Reed’s Reports Q1 2025 Financial Performance

Reed’s ( (REED) ) has released its Q1 earnings. Here is a breakdown of the information Reed’s presented to its investors.

Reed’s, Inc., a Delaware-based company, is a leading provider of natural ginger beverages in the United States, known for its handcrafted and premium quality drinks. In its latest earnings report for the first quarter of 2025, Reed’s announced a 4.5% increase in net sales, reaching $10.0 million, although gross profit remained flat at $3.4 million. The company faced challenges with increased delivery and handling costs, as well as higher selling, general, and administrative expenses, which contributed to an operating loss of $1.7 million.

Key financial metrics highlighted in the report include a decrease in gross margin from 35.6% to 33.9% due to higher costs of goods sold, and a modified EBITDA loss of $1.6 million compared to a loss of $0.4 million in the same quarter of the previous year. Despite these challenges, Reed’s CEO Cyril Wallace expressed optimism about the company’s operational improvements and strategic initiatives aimed at expanding distribution and launching new functional beverages.

Reed’s management emphasized the company’s efforts to enhance operational efficiencies, which have resulted in improved fulfillment rates and production levels that now meet demand. The company is focused on driving sustainable growth through its core and emerging product lines, including new better-for-you beverages, while maintaining a commitment to quality and innovation.

Looking ahead, Reed’s management remains committed to refining its long-term strategic plan, with a focus on building scale, improving margins, and returning to profitability. The company aims to leverage its strong brand heritage and consumer base to deliver long-term value for its stakeholders.