Zevia(US:ZVIA)2025-11-05 21:11Financial Performance - Net sales increased by 12.3% to $40.8 million in Q3 2025, up from $36.4 million in Q3 2024, driven by a volume growth of 12.6%[3] - The net loss for Q3 2025 was $2.8 million, consistent with the net loss of $2.8 million in Q3 2024, with a loss per share of $0.04[11] - Adjusted EBITDA loss was $1.7 million in Q3 2025, compared to a loss of $1.5 million in Q3 2024, reflecting ongoing operational challenges[12] - The company expects full-year 2025 net sales to be between $162 million and $164 million, with an adjusted EBITDA loss projected between $5.0 million and $5.5 million[14] - For Q4 2025, net sales are anticipated to range from $39.0 million to $41.0 million, with an adjusted EBITDA loss expected between $0.25 million and $0.75 million[15] - Net loss for the nine months ended September 30, 2025, was $9,870 million, an improvement from a net loss of $17,002 million for the same period in 2024, indicating a reduction of approximately 42.5%[27] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(4,754) million, compared to $(11,348) million for the same period in 2024, reflecting an improvement of approximately 58%[32] Cost and Expenses - Gross profit margin decreased to 45.6%, down 3.5 percentage points from 49.1% in Q3 2024, primarily due to higher inventory losses and increased tariffs[4] - Selling and marketing expenses were $12.7 million, representing 31.0% of net sales, compared to $12.0 million or 33.0% in Q3 2024, indicating improved cost efficiency[5] - The increase in marketing expenses was driven by investments aimed at enhancing brand awareness[8] - Equity-based compensation for the nine months ended September 30, 2025, was $2,663 million, down from $3,950 million in the same period of 2024, a decrease of approximately 32.5%[27] Assets and Liabilities - Total assets decreased from $67,951 million as of December 31, 2024, to $60,009 million as of September 30, 2025, representing a decline of approximately 11.5%[25] - Cash and cash equivalents decreased from $32,688 million at the end of the previous period to $26,029 million at the end of the current period, a decline of approximately 20.2%[27] - Total current liabilities slightly decreased from $24,222 million as of December 31, 2024, to $23,967 million as of September 30, 2025, a reduction of about 1.1%[25] - Inventories decreased from $18,618 million as of December 31, 2024, to $14,128 million as of September 30, 2025, a decline of approximately 24.1%[25] - Total stockholders' equity decreased from $64,879 million as of December 31, 2024, to $51,250 million as of September 30, 2025, a decline of approximately 21%[25] Cash Flow - The company had a cash outflow of $(226) million in investing activities for the nine months ended September 30, 2025, consistent with $(238) million for the same period in 2024[27] - The company reported a net cash used in operating activities of $(4,196) million for the nine months ended September 30, 2025, compared to a net cash provided of $971 million for the same period in 2024[27] Future Outlook - The company is focused on achieving profitability in 2026 through strategic growth initiatives and operational excellence[2] - As of September 30, 2025, the company had $26.0 million in cash and cash equivalents, no outstanding debt, and an unused credit line of $20 million[13]