Reed's (REED) AI Stock Analysis

• Market Cap: $64.41M
• Dividend Yield: N/A
• Average Volume (3M): 8.03K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.48
• Revenue Growth: -19.95%
• EPS Growth: 64.37%
• Country: US
• Employees: 24
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): -0.13
• Shares Outstanding: 53,673,720
• 10 Day Avg. Volume: 14,286
• 30 Day Avg. Volume: 8,029
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 6.52
• Enterprise Value/Ebitda: -4.44
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: $1.00 ▼(-16.67% Downside)

Reed's overall stock score is primarily impacted by its poor financial performance, with significant challenges in achieving profitability and financial stability. Technical analysis provides some short-term optimism, but valuation concerns and mixed earnings call sentiment further weigh down the score.

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 real ginger ales; Reed's ready to drink products; Virgil's handcrafted sodas; ginger candy; and other ginger beverages under the Reed's brand. Reed's, Inc. sells its products to natural food and gourmet retailers, grocery store chains, mass merchants, club stores, convenience and drug stores, liquor stores, industrial cafeterias, and on-premise bars and restaurants through distributors and independent distributor partners, as well as direct to store distribution. It also exports its products to France, the United Kingdom, South Africa, the Caribbean, Canada, Spain, the Philippines, Israel, Australia, Asia, rest of Europe, and South America. The company was formerly known as Original Beverage Corporation and changed its name to Reed's, Inc. in 2001. Reed's, Inc. was founded in 1987 and is headquartered in Norwalk, Connecticut.

How the Company Makes Money

Reed's generates revenue primarily through the sale of its beverage products, which are distributed across various retail outlets, including supermarkets, health food stores, and online platforms. The company leverages both direct-to-consumer sales and partnerships with distributors to reach a wider market. Key revenue streams include sales from their flagship ginger ales and other flavored sodas, as well as kombucha products that appeal to the growing trend of fermented beverages. Reed's also benefits from strategic partnerships with retailers and online marketplaces, enhancing its visibility and availability to consumers. Additionally, the company may engage in promotional campaigns and collaborations that drive brand awareness and consumer interest, further contributing to its earnings.

Reed's Financial Statement Overview

Summary

Reed's financial performance is severely challenged, with declining revenues, negative profit margins, high leverage, and negative cash flows. The company faces substantial hurdles in improving its financial position and must focus on enhancing operational efficiency, reducing debt, and stabilizing cash flows.

Income Statement

Reed's income statement shows significant challenges with declining revenue and negative profit margins. The TTM data indicates a revenue decrease of 6.12% and a net profit margin of -35.19%, reflecting ongoing struggles to achieve profitability. The gross profit margin is relatively low at 29.61%, and both EBIT and EBITDA margins are negative, indicating operational inefficiencies. Overall, the company faces substantial hurdles in improving its financial performance.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.25, indicating significant leverage and potential financial risk. The return on equity is positive at 156.68%, but this is due to the low equity base rather than strong performance. The equity ratio is weak, suggesting limited financial stability. Reed's needs to address its high leverage to improve its financial health.

Cash Flow

Reed's cash flow statement highlights negative operating and free cash flows, with a slight improvement in free cash flow growth at 44.52%. However, the operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is slightly above 1, suggesting some ability to cover net losses with free cash flow, but overall cash flow remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.04M	37.95M	44.71M	53.04M	49.60M	41.62M
Gross Profit	8.34M	11.38M	9.71M	12.11M	13.60M	12.77M
EBITDA	-12.24M	-7.38M	-9.28M	-14.73M	-14.96M	-8.67M
Net Income	-16.35M	-13.15M	-15.52M	-19.11M	-17.60M	-11.48M
Balance Sheet
Total Assets	23.70M	25.14M	18.88M	25.49M	26.32M	20.06M
Cash, Cash Equivalents and Short-Term Investments	2.68M	10.39M	603.00K	533.00K	49.00K	595.00K
Total Debt	10.60M	10.41M	27.58M	21.89M	10.78M	1.46M
Total Liabilities	21.97M	18.49M	38.06M	33.96M	22.12M	9.65M
Stockholders Equity	1.74M	6.65M	-19.18M	-8.47M	4.20M	10.40M
Cash Flow
Free Cash Flow	-13.46M	-6.28M	-4.35M	-15.44M	-17.92M	-9.66M
Operating Cash Flow	-13.23M	-6.12M	-4.27M	-15.43M	-17.59M	-9.50M
Investing Cash Flow	-234.00K	-167.00K	-20.00K	-2.00K	-335.00K	-161.00K
Financing Cash Flow	15.81M	16.08M	4.36M	15.92M	17.38M	9.34M

Reed's Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REED, the sentiment is Positive. The current price of 1.2 is above the 20-day moving average (MA) of 1.08, above the 50-day MA of 1.05, and above the 200-day MA of 1.18, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 65.05 is Neutral, neither overbought nor oversold. The STOCH value of 84.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REED.

