Zevia PBC Q2 2025 Earnings Report

Zevia PBC EPS Results

• Actual EPS: -$0.01
• Consensus EPS: -$0.05
• Beat/Miss: Beat by +$0.04
• One Year Ago EPS: N/A

Zevia PBC Revenue Results

• Actual Revenue: $44.52 million
• Expected Revenue: $41.63 million
• Beat/Miss: Beat by +$2.90 million
• YoY Revenue Growth: N/A

Zevia PBC Announcement Details

• Quarter: Q2 2025
• Date: 8/6/2025
• Time: After Market Closes
• Conference Call Date: Wednesday, August 6, 2025
• Conference Call Time: 4:30PM ET

Zevia PBC (NYSE:ZVIA), a beverage company, develops, markets, sells, and distributes various carbonated beverages in the United States and Canada. It offers soda, energy drinks, organic tea, and kidz drinks. The company offers its products through a network of food, drug, warehouse club, mass, natural, convenience, and e-commerce channels, as well as grocery distributors and natural product stores and specialty outlets. It provides its products under the Zevia brand name. The company was founded in 2007 and is headquartered in Encino, California.

Zevia PBC Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Strong second quarter performance with net sales up 10.1% to $44.5 million and adjusted EBITDA of $0.2 million, marking the first profitable quarter as a public company.
• Positive Sentiment: Productivity initiatives delivered $15 million in annualized savings and identified an incremental $5 million in cost savings to be realized in 2026.
• Positive Sentiment: Gross margin improved 680 basis points to 48.7%, and net loss narrowed to $0.7 million from $7 million a year ago.
• Neutral Sentiment: The company maintained full‐year net sales guidance of $158–163 million and narrowed adjusted EBITDA loss guidance to $7–9 million.
• Negative Sentiment: Ongoing 50% aluminum tariffs may increase COGS and pressure margins in the second half of the year and into 2026.

Presentation

[Operator]

Good day, everyone, and welcome to today's CEVIA Second Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. Later, you will have the opportunity to ask questions during the question and answer session. Please note this call may be recorded. I'll be standing by should you need any assistance.

[Operator]

It is now my pleasure to turn the conference over to Jean Fontana of ADDO Investor Relations.

[Jean Fontana, Senior MD at ADDO Investor Relations]

Thank you, and welcome to Zevia's second quarter twenty twenty five earnings conference call. On today's call are Amy Taylor, President and Chief Executive Officer and Gera Satya, Chief Financial Officer and Principal Accounting Officer. By now, everyone should have access to the company's second quarter twenty twenty five earnings press release and investor presentation made available this afternoon. This information is available on the Investor Relations section of Devia's website at investors.devia.com. Before we begin, please note that all financial information presented on today's call is unaudited.

[Jean Fontana, Senior MD at ADDO Investor Relations]

Certain comments made on this call include forward looking statements, which are subject to the Safe Harbor provisions the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on management's current expectations and beliefs concerning future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in these forward looking statements. Please refer to today's press release and other filings with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward looking statements made today. During the call, we will use some non GAAP financial measures as we describe business performance. The SEC filings as well as the earnings press release, presentation slides that accompany today's comments and reconciliations of the non GAAP financial measures to the most directly comparable GAAP financial measures are all available on our website at investors.vidya.com.

[Jean Fontana, Senior MD at ADDO Investor Relations]

And now I'd like to turn the call over to Amy Taylor.

[Amy Taylor, President, CEO & Director at Zevia PBC]

Thank you, Jean. Good afternoon, everyone, and thank you for joining our second quarter twenty twenty five earnings conference call. We are very pleased with our performance in the second quarter. Net sales and adjusted EBITDA exceeded our outlook, and we made notable progress across our strategic initiatives. Over the last year, we've executed against our three strategic growth pillars to sharpen the Zevia brand and lay the foundation for growth.

[Amy Taylor, President, CEO & Director at Zevia PBC]

Zevia's position as a radically real option is clear. We are soda made better. Our distinctive marketing is driving engagement. Product innovation is resonating both with new and existing consumers, and we are expanding our distribution with strong sell through across channels. All of this is in part fueled by our productivity initiative that yielded $15,000,000 in annualized savings with more to come.

