Delivers Record Q1 Net Sales Growth of 21%, Led by Volume Growth
Exceeds Net Sales and Adjusted EBITDA Outlook
LOS ANGELES--(BUSINESS WIRE)--May 06, 2026--
Zevia PBC ("Zevia" or the "Company") $(ZVIA)$, the Company bringing naturally delicious, zero sugar, clean-label beverages, today reported results for the first quarter ended March 31, 2026.
First Quarter 2026 Highlights
-- Net sales grew 21.2% year over year to $46.1 million
-- Gross profit margin was 48.4%, a reduction of 1.7 percentage points
year over year
-- Net loss was $2.4 million, or $0.03 per share to Zevia's Class A Common
stockholders, including $0.9 million of non-cash equity-based
compensation expense, an improvement of $4.0 million year over year
-- Adjusted net loss was $0.1 million(1)
-- Adjusted EBITDA was $0.9 million(1), an improvement of $4.2 million
year over year
"We're off to a strong start to the year, delivering record sales growth and positive adjusted EBITDA, both of which exceeded our expectations. These results clearly demonstrate the strong progress we are making against our strategic growth pillars," said Amy Taylor, President and CEO of Zevia. "The strength in our business reflects the deliberate actions we've taken over the past several quarters to right-size our cost structure and reinvest in marketing, sharpening our innovation pipeline, and driving new distribution. As we build on these successes, we are excited for the rollout of new initiatives from a package design refresh to a robust partnership with a high-reach, high-engagement brand ambassador in Cardi B. The momentum we're seeing today reinforces our confidence that our brand is resonating with consumers and our strategies are positioning us well for future sustainable profitable growth."
First Quarter 2026 Results
Net sales improved 21.2% to $46.1 million in the first quarter of 2026 compared to $38.0 million in the first quarter of 2025 due to improved volumes of 20.4%, largely driven by expanded distribution at the Club channel as well as higher volumes in the Mass and E-commerce channels.
Gross profit margin was 48.4% in the first quarter of 2026 compared to 50.1% in the first quarter of 2025, a reduction of 1.7 percentage points. The reduction was primarily due to higher aluminum costs.
Selling and marketing expenses were $14.5 million, or 31.5% of net sales, in the first quarter of 2026 compared to $15.3 million, or 40.3% of net sales, in the first quarter of 2025. Selling expenses were $9.4 million, or 20.4% of net sales, in the first quarter of 2026 compared to $9.1 million, or 24.1% of net sales, in the first quarter of 2025, an increase of $0.3 million. The improvement in selling expense, as a percentage of net sales, was primarily due to savings in warehousing and repackaging costs as a result of the Productivity Initiative.
Marketing expenses were $5.2 million, or 11.2% of net sales, in the first quarter of 2026 compared to $6.2 million, or 16.2% of net sales, in the first quarter of 2025, a decrease of $1.0 million due to the timing of marketing campaigns.
(1) Adjusted Net Loss and Adjusted EBITDA are non-GAAP financial measures. See the supplementary schedules in this press release for a discussion of how we define and calculate these measures and a reconciliation thereof to the most directly comparable GAAP measures.
General and administrative expenses were $9.1 million, or 19.7% of net sales, in the first quarter of 2026 compared to $7.0 million, or 18.4% of net sales, in the first quarter of 2025. The increase reflects $2.3 million associated with the settlement of litigation.
Equity-based compensation, a non-cash expense, was $0.9 million in the first quarter of 2026, compared to $0.7 million in the first quarter of 2025. The increase of $0.2 million was largely due to forfeitures in 2025 related to the reduction in workforce and new equity awards issued.
Restructuring expenses were $2.1 million in the first quarter of 2025 and primarily include employee-related severance costs.
Net loss in the first quarter of 2026 was $2.4 million, compared to net loss of $6.4 million in the first quarter of 2025.
Loss per share in the first quarter of 2026 was $0.03 to Zevia's Class A Common stockholders, compared to loss per share of $0.08 in the first quarter of 2025.
Adjusted net loss in the first quarter of 2026 was $0.1 million compared to an adjusted net loss of $4.2 million in the first quarter of 2025, excluding certain litigation and restructuring costs.
Adjusted EBITDA was $0.9 million in the first quarter of 2026, compared to an Adjusted EBITDA loss of $3.3 million in the first quarter of 2025.
Adjusted net loss and Adjusted EBITDA are non-GAAP financial measures. See the supplementary schedules in this press release for a discussion of how we define and calculate these measures and a reconciliation thereof to the most directly comparable GAAP measure.
