Zevia PBC reported third‑quarter 2025 results that included net sales of $40.8 million, up 12.3% from $36.4 million in the same period a year earlier. The company posted a net loss of $2.8 million and an adjusted EBITDA loss of $1.7 million, a narrowing from the $5.5 million loss reported in Q3 2024. Earnings per share were –$0.04, beating the consensus estimate of –$0.06 by $0.02, while revenue surpassed the $39.35 million estimate by $1.45 million.
The revenue beat was driven by strong demand in the U.S. retail and club‑channel segments, where Zevia’s zero‑sugar, zero‑calorie beverages continued to gain shelf space. However, gross profit margin contracted to 45.6% from 49.1% year‑over‑year, largely because of an $800,000 inventory obsolescence charge linked to a packaging refresh and the full realization of aluminum tariffs. These one‑time and tariff‑related costs offset the top‑line growth and explain the margin compression.
Marketing and selling expenses shifted in a way that supports the company’s growth strategy. Marketing spend rose to $4.9 million from $3.5 million in Q3 2024, a 40% increase—significantly lower than the previously reported 125.6% figure. Selling expenses fell to $7.7 million from $8.5 million, reflecting savings from the multi‑year Productivity Initiative. The overall selling and marketing expense total of $12.7 million represents a disciplined cost structure amid aggressive brand building.
Management highlighted the positive trajectory in a conference call. CEO Amy Taylor said, “The Q3 results exceeded our expectations and position us for durable growth and profitability over time.” CFO Girish Satya added, “We are executing well on our cost‑saving initiatives and are on track to achieve positive adjusted EBITDA by 2026.” The company raised its full‑year 2025 guidance to net sales of $162 million to $164 million and an adjusted EBITDA loss of $5 million to $5.5 million, and it projected Q4 net sales of $39 million to $41 million with an adjusted EBITDA loss of $0.25 million to $0.75 million—an upward revision that signals confidence in continued sales momentum and margin improvement.
Investors reacted positively to the earnings release, citing the earnings beat, revenue upside, and the raised full‑year guidance as key drivers of the favorable market response. Analysts noted that Zevia’s ability to grow top line while narrowing losses demonstrates progress toward profitability, reinforcing the company’s long‑term growth strategy.
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