Zevia Pbc Class A: Strong Q3 Earnings Call Highlights

Zevia Pbc Class A ((ZVIA)) has held its Q3 earnings call. Read on for the main highlights of the call.

Zevia Pbc Class A’s recent earnings call painted a picture of a company on the upswing, marked by robust net sales growth and a positive outlook for the future. Despite facing profitability challenges due to aluminum tariffs and inventory losses, the sentiment was optimistic, buoyed by strategic initiatives and an upward revision in guidance.

Net Sales Growth and Raised Guidance

Zevia reported a 12% increase in net sales for Q3 2025, reaching $40.8 million. This strong performance led the company to raise its full-year net sales guidance to between $162 million and $164 million, up from the previous range of $158 million to $163 million. This upward revision underscores the company’s confidence in its growth trajectory.

Strategic Growth Pillars

The company made significant strides across its strategic growth pillars, including marketing, product innovation, and distribution. These efforts have resulted in increased consumer engagement and an expanded user base, setting a solid foundation for future growth.

Successful Product Launches

Zevia’s new product launches, such as Strawberry Lemon Burst, Peaches & Cream, and Salted Caramel, have been well-received. Notably, Peaches & Cream has become the fastest-selling new Zevia item on Amazon, highlighting the company’s successful innovation strategy.

Expanded Distribution

The company expanded its distribution significantly, particularly in Walmart and Canadian markets. This expansion has contributed to strong new-to-brand consumer growth, further solidifying Zevia’s market presence.

Improved Household Penetration

Household penetration improved to over 5%, with a focus on millennial households. This indicates significant growth potential within the better-for-you soda category, as more consumers opt for healthier beverage options.

Productivity Initiatives

Zevia’s productivity initiatives have yielded $15 million in savings in 2025, with an additional $5 million expected in 2026. These savings are crucial for strengthening the company’s market position amid challenging economic conditions.

Gross Margin Decline

The company experienced a decline in gross margin by 350 basis points to 45.6%, primarily due to inventory obsolescence from a packaging refresh and the full impact of aluminum tariffs. This highlights the ongoing challenges in maintaining profitability.

Adjusted EBITDA Loss

Zevia reported an adjusted EBITDA loss of $1.7 million for Q3 2025, compared to a loss of $1.5 million in the prior year. This was mainly due to inventory losses and increased brand marketing spend, reflecting the company’s investment in future growth.

Challenges with Aluminum Tariffs

Aluminum tariffs continue to pose a significant cost challenge for Zevia, impacting its profitability. The company is actively working to mitigate these costs while maintaining its growth momentum.

Forward-Looking Guidance

Looking ahead, Zevia has raised its full-year net sales guidance and adjusted EBITDA loss guidance, reflecting its strong performance and growth prospects. The company anticipates continued expansion in distribution channels and a focus on increasing household penetration to drive sustainable growth and profitability.

In conclusion, Zevia Pbc Class A’s earnings call reflects a company navigating challenges with strategic foresight and optimism. While profitability hurdles remain, the company’s robust sales growth, strategic initiatives, and raised guidance suggest a promising path forward.