Zevia PBC NYSE: ZVIA executives said the company made “transformation progress” in 2025, pointing to improved profitability metrics, expanded distribution, and a stepped-up innovation and marketing pipeline heading into 2026. Management also introduced 2026 guidance that includes a planned discontinuation of the company’s tea line and an expected increase in aluminum tariff-related costs beginning in the second quarter.
2025 results: growth returned as losses narrowed
For full-year 2025, Zevia reported net sales of $161.3 million, up 4% year over year. CEO Amy Taylor said the company delivered 4% net sales growth and improved adjusted EBITDA “threefold” to an adjusted EBITDA loss of $4.7 million. CFO Girish Satya added that the net sales increase was “primarily driven by higher volumes associated with the distribution expansion at Walmart.”
Profitability also improved. Zevia expanded gross margin to 48% in 2025 from 46.4% in 2024, which Satya attributed to better product costing and more effective inventory management. Net loss more than halved to $11.1 million from $23.8 million in 2024, while adjusted EBITDA loss improved to $4.7 million from a $15.2 million loss the prior year.
Fourth quarter: sales declined on lapping Walmart fill and Costco timing
In the fourth quarter, net sales decreased 4% to $37.9 million. Taylor and Satya both cited comparisons related to Walmart, where Zevia lapped a pipeline fill in November and December of the prior year. Satya also said the decline reflected reduced promotional activity versus the year-ago period.
Management also highlighted timing related to Costco. Taylor said the quarter was impacted by a shift of Zevia’s Costco rotation into January, while Satya described the “trade-up” from an existing regional Costco rotation to a new national rotation program launched in January, featuring front-of-store placement and a new 30-can variety pack available nationwide.
Despite the sales decline, profitability in the quarter improved sharply. Gross margin was 47.7%, down 150 basis points from 49.2% a year earlier, which Satya said reflected channel mix from the return to club and higher tariff costs, partially offset by lower promotional activity. Net loss improved to $1.3 million from $6.8 million in the prior-year quarter, and adjusted EBITDA was approximately $50,000, compared with an adjusted EBITDA loss of $3.9 million a year ago. Taylor said adjusted EBITDA reached break-even and was ahead of expectations.
Operating expense trends were mixed. Selling and marketing expense fell to $11.0 million, or 29.1% of net sales, from $16.5 million, or 41.7% of net sales, in the prior-year quarter. Selling expense declined to $7.4 million from $10.0 million, driven largely by lower warehousing and freight transfer costs tied to productivity initiatives. Marketing expense fell to $3.6 million from $6.5 million, which Satya said was mainly due to the timing of spend as the company lapped a significant holiday campaign investment in the prior year. General and administrative expense rose to $7.3 million from $6.8 million, primarily due to higher accrued variable compensation.
On liquidity, Satya said Zevia ended the quarter with about $25.4 million in cash and cash equivalents and an undrawn $20 million revolving credit line.
Strategic focus: marketing, innovation, and distribution
Taylor framed the company’s progress around three strategic pillars: amplified marketing, product innovation, and distribution expansion.
On marketing, Taylor said Zevia is leaning into its positioning as “the antidote to the artificial,” highlighting a “Ztox” campaign focused on swapping out artificial soda for a “zero artificial better-for-you soda.” She said the campaign included influencer partnerships, an activation at DJ Diplo’s Run Club, sampling at Life Time’s Miami Marathon, and out-of-home advertising across Atlanta, with early editorial and social results that “punched above its weight.” Taylor said another brand campaign will launch in March and that summer campaigns will be supported by “new and familiar high-reach brand ambassadors,” alongside a spring and summer rollout of a new package design.
On innovation, Taylor said 2025 was a “breakthrough year,” citing new fruity flavors such as Strawberry Lemon Burst and a retailer-exclusive Orange Creamsicle. She said Orange Creamsicle was the number one six-pack at Sprouts immediately after launch and is now being rolled out as a “hero flavor” for 2026. Taylor also said Fruit Punch and Peaches & Cream are rolling out nationally, and a new fruity variety pack—described as the top Zevia SKU at Walmart—will broaden availability across retail during spring resets. She added that improved taste for select classic flavors will carry into 2026, in parallel with packaging updates.
