Dutch Bros Inc.BROS

Dutch Bros Inc. Revenue Disclosure

10-KFiled Feb 13, 20262 min read
NOTE 3 — Revenue Recognition
Revenue
The following table disaggregates revenue by major component:
Year Ended December 31,
(in thousands)202520242023
Company-operated shops$1,509,329 $1,165,830 $857,939 
Franchising122,046 109,610 101,907 
Other6,784 5,575 5,930 
Total revenues$1,638,159 $1,281,015 $965,776 
Deferred Revenue
Components of our deferred revenue liability are as follows:
(in thousands)December 31, 2025December 31, 2024
Gift card and loyalty programs
$62,014 $48,265 
Initial unearned franchise fees
2,562 2,618 
Total deferred revenue$64,576 $50,883 

Deferred revenue activity was as follows:
Year Ended December 31,
(in thousands)20252024
Beginning balance$50,883 $37,025 
Revenue deferred 1
567,005 419,107 
Revenue recognized 2
(553,256)(405,458)
Other deferred revenue, net
(56)209 
Ending balance64,576 50,883 
Less: current portion(55,658)(42,868)
Deferred revenue, net of current portion$8,918 $8,015 
_______________
1 Revenue deferred includes gift card activations, loyalty app cash loads and loyalty points and rewards earned.
2 Revenue recognized includes redemptions of gift cards, loyalty app and loyalty rewards redemptions, and breakage.
Revenue recognized during each of the three years in the period ended December 31, 2025, that was included in the respective deferred revenue liability balances at the beginning of the period, are shown below.
Year Ended December 31,
(in thousands)202520242023
Gift card redemptions 1
$8,072 $6,215 $5,149 
Earned franchise fees430 450 454 
_____________________
1    Amounts exclude cash loads and transactions related to our loyalty rewards program.
Future recognition of initial unearned franchise fees as of December 31, 2025 is as follows:
(in thousands)
2026427 
2027382 
2028333 
2029288 
2030256 
Thereafter876 
Total$2,562 

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 13, 2025
2023Feb 23, 2024
2022Feb 27, 2023
2021Mar 11, 2022

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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