Zevia PBC Reports Fourth Quarter and Full Year 2025 Results
Zevia PBC (“Zevia” or the “Company”) (NYSE: ZVIA), known for its naturally delicious, zero sugar, clean-label beverages, announced financial results for the fourth quarter and full fiscal year ended December 31, 2025. The company highlighted meaningful year-over-year improvements in profitability metrics, operational efficiency, and balance sheet strength, despite certain headwinds related to distribution timing, channel mix, and tariff-related cost pressures.
President and Chief Executive Officer Amy Taylor described 2025 as a pivotal year for the business, citing progress across key strategic pillars including amplified marketing, product innovation, and expanded distribution. Management emphasized that these initiatives contributed to improved financial performance and strengthened Zevia’s position within the fast-growing better-for-you soda category.
Fourth Quarter 2025 Financial Highlights
For the fourth quarter of 2025, net sales totaled $37.9 million, representing a 4.0% decline compared to $39.5 million in the same period of 2024. The decrease of $1.6 million was primarily driven by a 5.7% decline in volumes. This was largely attributable to the lapping of expanded distribution at Walmart in the prior-year period, along with reduced promotional activity at retail partners.
Gross profit margin in the fourth quarter was 47.7%, down 1.5 percentage points from 49.2% in the fourth quarter of 2024. The margin compression was primarily due to channel mix shifts and higher tariff costs, partially offset by lower promotional spending.
Despite the top-line decline, profitability metrics improved significantly. Net loss for the quarter narrowed to $1.3 million, compared to a net loss of $6.8 million in the prior-year quarter. The current quarter’s net loss included $1.1 million in non-cash equity-based compensation expense. Loss per share attributable to Class A common stockholders improved to $0.02, compared to $0.09 in the fourth quarter of 2024.
Adjusted EBITDA for the quarter was approximately $50 thousand, marking a substantial improvement from an Adjusted EBITDA loss of $3.9 million in the fourth quarter of the previous year.
Fourth Quarter Operating Expenses
Selling and marketing expenses were $11.0 million, or 29.1% of net sales, compared to $16.5 million, or 41.7% of net sales, in the fourth quarter of 2024. Selling expenses declined by $2.6 million to $7.4 million, primarily due to savings in warehousing and freight costs achieved through the Company’s Productivity Initiative.
Marketing expenses decreased by $2.9 million to $3.6 million. The decline was mainly related to higher advertising expenditures in the prior-year quarter associated with a holiday campaign.
General and administrative expenses totaled $7.3 million, or 19.3% of net sales, compared to $6.8 million, or 17.3% of net sales, in the same quarter last year. The increase was primarily driven by higher accrued variable compensation expense. Equity-based compensation remained relatively consistent year over year.
Full Year 2025 Financial Performance
For the full year 2025, net sales increased 4.0% to $161.3 million, up from $155.0 million in 2024. The $6.2 million improvement was driven by a 5.2% increase in volumes, largely reflecting expanded distribution at Walmart and increased promotional activity at retailers. These gains were partially offset by reduced distribution in the club channel and higher price realization.
Gross profit margin improved 1.6 percentage points to 48.0%, compared to 46.4% in 2024. The margin expansion was primarily due to lower product costs, improved inventory management, and favorable channel mix. These benefits were partially offset by higher promotional spending and tariff costs.
Net loss for the year narrowed significantly to $11.2 million, compared to $23.8 million in 2024. This improvement of $12.6 million reflects enhanced operational discipline and cost management initiatives. Loss per share improved to $0.15, compared to $0.34 in the prior year.
Adjusted EBITDA loss for the full year was $4.7 million, an improvement of $10.5 million from the $15.2 million loss reported in 2024.
Full Year Operating Expense Trends
Selling and marketing expenses declined to $52.4 million, or 32.5% of net sales, compared to $57.1 million, or 36.8% of net sales, in 2024. Selling expenses decreased by $7.2 million, reflecting savings in warehousing, repackaging, and freight costs as part of the Productivity Initiative.
Marketing expenses increased by $2.4 million to $19.5 million, driven by strategic investments aimed at strengthening brand awareness and supporting growth initiatives.
General and administrative expenses were $30.0 million, consistent with the prior year in absolute terms, though improved as a percentage of net sales. Higher accrued variable compensation was offset by cost reductions achieved through operational efficiencies.
Equity-based compensation declined to $3.8 million from $5.0 million in 2024, primarily due to the accelerated recognition of certain equity awards issued in connection with the Company’s 2021 IPO. Restructuring expenses totaled $2.2 million in 2025, primarily related to employee severance costs.
Balance Sheet and Liquidity
As of December 31, 2025, Zevia reported $25.4 million in cash and cash equivalents and no outstanding debt. The Company also maintained an unused $20 million credit facility, providing additional financial flexibility. Management emphasized the strength of the balance sheet as a key asset supporting continued investment in growth initiatives.
2026 Outlook and Guidance
Chief Financial Officer Girish Satya stated that the Company’s strategic initiatives have returned the business to growth while substantially improving its financial profile. Management believes that Zevia is well-positioned within the expanding better-for-you soda category to accelerate growth and enhance long-term profitability.
For the full year 2026, the Company expects net sales to range between $169 million and $173 million. Adjusted EBITDA is projected to range from a loss of $1.0 million to positive $0.5 million. The outlook incorporates approximately $5.0 million of incremental aluminum costs related to anticipated tariff impacts in 2026.
For the first quarter of 2026, net sales are expected to range from $40.0 million to $42.0 million, with Adjusted EBITDA projected to reflect a loss between $1.6 million and $1.9 million. The sales guidance includes distribution gains tied to a national Costco program that commenced in January 2026. Although the club channel carries a more dilutive margin profile, management believes it will drive product trial, increase awareness, and support long-term growth.
Due to uncertainty surrounding reconciling items such as stock-based compensation, income taxes, restructuring costs, and other variable expenses, the Company has not provided a forward-looking GAAP reconciliation for its Adjusted EBITDA outlook.
Board Leadership Update
In a subsequent governance update, Andrew “Andy” Ruben, currently serving as Lead Independent Director, has been appointed Chair of the Board. He replaces Padraic Spence, who will continue serving as a member of the board.
During his five-year tenure on Zevia’s board, Ruben has contributed strategic insight drawn from his experience as founder of Trove Recommerce, his background as a consultant with BCG, and his decade-long tenure at Walmart, where he held senior leadership roles including Vice President of Corporate Strategy and Chief Sustainability Officer.
The leadership transition reflects Zevia’s continued focus on strengthening governance and positioning the Company for its next phase of growth.
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