Jones Soda Co. Reports 193.9% Revenue Growth and Net Income Turnaround in Q1 2026

Jones Soda Co. reported significant financial improvements in its latest quarterly filing, with net revenue for the three months ending March 31, 2026, reaching approximately $12.4 million, a 193.9% increase from $4.2 million in the same period last year. The company achieved a gross profit of $3.9 million, up from $1.4 million, although the gross margin slightly decreased to 31.3% from 32.9%. This growth in revenue was primarily driven by increased sales of Fallout branded products through the club channel, despite a notable decline in sales of hemp-derived HD9 products, which fell from $0.9 million to $0.2 million.

In terms of operational changes, Jones Soda's selling and marketing expenses rose to approximately $2.0 million, an 82.9% increase compared to the previous year, largely due to higher broker and royalty payments associated with Fallout product sales. However, these expenses as a percentage of revenue decreased to 16.4% from 26.3%, indicating improved efficiency in marketing spend. General and administrative expenses also increased to $1.5 million, reflecting higher salary and benefits costs, but decreased as a percentage of revenue from 28.4% to 12.1%.

The company reported a net income of $115,000 for the first quarter of 2026, a significant turnaround from a net loss of $852,000 in the same quarter of 2025. This improvement is attributed to the increase in gross profit, which was partially offset by rising operating expenses. The accumulated deficit decreased slightly to approximately $94.6 million from $94.7 million at the end of 2025. Cash on hand increased to $4.4 million from $3.6 million, while net cash used in continuing operations improved to $0.8 million from $1.9 million year-over-year.

Strategically, Jones Soda is focusing on expanding its product offerings and market presence. The company has launched new product lines, including Pop Jones and Spiked Jones, to capture growth in the modern soda and alternative adult beverage markets. Additionally, the company announced a $2.5 million brokered private placement on April 30, 2026, and has secured a $10 million credit facility with Two Shores Capital Corp, which will support its operational and growth initiatives. Looking ahead, management remains optimistic about its ability to generate sufficient cash flow from operations and product sales to sustain operations for at least the next 12 months, although they acknowledge the ongoing challenges in the competitive beverage market.