[Amy Taylor, President, CEO & Director at Zevia PBC]

I'm incredibly proud of what the team has accomplished over the last year. We are energized by a strong start to the summer, and I'm more excited than ever about our future. So briefly highlighting our financial results. For the second quarter, net sales grew 10.1% to $44,500,000 Adjusted EBITDA improved by $4,600,000 to $200,000, marking our first profitable quarter as a public company. Turning to highlights on our progress across each of our strategic growth pillars from the quarter, let's start with our first one, marketing.

[Amy Taylor, President, CEO & Director at Zevia PBC]

Our distinctive brand was brought to life through our national campaign, get the fake out of here in q two, featuring household name crossover artist, Gelly Roll. The campaign delivered record earnings impressions and the most shared and engaging content in ZVS history, which contributed to double digit growth in the quarter. Then over Memorial Day weekend, we launched Get the Bake Out of Summer, showcasing one of our newest flavors, strawberry lemon burst, and our playful summer break food state. The summertime refreshment campaign features social and editorial media activations in conjunction with mega influencer posting and consumer content. Strawberry lemon burst is the hero flavor of the summer and a great demonstration of the more sugar like taste experience that Zevia is delivering in our new flavors.

[Amy Taylor, President, CEO & Director at Zevia PBC]

So this is a good segue into our second strategic growth pillar, product innovation. Our new flavor launches featuring our enhanced taste profile are generating excitement and engagement and are delivering top performing velocities. We are complementing our legacy classic soda flavors and more nostalgic launches with new on trend fruity flavors. Strawberry lemon burst and orange creamsicle have been our most successful launches to date. On the heels of these best ever innovation launches for our brand, we have expanded our pipeline with the launches of peaches and cream online and a second exclusive at retail, plus the return of our highly popular salted caramel flavor across channels.

[Amy Taylor, President, CEO & Director at Zevia PBC]

Our prettier and on trend flavors provide an opportunity to appeal for a broader audience as we continue to focus on driving time. With the launch of these new products, we have refreshed ZVS packaging to bring distinctive flavors and great taste to life and to communicate our better for you positioning. Soda made better is communicated on pack along with several of the reasons to believe in ZVS unique position in the category. Zero sugar, zero fake colors, and zero fake sweeteners. And finally, regarding the portfolio, we rolled out a 12 count variety pack across the majority of our grocery and natural channel stores over the second quarter spring reset period, which is also a great start at the very early stage.

[Amy Taylor, President, CEO & Director at Zevia PBC]

And in July, we introduced the new foodie variety pack, featuring ZVN's new fruit punch flavor among others at Walmart. We continue to surprise and delight new modern soda shoppers and loyal Zevia consumers alike with this accelerated pace of innovation. And lastly, our third strategic growth pillar is distribution. We surpassed our historical peak distribution levels at retail, a significant milestone that underscores the impact of our efforts over the past year. We are pleased with the results of the spring retail reset and top accounts are performing at or above expectations.

[Amy Taylor, President, CEO & Director at Zevia PBC]

Improved shelf presence and new products drove sell through nearly double digit velocities on the quarter. And as we gain distribution, it supports our top priority, broadening our user base. Turning to channel specific updates, we continue to perform well at Walmart. Our first variety pack is the top selling ZVS SKU, and the new fruity variety pack is off to a great start in its first few weeks of summer. In the grocery channel, we're encouraged by strong scan data and positive indicators across key retailers in terms of space gain and new SKU performance.

[Amy Taylor, President, CEO & Director at Zevia PBC]

In club, we're back on rotation in key Costco regions, and performance has exceeded expectations. Media generated record same store sales in every region on an apples to apples basis during the quarter, which we attribute in part to the positive response to our new, more dynamic packaging design, which stands out in store and better communicates positioning. In the drug channel, recent distribution gains make Zevia available in all three national chains with one partner testing cold singles in 750 stores. In convenience, we're pleased with the initial response across a growing network of regional chains and with regional tests at national players. It's still very early, but recent scan data indicates our performance is on par with larger and more established peers, which is encouraging and also an indicator of ZVia's potential in impulse channels.

[Amy Taylor, President, CEO & Director at Zevia PBC]

We will continue to be measured in our approach to convenience, working towards sustained success as we build our brand and our distribution network. There remains considerable opportunity to expand in store distribution through legacy channels and, of course, new store distribution across mass, club, and impulse channels. In closing, we're energized by the strong momentum across our brand and business and pleased to share that we are executing with focus and precision. Our marketing and product innovation efforts are delivering meaningful results, amplifying brand awareness, winning on taste, driving trial and repeat, and supporting accelerated distribution gains. With clear growth drivers in place and solid execution across the board, we believe we're well positioned to capitalize on strong momentum in a better for you soda category.