On distribution, Taylor said 2025 reached “historical peak levels,” including nationwide presence in Walmart and expanded shelf space with eye-level placement at Albertsons through a vertical brand block. She said e-commerce continues to show accelerated growth, including subscriptions, and that an eight-count option in the channel should support sales.
- Costco: Taylor said the company launched a national rotation with front-of-store placement, aimed at driving trial in underdeveloped and fast-growing markets. In Q&A, she said roughly 35% to 40% of regions in the national program had never carried Zevia before, and the company hopes performance can lead to either permanent regional placement or additional rotations.
- Albertsons: Taylor described a “case study” where Zevia increased space by 30% in spring 2025 and gained eye-level placement. She said the company saw accelerating growth over roughly six months, including recent periods where growth approached “close to doubling” the rest of the category, which she believes can help persuade other retailers over time.
- DSD markets: In response to a question about the Pacific Northwest and Arizona, Taylor said the company is seeing stronger execution and outperformance in grocery within DSD markets as partners help with distribution and display, and that Zevia is using those learnings to support trial-driving programs, including single-serve initiatives.
2026 outlook: sales growth expected despite tea discontinuation and tariffs
For full-year 2026, Zevia guided to net sales of $169 million to $173 million, which implies 6% growth at the midpoint versus 2025. Satya said the outlook includes the planned discontinuation of Zevia’s tea line, expected to reduce growth by 1 to 1.5 points. He also noted the company expects quarterly volume cadence to shift, with higher volumes anticipated in the first and third quarters.
Management outlined several factors behind the cadence, including the national Costco program in the first quarter (which Satya said benefits net sales growth but dilutes gross margin), expected second-quarter impacts from discontinuing tea and lapping prior-year sell-ins to Walgreens and Albertsons, and a shift in marketing and promotional spending from Q2 to Q3 to align with the new packaging rollout. Satya said the company expects to realize the impact of planned price increases beginning in Q2.
On profitability, Zevia guided to 2026 adjusted EBITDA ranging from a loss of $1.0 million to a profit of $0.5 million. Satya said the outlook incorporates an incremental $5 million in tariff-related aluminum costs beginning in Q2, continued reinvestment, and gross margins expected in the “high 40” range starting in Q2, barring further increases in aluminum costs. He also said the company expects to begin realizing the final tranche of $5 million in productivity savings toward the end of Q2.
For the first quarter of 2026, Zevia guided to net sales of $40 million to $42 million, reflecting volume gains from the national Costco program, and an adjusted EBITDA loss of $1.6 million to $1.9 million, reflecting a mid-40s gross margin range.
Pricing, tariffs, and marketing investment plans
In Q&A, management discussed the impact of higher aluminum costs and mitigation efforts. Satya said the company is using a combination of price increases and productivity savings to offset higher aluminum exposure. When asked about magnitude, management described the planned price increase as “mid-single digits,” with elasticity assumptions around 1.1, consistent with what the company has seen historically. Satya also noted the company did not take price last year and characterized Zevia as a “fast follower on price.”
On marketing spend, Satya said Zevia expects marketing investment in 2026 to range between 12% and 13% of revenue, representing a slight increase as a percentage of revenue versus 2025.
Separately, Taylor announced board updates, including the appointment of Andy Ruben as chair of the board and the addition of Suzanne Ginestro as a director. Ruben previously served as lead independent director, and Taylor noted his background includes founding Trove Recommerce and prior roles at Walmart. Taylor said former chair Paddy Spence will remain on the board.
About Zevia PBC NYSE: ZVIA
Zevia PBC, headquartered in Los Angeles, is a Public Benefit Corporation that produces zero-calorie, naturally sweetened beverages. Founded in 2007, the company went public through a merger with a special purpose acquisition company in March 2021. Zevia's mission centers on offering healthier drink alternatives by using stevia leaf extract and other plant-based ingredients rather than sugar or artificial sweeteners.
The company's product portfolio spans multiple categories, including carbonated sodas, sparkling water, energy drinks, mixers and flavored teas.
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