Return to Growth and Improved Full-Year Financials
Full year 2025 net sales grew 4% to $161.3 million. Net loss improved to $11.1 million from $23.8 million in 2024, and adjusted EBITDA loss narrowed materially to negative $4.7 million (versus -$15.2M in 2024), reflecting a significant year-over-year improvement in profitability.
Quarterly Profitability Progress
Adjusted EBITDA for Q4 2025 reached roughly breakeven (~$50,000) and net loss for the quarter improved to $1.3 million from $6.8 million year-over-year, demonstrating marked sequential improvement.
Gross Margin Expansion for the Year
Full year gross margin expanded to 48.0% in 2025 from 46.4% in 2024 (up ~160 basis points year-over-year), driven by better product costing and improved inventory management.
Distribution and Retail Wins
Achieved nationwide presence in Walmart as an anchor within the retailer's modern soda set; launched a national Costco front-of-store rotation (variety pack) that entered new regions; expanded shelf space and secured eye-level vertical brand block at Albertsons; Canadian Walmart coverage grew to just over half of stores.
Product Innovation and Top-Selling SKUs
2025 innovation saw strong consumer resonance: Orange Creamsicle was the #1 six-pack at Sprouts post-launch; the new fruity variety pack became a top Zevia SKU at Walmart and is rolling out more broadly; new flavors and elevated taste profiles are expected to drive trial and repeat into 2026.
Marketing and Brand Momentum
Amplified marketing efforts (influencer activations, event sampling, out-of-home) produced strong early editorial and social outcomes; management plans to increase 2026 marketing investment to ~12-13% of revenue to support packaging rollout and broad-reach campaigns.
Solid Liquidity and Cost Savings
Ended the quarter with ~$25.4 million in cash and an undrawn $20 million revolving credit line. Productivity initiatives are delivering savings, with the last $5 million tranche expected to hit the P&L by end of Q2 2026.
Positive 2026 Guidance
Management targets 2026 net sales of $169–$173 million (midpoint ≈ $171M, ~6% growth vs. 2025) and forecasts adjusted EBITDA of between -$1.0 million and +$0.5 million for the full year, signaling expected continued improvement toward profitability.