ZVIA

Zevia’s second quarter results came in above Wall Street’s revenue expectations, but the market reacted negatively, likely reflecting concerns around profitability and ongoing cost pressures. Management attributed the quarter’s performance to successful pricing actions and initial results from its new packaging and flavor rollout. CEO Alexandre Ruberti acknowledged the need for improved in-store execution and highlighted the importance of expanding Zevia’s singles platform, saying, “singles represent a cost entry point into the brand and a catalyst for driving trial and long-term customer acquisition.” Is now the time to buy ZVIA? Find out in our full research report (it’s free). Revenue: $45 million vs analyst estimates of $44.22 million (1.1% year-on-year growth, 1.8% beat) Adjusted EPS: -$0.02 vs analyst estimates of -$0.03 (in line) Adjusted EBITDA: $523,000 (1.2% margin, 124% year-on-year growth) The company reconfirmed its revenue guidance for the full year of $172.5 million at the midpoint EBITDA guidance for the full year is -$3 million at the midpoint, above analyst estimates of -$2.99 million Operating Margin: -6.4%, down from -2.3% in the same quarter last year Sales Volumes were up 3.7% year on year Market Capitalization: $98.11 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Andrew Strelzik (BMO Capital Markets) pressed on which strategic priorities could yield the fastest results and inquired about the implied Q4 slowdown. CEO Alexandre Ruberti emphasized singles as the most immediate opportunity and attributed Q4’s flat outlook to marketing timing and club channel fluctuations, not new headwinds. James Salera (Stephens Inc.) asked about the operational readiness to scale singles nationwide and queried the mix of distribution models. Ruberti outlined plans to balance direct store delivery, brokers, and merchandising agencies, targeting a full go-to-market rollout by early 2027, with product and format improvements supporting the shift. Salera (Stephens Inc.) also questioned input cost inflation and the potential for further price increases. CFO Girish Satya said recent pricing actions were preemptive, and further increases are unlikely this year; focus will shift to cost savings and margin management. Eric Des Lauriers (Craig-Hallum) probed early results from the new packaging and flavors rollout. Ruberti said it was too early for definitive sales impact, but initial velocity trends in natural channels were encouraging. Eric Serotta (Morgan Stanley) sought clarity on whether new initiatives would require meaningfully higher investment. Ruberti replied the plan is still being developed, but the goal is to “make the dollars work harder” and pursue the most efficient go-to-market mix, with selective incremental spending likely needed for execution. Looking ahead, the StockStory team will be monitoring (1) progress on the singles rollout and whether Zevia can secure new distribution deals, (2) signs of improved in-store execution and merchandising productivity within existing accounts, and (3) the ability of the Cardi B campaign and new product launches to drive measurable increases in consumer engagement and sales velocity. Ongoing cost management and the timing of additional efficiency gains will also be important to watch. Zevia currently trades at $1.37, down from $1.71 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4:30 p.m. ET Investor Relations - Jean Fontana President and Chief Executive Officer - Alexandre Ruberti Chief Financial Officer and Principal Accounting Officer - Girish Satya Operator: Greetings. Welcome to the Zevia PBC Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to Jean Fontana of Investor Relations. Thank you, Jean. You may begin. Jean Fontana: Thank you and welcome to Zevia's second quarter 2026 earnings conference call. On today's call are Alexandre Ruberti, President and Chief Executive Officer, and Girish Satya, Chief Financial Officer and Principal Accounting Officer. By now, everyone should have access to the company's second quarter 2026 earnings press release and investor presentation made available this afternoon. This information is available on the Investor Relations section of Zevia's website at investors.zevia.com. Before we begin, please note that all financial information presented on today's call is unaudited. Certain comments made on this call include forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and beliefs concerning future events that are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Please refer to today's press release and other filings with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. During the call, we will reference certain non-GAAP financial measures as we describe business performance. The SEC filings, as well as the earnings press release, presentation slides that accompany today's comments and reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are all available on our website at investors.zevia.com. And now I'd like to turn the call over to Alexandre. Alexandre Ruberti: Good afternoon everyone and thank you for joining us today. It's a privilege to speak with you on my first earnings call as CEO. Before I begin, I would like to thank Amy Taylor for her leadership and her support during this transition. I am excited to lead Zevia as I believe that we have a truly distinct product within the better-for-you beverage category. As a member of the Board of Directors, I have gained valuable insights into the transformation that has taken place over the last two years. And I'm grateful for the opportunity to lead the company into the next chapter. My objective is to build on the work that has strengthened the foundation of our business, drawing from my beverage industry experience to accelerate growth and drive profitability while reinvesting in the future. We believe that Zevia's truly distinct market position presents a tremendous opportunity that we have yet to capture. We are working aggressively to build a strategic plan that we believe will deliver breakthrough growth, sustainable performance for the business, and drive long-term value for all stakeholders. Before sharing my initial observations, let me briefly highlight our results, which Girish will speak to in more detail. For the second quarter, we delivered net sales of $45 million at the high end of our guidance and adjusted EBITDA of $0.5 million above our expectations. We are encouraged by our progress year-to-date and the momentum going into the third quarter. We continue to make progress in driving awareness and trials through distribution and completed the rollout of our new packaging and flavors. That said, we have a significant opportunity to drive improvement in our go-to-market execution, which I will speak to shortly. Turning to marketing, we launched the anticipated 360 campaign of Refreshingly Real, starring Cardi B as our Real Talk interpreter. The campaign generated tremendous engagement with nearly 29.5 billion social campaign video views, over 1.7 million engagements on Cardi's and Zevia posts, 1.8 billion PR earned media impressions, and 473 media placements. We plan to build on this momentum with additional campaigns, including upcoming Refreshingly Real contests. I look forward to keeping you posted on more upcoming events with Zevia and Cardi B. Now turning to my observations and priorities. For the last month and a half, I have spent much of my time meeting with our executive team and employees, as well as our customers, suppliers, and investors. Following my listening tour and a deep dive into the business, my belief in Zevia's potential is greater than ever. I also recognize that there are measures that need to be taken to convert our strength into sustained momentum in our business. To accomplish this, we need to make Zevia easier to find with a targeted strategic distribution expansion, easier to buy through enhanced in-store execution, and easier to choose by amplifying awareness and brand relevance. And we shall do so with urgency. As we develop a strategic plan for our path forward, and drawing from my broad experience, I will be focused on four key areas. First, evolving our go-to-market strategy. Second, sharpening and scaling our brand identity. Third, maintain