Jones Soda Co. Reports 108% Revenue Growth in Q2 2026 Despite Net Loss

Jones Soda Co. reported significant financial performance improvements in its latest quarterly filing, with net revenue for the second quarter of 2026 reaching $10.2 million, a 108% increase from $4.9 million in the same period last year. For the first half of 2026, revenue surged to $22.6 million, up 148% from $9.1 million in the first half of 2025. The growth was primarily driven by increased sales of Fallout branded products through the club channel, although sales of hemp-derived HD9 products saw a notable decline from $1.8 million to $0.2 million during the same period.

Despite the revenue growth, the company reported a net loss of approximately $0.7 million for the second quarter, compared to a net income of $2.6 million in the prior year. This decline was largely attributed to a one-time gain of $3.7 million from the sale of its cannabis beverage operations in 2025, which did not recur in 2026. The gross profit for the second quarter was $2.8 million, reflecting a gross margin decrease to 28% from 33% in the previous year, primarily due to increased logistics costs.

Operationally, Jones Soda has focused on expanding its product offerings and market presence. The company launched its "Pop Jones" line in 2024, targeting the modern soda market, and has continued to develop its hemp-derived product lines. The company also reported an increase in selling and marketing expenses, which rose to $1.9 million in the second quarter, driven by higher broker and royalty payments related to Fallout product sales. General and administrative expenses increased slightly to $1.4 million, but as a percentage of revenue, they decreased significantly from 27.1% to 13.9%.

As of June 30, 2026, Jones Soda had cash reserves of approximately $2.4 million, down from $3.6 million at the end of 2025, and reported a working capital deficiency of $0.5 million. The company’s accumulated deficit increased to $95.3 million. In response to ongoing financial challenges, Jones Soda announced a $1.74 million private placement on July 7, 2026, and has secured a $10 million credit facility with Two Shores Capital Corp, which will bear interest at 13.75% per annum.

Looking ahead, Jones Soda aims to continue its growth trajectory by focusing on expanding its glass bottle business, modern soda offerings, and fountain program in North America. The company remains cautious about the regulatory environment surrounding its hemp-derived products, particularly in light of potential federal legislation that could impact sales. Management is committed to reducing operating expenses while enhancing product margins to improve overall financial performance.