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Did Zevia beat or miss consensus estimates last quarter?

- **Revenue Beat**: 12% YoY growth to $40.8M, driven by Walmart and club channel expansion.
- **Strategic Momentum**: New packaging (+500 bps purchase intent), successful flavor launches (e.g., Strawberries & Cream), and 5% household penetration in a $20B category.
- **Financial Resilience**: Adjusted EBITDA loss narrowed to $1.7M vs. $1.5M, with $5-5.5M full-year guidance vs. prior $7-9M.
- **Future Growth**: 2026 focus on same-store distribution, convenience channel expansion, and $5M productivity savings to offset $15M aluminum tariffs.
- **Energy Drinks**: Small but growing business; strategic focus on soda before broader category expansion.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 net sales increased 12% to $40.8 million, driven by expanded distribution at Walmart and club channel rotations.
- **Strategic Pillars**: 
  - **Brand Building**: Successful campaigns (e.g., Strawberry Lemon Burst, Peaches & Cream) boosted social media engagement and trial rates. New packaging design showed 500 basis point increase in purchase intent vs. prior design.
  - **Product Innovation**: New flavors like Orange Creamsicle and variety packs performed well, with Strawberries & Cream becoming Walmart's top SKU.
  - **Distribution Expansion**: Gained over half of Walmart Canada stores (400+ locations) and increased shelf presence in grocery and club channels.
- **Household Penetration**: At 5%, with significant runway in a $20 billion category, targeting millennial households with kids.

**【CFO Financial Commentary】**
- **Financial Performance**: 
  - Gross margin 45.6% (down 500 bps YoY due to $0.8M inventory obsolescence and aluminum tariffs).
  - Selling & marketing expenses: $12.7M (31% of sales), up 12% YoY due to brand investments.
  - Adjusted EBITDA loss: $1.7M (vs. $1.5M prior year), driven by sales growth and cost efficiencies.
- **Guidance Update**: Full-year net sales raised to $162-164M (vs. $158-163M) and adjusted EBITDA loss to $5-5.5M (vs. $7-9M).
- **2026 Outlook**: Targeting positive adjusted EBITDA with $5M productivity savings and pricing initiatives, despite $15M annualized aluminum tariffs.

**【Q&A Highlights】**
- **Canada Expansion**: Over 400 Walmart stores now carry Zevia, reflecting strong brand health but not the primary growth driver.
- **Packaging Rollout**: New design rolling out in Q1 2026, with Strawberries & Cream already showing strong velocity in Q4.
- **Energy Drinks**: Small but growing business in natural and e-commerce channels; focus on soda growth before broader expansion.
- **Profitability**: Aluminum tariffs a headwind, but productivity savings and distribution gains support margin improvement.


Zevia PBC (ZVIA) Q3 2025 Earnings Call Transcript

- **First Profitable Quarter**: Q2 2025 marked Zevia's first positive adjusted EBITDA ($0.2 million) as a public company, driven by 10.1% revenue growth to $44.5 million.
- **Strategic Growth Momentum**: 
  - **Marketing Success**: National campaign engagement and new flavors like Strawberry Lemon Burst boosted sales velocity.
  - **Innovation Pipeline**: 12-count variety packs and new Fruit Punch flavor at Walmart are early-stage successes.
  - **Distribution Expansion**: Surpassed historical peak retail distribution, with strong performance in Walmart, Costco, and convenience channels.
- **Cost Efficiency**: $15 million annualized cost savings, plus $5 million incremental savings by 2026, enabling reinvestment in growth.
- **Tariff Mitigation**: 200 bps gross margin headwind expected in 2026, but savings will offset部分影响, supporting long-term margin targets of 45-50%.
- **Q3 Outlook**: Sales of $38-$40 million with adjusted EBITDA loss of $3.4-$3.9 million, reflecting increased marketing and tariff-related costs.