strong financial discipline and operational efficiency to support our sustainable growth initiatives. And fourth, establishing a performance-driven culture. I'd like to expand on each of these areas and provide some additional context. Starting with evolving our go-to-market strategy. We see a significant opportunity to expand the reach and productivity of the Zevia brand through three verticals: optimizing our singles platform, expanding distribution, and improving in-store execution. The first and most meaningful value creation opportunity is unlocking the full potential of the singles in-store. We view singles as the most effective vehicle for driving consumer discovery, trial, and ultimately household penetration. Over the past year, we have focused on refining the product format, optimizing our flavor assortment with the right balance of the classic flavors, and emerging trends, and improving taste. As consumers increasingly seeking healthy beverage alternatives without sacrificing taste, singles represent a cost entry point into the brand and a catalyst for driving trial and long-term customer acquisition. Second, with improved product portfolio, we see substantial opportunities to expand distribution and increase brand availability. Despite our good position within the zero sugar soda category, Zevia remains underpenetrated across several attractive channels including mass, club, food service, value chain, retail and e-commerce. We believe our enhanced singles platform improves our ability to secure new distribution gains while increasing visibility and accessibility for consumers. Expanding our presence where consumers shop remains a critical lever for driving both awareness and trial. The third component of our go-to-market strategy is improving productivity within existing doors through a stronger approach to in-store execution, merchandising, and category management. And to be frank, we need to do a better job of activating Zevia in-store. We believe improved execution can increase velocity, support retailer economics, and strengthen our position as a key growth driver within the beverage category. This leads to our second strategic focus area: sharpening and scaling our brand identity. Over the past several years, we have made meaningful progress in defining what Zevia stands for, where we believe there is opportunity to further increase the precision and relevance of our positioning. We are moving beyond the broad concept of the health-evolved consumer and developing a more focused understanding of our core customers. We see our target consumer as wellness aspirational, younger, digitally engaged families who enjoy beverages and flavors they love, but are increasingly unwilling to compromise on ingredient quality or health considerations. They want the enjoyment of soda without the trade-off. As we continue to refine our positioning around this consumer, we intend to support it with a disciplined ROI-driven marketing strategy designed to increase awareness, strengthen brand affinity, and improve customer acquisition efficiency. By pairing a more clear defined brand identity with a broader distribution and stronger execution, we believe we can meaningfully expand Zevia's addressable market and accelerate sustainable, profitable growth over time. Our third area of focus: financial discipline and operational efficiency. We aim to build on the success of our positive financial momentum and drive profitable innovation across functions. This will be achieved through maximizing or redirecting resources to align with strategic priorities as we reinvest savings from continuing efficiency gains. Our final area of focus is to establish a performance-driven culture within the organization, delivering results not just for today, but over the mid and long term. We will challenge each other to improve, take ownership, make confident decisions, and learn quickly from setbacks so we can keep raising the bar together without losing the essentials of trust, empowerment, and accountability. Before I turn it over to Girish, I want to thank everyone for the warm welcome I have received since stepping into this role. I believe we are operating from a better financial position as shown by improved cash flow and positive EBITDA over the last few quarters. I will share our strategic plan in the coming months with further details on our four key focus areas. As part of this plan, we will outline clear, measurable milestones and provide regular updates on our progress. I look forward to working with our talented team as we realize Zevia's great potential. We have an exciting future in front of us. With that, I will turn it over to Girish. Girish Satya: Thank you, Alexandre. Good afternoon, everyone, and thanks for joining our call today. Before we get into the quarter, I'd just like to take a moment to welcome Alexandre to the Zevia team. It's been a pleasure working more closely with him since he transitioned into the CEO role, and I look forward to the partnership. Echoing his remarks, with our vastly improved financial profile, coupled with our increased supply chain efficiencies and cost disciplines, we have a strong foundation from which to build the next phase of growth for the brand. Now turning to our results. For the second quarter, net sales increased 1.1% to $45 million, primarily driven by successful pricing actions. Our results also reflect the lapping of load-ins to Walgreens and Albertsons in the second quarter of last year, as well as the shift in cadence with higher volumes anticipated in the first and third quarters versus last year. Notably, net sales in the first half of 2026 increased 10.4% to $91.1 million, including the discontinuation of our tea offering, which began in Q2. Gross margin was 48.9%, a 20 basis point increase from 48.7% in the prior year quarter. The improvement reflects strong price realization, partially offset by increases in aluminum costs, from which we expect to see a bigger impact in the back half of the year. Selling and marketing expenses were $13.1 million or 29% of net sales in the second quarter of 2026 compared to $13.4 million or 30% of net sales in the second quarter of 2025. Breaking it down, selling expense was $8.1 million, or 17.9% of net sales in the second quarter of 2026, compared to $8.7 million, or 19.4% of net sales in the second quarter of 2025. The 150 basis point improvement reflects savings in warehousing and repackaging costs, partially offset by increased fuel costs. Marketing expense was $5 million or 11.1% of net sales in the second quarter of 2026, compared to $4.7 million or 10.6% of net sales in the second quarter of 2025. The increase in marketing expense as a percentage of sales as compared to last year was due to higher planned investments in the second quarter to support our new product rollout, package redesign, and Cardi B partnership. General and administrative expenses were $8.6 million, or 19% of net sales in the second quarter of 2026, compared to $8.1 million, or 18.2% of net sales in the second quarter of 2025. The increase was primarily due to higher personnel-related costs and outside services expenses, partially offset by lower accrued variable compensation. For the second quarter, adjusted EBITDA was approximately $0.5 million compared to an adjusted EBITDA of $0.2 million in the prior year period. Year-to-date, adjusted EBITDA increased $4.5 million versus the prior year period, despite significant cost pressures. Turning to our balance sheet, we ended the quarter with approximately $28.5 million in cash and cash equivalents and have an undrawn revolving credit line of $20 million. Now, turning to our outlook. Starting with the third quarter of 2026, we expect net sales of between $44 million to $46 million, reflecting 10% growth at the midpoint of the range. This guidance incorporates increased club distribution, ongoing strength in digital, and the benefit of incremental promotional support for the national rollout of our packaging refresh, partially offset by the discontinuation of our tea offering. We expect third quarter adjusted EBITDA loss to be between negative $3 million and negative $3.5 million. This assumes a reduction in gross margin to approximately 46% due