Zevia — Third Quarter 2026 Earnings Summary

Financial Performance

• Net sales increased 18.4% year-over-year to $48.3 million for the quarter ended September 30, 2026, compared to $40.8 million in the same period in 2025.
• Gross profit margin improved to 46.4% in Q3 2026 from 45.6% in Q3 2025, a 0.8 percentage point increase.
• Net loss was $2.2 million ($0.03 per share) for Q3 2026, an improvement of $0.7 million year-over-year from a net loss of $2.8 million ($0.04 per share) in Q3 2025.
• Adjusted net loss was $2.1 million for Q3 2026, compared to $2.8 million in Q3 2025.
• Adjusted EBITDA loss was $0.9 million for Q3 2026, an improvement of $0.8 million year-over-year from a loss of $1.7 million in Q3 2025.
• Selling and marketing expenses were $15.1 million (31.3% of net sales) in Q3 2026, up from $12.7 million (31.0% of net sales) in Q3 2025.
• General and administrative expenses were $8.3 million (17.1% of net sales) in Q3 2026, up from $7.7 million (18.8% of net sales) in Q3 2025.
• Equity-based compensation expense was $1.0 million in Q3 2026, compared to $0.9 million in Q3 2025.
• As of September 30, 2026, the Company held $29.5 million in cash and cash equivalents with no outstanding debt.
• The Company has an undrawn $20 million revolving credit facility.

Guidance and Future Outlook

• Full-year 2026 net sales guidance was raised to a range of $177 million to $179 million.
• Full-year 2026 Adjusted EBITDA guidance is now between breakeven and a loss of $0.4 million.
• Q4 2026 net sales guidance is set between $37.5 million and $39.5 million.
• Q4 2026 Adjusted EBITDA loss is expected to be between $0.5 million and $0.9 million.
• Updated guidance assumes approximately $8.5 million in incremental costs related to elevated fuel prices and higher aluminum costs, down from a prior expectation of $11 million.
• Management does not provide forward-looking GAAP equivalents for Adjusted EBITDA due to uncertainty regarding reconciling items such as equity-based compensation, income tax, and litigation expenses.

Business Segments and Product Lines

• Net sales volume increased 14.4% year-over-year, driven by a national rotation in the club channel and strength in e-commerce channels.
• Pricing actions contributed to net sales growth and gross margin improvement.
• Gross margin improvement was partially offset by higher aluminum costs.
• The 2025 gross margin included a $0.8 million write-down related to obsolete inventory from a package redesign, which was lapped in 2026.
• Marketing expenses increased by $2.2 million to $7.2 million in Q3 2026 to drive brand awareness.
• Selling expenses increased by $0.3 million to $8.0 million, driven by higher freight from increased volume and fuel rates, partially offset by warehousing cost savings.

Market and Competitive Landscape

• Zevia products are distributed in more than 41,500 retail locations in the U.S. and Canada across grocery, drug, warehouse club, mass, natural, convenience, and ecommerce channels.
• The company operates as a Certified B Corporation offering naturally sweetened, better-for-you beverages.

Risks and Challenges

• The company faces risks related to elevated fuel prices and higher aluminum costs.
• Potential risks include the impact of tariffs, supply chain disruptions, changes in consumer preferences, and reliance on contract manufacturers.
• Forward-looking statements note risks regarding the ability to mitigate tariffs, maintain brand development, execute rebranding strategies, and compete effectively.
• Risks also include macroeconomic conditions, inflation on input costs, geopolitical events, and potential litigation liabilities.

Management Commentary and Tone

• CEO Alexandre Ruberti stated that better-than-expected results and strong execution reinforce confidence in the company's trajectory.
• Management expressed confidence in having the resources, momentum, and strategic plan to accelerate growth and create shareholder value.
• CFO Girish Satya noted that a recent growth equity investment strengthens the ability to accelerate the strategic reset.
• Management emphasized a focus on disciplined execution and creating sustainable long-term value.

Other Key Points

• On October 22, 2026, the Company entered into a definitive agreement to issue convertible preferred stock in exchange for $20 million of growth equity from a fund managed by GP Investments Ltd.
• The growth equity investment is described as a milestone providing additional capital and strategic resources to accelerate medium- and long-term growth.
• A conference call and webcast were hosted on November 4, 2026, to discuss results.
• The Company reported a net cash provided by operating activities of $5.465 million for the nine months ended September 30, 2026, compared to a net cash used of $4.196 million in the same period in 2025.