Suja Life — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales increased 3.3% year-over-year to $76.4 million for the quarter ended September 28, 2026, compared to $74.0 million in the prior year period.
• Gross profit margin decreased to 43.9% from 46.3% in the prior year period, with gross profit falling 2.2% to $33.5 million.
• Net loss improved 43% to $8.3 million, or (10.9)% of net sales, compared to a net loss of $14.6 million, or (19.8)% of net sales, in the prior year period.
• Adjusted EBITDA increased $9.6 million to $10.5 million, or 13.8% of net sales, compared to $1.0 million, or 1.3% of net sales, in the prior year period.
• Selling, general and administrative expenses decreased to $36.5 million (47.8% of net sales) from $41.4 million (56.0% of net sales) in the prior year period.
• As of September 28, 2026, the Company held $15.5 million in cash and $163.0 million in total debt, compared to $31.0 million in cash and $303.9 million in total debt as of December 29, 2025.

Guidance and Future Outlook:

• The Company updated its fiscal year 2026 outlook to reflect macroeconomic conditions and continued softness in the grocery channel.
• Full-year 2026 net sales are now expected to be $351.0 million to $354.0 million, representing 7.5% to 8.4% growth compared to $326.6 million in fiscal 2025.
• Full-year 2026 Adjusted EBITDA is now expected to be $68.0 million to $70.0 million, representing 67.9% to 72.8% growth compared to $40.5 million in fiscal 2025.
• Implied fourth-quarter 2026 net sales are projected at $83.7 million to $86.7 million.
• Implied fourth-quarter 2026 Adjusted EBITDA is projected at $17.8 million to $19.8 million.
• The Company expects a base tax rate of 26.1% and interest expense of approximately $18.0 million for fiscal 2026.

Business Segments and Product Lines:

• Suja Core net sales increased 3.0% to $74.8 million, driven by growth in cold-pressed juice (led by Refreshers) and wellness shot multipacks, partially offset by softer single-serve shots and higher trade investment.
• Emerging Brands net sales increased 3.0% to $2.7 million, though new distribution built more slowly than expected amid slower growth in the better-for-you soda category.
• Net sales growth was driven by volume gains across key products and new distribution, partially offset by higher trade investment in response to competitive promotional activity.
• Approximately $2.0 million of shipments expected in the fourth quarter were recognized in the third quarter.

Market and Competitive Landscape:

• The Company gained share of the natural healthy beverage category in the third quarter while most of the category's largest players lost share.
• The Company operates with only about 11% of U.S. households buying its brands, indicating significant room for long-term growth.
• The grocery channel continues to face pressure, with continued softness noted as a factor in the updated outlook.
• Competitive promotional activity has increased, leading to higher trade investment.

Risks and Challenges:

• Gross margin decline was driven by higher promotional investment, unfavorable fixed-cost absorption from lower production volumes, and higher inbound freight and packaging costs.
• SG&A leverage was impacted by higher transportation costs and the costs of operating as a public company.
• Net loss included $6.7 million of one-time items, including a $1.8 million loss on debt extinguishment and $1.5 million in restructuring costs.
• The Company faces inflationary pressures regarding fuel, packaging, and other inputs.

Management Commentary and Tone:

• CEO Maria Stipp stated the Company is "winning where shoppers are going" with newer lines leading the way.
• Management expects adjusted EBITDA to grow roughly 70% for the full year 2026, with margins expanding to nearly 20%.
• Management highlighted that owning production provides control over costs and supply to navigate inflationary pressures.
• The Company is concentrating investment on brands, channels, and programs with the potential for the clearest returns to position for consistent, profitable growth.

Other Key Points:

• On August 20, 2026, the Company entered into an Amended and Restated Credit Agreement with an interest rate of Term SOFR plus 1.75%, 2.00%, or 2.25% based on the consolidated net leverage ratio.
• The debt refinancing did not add debt but delivered a notable reduction in the borrowing spread and cost of capital.
• The Company completed its IPO in May 2026, resulting in $164.8 million in net proceeds from the offering.
• Restructuring costs of $1.5 million were incurred in the third quarter related to the reorganization of commercial operations; no additional costs are expected.
• The Company operates a vertically integrated facility processing approximately 1 million pounds of organic produce weekly.