primarily to the impact of elevated aluminum costs and higher promotions and channel mix. Additionally, this reflects pressure on selling expense related to higher fuel costs, as well as higher marketing investment associated with the Cardi B campaign launch and the rollout of the new product packaging nationwide. Looking at the full year, we are maintaining our 2026 net sales guidance of $170 million to $175 million, reflecting 7% growth at the midpoint of the range. In addition, this incorporates an approximately 1.5 percentage point impact from the discontinuation of tea. As Alexandre outlined in his discussion, we are amplifying efforts to drive materially accelerated growth across our business, but predominantly through an improved go-to-market strategy. We have identified a number of opportunities across our distribution channels. However, realize that it will take time to bear fruit. Turning to profitability, we are maintaining our full year 2026 adjusted EBITDA range of negative $2 million to negative $4 million. As a reminder, due to ongoing macro volatility, this range continues to incorporate approximately $11 million related to the surge in fuel prices and higher aluminum-related costs. While we expect these elevated costs to come down over time, we are on track to achieve $3 million to $5 million in additional cost savings beginning in Q1 of 2027. In closing, we believe that we have a distinct market position which presents a tremendous opportunity that we have yet to capture. We remain confident in our path forward and our focus on executing a strategic plan to improve profitability through enhanced commercial execution, financial discipline, and targeted investments to strengthen our capabilities and create sustainable long-term value for all shareholders. I'll now turn it over to the operator to begin Q&A. Operator? Operator: [Operator Instructions] Our first question is from Andrew Strelzik with BMO Capital Markets. Andrew Strelzik: I appreciate all the detail on some of the opportunities that you discussed this already. But -- and you mentioned kind of that it's going to take some time for that to play out. But I'm just curious, you know, how you think about which of the priorities you think we could see the benefits from the fastest or maybe takes the longest, kind of how we should think about the cadence of those opportunities flowing through to performance. Alexandre Ruberti: Sure. Andrew. Good to talk to you again. I think if you try to prioritize priorities in here, prioritize priority is good, but prioritize priority in here, it is, first of all, everything to do with the singles. I think this is a bit urgent and more meaningful priority that we have, because if you want to measure that, nowadays we have a 10% of share and we have a 0 share in singles. And singles opportunity for us, if we keep the same multipack share that we have nowadays, it will be around $80 million, right? So our business nowadays is based on multipacks and we don't have singles. I think everything that we are doing in terms of activating singles, we are on the streets now in the selling season talking to the customers in order to prioritize this ahead of any other. But this one is the main opportunity for us. Andrew Strelzik: Okay, okay, that's helpful. And if I could just ask about the guidance, you know, the second quarter came in at the higher end of the revenue guidance above on EBITDA, the 3Q guidance, at least ahead of consensus. I know that's not your internal expectation, but I guess in holding the year, it implies a weaker 4Q kind of flat to down, which is not entirely inconsistent with what you had communicated previously, but it's maybe a little weaker than I would have thought. So I guess, you know, just in the context of the 2Q performance, just holding the annual guidance, and is there anything in the fourth quarter that we should be aware of incrementally as a potential headwind? Girish Satya: Yes, no, thanks, Andrew. And look, you're right. We said earlier in the year that Q1 and Q3 would be the biggest quarters. Our Q4 growth is consistent with what we had outlined earlier in the year and I think this is largely a reflection of the timing shift in marketing spend and innovation launches. Separately, it's also a remnant of our club business. And as club becomes a more consistent channel, we should see less fluctuations in growth rates going forward. I'd say that generally speaking at this point, we're in the really early days of our marketing and innovation initiatives, which we recently launched as we alluded to with Cardi B just a couple of weeks ago. And we're encouraged by the Early Reads and think that this could be an opportunity for us, but there isn't necessarily any headwind that we're calling out for Q4. As Alexandre noted, you know, we do believe we have a lot of opportunities to accelerate growth. But those initiatives are going to take a little bit of time. Operator: Our next question is from Jim Salera with Stephens Inc. James Salera: Alexandre, I wanted to ask a little bit around, you know, kind of why now for singles and if you could maybe walk through some of the operational infrastructure that gives you the confidence that you can execute on that, such that it'll be incremental. I know the West Coast DSD expansion has kind of been key, but is singles going to be something we see kind of nationwide, is going to be more of a regional rollout? Can you kind of walk us through the cadence there and how quickly we should expect to see that business ramp? Alexandre Ruberti: Yes, sure. Let me get to you some kind of high-level view, and then I go into singles. I think first of all, when I say that we have to increase our focus on our go-to-market, and then imagine that the go-to-market will have the most expensive way how to go or more effective ways, right? And we are evaluating a couple of options, but the main objective for us is to make sure that we guarantee distribution across the nation as well as in-store execution, both. And, you know, we can go DSD network, we can go brokers, broadliners, to sales, merchandising agencies, this kind of stuff. But at the end of the day, the mix of those ways to go to market will be the secret. We are creating this plan right now. We are willing to -- aiming to start execution in the beginning of 2027. This is one way to support singles. When talking about singles, the idea here was a very rational concept because nowadays we have a 10% of share. If you just segment modern soda within the multipack, we have a 20% of share. If you have the same 20% of share within singles, we're talking about $80 million opportunity. So in the end of the day, why now? Because I think that now we have the right product because we improved taste. Second, the right size of the can, not sleek can anymore, it's going to be the regular can. And third, we're going to have the right price and value equation. I think this combination of power of execution and the right format of the product will be a huge difference moving forward. But as you said, we need to have a structure in place in order to execute that. That's why I think it's going to take some time after implementing the new go-to-market. James Salera: Okay. And then Girish, if I could ask a follow-up on, you talked about aluminum pricing, and I know that's been a headwind across the industry for the year, but recently we've heard folks talking about stepped up transport costs, freight and diesel. Can you just walk us through how that flows through on your gross margin and maybe just any thoughts around price offset. I think you guys are just shy of 5% price, if I did the math right in the quarter. Is that like a fair kind of cadence to carry forward to the end of the year? Is there an opportunity for any incremental price? Girish Satya: Thanks, Jim. And yes, as you alluded to, everybody has been facing these increased aluminum costs and fuel costs. And as a reminder, we've taken $20 million out of the business. We've identified an incremental $3 million to $5 million that we'll -- that we're currently working on taking out of the business, which will primarily impact COGS and selling expenses beginning in Q1 of 2027. As you alluded to, we recently took