Jones Soda Co. Q4 FY2025 earnings call

• 2025 was transformational, with strong fourth quarter. • Centralized warehousing, optimized logistics, and implemented just-in-time inventory practices. • Strategic divestitures like sale of cannabis business. • Partnerships with Bethesda, Fallout, Crayola, etc. • Core Soda expanded distribution, had successful product launches. • Modern Soda focused on new flavors and go-to-market strategy. • Adult Beverage monitored regulatory changes and planned repositioning of Spike Jones.

Core Soda: Remained the backbone. Expanded distribution network in US and Canada. Culturally relevant and collectible product launches drove engagement. D2C channel accelerated with Fallout-inspired rocket bottles. Modern Soda: Delivered limited growth in 2025. Top Jones expanded into 1500 retail doors. Will introduce new flavors in 2026 with a focused go-to-market strategy. Adult Beverage: Regulatory changes for hemp-derived products were key. Spike Jones faced challenges in 2025; plan to reposition in 2026 with revised ABV, new flavors, refreshed packaging, and targeted regional strategy. Full year 2025 revenue was $25.3 million, up 42% from prior year. Fourth quarter revenue was $11.7 million, a 450% increase.

• First quarter 2026 revenue expected to exceed $12 million, a 260% increase over prior year first quarter. • Expect growth rate on 2025 full year revenues to exceed 60% for fiscal 2026. • Plan to reintroduce D2C platform with focused and integrated approach, launch new service-based offering and membership programs. • Upgrade digital infrastructure, enhance website, invest in technology enablement and operational integration systems. • Add and strengthen key leadership roles.

• Regulatory changes for hemp-derived products, with uncertainty in enforcement and potential impacts. • Evolving state-by-state regulations create complexity for adult beverage. • Higher oil prices may negatively impact freight out. • Complexity in getting successful limited or specialty formats like rocket bottles into broader retail distribution due to manufacturing constraints.

Q: Public relations website section update?

A: Corrected this morning, transition to new IR firm Hayden IR in progress.

Q: Possibility of rolling out Fallout products via licensing to countries abroad?

A: Already working on it, exploring regulations and requirements for shipping to other countries.

Q: Update on S-1 process and potential uplisting timeline?

A: Board committed to S-1 process and uplisting to NASDAQ or NYC, no definitive timeline but could happen in 2026.

Q: Store count trends for Pop Jones and Fiesta Jones?

A: Currently around 1700 stores, relaunch plan with test markets in two states, focusing on marketing efforts to communicate product presence.

Q: Roadmap to scaling success across national retailers and IP partnerships?

A: Actively speaking with potential partnerships, isolating properties like Folds of Honor and Crayola for experiences, depending on partner requirements and operational investments.

Q: Expansion of core soda portfolio?

A: Looking at new flavors, formats, multi-pack configurations, with new flavors and possible six-pack coming.

Q: Bringing successful limited or specialty formats like rocket bottles into broader retail distribution?

A: It's complicated due to manufacturing, but will take advantage if possible.

Q: Rights to expand into more mainstream licensed product like Nuka-Cola?

A: More potential Fallout stuff and other partnerships coming, spreading out to different retailers.

Q: Strategic shifts with new CMO?

A: CMO looking at holistic approach with social media, geofencing, and test markets.

Q: Leveraging 90s nostalgic trends?

A: Looking at trends that match Jones brand to reengage consumers.

Q: E-commerce fulfillment and channel control?

A: Working on fixing D2C platform, improving customer experience, cost of shipping, and planning to springboard into broader retailers.

Q: Investments in digital infrastructure and online presence?

A: Utilizing social media, engaging influencers, being strategic with investments.

Q: Plans for 12 multi-packs to grocery retailers?

A: Not sure on 12 packs in short term, but different packs in test markets.

Q: More flavors for Fallout throughout the year?

A: Yes, more flavors coming.

Q: Consideration of canned products like 12-pack cans with Fallout IP?

A: Looked at it, not on docket today but keep it in mind.

Q: Second quarter pipeline for quality revenue growth?

A: Great stuff coming, team working with partners and retailers.

Q: Note receivable and inventory write-down?

A: Note receivable from MJ Disruptors, inventory write-down primarily from HD9 business due to regulatory changes.

Q: COGS and expected in Q1?

A: Reduced COGS in Q4, see opportunities to further reduce with higher volumes.

Q: Expected sales in Q1 and GAAP profit?

A: Q1 revenue expected over $12 million, no guidance on GAAP profit for 2026.

Q: Increasing investor visibility and uplisting?

A: Transitioned to Hayden IR, working to get more investor visibility, uplisting to real exchange on radar.