Jones Soda Co. Reports Revenue Decline but Net Income Turnaround in Q2 2025

Jones Soda Co. reported its financial results for the second quarter and first half of 2025, revealing a significant decline in revenue and a notable shift in profitability compared to the previous fiscal period. For the three months ended June 30, 2025, the company generated net revenue of $4.9 million, a decrease of 26.4% from $6.7 million in the same period last year. The decline was attributed primarily to lower sales in its core soda business, which saw a $2.1 million drop, and a $0.3 million decrease in direct-to-consumer sales. However, growth in mini cans, food service, convenience stores, and HD9 products partially offset these losses, contributing an increase of $0.7 million.

Despite the revenue decline, Jones Soda reported a net income of approximately $2.6 million for the second quarter of 2025, a significant improvement from a net loss of $1.6 million in the same quarter of 2024. This turnaround was largely driven by reduced selling and marketing expenses, which fell by 39% to $1 million, and a decrease in general and administrative expenses, which dropped by 41% to $1.3 million. The company also recognized a gain of $3.7 million from the sale of its cannabis subsidiaries, which contributed positively to its financial performance.

In terms of operational developments, Jones Soda has undergone strategic changes, including the sale of its cannabis beverage business on June 19, 2025. This move was part of a broader strategy to refocus on its core beverage offerings and improve profitability. The company has also launched new product lines, including Pop Jones and Fiesta Jones, aimed at capturing the growing modern soda market. Additionally, the company is expanding its distribution channels and enhancing its product offerings to include hemp-derived and alcohol-infused beverages.

As of June 30, 2025, Jones Soda's total assets increased to $11.9 million from $8.5 million at the end of 2024, while total liabilities remained stable at $7.6 million. The company reported an accumulated deficit of approximately $91.2 million, a slight improvement from $92.9 million at the end of the previous year. The company’s cash position decreased to $0.7 million from $1.5 million, reflecting ongoing operational challenges and the need for effective cash management.

Looking ahead, Jones Soda's management expressed optimism about future growth, anticipating increased sales in the latter half of 2025 driven by its core soda products, new product launches, and expanded distribution efforts. The company is focused on reducing operating expenses and improving product margins to enhance profitability. However, management also acknowledged the ongoing challenges of maintaining cash flow and managing operational costs, emphasizing the importance of executing its strategic initiatives effectively to ensure long-term sustainability.