a price increase, which in some ways was preemptive knowing that we were going to be seeing or continuing to see these aluminum costs. You know, given the broader macroeconomic outlook and consumers' flight to value, it's unlikely that we're going to pull the pricing lever again this year. But we do believe that we will continue to find opportunities to drive efficiencies through the P&L. And although we highlighted a bit of a dip in Q3 with regard to gross margin. Some of that will be recovered in Q4, partly because we are going a little bit deeper from a price point -- from a promotional price perspective in Q3 to support not only the new packaging and new flavors, but also the Cardi B brand awareness campaign as well. And so that will kind of reverse itself -- a little bit reverse itself out in Q4. So long-winded way of saying we're managing it as closely as we can and continue to find opportunities to maintain our margins. And as you saw from our first half performance, you know, we continue to sort of balance the two between reinvesting in the business and dropping dollars to the bottom line. Operator: Our next question is from Eric Des Lauriers with Craig-Hallum Please proceed with your question. Eric Des Lauriers: It seems like we've touched a good amount on singles and some of the expanded distribution opportunities. I wonder if we could just focus a little bit on some of the opportunities kind of right in front of us, starting with the new packaging and new flavors. Just any sort of early insight into how that national rollout is proceeding. Are you guys continuing to see any velocity pickups from this new packaging or new flavors and just any sort of commentary on the early performance would be great. Alexandre Ruberti: Sure, Eric. I think -- thanks for the question, because I still think are very, very early to make any kind of comments on that because it's just one month and we still don't have 100% rollout, but I would say 90%. It's going to take a couple of months in order to be able to evaluate and as well as to segment the effects of sales in terms of the new packaging and flavors. The first readings we have some weeks, of course, and the first readings, mainly in terms of the natural channel, the velocities are higher, but still everything is too early, but we are looking for the next month to understand how solid we will be. But we are very, very excited because the first readings are positive so far. Eric Des Lauriers: That's great to hear. And then just switching to the Cardi B marketing campaign, you guys gave a lot of detail on just how viral this went, certainly, I mean, caught me by surprise. Are you seeing -- I mean, I know this is obviously even sort of even earlier than this new packaging rollout, but are you seeing any sort of increased web traffic or any higher engagement with the Zevia brand as a result of this? Anything to call out just initially from this? Alexandre Ruberti: No question on that. I think the first numbers that we showed during the conversation was huge, right? In the last two weeks, we had almost 30 million social video views. We had 1.8 billion in earned media impressions. It's huge. It went viral just because of who she is and how we are engaging with her and the brand. So, said that, in the end of the day, what we are looking for until the end of the year is going to be a track from the top of the funnel to the bottom of the funnel, the marketing funnel, right? Because we're going to have one more ad coming in the next few weeks. We're going to have a one consumer contest that consumers are going to submit some stores and then she's going to perform a new ad in real life to them. And also we are planning to have a launch of a new product, signature product with Cardi B in the beginning of January. So at the end of the day, the strategy here is the full funnel. We're talking about awareness. We're talking about consideration with the consumer in terms of the context of the better story. And then we're going to make available a product with a flavor that was developed together with her in the beginning of January. I think that's what we are focused in this campaign. Eric Des Lauriers: Well, sounds like lots of very exciting things to come. Operator: Our next question is from Eric Serotta with Morgan Stanley. Eric Serotta: I'm hoping you could give a little bit of color in terms of the sort of the priorities that you laid out, Alexandre. Do you see these as involving, you know, sort of meaningful levels of increased investment or step up of investment in order to kind of achieve your ambitions, you know, across these initiatives, or do you think you could sort of do it within the existing, you know, P&L cost envelope that you have? Alexandre Ruberti: Thanks, Eric. From my side, still it's very early to say. We are cooking the plan and of course we're going to make the dollars work harder for us moving forward. I believe that when we talk about first in terms of improving the go-to-market, there's many ways how to go. As I said, the most expensive and the more efficient way, we're going after the most efficient and making the mix of that. I think that's the one point. The second point, when we say in terms of how to better shape the brand is much more a conceptual shape and how to communicate and when to communicate. I think that's going to be a part. And then the third one in general it is, as I said, the high level is how to make Zevia easier to find in terms of expanding distribution and be more available and how to make Zevia easier to buy in terms of execution, right? And then this one is going to take some investment because we have to have foot on the street. And the third one, how to make Zevia easier to choose in terms of market awareness and brand relevance, this is the first test that we are doing with Cardi B, which is working. I think this is a combination of, we don't have precisely the amount of investment yet, but we are planning as we speak. Eric Serotta: Great. And then, you know, just in terms of the modern soda category we've seen some of the brands over the past few years on the probiotic and functional side slow a bit lately. Wondering how you look at that. Is that a headwind in terms of broader less interest in modern soda? Is that an opportunity to make Zevia more relevant when some of these other broader competitors have sort of gotten a lot of mind share and kind of free air time over the past few years? Alexandre Ruberti: Yes, sure. I think in terms of making Zevia more relevant, this is what we call in terms of sharpening the brand a little bit. And for sure, in terms of the modern soda category, the cake or the size of the prize is growing as a whole. We have a couple of new entrants coming and exchanging share among them. But if you take a look in Zevia, we are holding very, very steady our share, independently on what's happening with the functional ones. But I think that this is the future because consumers are still looking for a more healthy way and how to consume soda and we're going to be ready to fulfill this need. Operator: We have reached the end of the question-and-answer session. I would like to turn the floor back over to Alexandre Ruberti for closing comments. Alexandre Ruberti: Super, thank you. Thanks you all for joining our call today and for sure we look forward to updating you in the progress we are making in our 4 key main areas and sharing our strategic plan to accelerate growth, improving profitability and building long-term shareholder value in the coming months. Thanks a lot. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. 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Looking back on beverages, alcohol, and tobacco stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Zevia (NYSE:ZVIA) and its peers. These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players. The 13 beverages, alcohol, and tobacco stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 2.2% above. While some beverages, alcohol, and tobacco stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.5% since the latest earnings results. With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE:ZVIA) is a better-for-you beverage company. Zevia reported revenues of $45 million, up 1.1% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a strong quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 12.8% since reporting and currently trades at $1.50. Is now the time to buy Zevia? Access our full analysis of the earnings results here, it’s free. Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ:COCO) offers coconut water products that are a natural way to quench thirst. Vita Coco reported revenues of $216.2 million, up 28.1% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with a beat of analysts’ EPS and gross margin estimates. Vita Coco delivered the highest full-year guidance raise of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 16.4% since reporting. It currently trades at $62.22. Is now the time to buy Vita Coco? Access our full analysis of the earnings results here, it’s free. With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ:CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management. Celsius reported revenues of $817.9 million, up 10.6% year on year, falling short of analysts’ expectations by 6.2%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates. Celsius delivered the weakest performance against analyst estimates among its peers. As expected, the stock is down 5.8% since the results and currently trades at $27.45. Read our full analysis of Celsius’s results here. With a history that goes back more than a century, PepsiCo (NASDAQ:PEP) is a household name in food and beverages today and best known for its flagship soda. PepsiCo reported revenues of $24.18 billion, up 6.4% year on year. This result surpassed analysts’ expectations by 0.8%. Taking a step back, it was a mixed quarter as it logged gross margin in line with analysts’ estimates. The stock is down 2.3% since reporting and currently trades at $139.24. Read our full, actionable report on PepsiCo here, it’s free. With a presence in more than 100 countries, Constellation Brands (NYSE:STZ) is a globally renowned producer and marketer of beer, wine, and spirits. Constellation Brands reported revenues of $2.43 billion, down 3.3% year on year. This number beat analysts’ expectations by 1.6%. Taking a step back, it was a satisfactory quarter as it also produced a solid beat of analysts’ organic revenue estimates but full-year revenue guidance slightly missing analysts’ expectations. Constellation Brands had the weakest full-year guidance update in the group. The stock is down 2.4% since reporting and currently trades at $135.75. Read our full, actionable report on Constellation Brands here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. 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Interested in Zevia PBC? Here are five stocks we like better. Q2 sales increased 1.1% to $45 million, while adjusted EBITDA improved to approximately $0.5 million from $0.2 million a year earlier. Gross margin edged up to 48.9%, although higher aluminum costs are expected to pressure results in the second half. Zevia is prioritizing its singles business, estimating an approximately $80 million opportunity if it achieves multipack-level market share. The company plans to begin executing a revised singles go-to-market strategy in early 2027, expanding distribution and improving retail activation. The company maintained full-year 2026 guidance of $170 million to $175 million in sales and a $2 million to $4 million adjusted EBITDA loss. Zevia expects continued cost pressure from fuel and aluminum, but anticipates $3 million to $5 million in annualized savings beginning in Q1 2027. Zevia PBC (NYSE:ZVIA) reported second-quarter 2026 net sales of $45 million, up 1.1% from the prior-year period, as pricing actions helped offset comparisons affected by prior-year customer load-ins and changes in shipment timing. The company said adjusted EBITDA was approximately $0.5 million, compared with $0.2 million a year earlier. President and Chief Executive Officer Alexandre Ruberti, who was making his first earnings-call appearance in the role, said the company is operating from a stronger financial position and is developing a strategic plan intended to accelerate growth and improve profitability. → No Hangover: Revisiting Microsoft One Week After Earnings “We believe that Zevia's truly distinct market position presents a tremendous opportunity that we have yet to capture,” Ruberti said. He said the company would outline the plan, including measurable milestones, in the coming months. Chief Financial Officer and Principal Accounting Officer Girish Satya said quarterly revenue growth was primarily driven by pricing. Results also reflected the lapping of load-ins to Walgreens and Albertsons during the second quarter of 2025, as well as a shift in sales cadence that the company expects to favor the first and third quarters of 2026. → MarketBeat Week in Review – 08/03 - 08/07 For the first half of 2026, net sales rose 10.4% to $91.1 million. That result includes the effect of Zevia’s decision to discontinue its tea offering, which began during the second quarter. Gross margin increased 20 basis points to 48.9%, supported by price realization but partly offset by higher aluminum costs. Satya said elevated aluminum costs are expected to have a greater impact during the second half of the year. Selling and marketing expense was $13.1 million, or 29% of sales, compared with $13.4 million, or 30% of sales, a year earlier. Selling expense declined to $8.1 million from $8.7 million, reflecting lower warehousing and repackaging costs, partly offset by higher fuel costs. Marketing expense rose to $5 million from $4.7 million as Zevia supported product launches, packaging redesigns and its Cardi B partnership. General and administrative expense increased to $8.6 million from $8.1 million, primarily due to personnel-related costs and outside services. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Zevia ended the quarter with approximately $28.5 million in cash and cash equivalents, along with an undrawn $20 million revolving credit line. Ruberti identified the expansion of Zevia’s singles business as the company’s most immediate commercial opportunity. He said Zevia has about a 10% share in its current business but effectively no share in singles, which he described as a key format for consumer discovery, trial and household penetration. According to Ruberti, Zevia estimates that matching its multipack share in singles could represent an approximately $80 million opportunity. The company has worked on improving the taste, can format, flavor assortment and pricing of its single-serve products. “Our business nowadays is based on multi-packs and we don't have singles,” Ruberti said in response to an analyst question. He said the company is evaluating a range of distribution methods, including direct-store-delivery networks, brokers, broadliners and merchandising agencies, with the objective of ensuring national distribution and in-store execution. The company is targeting the beginning of 2027 to begin executing its revised go-to-market strategy for singles. Ruberti said the effort will require a combination of distribution expansion and improved activation at retail locations. More broadly, Zevia plans to focus on expanding availability in mass, club, foodservice, value retail and e-commerce channels, while improving merchandising and category management within existing stores. Zevia launched its “Refreshingly Real” marketing campaign featuring Cardi B. Ruberti said the campaign generated nearly 29.5 billion social campaign video views, more than 1.7 million engagements on Cardi B and Zevia posts, 1.8 billion earned-media impressions and 473 media placements. The company plans additional campaign activity, including consumer contests, another advertisement in coming weeks and a Cardi B signature product scheduled for launch in early January. Ruberti said the broader objective is to move consumers through the marketing funnel from awareness to consideration and purchase. Zevia also completed most of the national rollout of new packaging and flavors. Ruberti said the company had reached roughly 90% rollout and that it was too early to assess the full sales impact. He said early readings from the natural channel showed higher velocities, though management expects to