BellRing Brands (BRBR)

Nutrition products company Bellring Brands (NYSE:BRBR) announced better-than-expected revenue in Q2 CY2025, with sales up 6.2% year on year to $547.5 million. The company expects the full year’s revenue to be around $2.3 billion, close to analysts’ estimates. Its non-GAAP profit of $0.55 per share was 9.9% above analysts’ consensus estimates.

Company Overview

Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.

As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.

Competitors offering health and wellness supplements and products include The Simply Good Foods Company (NASDAQ:SMPL), Herbalife (NYSE:HLF), and Usana Health Sciences (NYSE:USNA) .

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.

With $2.22 billion in revenue over the past 12 months, BellRing Brands is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. On the bright side, it can grow faster because it has a longer list of untapped store chains to sell into.

As you can see below, BellRing Brands grew its sales at an impressive 18.6% compounded annual growth rate over the last three years as consumers bought more of its products.

This quarter, BellRing Brands reported year-on-year revenue growth of 6.2%, and its $547.5 million of revenue exceeded Wall Street’s estimates by 3%.

Looking ahead, sell-side analysts expect revenue to grow 12% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is healthy and suggests the market is forecasting success for its products.

Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.

To analyze whether BellRing Brands generated its growth from changes in price or volume, we can compare its volume growth to its organic revenue growth, which excludes non-fundamental impacts on company financials like mergers and currency fluctuations.

Over the last two years, BellRing Brands’s average quarterly volume growth of 20.1% has outpaced the competition by a long shot. In the context of its 19.5% average organic revenue growth, we can see that most of the company’s gains have come from more customers purchasing its products.

In BellRing Brands’s Q2 2025, sales volumes jumped 3.5% year on year. This result was a meaningful deceleration from its historical levels. We’ll be watching BellRing Brands closely to see if it can reaccelerate demand for its products.

BellRing Brands’s unit economics are higher than the typical consumer staples company, giving it the flexibility to invest in areas such as marketing and talent to reach more consumers. As you can see below, it averaged a decent 34.9% gross margin over the last two years. Said differently, BellRing Brands paid its suppliers $65.06 for every $100 in revenue.

In Q2, BellRing Brands produced a 35.4% gross profit margin, down 1.5 percentage points year on year but still exceeding analysts’ estimates by 1.6%. Zooming out, however, BellRing Brands’s full-year margin has been trending up over the past 12 months, increasing by 1.1 percentage points. If this move continues, it could suggest better unit economics due to more leverage from its growing sales on the fixed portion of its cost of goods sold (such as manufacturing expenses).

BellRing Brands has been an efficient company over the last two years. It was one of the more profitable businesses in the consumer staples sector, boasting an average operating margin of 17.4%.

Looking at the trend in its profitability, BellRing Brands’s operating margin decreased by 2 percentage points over the last year. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

This quarter, BellRing Brands generated an operating margin profit margin of 8.2%, down 13.5 percentage points year on year. Since BellRing Brands’s operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, and administrative overhead increased.

Revenue trends explain a company’s historical growth, but the change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

In Q2, BellRing Brands reported adjusted EPS at $0.55, up from $0.54 in the same quarter last year. This print beat analysts’ estimates by 9.9%. Over the next 12 months, Wall Street expects BellRing Brands’s full-year EPS of $2.17 to grow 11.4%.

If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.

BellRing Brands has shown robust cash profitability, giving it an edge over its competitors and the ability to reinvest or return capital to investors. The company’s free cash flow margin averaged 9.2% over the last two years, quite impressive for a consumer staples business.

EPS and free cash flow tell us whether a company was profitable while growing its revenue. But was it capital-efficient? A company’s ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity).

BellRing Brands’s five-year average ROIC was 47.4%, placing it among the best consumer staples companies. This illustrates its management team’s ability to invest in highly profitable ventures and produce tangible results for shareholders.

BellRing Brands reported $43.7 million of cash and $1.01 billion of debt on its balance sheet in the most recent quarter. As investors in high-quality companies, we primarily focus on two things: 1) that a company’s debt level isn’t too high and 2) that its interest payments are not excessively burdening the business.

With $480.7 million of EBITDA over the last 12 months, we view BellRing Brands’s 2.0× net-debt-to-EBITDA ratio as safe. We also see its $27 million of annual interest expenses as appropriate. The company’s profits give it plenty of breathing room, allowing it to continue investing in growth initiatives.

We enjoyed seeing BellRing Brands beat analysts’ organic revenue growth, total revenue, and EBITDA expectations this quarter. That full-year revenue guidance was reaffirmed shows that the business is on track. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $54.00 immediately following the results.

Updated: November 8, 2025 at 9:39 PM EST

Before making an investment decision, investors should account for BellRing Brands’s business fundamentals and valuation in addition to what happened in the latest quarter.

BellRing Brands is a fine business. First off, its revenue growth was impressive over the last three years. And while its cash profitability fell over the last year, its volume growth has been in a league of its own. On top of that, its stellar ROIC suggests it has been a well-run company historically.

BellRing Brands’s P/E ratio based on the next 12 months is 13.2x. Looking at the consumer staples landscape right now, BellRing Brands trades at a pretty interesting price. If you trust the business and its direction, this is an ideal time to buy.

Wall Street analysts have a consensus one-year price target of $50 on the company (compared to the current share price of $29.27), implying they see 70.8% upside in buying BellRing Brands in the short term.