Overview

* Zevia Q3 net sales grow 12.3%, beating analysts' expectations

* Adjusted EBITDA loss beats analyst estimates, reflecting strategic growth efforts

* Company reports Q3 net loss of $2.8 mln, flat from last year

Outlook

* Company expects Q4 net sales between $39.0 mln and $41.0 mln

* Zevia projects 2025 net sales between $162 mln and $164 mln

* Company anticipates Q4 adjusted EBITDA loss between $0.25 mln and $0.75 mln

Result Drivers

* VOLUME GROWTH - Sales volume increased 12.6% driven by expanded distribution at Walmart and Club channel

* PACKAGING REFRESH - Gross profit margin declined to 45.6% from 49.1% due to higher inventory losses from packaging refresh and tariffs

* COST SAVINGS - Selling expenses decreased due to savings in warehousing and freight transfer costs from Productivity Initiative

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $40.84 $39.33

mln mln (4

Analysts

)

Q3 EPS -$0.04

Q3 Beat -$1.72 -$3.54

Adjusted mln mln (4

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the non-alcoholic beverages peer group is "buy"

* Wall Street's median 12-month price target for Zevia PBC ( ZVIA ) is $5.00, about 53.8% above its November 4 closing price of $2.31

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)