need several more months to evaluate results. For the third quarter, Zevia expects net sales of $44 million to $46 million, representing approximately 10% growth at the midpoint. The outlook includes increased club distribution, continued digital-channel strength and promotional support for the national packaging refresh, partly offset by the discontinued tea business. The company expects a third-quarter adjusted EBITDA loss of $3 million to $3.5 million. Zevia anticipates gross margin of about 46%, citing aluminum costs, increased promotions and channel mix, along with higher fuel costs and marketing spending tied to the Cardi B campaign and packaging rollout. Zevia maintained its full-year 2026 guidance for net sales of $170 million to $175 million, or about 7% growth at the midpoint. The outlook incorporates an estimated 1.5 percentage-point impact from discontinuing tea. The company also reaffirmed its full-year adjusted EBITDA guidance of a loss between $2 million and $4 million. Satya said the annual profitability outlook continues to include roughly $11 million of pressure from elevated fuel and aluminum-related costs. He added that Zevia expects to realize an additional $3 million to $5 million in cost savings beginning in the first quarter of 2027, primarily affecting cost of goods sold and selling expenses. Zevia PBC, headquartered in Los Angeles, is a Public Benefit Corporation that produces zero-calorie, naturally sweetened beverages. Founded in 2007, the company went public through a merger with a special purpose acquisition company in March 2021. Zevia's mission centers on offering healthier drink alternatives by using stevia leaf extract and other plant-based ingredients rather than sugar or artificial sweeteners. The company's product portfolio spans multiple categories, including carbonated sodas, sparkling water, energy drinks, mixers and flavored teas. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Zevia PBC Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Net Sales: $45 million in Q2 2026, a 1.1% increase year-over-year, driven by successful pricing actions. First Half Net Sales: $91.1 million, a 10.4% increase year-over-year, including the discontinuation of the tea offering. Gross Margin: 48.9% in Q2 2026, a 20 basis point increase from 48.7% in the prior year quarter, reflecting strong price realization partially offset by higher aluminum costs. Selling and Marketing Expenses: $13.1 million, or 29% of net sales, compared to $13.4 million, or 30% of net sales, in Q2 2025. Selling Expense: $8.1 million, or 17.9% of net sales, a 150 basis point improvement from 19.4% in Q2 2025, driven by savings in warehousing and repackaging costs. Marketing Expense: $5 million, or 11.1% of net sales, compared to $4.7 million, or 10.6% of net sales, in Q2 2025, due to higher planned investments for new product rollout and the Cardi B partnership. General and Administrative Expenses: $8.6 million, or 19% of net sales, compared to $8.1 million, or 18.2% of net sales, in Q2 2025. Adjusted EBITDA: Approximately $0.5 million in Q2 2026, compared to $0.2 million in the prior year period. Year-to-Date Adjusted EBITDA: Increased $4.5 million versus the prior year period. Cash and Cash Equivalents: Approximately $28.5 million at the end of the quarter, with an undrawn revolving credit line of $20 million. Q3 2026 Net Sales Guidance: Expected between $44 million and $46 million, reflecting 10% growth at the midpoint. Q3 2026 Adjusted EBITDA Guidance: Expected loss between negative $3 million and negative $3.5 million. Full Year 2026 Net Sales Guidance: Maintained at $170 million to $175 million, reflecting 7% growth at the midpoint. Full Year 2026 Adjusted EBITDA Guidance: Maintained at negative $2 million to negative $4 million. Warning! GuruFocus has detected 3 Warning Sign with ZVIA. Is ZVIA fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Zevia PBC (NYSE:ZVIA) delivered second-quarter net sales of $45 million, at the high end of guidance, with adjusted EBITDA of $0.5 million, exceeding expectations. The company's first-half 2026 net sales increased 10.4% to $91.1 million, demonstrating strong momentum. Gross margin improved to 48.9%, a 20 basis point increase year-over-year, driven by strong price realization. The 'Refreshingly Real' campaign with Cardi B generated massive engagement, including nearly 29.5 billion social video views and 1.8 billion PR earned media impressions. Management identified a significant growth opportunity in the singles channel, estimating an $80 million potential if it can match its current multi-pack market share. The company maintains a strong balance sheet with approximately $28.5 million in cash and an undrawn $20 million revolving credit line. Zevia PBC (NYSE:ZVIA) is on track to achieve an additional $3 million to $5 million in cost savings beginning in Q1 2027. Third-quarter 2026 guidance projects an adjusted EBITDA loss of between $3 million and $3.5 million, a significant drop from the positive EBITDA in Q2. The company faces ongoing cost pressures from elevated aluminum and fuel prices, which are expected to have a larger impact in the back half of the year. Gross margin is expected to decline to approximately 46% in Q3 due to higher aluminum costs, promotions, and channel mix. Full-year 2026 guidance implies a weaker fourth quarter, with growth rates expected to decelerate due to timing shifts in marketing spend and innovation launches. The company's go-to-market execution is underperforming, with management acknowledging a need for significant improvement in in-store activation and merchandising. Zevia PBC (NYSE:ZVIA) remains underpenetrated in key channels such as mass, club, and food service, limiting its reach and consumer accessibility. The discontinuation of its tea offering is expected to have an approximately 1.5 percentage point negative impact on full-year net sales growth. Q: Which of the strategic priorities you outlined do you expect to see benefits from the fastest, and how should we think about the cadence of these opportunities flowing through to performance?A: Alexandre Ruberti, President and CEO, stated that the most urgent and meaningful priority is unlocking the full potential of the singles platform. He noted that while Zevia holds a 10% share in multi-packs, it currently has zero share in singles. If the company can achieve the same 20% share in singles as it has in multi-packs, it represents an approximately $80 million opportunity. The company is actively activating singles with customers during the current selling season. Q: Can you walk us through the operational infrastructure that gives you confidence you can execute on the singles opportunity, and will it be a nationwide or regional rollout?A: Alexandre Ruberti explained that the company is evaluating a mix of go-to-market options, including DSD networks, brokers, broadliners, and merchandising agencies, with the goal of guaranteeing national distribution and in-store execution. He noted that the plan is aiming for execution to begin in early 2027. The timing is right because the company now has the right product format (regular cans instead of sleek cans), improved taste, and the right price-value equation to support the singles push. Q: Given the elevated aluminum and fuel costs, can you walk us through how these flow through your gross margin and whether there is an opportunity for incremental pricing?A: Girish Satya, CFO, confirmed that the company has already taken a preemptive price increase and is unlikely to pull the pricing lever again this year due to the consumer's flight to value. He highlighted that the company has taken $20 million out of the business and identified an additional $3 million to $5 million in savings that will primarily impact COGS and selling expenses beginning in Q1 2027. He noted that while Q3 gross margin will dip to approximately 46% due to promotions and aluminum costs, some of that will be recovered in Q4. Q: Do you have any early insight into how the national rollout of the new packaging and flavors is proceeding, and are you seeing any velocity pickups?A: Alexandre Ruberti stated that it is still very early, with the rollout at about 90% complete. While it will take a couple of months