ZVIA · Zevia PBC

Zevia PBC delivered a strong Q1 2026 performance, with net sales surging 21.2% to $46.1 million, primarily fueled by 20.4% volume growth from expanded distribution in the Club channel and gains in Mass and E-commerce. This marked record Q1 sales growth, exceeding the company's outlook alongside positive Adjusted EBITDA of $0.9 million, a $4.2 million improvement year-over-year. Gross margin contracted 170 basis points to 48.4% due to elevated aluminum costs, partially offsetting the top-line momentum. Operating expenses showed discipline: selling and marketing fell to 31.5% of sales from 40.3%, aided by Productivity Initiative savings in warehousing and repackaging, while marketing spend decreased on campaign timing. G&A rose to 19.7% of sales, driven by a $2.3 million litigation settlement. Net loss narrowed significantly to $2.4 million ($0.03/share) from $6.4 million ($0.08/share), reflecting cost controls and no restructuring charges versus $2.1 million in Q1 2025. CEO Amy Taylor highlighted strategic progress in cost optimization, marketing reinvestment, innovation, and distribution, with upcoming package refresh and Cardi B partnership signaling brand momentum. CFO Girish Satya noted Q1 outperformance but tempered full-year adjusted EBITDA guidance to a $2-4 million loss, citing $11 million in incremental aluminum and fuel costs. Balance sheet remains solid with $26.6 million cash, no debt, and $20 million unused credit line as of March 31, 2026. Q2 guidance projects net sales of $43-45 million and adjusted EBITDA loss of $0.5-1 million, underscoring confidence in sustained growth trajectory.