[Amy Taylor, President, CEO & Director at Zevia PBC]

And so with that, I'll turn the call over to Girish.

[Girish Satya, CFO & Principal Accounting Officer at Zevia PBC]

Thank you, Amy. Good afternoon, everyone, and thanks for joining our call today. Our second quarter results clearly demonstrate the significant progress we've made over the past year. Fueled by strong execution, we delivered meaningful advancements across each of our strategic growth pillars. In addition to delivering double digit top line growth, we've taken important steps to drive enhanced and enduring profitability.

[Girish Satya, CFO & Principal Accounting Officer at Zevia PBC]

In addition to the $15,000,000 in annual cost savings we have discussed, we have identified an incremental $5,000,000 in cost savings in COGS and selling expenses, which we expect to begin realizing in 2026, bringing the total to $20,000,000 Turning now to our second quarter results. During the second quarter, we delivered net sales of $44,500,000 an increase of 10.1% as compared to the second quarter of last year. This strong growth was primarily driven by our expanded breadth and depth of distribution across channels, partially offset by increased promotional activity. As we continue to monitor the consumer and competitive environment, we remain agile in our promotional programming. Gross margin was 48.7%, which reflects an increase of six eighty basis points compared to 41.9% in the second quarter of last year.

[Girish Satya, CFO & Principal Accounting Officer at Zevia PBC]

This improvement reflects lower product costs and improved inventory management, partially offset by higher promotional activity and channel mix. The impacts of tariffs were below where we expected and had an insignificant impact in the second quarter due to timing. Selling and marketing expenses were $13,400,000 or 30% of net sales in the 2025 compared to $13,600,000 or 33.7% of net sales in the 2024. Selling expense was $8,700,000 or 19.4% of net sales compared to $9,300,000 or 23% of net sales in the 2024, a decrease of 7.1% while maintaining best in class customer fulfillment rates during the quarter. Marketing expense was $4,700,000 or 10.6% compared to $4,300,000 or 10.7% of net sales in the 2024.

[Girish Satya, CFO & Principal Accounting Officer at Zevia PBC]

The increase was primarily due to investments to drive brand awareness. We did shift some of these marketing dollars in the second quarter to the back half of the year, which contributed to our better than expected adjusted EBITDA performance. General and administrative expenses were $8,100,000 or 18.2% of net sales in the 2025 compared to $7,700,000 or 19% of net sales in the 2024. The increase was primarily due to higher variable compensation expenses and outside services, partially offset by our efforts to rightsize the business and focus on growth driving initiatives. As a result of the aforementioned factors, net loss was $700,000 compared to a net loss of $7,000,000 last year, an improvement of $6,300,000 over the prior year.

[Girish Satya, CFO & Principal Accounting Officer at Zevia PBC]

Adjusted EBITDA was $200,000 compared to an adjusted EBITDA loss of $4,400,000 in the prior year period. The $4,600,000 improvement reflects accelerated savings from our productivity initiative and a shift in the timing of marketing investments. As Amy noted, this is the first positive adjusted EBITDA quarter since we IPO ed. Turning to our balance sheet. We ended the quarter with approximately $26,300,000 in cash and cash equivalents and have an undrawn revolving credit line of 20,000,000 Now turning to our outlook.

[Girish Satya, CFO & Principal Accounting Officer at Zevia PBC]

We continue to execute our strategic initiatives and feel good about the momentum in our business. That said, we are operating in an uncertain macro environment and remain prudent in our outlook. In addition, this outlook assumes that the current tariffs of 50% on aluminum remain unchanged. However, should tariff costs rise, this would potentially impact our COGS in 2026. As such, we are maintaining our full year net sales guidance in the range of $158,000,000 to $163,000,000 Based on the additional benefit of cost savings and our productivity initiative, we now expect our adjusted EBITDA loss to range from $7,000,000 to $9,000,000 versus prior guidance of $8,000,000 to $11,000,000 Turning to the third quarter.

