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JSDA Posts Q2 Profit From Cannabis Sale Despite Y/Y Revenue Dip
ZACKS· 2025-08-25 16:30
Core Insights - Jones Soda Co. reported a revenue of $4.9 million for Q2 2025, a 26% decline from $6.7 million in the same quarter last year, but achieved a net income of $2.6 million, reversing a net loss of $1.6 million from the previous year [2][12] - The profitability improvement was largely attributed to the divestiture of its cannabis business, which resulted in a $3.7 million gain, alongside reduced operating costs [2][7] Revenue and Sales Performance - Core soda revenues fell due to the absence of a significant one-time pipeline order that had positively impacted Q2 2024 results, although sales in the HD9 product line increased to $0.8 million from $0.6 million year-over-year [3][8] - The company experienced growth in food service, convenience stores, and direct-to-consumer channels, which partially offset the revenue decline [3][8] Cost Management - Operating expenses saw a significant reduction, with selling and marketing costs down 39% year-over-year to $1.1 million, and general and administrative costs down nearly 42% to $1.3 million, attributed to tighter cost controls and supply-chain optimization [4][12] Management Commentary - The CEO described the quarter as a "meaningful stride" in the company's turnaround efforts, emphasizing that the return to profitability was due to both the divestiture of the cannabis unit and improved cost discipline [5][12] Future Growth Initiatives - Management is focused on driving growth in three main categories: core soda, modern soda (Pop Jones and Fiesta Jones), and adult beverages, with plans for expanded partnerships and product launches, including Jones Zero Cola [6][9] - The company did not provide formal quantitative guidance but expressed optimism for the second half of 2025, expecting growth from new product launches and expanded distribution [9][12] Recent Developments - On June 19, 2025, Jones Soda completed the sale of its cannabis beverage subsidiaries for $3 million, which included a promissory note and an ongoing licensing arrangement for recurring payments [10][11] - Pop Jones products are now available in over 1,500 retail locations, with further expansion planned in the Midwest [11]
Jones Soda Reports Second Quarter 2025 Results
Prnewswire· 2025-08-15 11:30
Core Viewpoint - Jones Soda Co. reported a return to positive net income in Q2 2025, primarily due to the sale of its Cannabis business, indicating a strategic turnaround and focus on its core beverage operations [5][10]. Financial Summary - Revenue for Q2 2025 was $4.9 million, down from $6.7 million in the same period last year, attributed to a one-time pipeline fill in Q2 2024 [6][8]. - Gross profit decreased to $1.6 million from $2.3 million year-over-year, driven by lower sales revenue [7][10]. - Net income for Q2 2025 was $2.6 million, or $0.02 per share, compared to a net loss of $1.6 million, or $(0.02) per share, in the prior year [8][10]. - Adjusted EBITDA improved to $(0.5) million from $(1.2) million, reflecting a 56% improvement year-over-year [10][22]. Recent Activities - The company announced the sale of its cannabis beverage business to MJ Reg Disrupters LLC for $3 million [8]. - HD9 product sales increased to $0.8 million from $0.6 million in Q2 2024 [8]. - Jones Soda plans to expand into the Club Channel in Q3 with its 12oz glass bottle [8]. - Strong demand was noted for direct-to-consumer sales from Crayola and Fallout offerings, with a unique offering planned for Q4 [8]. Cost Management - Total operating expenses decreased to $2.4 million from $4.0 million year-over-year, attributed to effective cost management and supply chain optimization [9][10]. - Selling and marketing expenses were reduced to $1.06 million from $1.685 million, and general and administrative expenses decreased to $1.328 million from $2.289 million [20]. Balance Sheet Highlights - As of June 30, 2025, total assets were $11.941 million, up from $8.523 million at the end of 2024 [19]. - Current liabilities increased to $7.602 million from $6.367 million, with accounts payable rising to $4.686 million [19]. Market Position - The company is focusing on driving growth across its three main categories: core soda, modern soda, and adult beverages [5]. - Jones Soda aims to strengthen supplier relationships and capture market opportunities across all channels [5].