Reed's Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COCO	77 Outperform	$2.26B	37.83	24.35%	―	11.97%	16.10%
FIZZ	65 Neutral	$3.40B	18.22	45.84%	―	0.46%	0.91%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ZVIA	54 Neutral	$179.13M	―	-22.11%	―	-1.08%	54.50%
OTLY	45 Neutral	$482.24M	―	-114.20%	―	4.47%	42.22%
REED	44 Neutral	$64.41M	-0.94	―	―	-19.95%	64.37%
BRFH	39 Underperform	$53.88M	-16.40	-161.48%	―	24.52%	-7.31%

Reed's Corporate Events

Reed’s Plans Reverse Stock Split Amid SEC Filing

On September 29, 2025, D&D Source of Life Holding Ltd., a major stockholder of Reed’s, Inc., authorized the Board of Directors to amend the company’s certificate of incorporation to implement a reverse stock split at a ratio between 1-for-3 and 1-for-9. This decision, which does not affect the total authorized shares, was followed by the filing of a preliminary Information Statement with the SEC on September 30, 2025. The reverse stock split will take effect after the filing of a definitive Information Statement and subsequent amendment to the charter, impacting the company’s stock structure and potentially its market positioning.

The most recent analyst rating on (REED) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Reed’s stock, see the REED Stock Forecast page.

Reed’s Amends Loan Agreement with Whitebox and Cantor

On September 26, 2025, Reed’s, Inc. amended its Senior Secured Loan and Security Agreement with Whitebox Advisors, LLC and Cantor Fitzgerald Securities. The amendment reduced the revolving loans’ principal from $10 million to $9.25 million and changed interest payments to a monthly schedule. The company also paid $650,000 in debt repayment to Cantor Fitzgerald. Despite these changes, the main terms of the loan agreement remain unchanged.

The most recent analyst rating on (REED) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Reed’s stock, see the REED Stock Forecast page.

Reed’s Designates Delaware Court for Legal Actions

On September 25, 2025, Reed’s, Inc. announced an amendment to its bylaws, designating the Court of Chancery of the State of Delaware as the exclusive forum for certain legal actions, including derivative actions and claims of fiduciary duty breaches. Additionally, the amendment specifies that federal district courts in the U.S. will handle complaints under the Securities Act of 1933, potentially centralizing legal proceedings and impacting stakeholders by streamlining the legal process.

The most recent analyst rating on (REED) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Reed’s stock, see the REED Stock Forecast page.

Reed’s Appoints Michael Tu to Board of Directors

On September 12, 2025, Reed’s, Inc. entered into a securities purchase agreement with six accredited investors for a private placement of 5,000,000 shares of common stock, resulting in $5 million in gross proceeds. The company plans to use these funds for working capital and general corporate purposes. Additionally, on September 10, 2025, Randle Lee Edwards resigned from the Board of Directors, and on September 15, 2025, Michael Tu was appointed to fill the vacancy. Mr. Tu, nominated by the company’s largest shareholder, will serve on several committees and is recognized as an independent director under Nasdaq and SEC rules.

The most recent analyst rating on (REED) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Reed’s stock, see the REED Stock Forecast page.

Reed’s Announces Key Leadership Changes for Growth

On September 12, 2025, Reed’s, Inc. announced a series of organizational changes, including the resignation of Chief Commercial Officer Christopher Burleson and the appointment of Tina Reejsinghani as Chief Marketing Officer, effective September 15, 2025. These changes are part of a strategic realignment aimed at enhancing operational efficiency and positioning the company for long-term growth. The reorganization includes the development of a dedicated field sales organization to improve market execution and expand revenue opportunities. Tina Reejsinghani, with her extensive experience in global marketing for luxury and lifestyle brands, is expected to play a crucial role in driving Reed’s next phase of brand growth and expansion.

The most recent analyst rating on (REED) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Reed’s stock, see the REED Stock Forecast page.

Reed’s Earnings Call: Mixed Sentiment Amid Strategic Moves

Reed’s Earnings Call Reveals Mixed Sentiment Amid Strategic Moves

Reed’s Inc. Reports Challenging Q2 2025 Financial Results

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.

Reed’s Reports Q2 2025 Financial Decline

Reed’s, Inc. reported a decline in financial performance for the second quarter of 2025 compared to the same period in 2024, with net sales dropping from $11.9 million to $9.5 million and a net loss increasing to $6.0 million. Despite these challenges, the company is focusing on strengthening its commercial execution and positioning for long-term growth by investing in sales talent, marketing, and channel development. Reed’s is also optimizing its product portfolio, which led to $1.6 million in inventory write-offs, to improve inventory management and focus on high-demand products. The company aims to expand distribution and enhance retail availability to drive future growth and profitability.

The most recent analyst rating on (REED) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Reed’s stock, see the REED Stock Forecast page.