Reed's, Inc. (REED)
XASE:REED
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Reed's
(NYSE MKT:REED)
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Rating:44Neutral
Price Target:
$2.00
Action:Upgraded
Date:05/23/26
REED scores low primarily due to weak financial performance—shrinking revenue, severe margin compression, large ongoing losses, heavy cash burn, and limited balance-sheet cushion. Technical indicators also reflect a strong downtrend despite oversold readings. Valuation provides limited support because losses make the negative P/E less informative and there is no dividend yield shown, while earnings-call guidance for sequential improvement is a partial offset but carries high execution and liquidity risk.
Positive Factors
National retail footprint
A distribution presence across >32,000 retail doors provides durable shelf exposure and consumer access. That scale supports repeat purchase potential, bargaining leverage with retailers, and a base for rolling out new SKUs or promotional programs to rebuild sales over multiple quarters.
Negative Factors
Declining revenue trend
Revenue has contracted on a multi-year basis with TTM declines and a steep Q1 drop, signaling structural demand or distribution issues. Persistent top-line shrinkage reduces fixed-cost absorption, undermines scale economics, and makes profitability recovery more difficult without sustained volume or pricing gains.
Read all positive and negative factors
Positive Factors
Negative Factors
National retail footprint
A distribution presence across >32,000 retail doors provides durable shelf exposure and consumer access. That scale supports repeat purchase potential, bargaining leverage with retailers, and a base for rolling out new SKUs or promotional programs to rebuild sales over multiple quarters.
Read all positive factors
Reed's Key Performance Indicators (KPIs)
Any
Cases Breakdown
Shows how case shipments are distributed across product lines, pack sizes, flavors and sales channels (retail, e‑commerce, foodservice). Reveals which SKUs and channels drive volume and margins, highlights shifts in consumer preference or promo dependence, and flags inventory or distribution issues that can pressure revenue and profitability.
Shows how case shipments are distributed across product lines, pack sizes, flavors and sales channels (retail, e‑commerce, foodservice). Reveals which SKUs and channels drive volume and margins, highlights shifts in consumer preference or promo dependence, and flags inventory or distribution issues that can pressure revenue and profitability.
Data provided by:
The Fly
The FlyReed's (REED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.28M
Dividend YieldN/A
Average Volume (3M)61.64K
Price to Earnings (P/E)―
Beta (1Y)-0.11
Revenue Growth-18.78%
EPS Growth80.36%
CountryUS
Employees24
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)-1.60
Shares Outstanding11,857,086
10 Day Avg. Volume115,434
30 Day Avg. Volume61,642
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)1.91
Price to Sales (P/S)0.51
P/FCF Ratio-1.01
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit5.24
Enterprise Value/Ebitda-1.17
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-0.69
Revenue Forecast (FY)$37.31M
Reed's Business Overview & Revenue Model
Company Description
Reed's, Inc. engages in the manufacture and distribution of natural hand-crafted beverages in the craft specialty foods industry in the United States, Canada, Asia, Europe, Australia, and South America. It offers Reed's craft ginger beers; Reed's ...
How the Company Makes Money
Reed's makes money primarily by selling its beverages to customers in the distribution chain (e.g., beverage distributors, retailers, and other channel partners), generating revenue from product shipments/wholesale sales that ultimately reach end ...
Reed's Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Negative
The quarter showed substantial operational and financial deterioration: sizable revenue decline (~29%), severe gross margin compression (34%→10%), widened net loss and negative EBITDA, and a significant reduction in cash. Management has taken multiple corrective actions (inventory controls, cost reductions, expanded sales force, e‑commerce initiatives, Amazon restructuring, pricing actions, and a new COO) and reports early signs of improvement, but the negative financial trends and execution issues in Q1 are material and outweigh the early remediation progress.Positive Updates
Actions Taken to Stabilize Operations
Management implemented a broad corrective plan in early 2026 including enhanced inventory controls, headcount reductions, marketing SG&A cuts, postponement of a brand restage, and appointment of a new COO (Damian Warshall) to improve execution and profitability.
Negative Updates
Sharp Revenue Decline
Net sales for Q1 2026 were $7.1M versus $10.0M a year ago, a decline of $2.9M or approximately -29% year-over-year, driven by lower volumes with recurring national customers and higher promotional/other allowances.
Read all updates
Q1-2026 Updates
Positive
Negative
Actions Taken to Stabilize Operations
Management implemented a broad corrective plan in early 2026 including enhanced inventory controls, headcount reductions, marketing SG&A cuts, postponement of a brand restage, and appointment of a new COO (Damian Warshall) to improve execution and profitability.
