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]