Zevia PBC reported its financial results for the third quarter of 2025, revealing a net sales increase of 12.3% to $40.8 million, compared to $36.4 million in the same period last year. The growth was attributed to a 12.6% rise in the number of equivalized cases sold, totaling 3.3 million, driven by expanded distribution in key retail channels. However, the company experienced a net loss of $2.7 million for the quarter, slightly higher than the $2.5 million loss reported in Q3 2024. For the nine months ending September 30, 2025, net sales reached $123.4 million, a 6.7% increase from $115.6 million in the prior year, while the net loss for the period was $8.6 million, down from $14.2 million.

The company's cost of goods sold (COGS) rose by 20% to $22.2 million in Q3 2025, primarily due to increased volumes and higher write-downs related to excess inventory. Gross profit for the quarter was $18.6 million, reflecting a gross margin decrease to 45.6% from 49.1% in the previous year, impacted by higher inventory write-downs and unfavorable unit costs. Operating expenses also increased, totaling $21.5 million, with selling and marketing expenses rising to $12.7 million, driven by investments in brand awareness.

Zevia has been implementing a multi-year Productivity Initiative aimed at reducing costs and improving operational efficiency. This initiative included a workforce reduction in early 2025, resulting in restructuring costs of $2.2 million for the nine months ended September 30, 2025. The company anticipates annualized benefits of approximately $20 million from this initiative, which it plans to reinvest into marketing and promotional activities to drive future growth.

As of September 30, 2025, Zevia reported $26.0 million in cash and cash equivalents, down from $30.7 million at the end of 2024. The company has no outstanding amounts on its $20 million revolving credit facility, which matures in February 2027. Looking ahead, Zevia expects to continue facing challenges from macroeconomic factors, including inflation and supply chain disruptions, but remains focused on leveraging its brand and expanding distribution to drive sales growth. The company is also monitoring the impact of tariffs and commodity price fluctuations on its operations.

About Zevia PBC

Zevia PBC develops and markets naturally sweetened, zero sugar beverages including sodas, energy drinks, and organic teas. As a Certified B Corporation, it emphasizes health, sustainability, and social impact. Its products are distributed across retail and e-commerce channels in North America, targeting health-conscious consumers seeking better-for-you alternatives. The company leverages brand loyalty, product innovation, and sustainable packaging to compete in the growing zero sugar beverage market.

This description was generated via AI from an annual report. Updated 9 months ago.

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