Reed's, Inc. Reports $8.08 Million Net Loss and Revenue Decline for First Half of 2025

Reed's, Inc. reported a net loss of $8.08 million for the six months ended June 30, 2025, compared to a loss of $4.89 million during the same period in 2024. Revenue for the first half of 2025 was $19.55 million, down from $21.47 million in the prior year, reflecting a decrease of approximately 8.9%. The company's gross profit also declined significantly, falling to $4.21 million from $7.24 million in the previous year, primarily due to increased costs associated with inventory write-offs and higher operating expenses.

The company experienced notable changes in its financial position, with total current assets decreasing to $21.89 million as of June 30, 2025, from $23.31 million at the end of 2024. Cash reserves were significantly reduced to $2.68 million from $10.39 million, while accounts receivable increased to $5.00 million from $3.98 million. Current liabilities also rose to $21.97 million, up from $18.49 million, driven by higher accounts payable and accrued expenses. The increase in liabilities has contributed to a decline in stockholders' equity, which fell to $1.74 million from $6.65 million.

Strategically, Reed's, Inc. completed a private placement on June 4, 2025, raising $3 million through the issuance of 3,225,807 common shares. This funding was primarily aimed at bolstering the company's working capital and supporting operational initiatives. The company has also made significant changes to its management team, appointing Cyril Wallace as the new CEO in April 2025, which is expected to drive future growth and operational improvements.

Operationally, Reed's, Inc. has focused on optimizing its product portfolio, which has led to inventory write-offs totaling $1.66 million in the first half of 2025. The company reported an increase in inventory levels to $13.18 million, up from $8.11 million at the end of 2024, as it seeks to meet customer demand more effectively. However, the company has faced challenges related to supply chain disruptions and inflationary pressures, which have impacted its ability to manage costs and maintain profitability.

Looking ahead, Reed's, Inc. anticipates that its existing cash reserves, along with cash generated from operations and access to financing, will be sufficient to support its operational plans for at least the next twelve months. However, the company acknowledges the need for additional funding to support growth initiatives and may explore various financing options, including equity and debt securities. The management remains cautious about market conditions, including inflation and supply chain challenges, which could affect future performance.