Zevia(ZVIA) - 2025 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 2025 were $38.0 million, a decline of 2.0% from $38.8 million in Q1 2024[6] - Net loss for Q1 2025 was $6.4 million, an improvement of $0.8 million compared to a net loss of $7.2 million in Q1 2024[14] - Adjusted EBITDA loss was $3.3 million, an improvement of $2.2 million year over year, exceeding expectations[15] - Adjusted EBITDA for Q1 2025 was $(3,266) million, compared to $(5,466) million in Q1 2024, indicating an improvement of approximately 40.3%[31] Profitability Metrics - Gross profit margin improved to 50.1%, up 4.4 percentage points from 45.7% in Q1 2024, marking the highest quarterly gross margin as a public company[7] - Selling and marketing expenses increased to $15.3 million, or 40.3% of net sales, compared to $15.1 million, or 38.8% of net sales in Q1 2024[10] - General and administrative expenses decreased to $7.0 million, or 18.4% of net sales, down from $8.1 million, or 20.9% of net sales in Q1 2024[12] - Equity-based compensation for Q1 2025 was $731 million, down from $1,489 million in Q1 2024, a decrease of approximately 50.9%[31] - The company reported a non-cash lease expense of $138 million for Q1 2025, compared to $147 million in Q1 2024[27] - The restructuring expense for Q1 2025 was $2,138 million, with no such expense reported in Q1 2024[31] Guidance and Expectations - The company maintains its 2025 guidance, expecting net sales between $158 million and $163 million and an adjusted EBITDA loss of $8 million to $11 million[17] - For Q2 2025, the company anticipates net sales in the range of $40.5 million to $42.5 million and an adjusted EBITDA loss of $2.2 million to $2.9 million[18] Cash and Assets - As of March 31, 2025, the company had $27.7 million in cash and cash equivalents and no outstanding debt[16] - Cash and cash equivalents decreased from $30,653 million at the beginning of the period to $27,717 million at the end of the period, a decline of about 9.5%[27] - Total assets decreased from $67,951 million as of December 31, 2024, to $61,974 million as of March 31, 2025, representing a decline of approximately 8.7%[26] - Total current liabilities remained relatively stable, decreasing slightly from $24,222 million as of December 31, 2024, to $24,031 million as of March 31, 2025[26] Inventory and Receivables - Accounts receivable, net, decreased from $10,795 million to $8,797 million, a decline of approximately 18.5%[26] - Inventories decreased from $18,618 million to $17,105 million, representing a reduction of about 8.1%[26] Market Response - The new variety pack has become the best-selling Zevia SKU at Walmart, indicating strong market response to innovation and marketing strategies[5]