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Zevia PBC (ZVIA)
NYSE:ZVIA
US Market

Zevia PBC (ZVIA) AI Stock Analysis

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ZV

Zevia PBC

(NYSE:ZVIA)

Rating:54Neutral
Price Target:
Zevia PBC's overall stock score reflects a company with strong revenue growth potential but facing significant profitability and cash flow challenges. The earnings call reveals positive consumer engagement and improved gross margins, yet operating losses and valuation concerns remain. The technical analysis supports a cautious outlook due to bearish momentum. The company's strategic focus on growth and cost management is promising, but realization of these initiatives is crucial for future performance.
Positive Factors
Distribution Expansion
The company's expanded distribution into more than 4,300 U.S. Walmart stores, as part of Walmart’s new modern soda set featuring better-for-you low/no sugar sodas, appears to be off to a strong start.
Financial Performance
Zevia's gross margins were stronger than expected, up 440 basis points year-over-year to a record 50.1%, driven by lower product costs and improved inventory management.
Market Positioning
Zevia believes that it is well positioned to capitalize on the broadening retail trend with Albertsons planning to launch its own better-for-you soda set.
Negative Factors
Cost Management
Higher than expected SG&A resulted in a -$1.7M adjusted EBITDA miss, with the higher SG&A stemming from marketing and increased freight out due to higher volumes.
Financial Guidance
Weaker than expected 2025 guidance highlights limited visibility that ZVIA can capitalize on a consumer shift to modern (healthier) soda.
Sales Guidance
Topline guidance this year implies faster 7% growth in the second half, which is a bit concerning given visibility into the macro/operating environment later this year remains limited.

Zevia PBC (ZVIA) vs. SPDR S&P 500 ETF (SPY)

Zevia PBC Business Overview & Revenue Model

Company DescriptionZevia PBC (ZVIA) is a public benefit corporation that operates within the non-alcoholic beverage sector, primarily focusing on the development, marketing, and sale of zero-calorie, naturally sweetened beverages. The company's core products include a range of sodas, energy drinks, teas, and mixers, all of which are sweetened with stevia, a natural plant-based sweetener. Zevia is committed to providing healthier alternatives to traditional sugary and artificially sweetened beverages while promoting a sustainable and environmentally friendly business model.
How the Company Makes MoneyZevia PBC generates revenue primarily through the sale of its naturally sweetened beverage products. The company's key revenue streams include direct sales to retailers, distributors, and online platforms. Zevia's products are distributed across a wide network of grocery stores, natural food retailers, and e-commerce channels, which helps to increase its market reach and accessibility to health-conscious consumers. Additionally, strategic partnerships with retailers and distributors play a significant role in expanding its distribution footprint. Zevia's earnings are also influenced by factors such as consumer preferences for healthier products, market trends in the beverage industry, and its ability to maintain competitive pricing while managing production costs.

Zevia PBC Financial Statement Overview

Summary
Zevia PBC has shown revenue growth but continues to struggle with profitability and cash flow management. While the balance sheet reflects a strong cash position and low leverage, persistent net losses and negative cash flows are concerning. The company needs to focus on improving operational efficiency and profitability to strengthen its financial standing.
Income Statement
62
Positive
Zevia PBC's income statement shows a mixed financial performance. The company has experienced revenue growth over the years, with a notable increase from 2019 to 2020 and continued growth through 2021. However, the gross profit margin has been relatively stable, indicating effective cost management. Despite this, the company has consistently reported net losses, and net profit margins remain negative, highlighting ongoing challenges in achieving profitability. EBIT and EBITDA margins have also been negative, reflecting operational inefficiencies. While revenue growth is a positive sign, the company needs to address its profitability issues to improve its financial health.
Balance Sheet
48
Neutral
The balance sheet of Zevia PBC reveals some areas of concern. Although the company has maintained a significant cash reserve, total liabilities remain a fraction of stockholders' equity, suggesting a relatively low debt load. However, the company has negative equity in earlier years and only recently moved to positive equity, which may pose a risk. The debt-to-equity ratio is low, indicating conservative leverage, but the return on equity is negative due to the net losses, which is a significant weakness. Overall, while the company is not heavily leveraged, the negative ROE and historical negative equity are areas that need improvement.
Cash Flow
55
Neutral
Zevia PBC's cash flow analysis shows some resilience but also areas for improvement. The company has managed to maintain a positive cash balance, but operating cash flow has consistently been negative, which is concerning. Free cash flow also remains negative, indicating that the company is not generating sufficient cash from its operations to support its capital expenditures. The operating cash flow to net income ratio suggests that cash flows are not effectively covering net losses. Despite these challenges, the company has managed its cash reserves well, which provides some financial stability.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
155.05M166.42M163.18M138.17M110.03M
Gross Profit
71.93M74.76M70.02M61.21M49.50M
EBIT
-23.65M-28.94M-47.87M-87.43M-5.48M
EBITDA
-20.19M-27.33M-45.58M-86.07M-4.55M
Net Income Common Stockholders
-20.00M-21.49M-47.65M-87.67M-6.07M
Balance SheetCash, Cash Equivalents and Short-Term Investments
30.65M31.95M47.40M73.11M14.94M
Total Assets
67.95M90.86M98.93M124.99M49.96M
Total Debt
1.31M1.95M715.00K237.00K861.00K
Net Debt
-29.34M-30.01M-46.68M-42.87M-14.07M
Total Liabilities
25.01M29.09M17.15M20.43M246.77M
Stockholders Equity
64.88M89.88M109.95M128.48M-196.81M
Cash FlowFree Cash Flow
-1.30M-17.90M-23.37M-20.95M-4.06M
Operating Cash Flow
-1.02M-16.27M-20.78M-17.81M-3.26M
Investing Cash Flow
-283.00K805.00K27.41M-33.14M-805.00K
Financing Cash Flow
0.0025.00K-2.34M79.12M15.76M