to fully evaluate the impact, the first readings are positive, particularly in the natural channel where velocities are higher. He expressed excitement about the early data but cautioned that it is too soon to draw definitive conclusions. Q: Are you seeing any increased web traffic or higher engagement with the Zevia brand as a result of the Cardi B marketing campaign?A: Alexandre Ruberti confirmed significant engagement, citing nearly 29.5 billion social campaign video views, 1.7 million engagements on Cardi B video posts, and 1.8 billion PR earned media impressions. He outlined the full-funnel strategy, which includes a new ad in the coming weeks, a consumer contest where Cardi B will perform a new ad in real life, and a signature product launch developed with Cardi B scheduled for early January. Q: Do the strategic priorities you laid out require meaningful levels of increased investment, or can you achieve them within the existing P&L envelope?A: Alexandre Ruberti noted that it is still early to provide precise investment figures. He emphasized that the company is seeking the most efficient go-to-market mix, and while expanding distribution and improving in-store execution will require investment in "feet on the street," the brand-shaping efforts are more conceptual. He confirmed that the company is currently planning the investment levels as part of the strategic plan. Q: How do you view the slowdown in the broader modern soda category, and is it a headwind or an opportunity for Zevia to become more relevant?A: Alexandre Ruberti stated that the category is growing as a whole, with new entrants exchanging share among themselves. He noted that Zevia has held its share steadily regardless of what is happening with functional brands. He views the trend as positive for the future, as consumers continue to seek healthier ways to consume soda, which aligns with Zevia's positioning. Q: Can you provide more color on the Q3 guidance, which implies a weaker Q4, and are there any incremental headwinds to be aware of?A: Girish Satya explained that Q4 growth is consistent with what was outlined earlier in the year, reflecting a timing shift in marketing spend and innovation launches. He noted that the club business is becoming a more consistent channel, which should reduce fluctuations in growth rates going forward. He confirmed there are no specific headwinds being called out for Q4, and the company is encouraged by early reads on the Cardi B campaign and new initiatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Net Sales at the High End of Outlook; Adjusted EBITDA Exceeds Outlook LOS ANGELES, August 05, 2026--(BUSINESS WIRE)--Zevia PBC ("Zevia" or the "Company") (NYSE: ZVIA), the Company bringing naturally delicious, zero sugar, clean-label beverages, today reported results for the second quarter ended June 30, 2026. Second Quarter 2026 Highlights Net sales grew 1.1% year over year to $45.0 million Gross profit margin was 48.9%, an improvement of 0.2 percentage points year over year Net loss was $2.9 million, or $0.04 per share to Zevia’s Class A Common stockholders, including $2.1 million of non-cash equity-based compensation expense, an increase in net loss of $2.3 million year over year, primarily driven by higher equity-based compensation Adjusted net loss was $1.8 million (1) Adjusted EBITDA was $0.5 million (1) , an improvement of $0.3 million year over year "Stepping into the role as CEO of Zevia, I am excited to begin this new chapter following net sales growth of 10.4% in the first half of 2026, which demonstrates the strong momentum in our business," said Alexandre Ruberti, President and CEO of Zevia. "We are working aggressively to build a strategic plan that we believe will accelerate growth and deliver sustainable outcomes for the organization. Our immediate areas of focus are to evolve the go-to market strategy, sharpen and scale our brand identity, execute with financial discipline, and establish a performance driven culture. Together, these actions will allow us to capture the full potential of Zevia’s distinct market position and create enhanced profitability and substantial stockholder value." Second Quarter 2026 Results Net sales improved 1.1% to $45.0 million in the second quarter of 2026 compared to $44.5 million in the second quarter of 2025 due to pricing actions, partially offset by a 3.7% decline in volume, primarily reflecting the comparison against distribution load-ins in the prior-year period. Gross profit margin was 48.9% in the second quarter of 2026 compared to 48.7% in the second quarter of 2025, an improvement of 0.2 percentage points. The increase was primarily driven by the benefit of pricing actions, partially offset by higher aluminum costs. Selling and marketing expenses were $13.1 million, or 29.0% of net sales, in the second quarter of 2026 compared to $13.4 million, or 30.0% of net sales, in the second quarter of 2025. Selling expenses were $8.1 million, or 17.9% of net sales, in the second quarter of 2026 compared to $8.7 million, or 19.4% of net sales, in the second quarter of 2025, a decrease of $0.6 million, reflecting savings in warehousing and repackaging costs as a result of the Productivity Initiative, lower distribution fees, and lower other direct selling costs. These benefits were partially offset by higher freight costs driven by increased fuel rates. Marketing expenses were $5.0 million, or 11.1% of net sales, in the second quarter of 2026 compared to $4.7 million, or 10.6% of net sales, in the second quarter of 2025, an increase of $0.3 million reflecting increased investments to drive brand awareness. General and administrative expenses were $8.6 million, or 19.0% of net sales, in the second quarter of 2026 compared to $8.1 million, or 18.2% of net sales, in the second quarter of 2025. The increase was primarily driven by higher personnel-related costs and outside service expenses, partially offset by lower accrued variable compensation. Equity-based compensation, a non-cash expense, was $2.1 million in the second quarter of 2026, compared to $1.0 million in the second quarter of 2025. The $1.1 million increase was primarily driven by equity awards granted in connection with the Company's brand endorsement agreement with Cardi B. Restructuring expenses were $1.0 million in the second quarter of 2026 and primarily consisted of contract termination costs and freight costs incurred to transfer inventory as part of the Company's productivity initiatives. Net loss in the second quarter of 2026 was $2.9 million, compared to net loss of $0.7 million in the second quarter of 2025. Loss per share in the second quarter of 2026 was $0.04 to Zevia’s Class A Common stockholders, compared to loss per share of $0.01 in the second quarter of 2025. Adjusted net loss in the second quarter of 2026 was $1.8 million, compared to an adjusted net loss of $0.6 million in the second quarter of 2025, which excludes restructuring and certain litigation costs. Adjusted EBITDA was $0.5 million in the second quarter of 2026, compared to Adjusted EBITDA of $0.2 million in the second 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 June 30, 2026, the Company had $28.5 million in cash and cash equivalents and no outstanding debt, as well as an unused credit line of $20 million. 2026 Outlook "Our first half of 2026 reflects steady execution and a continued focus on our strategic growth pillars," said Girish Satya, Chief Financial Officer of Zevia. "We believe we are uniquely positioned in the market, with a significant opportunity ahead that has yet to be fully captured. As we move forward, we are focused on disciplined execution, improving profitability, and enhanced commercial performance, along with targeted investments to strengthen our capabilities and support sustainable long-term value creation." For the full year 2026, the Company continues to expect 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 third quarter of 2026, the Company expects net sales to be in the range of $44.0 million to $46.0 million, and an adjusted EBITDA loss of between $3.0 million and $3.5 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 13761344. 