Reed's (REED) AI Stock Analysis

• Market Cap: $40.75M
• Dividend Yield: N/A
• Average Volume (3M): 51.18K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.18
• Revenue Growth: -9.01%
• EPS Growth: 86.75%
• Country: US
• Employees: 24
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): -0.48
• Shares Outstanding: 11,445,454
• 10 Day Avg. Volume: 147,213
• 30 Day Avg. Volume: 51,182
• PEG Ratio: <0.01
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -0.80
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 1.58
• Enterprise Value/Gross Profit: 6.83
• Enterprise Value/Ebitda: -4.67
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.78
• Revenue Forecast (FY): $42.82M

No summary available

Reed's Business Overview & Revenue Model

Company Description

Reed's Inc. (REEDD) is a leading company in the beverage sector, primarily known for its line of handcrafted ginger ales and other naturally flavored beverages. The company focuses on producing high-quality, non-alcoholic drinks that cater to health-conscious consumers. Reed's operates in the specialty food and beverage market, offering products that emphasize natural ingredients and health benefits, including ginger-based drinks that are popular for their digestive and anti-inflammatory properties.

How the Company Makes Money

Reed's generates revenue through the sale of its beverage products, which include ginger ales, kombucha, and other specialty drinks. The company primarily sells its products through retail channels, including grocery stores, health food stores, and online platforms. Key revenue streams include direct sales to consumers, wholesale distribution to retailers, and partnerships with food service providers. Additionally, Reed's benefits from brand recognition and loyalty, which drives repeat purchases. Strategic partnerships with distributors and retailers expand their market reach and enhance sales opportunities, contributing significantly to the company's overall earnings.

Reed's Financial Statement Overview

Summary

Reed's financial performance is weak, with declining revenues, negative profit margins, high leverage, and negative cash flows. The company faces substantial financial challenges and needs strategic improvements to enhance operational efficiency, reduce debt, and stabilize 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	-12.20M	-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

• Last Price: ―

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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Reed's Corporate Events

Reed’s Executes 1-for-6 Reverse Stock Split

On October 31, 2025, Reed’s, Inc. executed a 1-for-6 reverse stock split of its common stock, as authorized by its major shareholder, D&D Source of Life Holding Ltd., which holds approximately 52.8% of the company’s voting capital stock. This corporate action, effective at 5:00 p.m. Eastern Time, resulted in approximately 8,945,620 shares of common stock being issued and outstanding, and the company’s stock will begin trading on a split-adjusted basis on the OTCQX Best Market on November 3, 2025.

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.

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.

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.

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.

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.