Reed’s ( (REED) ) has released its Q2 earnings. Here is a breakdown of the information Reed’s presented to its investors.
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Reed’s, Inc., a leader in the craft beverage industry, is known for its premium ginger beers and sodas under the Reed’s, Virgil’s, and Flying Cauldron brands. The company recently reported its financial results for the second quarter of 2025, highlighting a challenging period with a decrease in net sales and gross profit compared to the previous year.
In the second quarter of 2025, Reed’s experienced a decline in net sales to $9.5 million from $11.9 million in the same period of 2024. The company’s gross profit also fell significantly to $0.8 million, impacted by a $1.6 million inventory write-off. Despite these setbacks, Reed’s management is focused on strengthening commercial execution and investing in sales talent and marketing to drive future growth.
Key financial metrics revealed increased delivery and handling costs, rising from $2.18 to $2.83 per case, and a notable increase in selling, general, and administrative expenses, which rose to $5.0 million from $3.1 million. The company reported a net loss of $6.0 million, a significant increase from the $3.2 million loss in the previous year. Modified EBITDA also saw a downturn, recording a loss of $2.9 million compared to a modest gain of $45,000 in 2024.
Looking forward, Reed’s management remains optimistic about the company’s potential for growth. The focus will be on expanding distribution channels, improving margins, and enhancing retail availability to reach more consumers. By executing a disciplined commercial strategy, Reed’s aims to create long-term value for its shareholders.