Zevia Reports First Quarter 2026 Financial Results and Business Performance Update
NYSE: ZVIA reported a strong start to 2026 as the zero-sugar beverage company delivered double-digit revenue growth, improved profitability metrics, and positive adjusted EBITDA during the first quarter ended March 31, 2026. The company credited the performance to stronger sales volumes, expanded retail distribution, disciplined cost management initiatives, and continued investment in brand-building efforts aimed at accelerating long-term growth.
Zevia, known for its naturally sweetened, zero-sugar beverages made with clean-label ingredients, posted net sales of $46.1 million for the quarter, representing a 21.2% increase compared to $38.0 million during the same period in 2025. The strong growth was primarily fueled by a 20.4% increase in sales volume, supported by expanded distribution in club retail channels and stronger demand across mass retail and e-commerce platforms.
Company executives described the quarter as an important milestone in Zevia’s ongoing transformation strategy, highlighting the combination of accelerating top-line growth and improved operational efficiency.
Amy Taylor, President and Chief Executive Officer of Zevia, said the company exceeded internal expectations during the quarter, driven by progress across its strategic growth initiatives.
According to Taylor, Zevia’s performance reflects the deliberate operational and marketing decisions made over the past several quarters, including restructuring efforts, cost optimization programs, targeted marketing investments, product innovation enhancements, and expanded retail distribution.
The company also indicated that it plans to build further momentum during the remainder of the year through a series of new initiatives, including refreshed packaging designs and a major partnership with rapper and entertainer Cardi B as a brand ambassador. Zevia believes the collaboration will significantly expand consumer engagement and brand awareness among younger audiences and health-conscious consumers seeking alternatives to traditional sugary soft drinks.
Despite the strong revenue gains, Zevia experienced some pressure on profitability margins during the quarter due to rising input costs. Gross profit margin declined to 48.4% in the first quarter of 2026, compared to 50.1% during the same period last year. The company attributed the 1.7 percentage-point decline primarily to higher aluminum costs, which continue to affect beverage manufacturers across the industry.
Even with margin pressure, Zevia demonstrated notable improvement in expense management. Selling and marketing expenses totaled $14.5 million during the quarter, representing 31.5% of net sales, compared to $15.3 million, or 40.3% of net sales, in the prior-year period.
Selling expenses specifically rose modestly to $9.4 million from $9.1 million year over year. However, as a percentage of revenue, selling expenses improved significantly, falling from 24.1% of net sales in the first quarter of 2025 to 20.4% in the latest quarter. Zevia said the improvement was largely driven by operational savings tied to its Productivity Initiative, which helped reduce warehousing and repackaging costs.
Marketing expenses also declined during the quarter. Zevia reported marketing spending of $5.2 million, or 11.2% of net sales, compared with $6.2 million, or 16.2% of net sales, during the prior-year period. The company explained that the reduction was mainly related to the timing of marketing campaigns rather than a decrease in overall brand investment strategy.
General and administrative expenses increased to $9.1 million, or 19.7% of net sales, compared with $7.0 million, or 18.4% of net sales, in the first quarter of 2025. The increase was largely associated with approximately $2.3 million in litigation settlement costs recorded during the quarter.
Zevia also reported equity-based compensation expense of $0.9 million, compared with $0.7 million a year earlier. The increase was attributed primarily to workforce-related forfeitures that occurred in 2025, along with new equity awards granted by the company.
The company’s prior-year results also included restructuring expenses of $2.1 million, primarily related to employee severance costs tied to workforce reductions and organizational restructuring initiatives.
Overall, Zevia significantly improved its bottom-line performance. Net loss narrowed to $2.4 million during the first quarter of 2026, compared with a net loss of $6.4 million in the first quarter of 2025. Loss per share attributable to Zevia’s Class A common stockholders improved to $0.03 per share from $0.08 per share in the comparable prior-year quarter.
On an adjusted basis, excluding certain litigation and restructuring costs, Zevia posted an adjusted net loss of just $0.1 million, compared with an adjusted net loss of $4.2 million in the first quarter of 2025.
Perhaps most notably, the company achieved positive adjusted EBITDA of $0.9 million during the quarter, compared with an adjusted EBITDA loss of $3.3 million during the same period last year. The $4.2 million year-over-year improvement marked a key profitability milestone for the beverage company as it works toward sustained profitable growth.
The results underscore growing momentum for Zevia’s positioning within the broader better-for-you beverage category, where consumer demand for healthier, low-sugar alternatives continues to expand. As consumers increasingly seek products with simple ingredients and reduced sugar content, Zevia has focused on differentiating itself through naturally sweetened beverages free from artificial ingredients and sugar.
Industry trends have continued to favor companies offering functional, health-conscious beverage alternatives, particularly among younger consumers and wellness-focused shoppers. Zevia’s expanded distribution footprint and increased visibility across club stores, mass retailers, and online platforms appear to be helping the company capitalize on those market dynamics.
Looking ahead, Zevia plans to continue investing in innovation, marketing partnerships, and operational efficiencies while maintaining focus on long-term profitability objectives. The company’s upcoming packaging redesign and marketing collaboration with Cardi B are expected to play a central role in boosting consumer engagement and supporting future sales growth.
Management expressed confidence that the company’s ongoing transformation initiatives, combined with improving operational leverage and expanding market penetration, position Zevia for continued sustainable growth throughout 2026 and beyond.
The first-quarter results suggest that Zevia’s efforts to streamline operations while simultaneously increasing brand investment are beginning to generate measurable financial improvements. With revenue growth accelerating and adjusted EBITDA turning positive, the company enters the remainder of the year with strengthened momentum in the competitive zero-sugar beverage market.
Source Link:https://www.businesswire.com/
