Zevia 2025 Q1 Earnings Exceeds Expectations with Net Loss Reduced by 11.5%

Zevia (ZVIA) reported its fiscal 2025 Q1 earnings on May 07th, 2025. Zevia exceeded market expectations for revenue, reporting $38.02 million compared to analyst estimates of $37.38 million. The company maintained its 2025 guidance, emphasizing strategic initiatives for growth. Despite a year-on-year revenue decline of 2%, Zevia's earnings per share (EPS) outperformed expectations with a loss of $0.08, compared to the anticipated $0.12. The company reaffirmed its revenue guidance of $160.5 million for the year, aligning closely with analyst forecasts.

Revenue

The total revenue for Zevia in Q1 2025 was $38.02 million, marking a 2.0% decrease from $38.80 million in Q1 2024. Although sales declined year-over-year, the company managed to exceed analyst expectations by 1.7%.

Earnings/Net Income

Zevia reported a narrowed net loss of $6.37 million in Q1 2025, a reduction from the $7.20 million loss in Q1 2024. The EPS improved to a loss of $0.08 from $0.10 year-over-year, signaling a favorable development in the company's financial performance.

Price Action

The stock price of Zevia edged up 0.50% during the latest trading day, tumbled 10.18% over the past week, and declined 2.40% month-to-date.

Post Earnings Price Action Review

The strategy of purchasing Zevia shares after a revenue increase quarter-over-quarter and holding for 30 days has shown robust results over the past five years. This approach yielded an annualized return of 26.78%, with a total profit of $2.78 per share, outperforming the S&P 500's annualized return of 18.14% and total profit of $1.63 per share. The Sharpe ratio of 1.47 reflects the strategy's strong risk-adjusted returns. This backtested performance underscores the potential for investors seeking growth and income opportunities, highlighting the strategy's effectiveness in delivering substantial returns.

CEO Commentary

“We are pleased to have delivered net sales at the high end of our guidance while meaningfully exceeding our adjusted EBITDA expectations for the first quarter,” said Amy Taylor, President and CEO of Zevia. She emphasized the success of innovation and marketing strategies, noting the new variety pack's success at Walmart and the importance of reinvesting cost savings to strengthen the brand.

Guidance

Zevia maintains its 2025 guidance, focusing on strategic growth initiatives. The company aims to enhance marketing, improve product innovation, and expand distribution. CEO Amy Taylor expressed optimism about long-term opportunities in the better-for-you soda category, highlighting a positive outlook for growth and market positioning.

Additional News

In recent weeks, Zevia has not announced any major mergers or acquisitions, nor have there been significant changes in its executive leadership team. However, the company continues to focus on its strategic growth initiatives and market positioning. Zevia remains committed to its 2025 guidance, emphasizing its dedication to advancing marketing, distribution, and product innovation strategies. The company is also navigating the evolving landscape of the beverage industry, particularly within the better-for-you soda category, as it seeks to capitalize on long-term growth opportunities. Investors are closely monitoring Zevia's progress as it implements these strategic initiatives in a competitive market environment.