📊 BROS Key Takeaways
Is Dutch Bros Inc. (BROS) a Good Investment?
Dutch Bros demonstrates solid revenue growth of 27.9% YoY with improving operational efficiency (9.8% operating margin) and healthy free cash flow generation of $54.4M. However, net income declined 31.9% despite revenue growth, and elevated insider transactions combined with thin 4.9% net margins and capital intensity concerns warrant a cautious stance on fundamental quality.
Dutch Bros shows strong top-line momentum with revenue up 27.9% year over year while remaining solidly profitable at the operating and net income levels. Financial health looks sound, with good liquidity, manageable leverage, and positive free cash flow, although thin net margins and a sharp decline in net income suggest growth is still carrying execution risk. Overall, the fundamentals support a constructive view, but the business still needs to prove that rapid expansion can translate into more consistent bottom-line improvement.
Why Buy Dutch Bros Inc. Stock? BROS Key Strengths
- Strong top-line growth of 27.9% YoY with $1.6B revenue demonstrates market expansion
- Positive free cash flow of $54.4M shows ability to fund growth and operations from cash generation
- Conservative leverage with 0.30x debt-to-equity ratio and strong balance sheet with $269.4M cash
- Operating income growth to $161.2M reflects improving operational efficiency and scale benefits
- Revenue growth is strong at 27.9% year over year, indicating continued demand and expansion traction
- Balance sheet and liquidity are healthy, with a 1.49x current ratio, 1.28x quick ratio, and low 0.30x debt-to-equity
- Operating cash flow of $295.55M and positive free cash flow show the business is funding growth without obvious balance-sheet strain
BROS Stock Risks: Dutch Bros Inc. Investment Risks
- Net income declined 31.9% YoY despite 27.9% revenue growth indicates deteriorating profitability quality and cost pressures
- Thin net margin of 4.9% leaves limited room for operational errors and provides weak cushion against market headwinds
- Capital expenditure of $241.1M against $295.5M operating cash flow suggests high capital intensity with 81.5% of OCF committed to capex
- Elevated insider transactions (18 Form 4 filings in 90 days) may signal management confidence uncertainty or stock option exercises
- Net income fell 31.9% year over year, which raises questions about earnings durability despite higher revenue
- Net margin remains modest at 4.9%, leaving limited room for cost pressure or execution mistakes
- Capital expenditures are very high relative to cash generation, which could keep free cash flow constrained during expansion
Key Metrics to Watch
- Net income trend and net margin expansion - critical to validate profitability recovery
- Free cash flow sustainability and capex efficiency - monitor if FCF margin improves above 3.3%
- Same-store sales growth and unit economics - key to validate organic growth quality beyond unit count expansion
- Operating leverage improvement - watch if operating margin can expand further with revenue scale
- Net income and net margin trend
- Free cash flow conversion after capital expenditures
Dutch Bros Inc. (BROS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.3% FCF margin may limit capital allocation flexibility.
BROS Profit Margin, ROE & Profitability Analysis
BROS vs Consumer Sector: How Dutch Bros Inc. Compares
How Dutch Bros Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Dutch Bros Inc. Stock Overvalued? BROS Valuation Analysis 2026
Based on fundamental analysis, Dutch Bros Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Dutch Bros Inc. Balance Sheet: BROS Debt, Cash & Liquidity
BROS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Dutch Bros Inc.'s revenue has grown significantly by 229% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.03 reflects profitable operations.
BROS Revenue Growth, EPS Growth & YoY Performance
BROS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $338.2M | $12.6M | $0.11 |
| Q2 2025 | $324.9M | $11.9M | $0.12 |
| Q1 2025 | $275.1M | $7.1M | $0.08 |
| Q3 2024 | $264.5M | $3.1M | $0.05 |
| Q2 2024 | $249.9M | -$1.1M | $-0.02 |
| Q1 2024 | $197.3M | -$3.8M | $-0.07 |
| Q3 2023 | $198.6M | $1.8M | $0.03 |
| Q2 2023 | $186.4M | -$906.0K | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Dutch Bros Inc. Dividends, Buybacks & Capital Allocation
BROS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Dutch Bros Inc. (CIK: 0001866581)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BROS
What is the AI rating for BROS?
Dutch Bros Inc. (BROS) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BROS's key strengths?
Claude: Strong top-line growth of 27.9% YoY with $1.6B revenue demonstrates market expansion. Positive free cash flow of $54.4M shows ability to fund growth and operations from cash generation. ChatGPT: Revenue growth is strong at 27.9% year over year, indicating continued demand and expansion traction. Balance sheet and liquidity are healthy, with a 1.49x current ratio, 1.28x quick ratio, and low 0.30x debt-to-equity.
What are the risks of investing in BROS?
Claude: Net income declined 31.9% YoY despite 27.9% revenue growth indicates deteriorating profitability quality and cost pressures. Thin net margin of 4.9% leaves limited room for operational errors and provides weak cushion against market headwinds. ChatGPT: Net income fell 31.9% year over year, which raises questions about earnings durability despite higher revenue. Net margin remains modest at 4.9%, leaving limited room for cost pressure or execution mistakes.
What is BROS's revenue and growth?
Dutch Bros Inc. reported revenue of $1.6B.
Does BROS pay dividends?
Dutch Bros Inc. does not currently pay dividends.
Where can I find BROS SEC filings?
Official SEC filings for Dutch Bros Inc. (CIK: 0001866581) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BROS's EPS?
Dutch Bros Inc. has a diluted EPS of $0.64.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BROS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Dutch Bros Inc. has a BUY rating with 68% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is BROS stock overvalued or undervalued?
Valuation metrics for BROS: ROE of 11.7% (sector avg: 18%), net margin of 4.9% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy BROS stock in 2026?
Our dual AI analysis gives Dutch Bros Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BROS's free cash flow?
Dutch Bros Inc.'s operating cash flow is $295.5M, with capital expenditures of $241.1M. FCF margin is 3.3%.
How does BROS compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 4.9% (avg: 8%), ROE 11.7% (avg: 18%), current ratio 1.49 (avg: 1.5).