Navigating Contradictions: Insights from 2025 Q2 Earnings Call on Productivity, Tariffs, and Sales Growth

Financial Performance and Profitability:
- Zevia PBC reported net sales growth of 10.1% to $44.5 million in Q2 2025, with adjusted EBITDA improving by $4.6 million to $0.2 million, marking the first profitable quarter as a public company.
- The improved financial performance was driven by strategic initiatives focusing on marketing, product innovation, and distribution expansion, along with productivity initiatives yielding $15 million in annualized savings.

Marketing and Product Innovation:
- Zevia's distinctive brand campaign, Get the Fake Outta Here, featuring artist Jelly Roll, delivered record engagement and contributed to double-digit growth.
- New flavor launches, such as Strawberry Lemon Burst and Orange Creamsicle, generated excitement and top-performing velocity, further enhancing the brand's portfolio and appeal.

Distribution Expansion and Sales Growth:
- Zevia surpassed its historical peak distribution levels at retail, with notable sales growth contributed by new distribution at Walmart and positive momentum in grocery channels.
- The spring retail reset and new product launches, including variety packs, drove significant sell-through and supported Zevia's prioritization of broadening its user base.

Cost Management and Savings:
- Zevia identified an additional $5 million in cost savings in COGS and selling expenses, bringing the total savings to $20 million, which will be realized in 2026.
- The company's productivity initiatives and aggressive right-sizing efforts helped optimize operations and focus on growth-driving initiatives.