Zevia Reports 10.1% Net Sales Increase to $44.5 Million in Q2 2025

Zevia PBC reported a net sales increase of 10.1% for the second quarter of 2025, reaching $44.5 million compared to $40.4 million in the same period last year. The growth was driven by a 14.3% rise in the number of equivalized cases sold, totaling 3.5 million, largely attributed to expanded distribution in key retail channels. Despite this revenue growth, the company recorded a net loss of $0.7 million for the quarter, a slight improvement from a net loss of $5.9 million in the prior year. For the first half of 2025, net sales were $82.5 million, up 4.2% from $79.2 million in the first half of 2024, with a corresponding net loss of $5.9 million compared to $11.7 million in the previous year.

The company’s cost of goods sold (COGS) decreased by 2.8% to $22.8 million in the second quarter, primarily due to lower write-downs related to excess inventory and favorable unit costs driven by the ongoing Productivity Initiative. Gross profit for the quarter increased by 28% to $21.7 million, resulting in a gross margin improvement to 48.7% from 41.9% in the prior year. For the first half of 2025, gross profit rose to $40.7 million, reflecting a gross margin of 49.3%, up from 43.8% in the same period last year.

Zevia has been implementing a multi-year Productivity Initiative aimed at realigning its cost structure and enhancing operational efficiency. This initiative included a workforce reduction in early 2025, which contributed to restructuring costs of $2.2 million for the first half of the year. The company anticipates annualized benefits of approximately $20 million from this initiative, which it plans to reinvest into brand marketing and promotional activities to drive future growth.

Operationally, Zevia's total assets decreased to $62.5 million as of June 30, 2025, down from $68 million at the end of 2024, primarily due to a reduction in cash and inventory levels. The company reported a slight increase in accounts receivable, reflecting higher sales, while total liabilities remained relatively stable. As of June 30, 2025, Zevia had $26.3 million in cash and cash equivalents, which it believes will support ongoing operations and planned capital expenditures.

Looking ahead, Zevia expects to continue facing challenges from macroeconomic factors such as inflation and supply chain disruptions, particularly related to raw material costs. The company is focused on leveraging its brand and expanding distribution channels while managing costs effectively. Zevia's management remains optimistic about achieving profitability in the future, supported by the anticipated benefits from the Productivity Initiative and ongoing investments in marketing and product innovation.