Jones Soda Co. ((JSDA)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Jones Soda Co. presented a mixed bag of developments. While the company showcased significant strides in operational efficiency and distribution expansion, alongside a notable turnaround to net income, challenges persist with a decrease in net revenue and gross profit margin, as well as continued negative adjusted EBITDA.
Completion of Cannabis Business Divestiture
Jones Soda has successfully completed the divestiture of its cannabis business, generating $3 million in proceeds. This strategic move allows the company to sharpen its focus on its core beverage operations, potentially paving the way for more streamlined business processes and enhanced profitability in the future.
Expansion of Distribution Network
In the second quarter of 2025, Jones Soda made significant strides in expanding its distribution network. The company signed 15 new distributors and increased its presence by adding 800 new distribution channels. This expansion is expected to bolster the company’s market reach and drive future revenue growth.
Strong Growth in HD9 THC Products
Jones Soda reported strong growth in its HD9 THC products, which generated $0.8 million in revenue during the second quarter of 2025, up from $0.6 million in the same period of 2024. This growth highlights the increasing consumer demand for these products and underscores the company’s potential in the cannabis-infused beverage market.
Reduction in Operating Expenses
The company achieved a significant reduction in operating expenses, which decreased by 37% to $2.4 million in Q2 2025 compared to $4.0 million in the previous year. This reduction is a testament to Jones Soda’s commitment to operational efficiency and cost management.
Net Income Turnaround
Jones Soda reported a remarkable turnaround in net income, achieving $2.6 million or $0.02 per share in Q2 2025, compared to a net loss of $1.6 million or $0.02 loss per share in the prior period. This turnaround is largely attributed to the sale of the cannabis business and effective cost reduction strategies.
Decrease in Net Revenue
Despite several positive developments, Jones Soda experienced a decrease in net revenue, which fell to $4.9 million in Q2 2025 from $6.7 million in the previous year. This decline was primarily due to the loss of a discount market customer and a previous pipeline fill.
Gross Profit Margin Decline
The company’s gross profit margin experienced a slight decline, standing at 33.3% compared to 34.3% in the prior year period. This decline reflects ongoing challenges in maintaining profitability amidst fluctuating market conditions.
Adjusted EBITDA Remains Negative
While there was an improvement, adjusted EBITDA remained negative at $571,000, compared to a loss of $1.1 million in the previous period. This indicates that while progress is being made, there are still hurdles to achieving positive EBITDA.
Forward-Looking Guidance
Looking ahead, Jones Soda plans to drive growth through expanded distribution networks and new product launches, including zero-sugar variations of its soda and HD9 THC products. The company remains focused on operational excellence and innovation as key drivers for future success.
In summary, the earnings call for Jones Soda Co. highlighted a mix of achievements and challenges. While the company has made commendable progress in operational efficiency and distribution expansion, it continues to face hurdles in revenue growth and profitability. Investors will be keenly watching how the company navigates these challenges and capitalizes on its strategic initiatives moving forward.