[Girish Satya, CFO & Principal Accounting Officer at Zevia PBC]

We expect net sales between 38,000,000 and $40,000,000 We expect Q3 adjusted EBITDA loss to be between $3,400,000 and $3,900,000 reflective of increased marketing investments and higher promotions in addition to the higher tariff related costs. Note that our third quarter adjusted EBITDA guidance includes a $500,000 onetime charge within COGS related to the package redesign that Amy mentioned earlier. The cost of the repackaging design will largely be realized in the third quarter. We believe this packaging is more reflective of our new flavors and taste profile as well as our brand narrative have been very pleased with the positive response to the new design. In closing, with a more efficient operating structure resulting from our productivity initiative, we are enabling reinvestment into growth.

[Girish Satya, CFO & Principal Accounting Officer at Zevia PBC]

Echoing Amy's comments, we believe the work we have done over the last year sets us up to capitalize on a growing better food beverage category and deliver long term profitable growth. I will now turn it over to the operator to begin Q and A. Operator?

[Operator]

Thank you. And we'll take our first question from Saurabh Voorh with Telsey Group.

[Sarang Vora, Equity Research at Telsey Advisory Group]

Great. Congratulations on a great quarter. Good to see positive EBITDA as well. My first question is on the sales driver. Can you give a little bit more color?

[Sarang Vora, Equity Research at Telsey Advisory Group]

There were a lot of positives in the quarter. Can you give a little bit more color on what drove the strong sales, like channel fill in versus, you know, existing channel growth across existing channel? And, also, can you share the contribution of, like, new flavors, that played in the sales growth? Thank you.

[Amy Taylor, President, CEO & Director at Zevia PBC]

Yeah. Happy to, Sean. Thank you. So we had a really nice balanced quarter meeting. Growth came from several places.

[Amy Taylor, President, CEO & Director at Zevia PBC]

We grow grew both in dollars and in units. And, of course, our new distribution at Walmart is contributing to that, but so did positive momentum in grocery, meaning that Zevia really benefited from the spring resets. We're just, two months or so into the the volumetric impact of spring resets, that will continue to pay us back through the summer. But we gained space net net, and some retailers regained 12 pack distribution. And then other retailers, benefited from a brand block, more eye level distribution.

[Amy Taylor, President, CEO & Director at Zevia PBC]

And then to your last point, new items drew drove incremental distribution. So distribution on the whole across major channels was a contributor to our growth. It's good to see us back at double digit growth. Our new items are certainly contributing to growth, but it's very early days. As I mentioned in prepared remarks, our strawberry lemon burst is a top two item, across the board, and our, Sprouts exclusive is the number one ZV item, in Sprouts.

[Amy Taylor, President, CEO & Director at Zevia PBC]

So we think that's not only contributing to some of our growth, but also indicative of the flavor evolution and increased pace of innovation within our portfolio. We think that new items will continue to contribute growth. We're we have a little bit more, Costco and specifically club business, in the quarter than we've had in the past. We've talked about that being both regional and rotational, but that also contributed a little bit to, the volume growth on the quarter.

[Sarang Vora, Equity Research at Telsey Advisory Group]

That's that's great. You know, and, Girish, I had a question about the productivity initiative. Can you share more color on, you know, where you are seeing this incremental $5,000,000 of productivity gains? Thank you. I'll pass it on.

[Girish Satya, CFO & Principal Accounting Officer at Zevia PBC]

Yeah. Absolutely. And and as we mentioned in prepared remarks, it's, we continue to find efficiencies, within the, within supply chain broadly as we continue to simplify, our product portfolio and our network as well. So we anticipate the incremental savings to sort of begin to be realized to to a lesser degree in q four of this year, but really the beginning of q one next year, first in COGS and then in selling and warehousing expenses in the sort of 2026.

[Sarang Vora, Equity Research at Telsey Advisory Group]

Thank you.

[Operator]

Thank you. We'll take our next question from Bonnie Herzog with Goldman Sachs.

[Ethan Huntley, Vice President Equity Research at Goldman Sachs]

Hi, good afternoon. This is Ethan Huntley on for Bonnie Herzog. Thank you for taking our questions. Maybe just one here on your guidance. So you maintain your top line guidance of 158,000,000 to $163,000,000 But if you include your Q3 guidance, I think that actually implies Q4 might be flat to slightly I'm just curious if you had any more puts and takes there.

[Ethan Huntley, Vice President Equity Research at Goldman Sachs]

I understand the macro environment is challenging. But I guess anything else that might be driving that more cautious outlook towards the back end of the year, that would be good. Thank you.

[Girish Satya, CFO & Principal Accounting Officer at Zevia PBC]

Yeah. Of course. Thanks, Ethan. I think it's really two things. One, as we alluded to in the earlier remarks, you know, we continue to see, although we continue to see strength in our, distribution gains and strength, in some of our trends, we are, a little bit cautious about the overall consumer.

