Zevia Reports 1.1% Net Sales Increase to $45M in Q2 2026, Faces $2.9M Net Loss

Zevia PBC reported its financial results for the second quarter of 2026, revealing a net sales increase of 1.1% to $45.0 million compared to $44.5 million in the same period last year. For the first half of 2026, net sales reached $91.1 million, a 10.4% increase from $82.5 million in the prior year. The growth was primarily driven by a 7.3% rise in the number of equivalized cases sold, attributed to expanded distribution and higher volumes in the e-commerce channel. However, the company experienced a net loss of $2.9 million for the quarter, compared to a loss of $0.7 million in Q2 2025, and a total net loss of $5.3 million for the first half of 2026, down from $7.0 million in the same period last year.

The company’s cost of goods sold (COGS) for the second quarter was $23.0 million, reflecting a 0.6% increase from $22.8 million in Q2 2025, largely due to unfavorable unit costs driven by aluminum tariffs. Gross profit for the quarter was $22.0 million, up 1.5% from $21.7 million, resulting in a gross margin of 48.9%, slightly higher than the previous year's 48.7%. Operating expenses rose to $24.9 million, up from $22.7 million, with significant increases in equity-based compensation expenses, which reached $2.1 million, primarily due to a brand endorsement agreement with Cardi B.

In terms of strategic developments, Zevia appointed Alexandre I. Ruberti as the new President and CEO in June 2026, succeeding Amy Taylor. The company also initiated a restructuring plan aimed at improving warehouse operations, incurring $1.0 million in related costs during the quarter. This restructuring is expected to yield annualized cost savings of approximately $4.1 million once completed. Additionally, Zevia has been focusing on its Productivity Initiative, which aims to realign its cost structure and enhance operational efficiency, with anticipated annualized benefits of around $20 million.

Operationally, Zevia reported a decrease in equivalized cases sold to 3.4 million in Q2 2026 from 3.5 million in Q2 2025, reflecting a strategic shift in distribution and inventory management. The company continues to face challenges from macroeconomic factors, including inflation and supply chain disruptions, which have impacted its cost structure. As of June 30, 2026, Zevia had $28.5 million in cash and cash equivalents, which, along with its operating activities and available borrowings under its credit facility, is expected to support its liquidity needs for the next 12 months.

Looking ahead, Zevia anticipates that its growth will be driven by new distribution channels, increased organic sales, and continued product innovation. However, the company remains cautious about potential impacts from ongoing inflationary pressures and changes in consumer spending habits. The management is committed to balancing reinvestment in brand marketing with achieving profitability, as it navigates the competitive landscape of the beverage industry.