Zevia Reports Q1 2025 Financial Results with $38M in Net Sales and Improved Gross Profit

Zevia PBC reported its financial results for the first quarter of 2025, revealing net sales of $38.0 million, a decrease of 2.0% from $38.8 million in the same period last year. The decline in revenue was attributed to increased promotional allowances and discounts, which amounted to $2.5 million, partially offset by a $1.6 million increase in pricing and a slight rise in the number of equivalized cases sold. The company sold approximately 3.0 million equivalized cases during the quarter, consistent with the previous year. Gross profit improved to $19.0 million, up 7.4% from $17.7 million, driven by favorable unit costs and lower inventory write-downs, resulting in a gross margin of 50.1%, compared to 45.7% in the prior year.

Operating expenses for the quarter totaled $25.4 million, slightly higher than the $25.0 million reported in Q1 2024. Notably, selling and marketing expenses increased to $15.3 million, reflecting a significant rise in marketing investments aimed at enhancing brand awareness. General and administrative expenses decreased to $7.0 million, down 14.0% from the previous year, primarily due to cost-saving measures implemented as part of the company's ongoing Productivity Initiative. The initiative, which included a workforce reduction, incurred restructuring costs of $2.1 million during the quarter. Overall, Zevia reported a net loss of $6.4 million, an improvement from a loss of $7.2 million in the same quarter last year.

In terms of operational metrics, Zevia's total assets decreased to $62.0 million as of March 31, 2025, down from $68.0 million at the end of 2024. The company’s cash and cash equivalents stood at $27.7 million, a decline from $30.7 million at the end of the previous year. The number of outstanding shares increased to 66,064,650 for Class A common stock and 8,156,591 for Class B common stock. The company continues to focus on expanding its distribution network across the U.S. and Canada, leveraging its partnerships with major retailers and e-commerce platforms.

Looking ahead, Zevia anticipates that the Productivity Initiative will yield annualized benefits of approximately $15.0 million, with the company beginning to realize these savings in the latter half of 2024. However, the company remains cautious about macroeconomic conditions, including inflation and potential tariffs, which could impact its cost structure and consumer demand. Zevia's management emphasized the importance of balancing reinvestment in brand marketing with the goal of achieving profitability, as they navigate an increasingly competitive beverage market. The company is committed to enhancing its product offerings and expanding its market presence while managing operational efficiencies.