[Girish Satya, CFO & Principal Accounting Officer at Zevia PBC]

And as we think about q four of this year, we are lapping a very substantial Walmart pipeline fill, which is, which we've, which we've addressed in in previous calls as well. And so I think, really, as we think about q four, being relatively flattish would make sense given that the substantial nature of that pipeline fill.

[Ethan Huntley, Vice President Equity Research at Goldman Sachs]

Got it. And then maybe just as a follow-up one here on tariffs. I think you mentioned that the tariff impact was maybe below expectations in the quarter, but that seems timing related. So I guess just curious how we should be thinking about tariffs moving forward. I think you mentioned previously there could be a 200 basis point impact to gross margins.

[Ethan Huntley, Vice President Equity Research at Goldman Sachs]

Is that still a fair way to think about things? And then I guess any sort of color on gross margins for the rest of the year would be helpful. Thank you.

[Girish Satya, CFO & Principal Accounting Officer at Zevia PBC]

Yes. No. Great question. And so yes, we continue to see or we continue to estimate that it'll be about a 200 basis points impact. You as you noted, it is timing related, just the way that our co manufacturing, partners operate.

[Girish Satya, CFO & Principal Accounting Officer at Zevia PBC]

There's a little bit of a delay in terms of when we see the, increased pricing. So starting in q three, we will begin to see more material impacts, related to tariffs, and we do, anticipate that plus the onetime charge, that we're taking, in the quarter related to patching refresh will have a sort of dilutive impact on gross margin in the short run. But as noted, as we sort of flip the, flip the calendar, you know, we'll be able to really offset a lot of the tariff vis a vis the incremental savings that we found. So although we may see some pressure on gross margins in the short run, I. E, in q three and q four, we expect to, get back to that sort of, mid to high forties, and eventually in the fifties in the long run.

[Operator]

Thank you. We'll take our next question from James Salera with Stephens.

[Jim Salera, Research Analyst at Stephens Inc]

Hi, Dheeraj. Good afternoon. Thanks for taking our question.

[Jim Salera, Research Analyst at Stephens Inc]

I wanted to ask some questions just around the consumer panel metrics because it looks like we saw a sequential step up both in household penetration as well as purchase frequency from 1Q to 2Q. I was hoping you could just give some color around it. Is that primarily attributable to some of the new flavor launches and bringing new people to the brand? Or is it easier to find Zeevia across a broader range of retailers and you're finding that, you know, people are are kind of keeping their fridge in stock on a more frequent basis? Just any color on on that step up, on the consumer metrics would be helpful.

[Amy Taylor, President, CEO & Director at Zevia PBC]

Yeah. Thanks, Jim. Your assessment is correct, actually. So, you know, we have increased visibility in the marketplace. That means both increased store selling, if you think about our distribution expansion of Walmart, or increased visibility or space dedicated to the brand in traditional grocery.

[Amy Taylor, President, CEO & Director at Zevia PBC]

And then what supports that, of course, is innovation. And so we see an uptick in helpful penetration as well as a really healthy cut of panel data across the board in terms of spend levels with our existing user base in part because of new to brand users and in part because of strong repeat. And, you know, as we have our eye to the future and think about our priorities around building brands through marketing, continuing to innovate and strengthen the portfolio, and then continuing to drive distribution, this all ladders up to growing the user base for Zevia. So that that's exactly what you're seeing in the panel data.

[Jim Salera, Research Analyst at Stephens Inc]

Okay. Great. And and then maybe just drilling down a little on club. Can you give us any details on what the product rotation looks like there? And, you know, maybe there's opportunity to if it's multipacks, if there's a opportunity to get some straight flavors in there, or can you just add any details around how we should be thinking about that go forward?

[Amy Taylor, President, CEO & Director at Zevia PBC]

Sure. So, you know, club is increasingly a discovery channel, a little bit of a treasure hunt. So variety for us is really important there as we win new users in that channel. We are seeing on the same store basis record level of, same store sales for Zevia in the club channel, which is really helpful. We think about being distributed in a regional basis and being distributor distributed rotationally.

