Reed's, Inc. (REED)
XASE:REED
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Reed's
(NYSE MKT:REED)
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Rating:47Neutral
Price Target:
$3.50
Action:ReiteratedDate:04/25/26
The score is held down primarily by weak financial performance—shrinking revenue, deteriorating margins, ongoing losses, and worsening cash burn—despite improved leverage. Technicals are broadly neutral and do not provide strong trend support. The earnings call adds some support due to concrete cost actions and an operational roadmap, but near-term fundamentals and execution risks remain the dominant constraint, and valuation is difficult to justify with negative earnings and no dividend.
Positive Factors
Capital raise and cleaner leverage
The $10M underwritten offering and uplisting materially strengthen liquidity and broaden institutional access while leverage has fallen to a conservative range. This structural capital and visibility improve runway for turnaround investments and reduce near-term solvency risk.
Negative Factors
Multi-year revenue contraction
Sustained top-line declines reduce scale benefits and weaken negotiating leverage with retailers and suppliers. Persistent volume erosion makes fixed-cost absorption harder, raising the bar for margin recovery and requiring consistent execution to restore structural growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital raise and cleaner leverage
The $10M underwritten offering and uplisting materially strengthen liquidity and broaden institutional access while leverage has fallen to a conservative range. This structural capital and visibility improve runway for turnaround investments and reduce near-term solvency risk.
Read all positive factors
Reed's (REED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.25M
Dividend YieldN/A
Average Volume (3M)61.64K
Price to Earnings (P/E)―
Beta (1Y)-0.01
Revenue Growth-10.25%
EPS Growth85.48%
CountryUS
Employees24
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)-5.53
Shares Outstanding11,820,429
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 Cap0.43
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit2.55
Enterprise Value/Ebitda-1.22
Forecast
1Y Price Target
$4.75Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.4
Revenue Forecast (FY)$39.66M
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 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 Earnings Call Summary
Earnings Call Date:Mar 24, 2026
(Q4-2025)
| Next Earnings Date:May 12, 2026
Earnings Call Sentiment Negative
The call presented a mix of strategic and operational progress (uplisting and $10M offering, sizeable reductions in delivery and SG&A, digital and channel initiatives, and top-SKU growth) but was overshadowed by material year-over-year declines in net sales, gross profit and gross margin and a worsening EBITDA. Management framed results as early-stage stabilization with a clear action plan, but the near-term financial picture remains challenged.Positive Updates
Leadership Transition and Capital Raise / Uplisting
Completed a $10.0 million underwritten public offering and uplisted to the NYSE American, strengthening the balance sheet, improving visibility and broadening access to institutional investors.
Negative Updates
Significant Revenue Decline
Net sales for Q4 2025 were $7.5M versus $9.7M in the year-ago quarter, a decline of approximately 22.7% year-over-year, driven primarily by lower volumes with recurring national customers and higher promotional and other allowances.
Read all updates
Q4-2025 Updates
Positive
Negative
Leadership Transition and Capital Raise / Uplisting
Completed a $10.0 million underwritten public offering and uplisted to the NYSE American, strengthening the balance sheet, improving visibility and broadening access to institutional investors.
Read all positive updates
Company Guidance
Management’s guidance was largely qualitative for 2026, focused on stabilizing operations and driving margin expansion through disciplined trade spend, improved pricing/promotional effectiveness, manufacturing and sourcing efficiencies, packaging/freight optimization and SKU rationalization while expanding distribution into under‑penetrated channels (food service and convenience); they plan product launches of Reed’s Ginger Ale Cranberry & Blackberry in Q2 2026 and nonalcoholic mixers in early Q3 2026. They cited early, sequential improvements versus Q4 2025 but reiterated Q4 metrics: net sales $7.5M (vs $9.7M YOY), gross profit $1.5M (gross margin 20% vs 30% YOY), delivery & handling down 35% to $1.1M (14% of sales; $2.46/case vs $3.00), SG&A $4.0M (down 19%), net loss $3.8M (‑$0.44/share), EBITDA negative $3.6M, cash $10.4M and total debt $9.3M, and noted a $10M underwritten offering and NYSE American uplisting; digital efforts include >4M targeted shoppers/month on Instacart/Walmart/Albertsons and a social program targeting >100k viewers/month, while the core Reed’s Ginger Ale is #1 premium ginger ale and +13.7% in dollar sales over the past 52 weeks.Reed's Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
41
Neutral
Cash Flow
12
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 34.06M | 37.95M | 44.71M | 53.04M | 49.60M |
| Gross Profit | 6.96M | 11.38M | 9.71M | 12.11M | 13.60M |
| EBITDA | -14.57M | -7.38M | -9.28M | -14.73M | -14.96M |
| Net Income | -15.85M | -13.15M | -15.52M | -19.11M | -17.60M |
Balance Sheet | |||||
| Total Assets | 23.34M | 25.14M | 18.88M | 25.49M | 26.32M |
| Cash, Cash Equivalents and Short-Term Investments | 10.42M | 10.39M | 603.00K | 533.00K | 49.00K |
| Total Debt | 843.00K | 10.41M | 27.58M | 21.89M | 10.78M |
| Total Liabilities | 14.19M | 18.49M | 38.06M | 33.96M | 22.12M |
| Stockholders Equity | 9.15M | 6.65M | -19.18M | -8.47M | 4.20M |
Cash Flow | |||||
| Free Cash Flow | -17.31M | -6.28M | -4.35M | -15.44M | -17.92M |
| Operating Cash Flow | -17.04M | -6.12M | -4.27M | -15.43M | -17.59M |
| Investing Cash Flow | -253.00K | -167.00K | -20.00K | -2.00K | -335.00K |
| Financing Cash Flow | 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.