Zevia Reports 21.2% Revenue Growth to $46.1 Million in Q1 2026

Zevia PBC reported a significant increase in financial performance for the first quarter of 2026, with net sales reaching $46.1 million, a 21.2% increase from $38.0 million in the same period last year. The growth was primarily driven by a 20.4% rise in the number of equivalized cases sold, totaling 3.6 million, attributed to expanded distribution in the club channel and increased volumes in mass and e-commerce channels. Despite the increase in sales, the company experienced a net loss of $2.3 million, an improvement from the $6.4 million loss reported in the first quarter of 2025.

The cost of goods sold also rose, totaling $23.8 million, up 25.3% from $19.0 million a year earlier. This increase was largely due to higher volumes and unfavorable unit costs driven by tariffs, which added approximately $0.8 million to costs. Gross profit for the quarter was $22.3 million, reflecting a gross margin of 48.4%, down from 50.1% in the prior year, primarily due to increased costs and higher inventory write-downs.

Operationally, Zevia has been focusing on restructuring initiatives aimed at improving efficiency and reducing costs. The company initiated a new restructuring plan in the second quarter of 2026, targeting warehouse operations and logistics, with expected costs of approximately $0.9 million. The company anticipates annualized savings of about $2.4 million from this initiative. Additionally, Zevia has been actively managing its inventory levels, resulting in a decrease in inventories from $20.4 million at the end of 2025 to $15.2 million as of March 31, 2026.

Zevia's employee headcount has also seen changes, with the company continuing to streamline operations as part of its Productivity Initiative, which has already yielded annualized benefits of approximately $20 million. The company reported a total of 71 million shares of Class A common stock outstanding as of March 31, 2026, reflecting ongoing equity-based compensation activities. Looking ahead, Zevia plans to balance reinvestment in brand marketing with efforts to achieve profitability, while navigating challenges such as inflation and supply chain disruptions.

The company maintains a positive outlook, supported by its cash position of $26.6 million and available borrowings under its $20 million revolving credit facility. Zevia's management believes that these resources will be sufficient to support ongoing operations and planned capital expenditures in the near term. However, they remain cautious about macroeconomic factors that could impact future performance, including inflationary pressures and changes in consumer spending habits.