Balance Sheet and Cash Flows
As of March 31, 2026, the Company had $26.6 million in cash and cash equivalents and no outstanding debt, as well as an unused credit line of $20 million.
2026 Outlook
"Our first quarter performance reflects the strong execution of our Productivity Initiative that enabled investment into our strategic growth pillars," said Girish Satya, Chief Financial Officer of Zevia. "The traction we are gaining is becoming increasingly evident in our net sales results, and we are excited to see growth continue through the remainder of 2026 and beyond. With respect to adjusted EBITDA, despite the better-than-expected Q1 results, higher fuel and aluminum costs are estimated to have an additional $6 million impact, on top of the $5 million in incremental aluminum costs we incorporated into our prior guidance. Barring these macro-related cost pressures, we would have anticipated adjusted EBITDA margin in the mid-single digit range."
For the full year 2026, the Company now expects net sales to be in the range of $170 million to $175 million, and an adjusted EBITDA loss of between $2.0 million and $4.0 million.
For the second quarter of 2026, the Company expects net sales to be in the range of $43.0 million to $45.0 million, and an adjusted EBITDA loss of between $0.5 million and $1.0 million.
We have not provided the forward-looking GAAP equivalent to our Adjusted EBITDA outlook or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation, income tax, certain litigation expenses, and charges associated with restructuring and cost saving initiatives, including but not limited to severance costs, warehouse/distribution facility exit costs, and asset impairments. Accordingly, a reconciliation of this non-GAAP guidance metric to its corresponding GAAP equivalent is not available without unreasonable effort. These items are inherently variable and uncertain and depend on various factors, some of which are outside of the Company's control or ability to predict. However, it is important to note that the reconciling items could have a significant effect on future GAAP results. We have provided historical reconciliations of GAAP to non-GAAP metrics in tables at the end of this release. For more information regarding the non-GAAP financial measures discussed in this earnings release, please see "Reconciliation of GAAP to non-GAAP Financial Results" below.
Webcast
The Company will also host a conference call to discuss its results at 4:30 p.m. Eastern Time today. Investors and other interested parties may listen to the webcast of the conference call by logging on via the Investor Relations section of Zevia's website at https://investors.zevia.com/. Those who wish to participate in the call may do so by dialing (877) 423-9813 or (201) 689-8573 for international callers, conference ID 13759520. A replay of the webcast will be available for approximately thirty (30) days following the call at Zevia's website at https://investors.zevia.com/.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as "anticipate," "believe," "consider," "contemplate," "continue," "could,'" "estimate," "expect," "forecast," "guidance," "intend," "look ahead," "may," "on track," "outlook," "plan," "potential, " "predict," "project," pursue," "see," "seek," "should," "target," "will," "would," or the negative of these words or other similar words, terms or expressions with similar meanings. Forward-looking statements should not be read as a guarantee of future performance, results or outcomes and will not necessarily be accurate indications of the times at, or by, which such performance, results or outcomes will be achieved. Forward-looking statements contained in this press release relate to, among other things, statements regarding financial guidance or outlook, long-term growth and profitability plans and opportunities, future results of operations or financial condition, strategic direction, plans and objectives of management for future operations, including branding and marketing, distribution expansion, product innovation, expectations for aluminum and fuel costs and expected benefits of cost efficiencies. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties, including, but not limited to, our ability to mitigate the impact of tariffs, the ability to develop and maintain our brand, our ability to successfully execute on our rebranding strategy, cost reduction initiatives, and to compete effectively, our ability to maintain supply chain service levels, any disruption of our supply chain or
product demand, changes in the retail landscape or in sales to any key customer, changes in consumer preferences and/or behaviors, pricing factors, our ability to manage changes in our workforce, future cyber incidents and other disruptions to our information systems, failure to comply with personal data protection and privacy laws, the impact of inflation on our sales growth and cost structure such as increased commodity, packaging, transportation and freight, warehouse, labor and other input costs and other economic conditions, our reliance on contract manufacturers and service providers, competitive and governmental factors outside of our control, adverse global macroeconomic conditions, including relatively high interest rates and a recessionary environment, changes in trade policies or tariffs and other tariff-related developments, geopolitical events or conflicts, including the military conflicts in Ukraine and the Middle East and trade tensions between the U.S. and China, public health emergencies, our ability to maintain our listing on the New York Stock Exchange, failure to adequately protect our intellectual property rights or infringement on intellectual property rights of others, potential liabilities, and costs from litigation, claims, legal or regulatory proceedings, inquiries or investigations that may cause our business, strategy or actual results to differ materially from those expressed in the forward-looking statements. We do not intend and undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. Investors are referred to our filings with the U.S. Securities and Exchange Commission for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.