[Amy Taylor, President, CEO & Director at Zevia PBC]

So our goal, of course, would be to be an everyday item, and velocity in recent weeks and months would support that idea in the future. Today, we feature a six flavor variety pack, and we think that's really, well suited for the for the club, member today. And we also have the option, as we've done in the past, with some seasonal rotations for newness, which is always really valued in that treasure hunt environment. But given the pace of innovation and the taste and flavor profile improvements that we're driving through our portfolio, we imagine that club package could continue to evolve in '26 and going forward both in the everyday variety pack items as well as with some seasonal ideas to help continue to bolster that those regional rotation.

[Jim Salera, Research Analyst at Stephens Inc]

Great. I appreciate the thoughts. I'll hop back in the queue.

[Amy Taylor, President, CEO & Director at Zevia PBC]

Thanks, Jim.

[Operator]

Thank you. And, again, as a quick reminder, Our next question will come from Daniel Gold with BMO Capital Markets.

[Daniel Gold, Equity Research Associate at BMO Capital Markets]

Hi. Thanks for taking my question. I'm on for Andrew Strelzik. How are you weighing whether to let the EBITDA, the better EBITDA on cost saves flow to the bottom line versus, reinvesting those in marketing?

[Amy Taylor, President, CEO & Director at Zevia PBC]

Yeah. Sure. How are we can you ask the question again? How are we balancing the improved adjusted EBITDA?

[Daniel Gold, Equity Research Associate at BMO Capital Markets]

Whether how are you deciding whether to let the the incremental EBITDA flow through to the bottom line or to reinvest in marketing?

[Girish Satya, CFO & Principal Accounting Officer at Zevia PBC]

Sure. Yeah. So, I mean, look, we're obviously, you know, focused on the long run, trying to build a sustainable brand. And, you know, in this category, we feel that, brand is a is a real differentiator and and something that we want to, you know, build a sort of a competitive moat. And so as we think about, as we think about the year, you know, we sort of focused, both on long term brand building, but also on short term velocity driving tactics.

[Girish Satya, CFO & Principal Accounting Officer at Zevia PBC]

And so we, will look to balance both driving long term, brand, brand building, or brand equity, and then in the short run, really be focused on short term velocity driving activities. And that's probably where we can, continue to adjust our our playbook as the, you know, as the environment shifts. But, you know, we continue to point to 2026 as, you know, the the sort of inflection point to turn, positive adjusted EBITDA. And so, you know, in the short run, we're gonna continue to bias towards investing to drive top line. And, Dan, within the

[Amy Taylor, President, CEO & Director at Zevia PBC]

year, you you've seen us both kinda find our voice in brand marketing and thus invest more on a percentage of net sales basis in marketing relative to the past and yet deliver our first quarter of profitability as a public company. So I think we've got, since Girish has been with us now a year, a good track record of moving toward profitability while still being able to invest in brand. And and that's in large part thanks to the productivity work that we've done behind the scene.

[Daniel Gold, Equity Research Associate at BMO Capital Markets]

Got it. Thanks, Tim and Girish. Congrats on the quarter.

[Sarang Vora, Equity Research at Telsey Advisory Group]

Thanks.

[Operator]

Thank you. And this does conclude our question and answer session. I would like to now turn it back to Amy Taylor for any additional or closing remarks.

[Amy Taylor, President, CEO & Director at Zevia PBC]

Thanks very much, and thanks everyone for joining today. As I mentioned earlier, I'm really proud of what the team has accomplished over the last year, and I'm energized by a strong start to the summer. We are laser focused on expanding the ZBA user base, driving trial, conversion, and retention through our three strategic priorities, which are marketing, innovation, and distribution. So combine that with our over performing productivity initiative, which I just mentioned, and demonstrated by our first ever profitable quarter, we're standing on a strong foundation and accelerating toward a future of strong double digit growth and sustainable profitability. So we're hard at work delivering the back half of the year, and we have a strong plan for 2026.

[Amy Taylor, President, CEO & Director at Zevia PBC]

And I look forward to seeing you all again in the next quarter. Thank you.

[Operator]

Thank you, ladies and gentlemen. This does conclude today's presentation. You may now disconnect.

Participants

Executives

• Amy Taylor, President, CEO & Director
• Girish Satya, CFO & Principal Accounting Officer

Analysts

• Jean Fontana, Senior MD at ADDO Investor Relations
• Sarang Vora, Equity Research at Telsey Advisory Group
• Ethan Huntley, Vice President Equity Research at Goldman Sachs
• Jim Salera, Research Analyst at Stephens Inc
• Daniel Gold, Equity Research Associate at BMO Capital Markets