Jones Soda Co. Reports Q1 2025 Financial Results with $4.6M Revenue Decline

Jones Soda Co. reported its financial results for the first quarter of 2025, revealing a net revenue of $4.6 million, a decrease of 7.8% from $5.0 million in the same period last year. The decline in revenue was attributed to a significant pipeline fill by a new distributor in Canada during the first quarter of 2024, which did not recur in the current period. Despite the overall revenue drop, the company noted increased sales of its HD9 product line, which contributed positively to its performance. The gross profit for the quarter was approximately $1.7 million, down from $1.9 million, resulting in a gross margin of 37.3%, slightly lower than the 37.8% reported in the previous year.

Operating expenses for the quarter also saw a reduction, with selling and marketing expenses decreasing by 20% to approximately $1.2 million, while general and administrative expenses fell to about $1.2 million from $1.5 million. This reduction in expenses contributed to a net loss of $0.9 million for the quarter, an improvement from the net loss of $1.2 million reported in the first quarter of 2024. The company’s accumulated deficit increased to approximately $93.8 million as of March 31, 2025, compared to $92.9 million at the end of 2024.

In terms of strategic developments, Jones Soda has been focusing on expanding its product offerings, particularly in the cannabis-infused beverage market under the "Mary Jones" brand. The company has received regulatory approvals to launch THC-infused sodas in various Canadian provinces, including Ontario and British Columbia, with plans for further expansion. Additionally, the company has made changes to its senior leadership team to enhance operational efficiency and reduce costs, which includes hiring a new Chief Financial Officer and additional CPA consultants.

Operationally, Jones Soda's customer engagement metrics indicate a shift in focus towards higher-margin products. The company has also been actively managing its inventory levels, with total inventories reported at approximately $3.9 million as of March 31, 2025. The company’s cash position decreased to $0.7 million from $1.5 million at the end of 2024, reflecting ongoing cash flow challenges. However, net cash provided by financing activities totaled approximately $0.9 million, primarily from a new credit facility, which is expected to support the company’s operations in the near term.

Looking ahead, Jones Soda remains cautiously optimistic about its growth strategy, which includes expanding its presence in both the traditional beverage market and the emerging cannabis beverage sector. The company believes that its current cash reserves, projected sales, and funds from the new loan agreement will be sufficient to sustain operations for at least the next 12 months. However, management acknowledges the inherent risks and uncertainties in achieving these goals, particularly in a competitive and evolving market landscape.