About Zevia
Zevia PBC, a Delaware public benefit corporation designated as a "Certified B Corporation," is focused on addressing the global health challenges resulting from excess sugar consumption by offering a broad portfolio of zero sugar, zero calorie, naturally sweetened beverages. All Zevia$(R)$ beverages are made with a handful of simple, plant-based ingredients, contain no artificial sweeteners, and are Non-GMO Project verified, gluten-free, Kosher, and vegan. Zevia is distributed in more than 39,000 retail locations in the U.S. and Canada through a diverse network of major retailers in the grocery, drug, warehouse club, mass, natural, convenience and ecommerce channels.
(ZEVIA-F)
ZEVIA PBC
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED)
(in thousands, except share and per share amounts)
Three Months Ended March 31,
2026 2025
---------------- -------------
Net sales $ 46,090 $ 38,023
Cost of goods sold 23,801 18,988
------------ ------------
Gross profit 22,289 19,035
Operating expenses:
Selling and marketing 14,534 15,323
General and administrative 9,066 6,978
Equity-based compensation 894 731
Depreciation and amortization 168 252
Restructuring -- 2,138
------------ ------------
Total operating expenses 24,662 25,422
------------ ------------
Loss from operations (2,373) (6,387)
Other income, net 47 57
------------ ------------
Loss before income taxes (2,326) (6,330)
Provision for income taxes 37 41
------------ ------------
Net loss and comprehensive loss (2,363) (6,371)
Loss attributable to
noncontrolling interest 96 1,145
------------ ------------
Net loss attributable to Zevia PBC $ (2,267) $ (5,226)
============ ============
Net loss per share attributable to
common stockholders
Basic $ (0.03) $ (0.08)
Diluted $ (0.03) $ (0.08)
Weighted average common shares
outstanding
Basic 68,205,614 62,950,895
Diluted 68,205,614 76,496,102
ZEVIA PBC
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
March 31, 2026 December 31, 2025
---------------- -------------------
ASSETS
Current assets:
Cash and cash equivalents $ 26,594 $ 25,354
Accounts receivable, net 9,072 11,106
Inventories 15,232 20,393
Prepaid expenses and
other current assets 1,772 1,367
------------ ---------------
Total current assets 52,670 58,220
Property and equipment, net 894 867
Right-of-use assets under
operating leases, net 412 549
Intangible assets, net 3,120 3,135
Other non-current assets 830 849
------------ ---------------
Total assets $ 57,926 $ 63,620
============ ===============
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable 14,248 $ 17,565
Accrued expenses and
other current
liabilities 9,055 9,786
Current portion of
operating lease
liabilities 490 668
------------ ---------------
Total current liabilities 23,793 28,019
------------ ---------------
Total liabilities 23,793 28,019
Stockholders' equity
Class A common stock 70 67
Class B common stock 6 8
Additional paid-in
capital 178,312 182,226
Accumulated deficit (133,529) (131,262)
------------ ---------------
Total Zevia PBC stockholders'
equity 44,859 51,039
Noncontrolling interests (10,726) (15,438)
------------ ---------------
Total equity 34,133 35,601
------------ ---------------
Total liabilities and equity $ 57,926 $ 63,620
============ ===============
ZEVIA PBC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(in thousands)
Three Months Ended March 31,
2026 2025
---------------- ------------
Operating activities:
Net loss $ (2,363) $ (6,371)
Adjustments to reconcile net loss
to net cash provided by (used in)
operating activities:
Non-cash lease expense 137 138
Depreciation and amortization 168 252
Loss on disposal of property,
equipment and software, net -- 4
Amortization of debt issuance cost 19 19
Equity-based compensation 894 731
Changes in operating assets and
liabilities:
Accounts receivable, net 2,034 1,998
Inventories 5,161 1,513
Prepaid expenses and other
assets (405) (872)
Accounts payable (3,095) (1,419)
Accrued expenses and other
current liabilities (731) 1,149
Operating lease liabilities (178) (67)
------------ -----------
Net cash provided by (used
in) operating activities 1,641 (2,925)
------------ -----------
Investing activities:
Purchases of property, equipment
and software (270) (11)
------------ -----------
Net cash used in investing
activities (270) (11)
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