Read all positive updates
Company Guidance
Management characterized Q1 as transitional and guided that corrective actions should drive sequential quarter‑to‑quarter improvement — specifically in net sales, gross margin and net loss — with early margin improvement already observed and management expecting to be “back on the right track” by the end of Q2. Q1 reported metrics: net sales $7.1M (vs $10.0M YoY), gross profit $0.7M (vs $3.4M), gross margin 10% (vs 34%), delivery & handling down 31% to $1.1M and 16% of sales or $2.57 per case (vs $3.17/ case), SG&A $5.8M (vs $3.5M), net loss $6.5M or $(0.55)/share (vs $2.0M or $(0.27)), EBITDA negative $6.2M (vs negative $1.7M), cash used in operations $5.8M (vs $5.4M), cash $4.6M at 3/31/26 (vs $10.4M at 12/31/25) and total debt $9.2M net of deferred fees. To support the guidance management has liquidated tens of thousands of cases of low‑margin inventory, exited an Amazon arrangement costing ~ $1.0M annually, implemented pricing/COGS and SG&A reductions, reinstated heritage glass and Zero Sugar cans, launched retail media/e‑commerce programs (Instacart, walmart.com, albertsons.com, kroger.com) and retained a >80‑person commission sales agency to accelerate SKU placements and promotions.Reed's Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
22
Negative
Cash Flow
12
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.18M | 34.06M | 37.95M | 44.71M | 53.04M | 49.60M |
| Gross Profit | 4.26M | 6.96M | 11.38M | 9.71M | 12.11M | 13.60M |
| EBITDA | -19.05M | -14.57M | -7.38M | -9.28M | -14.61M | -14.96M |
| Net Income | -20.27M | -15.85M | -13.15M | -15.52M | -20.06M | -16.40M |
Balance Sheet | ||||||
| Total Assets | 18.69M | 23.34M | 25.14M | 18.88M | 25.49M | 26.32M |
| Cash, Cash Equivalents and Short-Term Investments | 4.58M | 10.42M | 10.39M | 603.00K | 533.00K | 49.00K |
| Total Debt | 10.04M | 843.00K | 10.41M | 27.58M | 21.89M | 10.78M |
| Total Liabilities | 15.99M | 14.19M | 18.49M | 38.06M | 33.96M | 22.12M |
| Stockholders Equity | 2.69M | 9.15M | 6.65M | -19.18M | -8.47M | 4.20M |
Cash Flow | ||||||
| Free Cash Flow | -17.72M | -17.32M | -6.28M | -4.35M | -15.44M | -17.92M |
| Operating Cash Flow | -17.52M | -17.04M | -6.12M | -4.27M | -15.43M | -17.59M |
| Investing Cash Flow | -179.00K | -253.00K | -167.00K | -20.00K | -2.00K | -335.00K |
| Financing Cash Flow | 17.42M | 17.32M | 16.08M | 4.36M | 15.92M | 17.38M |
Reed's Technical Analysis
―
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REED, the sentiment is undefined. The current price of undefined is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for REED.
Reed's Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
Performance Comparison
Reed's Corporate Events
Business Operations and StrategyExecutive/Board Changes
Reed’s Appoints Damian Warshall as New Chief Operating Officer
Positive
Apr 24, 2026
Reed’s, Inc., a U.S. craft beverage maker known for its premium, better-for-you ginger and soft drinks under the Reed’s, Virgil’s and Flying Cauldron brands, sells its products in more than 32,000 retail locations nationwide. The...
Business Operations and StrategyExecutive/Board Changes
Reed’s Finalizes CEO Separation Agreement and Transition Terms
Neutral
Apr 17, 2026
Reed’s, Inc. announced that former Chief Executive Officer and director Cyril A. Wallace, Jr. resigned effective March 24, 2026, remained an employee through March 31, 2026, and will serve as a consultant until April 30, 2026 to support the ...
Regulatory Filings and ComplianceShareholder Meetings
Reed’s Sets Date and Deadlines for 2026 Annual Meeting
Neutral
Apr 8, 2026
Reed’s, Inc. has set June 10, 2026 as the expected date for its 2026 annual meeting of stockholders, formally launching the timetable for shareholder participation in the company’s governance for that year. The announcement specifies p...
Executive/Board Changes
Reed’s Announces CEO Resignation and Interim Leadership Shift
Neutral
Mar 27, 2026
On March 23, 2026, Reed’s, Inc. announced that Chief Executive Officer and board member Cyril A. Wallace, Jr. intended to resign effective March 24, 2026, remaining an employee through March 31, 2026, with the company stating his departure d...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.