**【CEO Summary Section】**
- **Q2 2025 Financial Highlights**: Net sales grew 10.1% to $44.5 million, marking the first profitable quarter with adjusted EBITDA of $0.2 million. This reflects progress across three strategic pillars: marketing, product innovation, and distribution.
- **Strategic Pillars Execution**: 
  - **Marketing**: National campaign "Get the Fake Outta Here" drove record engagement, with Strawberry Lemon Burst becoming a top-performing flavor.
  - **Product Innovation**: New flavors like Orange Creamsicle and Peaches & Cream achieved double-digit velocity, supported by refreshed packaging emphasizing "Soda Made Better."
  - **Distribution**: Expanded to surpass historical peak retail distribution, with strong performance in Walmart, Costco, and convenience channels.
- **Productivity Initiatives**: Achieved $15 million in annualized cost savings, with an additional $5 million expected by 2026, enabling reinvestment in growth.

**【CFO Financial Commentary】**
- **Q2 Financials**: Gross margin improved to 48.7% (up 680 bps YoY), driven by lower COGS and better inventory management. Selling expenses decreased 7.1% to $8.7 million, while marketing spend increased 9.5% to $4.7 million to support brand awareness.
- **Profitability**: Net loss narrowed to $0.7 million (vs. $7 million YoY), with adjusted EBITDA turning positive for the first time.
- **Outlook**: Full-year net sales guidance maintained at $158-$163 million, with adjusted EBITDA loss narrowed to $7-$9 million (from $8-$11 million). Q3 sales expected at $38-$40 million, with EBITDA loss of $3.4-$3.9 million due to increased marketing and tariffs.
- **Tariff Impact**: 50% aluminum tariffs could reduce gross margin by ~200 bps in 2026, but cost savings will offset部分影响.

**【Q&A Key Highlights】**
- **Sales Drivers**: Growth driven by new distribution (Walmart, grocery resets), new flavors (Strawberry Lemon Burst), and club channel expansion. Club sales hit record levels due to 6-flavor variety packs.
- **Productivity Savings**: $5 million in additional cost savings to be realized in 2026, primarily in COGS and selling expenses.
- **Consumer Metrics**: Sequential increase in household penetration and purchase frequency, driven by improved distribution and innovation.
- **Tariff Strategy**: Short-term gross margin pressure in Q3-Q4, but long-term savings will mitigate tariff impact and support mid-40s to high-50s gross margin target.
- **Investment Balance**: Bias toward reinvesting savings into marketing to build brand equity, while maintaining path to 2026 EBITDA positivity.

Zevia PBC (ZVIA) Q2 2025 Earnings Call Transcript

- **Record Gross Margin**: 50.1% gross margin driven by cost savings and product innovation.
- **Strategic Wins**: Walmart variety pack top SKU, 2.4B earned impressions from Jelly Roll campaign, and 8,000 Walgreens stores added.
- **Growth Drivers**: Productivity savings ($15M annualized) reinvested in marketing, with Q2 EBITDA loss narrowing to $2.2-2.9M.
- **Risk Management**: 200bps tariff headwind offset by price-pack optimization and operational efficiency.

**【CEO Summary Section】**
- Q1 2025 net sales of $38 million, with adjusted EBITDA loss of $3.3 million, driven by productivity initiatives and strategic growth pillars.
- **Strategic Growth Pillars**: 
  1. **Brand Marketing**: Campaign "Get The Fake Outta Here" achieved 2.4 billion earned impressions, with Jelly Roll as a cultural ambassador.
  2. **Product Innovation**: New flavors like Strawberry Lemon Burst and Salted Caramel outperformed taste tests, with 12-count variety packs leading sales.
  3. **Distribution Expansion**: Walmart modern soda set adoption, Albertsons better-for-you soda set, and 8,000 Walgreens stores added.
- **Key Wins**: 50.1% gross margin (record high), Walmart variety pack as top SKU, and DSD strategy outperforming market in Northwest.