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 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® 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 41,000 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) Use of Non-GAAP Financial Information We use Adjusted Net Loss and Adjusted EBITDA, financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). The Company’s management believes that Adjusted Net Loss and Adjusted EBITDA, when taken together with our financial results presented in accordance with GAAP, provide meaningful supplemental information regarding our operating performance and facilitate internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of Adjusted Net Loss is useful to investors because it provides a supplemental view of our operating results by excluding restructuring expenses and certain litigation expenses that management does not believe are reflective of our ongoing operating performance, and the use of Adjusted EBITDA is helpful as it is a measure used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes. We calculate Adjusted Net Loss as net loss adjusted to exclude: (1) restructuring expenses, and (2) certain litigation expenses. We calculate Adjusted EBITDA as net loss adjusted to exclude: (1) other income (expense), net, which includes interest (income) expense and foreign currency (gains) losses, (2) (benefit) provision for income taxes, (3) depreciation and amortization, (4) equity-based compensation, (5) restructuring expenses, and (6) certain litigation expenses. Also, Adjusted EBITDA may in the future be adjusted for amounts impacting net income related to the Tax Receivable Agreement liability and other infrequent and unusual transactions. Adjusted Net Loss and Adjusted EBITDA are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. Some of the limitations of Adjusted Net Loss include that it does not reflect (1) restructuring expenses and (2) certain litigation expenses that we have determined (a) to arise outside of the ordinary course of business, (b) are not reflective of our ongoing operating activities, and (c) are infrequent or unusual based on considerations which we assess regularly, such as frequency of similar cases that have been brought to date or that are expected to be brought within two years, the complexity of the case, the nature of the remedies sought, the counterparty involved and overall litigation strategy. Some of the limitations of Adjusted EBITDA include that (1) it does not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA does not reflect these capital expenditures, (3) it does not consider the impact of equity-based compensation expense, including the potential dilutive impact thereof, (4) it does not reflect other non-operating expenses, including interest (income) expense, foreign currency (gains)/losses, and restructuring expenses, and (5) it does not reflect the same certain litigation expenses as Adjusted Net Loss. In addition, our use of Adjusted Net Loss and Adjusted EBITDA may not be comparable to similarly-titled measures of other companies because they may not calculate Adjusted Net Loss and Adjusted EBITDA in the same manner, limiting their usefulness as comparative measures. Because of these limitations, when evaluating our performance, you should consider Adjusted Net Loss and Adjusted EBITDA alongside other financial measures, including our net income (loss) and other results stated in accordance with U.S. GAAP. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805142542/en/ Contacts Investors Jean FontanaADDO Investor [email protected]

Beverage company Zevia (NYSE:ZVIA) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 1.1% year on year to $45 million. The company expects next quarter’s revenue to be around $45 million, coming in 2.2% above analysts’ estimates. Its GAAP loss of $0.04 per share was $0.01 below analysts’ consensus estimates. Is now the time to buy Zevia? Find out in our full research report. Revenue: $45 million vs analyst estimates of $44.22 million (1.1% year-on-year growth, 1.8% beat) EPS (GAAP): -$0.04 vs analyst estimates of -$0.03 ($0.01 miss) Adjusted EBITDA: $500 (0% margin, 99.8% year-on-year decline) The company reconfirmed its revenue guidance for the full year of $172.5 million at the midpoint EBITDA guidance for the full year is -$3 million at the midpoint, above analyst estimates of -$3.09 million Operating Margin: -6.4%, down from -2.3% in the same quarter last year Free Cash Flow was $2.19 million, up from -$1.42 million in the same quarter last year Sales Volumes were up 3.7% year on year Market Capitalization: $124.2 million With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE:ZVIA) is a better-for-you beverage company. A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. With $169.8 million in revenue over the past 12 months, Zevia is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. As you can see below, Zevia struggled to increase demand as its $169.8 million of sales for the trailing 12 months was close to its revenue three years ago. This shows demand was soft, a poor baseline for our analysis. This quarter, Zevia reported modest year-on-year revenue growth of 1.1% but beat Wall Street’s estimates by 1.8%. Company management is currently guiding for a 10.2% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 5.1% over the next 12 months, an acceleration versus the last three years. This projection is above average for the sector and indicates its newer products will spur better top-line performance. ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE. If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills. Zevia broke even from a free cash flow perspective over the last two years, giving the company limited opportunities to return capital to shareholders. Taking a step back, an encouraging sign is that Zevia’s margin expanded by 3.4 percentage points over the last year. We have no doubt shareholders would like to continue seeing its cash conversion rise as it gives the company more optionality. Zevia’s free cash flow clocked in at $2.19 million in Q2, equivalent to a 4.9% margin. Its cash flow turned positive after being negative in the same quarter last year, building on its favorable historical trend. We were impressed by Zevia’s optimistic EBITDA guidance for next quarter, which blew past analysts’ expectations. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. On the other hand, its EPS was in line and its full-year revenue guidance fell slightly short of Wall Street’s estimates. Overall, we think this was still a solid quarter with some key areas of upside. The market seemed to be hoping for more, and the stock traded down 2.3% to $1.68 immediately following the results. Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

Coca-Cola (KO) came out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.92 per share. This compares to earnings of $0.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.44%. A quarter ago, it was expected that this world's largest beverage maker would post earnings of $0.81 per share when it actually produced earnings of $0.86, delivering a surprise of +6.17%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Coca-Cola, which belongs to the Zacks Beverages - Soft drinks industry, posted revenues of $13.37 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.44%. This compares to year-ago revenues of $12.54 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Coca-Cola shares have added about 20.3% since the beginning of the year versus the S&P 500's gain of 8.3%. While Coca-Cola has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Coca-Cola was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.87 on $12.59 billion in revenues for the coming quarter and $3.26 on $49.24 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Beverages - Soft drinks is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Zevia (ZVIA), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This stevia-sweetened soda maker is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of -200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Zevia's revenues are expected to be $44.36 million, down 0.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO) : Free Stock Analysis Report Zevia PBC (ZVIA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research