Zevia PBC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.83
Price Trends
50DMA
2.35
Positive
100DMA
2.98
Negative
200DMA
2.29
Positive
Market Momentum
MACD
0.16
Negative
RSI
57.72
Neutral
STOCH
52.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZVIA, the sentiment is Positive. The current price of 2.83 is above the 20-day moving average (MA) of 2.58, above the 50-day MA of 2.35, and above the 200-day MA of 2.29, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 57.72 is Neutral, neither overbought nor oversold. The STOCH value of 52.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZVIA.

Zevia PBC Risk Analysis

Zevia PBC disclosed 55 risk factors in its most recent earnings report. Zevia PBC reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
We may fail to qualify for continued listing on the NYSE in the future, which could make it more difficult for our stockholders to sell their shares. Q4, 2024

Zevia PBC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$3.76B13.1923.07%3.91%13.22%11.37%
79
Outperform
$2.06B35.6424.86%8.01%11.26%
77
Outperform
$4.27B22.8540.81%0.34%9.48%
64
Neutral
$8.78B14.554.78%173.91%3.39%2.17%
54
Neutral
$210.05M-28.87%-6.83%19.09%
52
Neutral
$306.76M-85.68%4.56%57.03%
39
Underperform
$38.69M-117.82%22.04%-21.72%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZVIA
Zevia PBC
2.83
1.88
197.89%
AKO.A
Embotelladora Andina SA
20.84
7.54
56.69%
FIZZ
National Beverage
44.36
1.68
3.94%
BRFH
Barfresh Food Group
2.32
0.79
51.63%
OTLY
Oatly Group
10.25
-11.85
-53.62%
COCO
Vita Coco Company
36.28
10.04
38.26%

Zevia PBC Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 39.41%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in expanding distribution channels and achieving record gross margins. However, these positive aspects were tempered by a decline in net sales and continued financial losses, partially due to increased promotional activities and tariff costs. The outlook remains cautiously optimistic due to strong brand engagement and strategic initiatives.
Q1-2025 Updates
Positive Updates
Record Gross Margin Achievement
Gross margin reached a record high of 50.1%, an increase of 440 basis points from 45.7% in the first quarter of last year.
Successful Marketing Campaign
The 'Get The Fake Outta Here' campaign delivered a record of 2.4 billion earned impressions and was covered by major media outlets, indicating strong brand engagement.
Expansion of Distribution Channels
Zevia gained new distribution across nearly 8,000 Walgreens stores and expanded its presence in Albertsons and Walmart, demonstrating significant distribution growth.
Improved Adjusted EBITDA
Adjusted EBITDA loss improved by $2.2 million to negative $3.3 million compared to the prior year period.
Negative Updates
Net Sales Decline
Net sales were $38 million, a decrease of 2% compared to the first quarter of last year, primarily due to increased promotional activity.
Increased Tariff Costs Impact
Tariff costs are expected to create a 200 basis point headwind on gross margin, requiring cost-saving measures to offset.
Continued Adjusted EBITDA Loss
Despite improvements, the company still reported an adjusted EBITDA loss of $3.3 million.
Company Guidance
During Zevia PBC's first quarter 2025 earnings call, the company provided robust financial guidance, maintaining its full-year net sales expectation between $158 million and $163 million, despite a challenging macroeconomic environment and impending tariff costs. The first quarter saw net sales of $38 million, with a record gross margin of 50.1% and an adjusted EBITDA improvement of $2.2 million to negative $3.3 million. The company also highlighted a strategic focus on increasing brand awareness, product innovation, and expanding distribution, with successes like the new partnership with Walgreens and expansion in Walmart and Albertsons. For the second quarter, Zevia anticipates net sales between $40.5 million and $42.5 million, alongside an adjusted EBITDA loss ranging from $2.2 million to $2.9 million. Zevia remains optimistic about its growth prospects, driven by the rising demand for better-for-you beverages and its unique market positioning offering zero-sugar sodas at an affordable price.

Zevia PBC Corporate Events

Executive/Board Changes
Zevia PBC Announces Departure of Key Executive
Neutral
Feb 7, 2025

On February 6, 2025, Zevia PBC announced that Ms. Lorna R. Simms, the company’s SVP, General Counsel, and Corporate Secretary, will be stepping down from her roles effective April 4, 2025. The transition follows a mutual agreement and involves a separation agreement that aligns with the existing severance terms established in March 2022, indicating a smooth transition and adherence to prior arrangements.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.