Selling protein shakes is getting harder, and BellRing Brands Inc. (BRBR) just learned that lesson the expensive way. Shares tumbled Tuesday after the company behind Premier Protein and Dymatize reported fourth-quarter results that told a familiar retail story: you can win on volume and still lose on profits.

BellRing posted adjusted earnings of 51 cents per share for the quarter, falling short of the 55-cent analyst consensus estimate. Meanwhile, quarterly sales hit $648.20 million—a solid 16.6% jump year-over-year that topped Wall Street's $633.81 million forecast. The revenue growth came from a robust 19.2% increase in volume, offset by a 2.6% decline in price and mix.

The Good News: People Are Buying More Protein

Premier Protein net sales climbed 14.9%, powered by 18.4% volume growth even as price and mix fell 3.5%. The flagship ready-to-drink shake line saw similar dynamics—14.1% sales growth driven by 18.4% higher volume, but pricing dropped 4.3%. Over at Dymatize, the sports nutrition brand, sales surged 32.9% on strong volume momentum.

Translation: consumers want the product. They're just not willing to pay as much for it anymore.

The Bad News: Margins Are Getting Crushed

Here's where things get uncomfortable. Adjusted gross profit actually declined $7 million to $192.4 million, down 3.5% from $199.4 million a year earlier. Adjusted gross margin compressed sharply to 29.7% from 35.9% in the prior-year period—a drop of more than six percentage points.

Management pointed to three culprits: input cost inflation, increased promotional activity, and packaging redesign costs. Operating profit fell 8.8% to $102.2 million. Adjusted EBITDA managed a modest 0.8% gain to $117.4 million, but that's hardly the kind of growth investors signed up for.

A More Competitive Protein Aisle

During the earnings call, management used the phrase "more competitive" repeatedly when describing the protein category. What they mean: insurgent brands and crossover products are flooding the market with promotions and grabbing shelf space. BellRing is fighting back with its own discounts, which explains the pricing pressure.

The company still believes in the long-term growth story for protein products, but the near-term reality involves slower growth, rising input costs, heavier promotional spending, and stiffer competition than the category has seen in years.

Lowered Expectations

BellRing guided fiscal 2026 sales to $2.410 billion to $2.490 billion, below the $2.509 billion analyst consensus. More tellingly, the company revised its long-term financial goals downward. BellRing now expects annual net sales growth of 7% to 9%—a clear acknowledgment that the explosive growth days are over. The company maintained its long-term adjusted EBITDA margin target of 18% to 20%.

Shares fell 3.84% to $24.64 following the announcement, as investors digested a story that's become all too common: strong demand meeting a wall of competition and costs.