Reed's, Inc.

Reed's, Inc. reported net sales of $34.1 million for FY 2025, a 10% decline from $37.954 million in FY 2024, driven by lower volumes across Reed’s (down 3% to 1,325 cases) and Virgil’s (down 18% to 626 cases), partially offset by a 1% price increase to $20.94 per case. Gross profit fell 39% to $7.0 million, with gross margin contracting to 20% from 30%, primarily due to $2.0 million in inventory write-offs related to product portfolio optimization and higher cost of goods sold per case ($13.89 vs. $12.46). Operating expenses rose 13% to $22.1 million, leading to a loss from operations of -$15.1 million, worsening from -$8.1 million prior year. Net loss widened 20% to -$15.8 million, or -$2 per share (basic and diluted), compared to -$13.2 million or -$9.81 per share in 2024. Balance sheet shows strengthened liquidity with cash at $10.4 million and total assets of $23.3 million, supported by $17.3 million in net financing inflows including stock sales and loans. Operating cash use intensified to -$17.0 million amid investments in growth. Forward-looking, management emphasizes distribution expansion, international growth in Asia-Pacific, operational efficiencies, and innovation in functional sodas, amid risks from supply chain volatility and competition.

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