Reed's, Inc. Reports $15.8 Million Net Loss and Decline in Sales for Fiscal Year 2025

Reed's, Inc. reported a net loss of $15.8 million for the fiscal year ending December 31, 2025, an increase from a loss of $13.2 million in the previous year. The company's net sales decreased by 10% to $34.1 million, down from $38 million in 2024. This decline was attributed to lower volumes from recurring national customers and higher promotional allowances. Gross billing also fell by 8% to $40.8 million, driven by a 3% decline in sales volume for Reed's products and an 18% drop for Virgil's products. The cost of goods sold increased to 80% of net sales, up from 70% the previous year, primarily due to inventory write-offs related to product portfolio changes.

In terms of strategic developments, Reed's has initiated an expansion into the Asia-Pacific region, establishing a wholly owned subsidiary, Reed’s (Asia) Limited, along with five additional subsidiaries in Hong Kong, Japan, China, and Singapore. This move is part of the company's long-term growth strategy, although these subsidiaries did not generate sales in 2025. The company also completed a public offering in December 2025, raising approximately $10.2 million, which is intended to fund growth initiatives and working capital.

Operationally, Reed's faced challenges with supply chain constraints, which impacted its ability to meet demand effectively. The average cost of delivery and handling remained stable at $2.75 per case, but the company experienced increased freight costs and inflation in raw materials. As of December 31, 2025, Reed's had 44 full-time employees, a slight increase from the previous year, and continues to rely on a network of independent co-packers for production.

Looking ahead, Reed's management expressed confidence in its ability to navigate current economic uncertainties, including inflation and geopolitical tensions, which may affect future operations. The company plans to focus on optimizing its product portfolio, enhancing operational efficiency, and expanding its distribution network. However, management acknowledged the need for additional financing to support growth initiatives, emphasizing that the ability to secure such funding will be crucial for the company's future performance.