Boston Beer Co Inc filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $1.9 billion, falling 3.7% on the year before. That growth rate improved by 2.3 percentage points compared to a quarter earlier.
What the company earns
At the bottom line, the company is losing money. The trailing gross margin stood at 49.1%, while the trailing operating margin was negative at −5.1%, down 11.2 percentage points from a year earlier. Meanwhile, the trailing net margin was negative at −3.8%. Over the twelve months, the company recorded a net loss of $73.1 million.
Where the cash went
On a cash basis, the picture improves. Operating cash flow over the twelve months reached $234.1 million, down 14.0% on the year before. Capital spending totaled $49.1 million, or 2.6% of revenue. Consequently, free cash flow, defined as operating cash flow less capital spending, was $185.1 million, down 12.7% on the year before. This represented a free-cash-flow margin of 9.7% of revenue, down 1.0 percentage points from a year earlier.
The share base
The average diluted share count fell 6.6% over the year.
How today compares
In the context of past results: today’s free-cash-flow margin of 9.7% is higher than 67% of the company’s own past quarterly readings, which have ranged from −5.6% to 14.0%. Today’s operating margin of −5.1% is below every past reading (−4.7% to 17.2%). Today’s twelve-month revenue growth rate of −3.7% is higher than 20% of past readings (−8.3% to 46.8%).
The valuation angle
Our model translates these figures into value. In our model, growth 5 percentage points lower would lower the value by 22.9%, and 5 percentage points higher would raise it by 30.1%. A free-cash-flow margin 1 percentage point lower would lower it by 9.4%.
What comes next
The next filing will show whether the trends above continue, slow or reverse.
