Overview

* Zevia Q2 net sales rise 10.1% to $44.5 mln, beating expectations

* Adjusted EBITDA turns positive, beating analyst estimates, per LSEG data

* Net loss narrows to $0.7 mln

Outlook

* Zevia expects Q3 2025 net sales of $38 mln to $40 mln

* Company expects 2025 adjusted EBITDA to reflect marketing reinvestment

Result Drivers

* VOLUME GROWTH - Net sales increase driven by 14.3% volume growth, largely from expanded distribution at Walmart and drug channel

* GROSS PROFIT MARGIN - Improvement in gross profit margin due to lower product costs and better inventory management

* SELLING EXPENSES - Reduced selling expenses due to savings in freight and warehousing costs from Productivity Initiative

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $44.52 $41.70

mln mln (5

Analysts

)

Q2 EPS -$0.01

Q2 Beat $200,000 -$2.45

Adjusted mln (4

EBITDA Analysts

)

Q2 Gross $21.69

Profit mln

Q2 -$1.02

Income mln

from

Operatio

ns

Q2 $22.71

Operatin mln

g

Expenses

Q2 -$634,00

Pretax 0

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 34.4% above its August 5 closing price of $3.28

Press Release:

(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.)