed Consolidated Statements of Cash Flows

In thousands
Reporting EntityTHE BOSTON BEER COMPANY, INC.
Nine months ended
Sep 27, 2025Sep 26, 2026
Statement of Cash Flows
Cash flows provided by operating activities:
Net (loss) income$131,000$(50,529)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization$67,726$63,478
Impairment of brewery assets$6,401$3,124
Gain on sale of property, plant, and equipment$(47)$(88)
Litigation expense$194,471
Change in right-of-use assets$(5,654)$8,342
Stock-based compensation expense$14,408$15,126
Deferred income taxes$(15,496)$(43,261)
Other non-cash income$(32)$(374)
Changes in operating assets and liabilities:
Accounts receivable$(22,866)$(25,961)
Inventories$13,816$(6,585)
Prepaid expenses and other current assets$(3,329)$(4,502)
Income tax receivable$4,925$22,163
Third-party production prepayments$6,058$1,775
Brewery-related assets and cloud computing$4,975$4,968
Other non-current assets$(1,148)$(498)
Accounts payable$16,042$14,320
Accrued expenses and other current liabilities$8,205$7,916
Operating lease liabilities$4,958$(9,450)
Other non-current liabilities$276$(233)
Net cash provided by operating activities$230,218$194,202
Cash flows used in investing activities:
Purchases of property, plant, and equipment$(36,717)$(31,234)
Proceeds from disposal of property, plant, and equipment$47$88
Net cash used in investing activities$(36,670)$(31,146)
Cash flows used in financing activities:
Repurchases and retirement of Class A common stock$(152,423)$(75,338)
Proceeds from exercise of stock options and sale of investment shares$1,242$1,495
Cash paid on finance leases$(1,288)$(1,092)
Payment of tax withholding on stock-based payment awards and investment shares$(2,444)$(3,427)
Net cash used in financing activities$(154,913)$(78,362)
Change in cash and cash equivalents$38,635$84,694
Cash and cash equivalents at beginning of period$211,819$223,378
Cash and cash equivalents at end of period$250,454$308,072
Supplemental disclosure of cash flow information:
Income tax payment, net$(54,215)$(9,150)
Cash paid for amounts included in measurement of lease liabilities
Operating cash outflows from operating leases$9,899$10,376
Operating cash outflows from finance leases$101$35
Financing cash outflows from finance leases$1,288$1,092
Right-of-use assets obtained in exchange for operating lease obligations$13,630$1,114
Right-of-use-assets obtained in exchange for finance lease obligations$271
Decrease in accounts payable for purchases of property, plant, and equipment$(1,111)$(1,655)
Non-cash financing activity - decrease in accrued excise taxes on share repurchases$(899)$(1,274)
Non-cash investing activity - application of supplier shortfall fees to reduce notes receivable and accrued expenses$6,008$3,937

Condensed Consolidated Statements of Stockholders' Equity

In thousands, except per-share amounts
Reporting EntityTHE BOSTON BEER COMPANY, INC.
Three months endedNine months ended
Mar 29, 2025Jun 28, 2025Sep 27, 2025Mar 28, 2026Jun 27, 2026Sep 26, 2026Sep 26, 2026
Statement of Stockholders' Equity
Common Class A · Common Stock$93$91$89$84$83$82$84
Common Class B · Common Stock$21$21$21$21$21$21$21
Additional Paid-in Capital$676,454$682,334$687,416$698,811$704,344$709,867$698,811
AOCI Attributable to Parent$(696)$(547)$(302)$(380)$(487)$(614)$(380)
Retained Earnings$240,315$215,111$225,115$147,744$(21,367)$5,216$147,744
Balance$916,187$897,010$912,339$846,280$682,594$714,572$846,280
Balance (in shares)
Common Class A · Common Stock9,263,0009,093,0008,878,0008,408,0008,343,0008,224,0008,408,000
Common Class B · Common Stock2,068,0002,068,0002,068,0002,068,0002,068,0002,068,0002,068,000
Retained Earnings$24,412$60,433$46,155$(145,261)$51,567$43,166
Net Income (Loss)$24,412$60,433$46,155$(145,261)$51,567$43,166$(50,529)
Common Class A · Common Stock————
Additional Paid-in Capital$10$28$(333)$(871)$457$(442)
Stock options exercised and restricted shares activities$10$28$(333)$(871)$457$(442)
Common Class A · Common Stock32,0002,0003,00042,0005,0003,000
Stock options exercised and restricted shares activities (in shares)3,120
Additional Paid-in Capital$5,870$5,054$3,484$6,404$5,066$3,656
Stock-based compensation expense$5,870$5,054$3,484$6,404$5,066$3,656
Common Class A · Common Stock$(2)$(2)$(3)$(1)$(1)$(1)
Retained Earnings$(49,616)$(50,429)$(50,497)$(23,850)$(24,984)$(25,248)
Repurchase and retirement of Class A Common Stock$(49,618)$(50,431)$(50,500)$(23,851)$(24,985)$(25,249)
Repurchase and retirement of Class A Common Stock (in shares)
Common Class A · Common Stock(202,000)(217,000)(236,000)(107,000)(124,000)(140,000)
AOCI Attributable to Parent$149$245$(161)$(107)$(127)$27
Foreign currency translation adjustment$149$245$(161)$(107)$(127)$27$(207)
Common Class A · Common Stock$91$89$86$83$82$81$81
Common Class B · Common Stock$21$21$21$21$21$21$21
Additional Paid-in Capital$682,334$687,416$690,567$704,344$709,867$713,081$713,081
AOCI Attributable to Parent$(547)$(302)$(463)$(487)$(614)$(587)$(587)
Retained Earnings$215,111$225,115$220,773$(21,367)$5,216$23,134$23,134
Balance$897,010$912,339$910,984$682,594$714,572$735,730$735,730
Balance (in shares)
Common Class A · Common Stock9,093,0008,878,0008,645,0008,343,0008,224,0008,087,0008,087,000
Common Class B · Common Stock2,068,0002,068,0002,068,0002,068,0002,068,0002,068,0002,068,000

Primary statements only; the notes, dimensional breakdowns and fact inspection are in the viewer. Source: SEC EDGAR, accession 0001193125-26-428979.

Filings

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