**【CFO Financial Commentary】**
- Q1 2025 financial highlights: 
  - Net sales down 2% YoY due to promotional activity, offset by pricing and Walmart volume growth.
  - Gross margin improved 440bps to 50.1% from cost savings and inventory management.
  - Selling & marketing expenses increased to $15.3M (40.3% of sales), driven by brand-building investments.
  - Adjusted EBITDA loss narrowed by $2.2M YoY to -$3.3M, despite $15M annualized cost savings from productivity initiatives.
- **Outlook**: Full-year net sales guidance of $158-163M, Q2 sales $40.5-42.5M, with tariff headwinds offset by operational efficiency.

**【Q&A Key Takeaways】**
- **Tariff Mitigation**: 200bps headwind from aluminum tariffs, countered by price-pack optimization and sourcing changes.
- **Walmart Momentum**: Variety pack remains top SKU, with new flavors and innovation rolling out mid-year.
- **Distribution Expansion**: Albertsons same-store sales lift, Walgreens 6 flavors + variety pack, and DSD testing in convenience channels.
- **Consumer Trends**: No visible trading down yet, but Zevia positioned as affordable, great-tasting alternative in better-for-you category.

Zevia PBC (ZVIA) Q1 2025 Earnings Call Transcript

- **Q4 Growth Acceleration**: 4.4% sales growth to $39.5M, driven by Walmart expansion and variety pack velocity.
- **Margin Improvement**: Gross margin hits 49.2%, lowest EBITDA loss in 2 years at -$3.9M.
- **Strategic Momentum**: DSD pilot achieves 2x+ growth, 2025 marketing spend doubles to ~$15M+.
- **2026 Vision**: $15M+ annual savings, EBITDA+ target on track with disciplined reinvestment.


**【CEO Summary Section】**
- Q4 2024 net sales grew 4.4% to $39.5 million, driven by expanded distribution at Walmart (800 to 4,300+ locations) and strong variety pack performance.
- Adjusted EBITDA loss narrowed to -$3.9 million vs. -$6.9 million in Q4 2023, reflecting $3M+ savings from productivity initiatives.
- Strategic pillars: 
  1. **Amplified Marketing**: Viral 'Break from Artificial' campaign boosted brand awareness, with 82% positive social sentiment.
  2. **Product Innovation**: Launching Strawberry Lemon Burst flavor and retailer exclusives, plus 12-pack variety packs to drive trial.
  3. **Distribution Expansion**: DSD pilot in NW US achieved 2x+ growth in grocery vs. rest of market, with planned SW expansion.
- 2026 EBITDA+ target remains on track with $15M+ annualized cost savings.

**【CFO Financial Commentary】**
- Full year 2024 net sales $155.1M (-6.8%), but adjusted EBITDA loss improved to -$15.2M vs. -$19.1M prior year.
- Key metrics: 
  - Q4 gross margin 49.2% (vs. 40.7% prior year), driven by inventory management and cost savings.
  - Selling & marketing expenses 41.7% of sales (vs. 36.6%), reflecting increased ad spend.
- 2025 Outlook: 
  - Net sales $158-163M (2-5% growth), with Q2/Q3 as strongest quarters.
  - Adjusted EBITDA loss $8-11M, targeting high 40% gross margins.
  - $2M+ additional cost savings from workforce reduction, totalizing $15M+ annualized savings.

**【Q&A Highlights】**
- **Walmart Performance**: Variety packs (80% of Walmart SKUs) drive trial and 40%+ repeat rates, despite 22.5%+ category competition.
- **Gross Margin Strategy**: Maintaining high 40%+ margins by balancing promotions with disciplined expense management.
- **DSD Model Success**: NW DSD pilot achieved 2x+ grocery growth vs. market, with singles distribution enabling trial.
- **Marketing ROI**: 2025 marketing spend to be ~10-12% of sales, with Q1/Q3 weighted investments for seasonal impact.
- **2025 Risks**: Lapping Club/Channel losses (-$10M+ impact), but offset by Walmart expansion and innovation launches.


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