Zevia PBC Q4 FY2025 earnings call

Amplified Marketing: Powerful marketing supported the year's performance, with a playful campaign at the start of 2026 inviting consumers to detox from artificial soda. Product Innovation: 2025 saw the introduction of on-trend fruity flavors and retailer-exclusive items, and 2026 continues to advance product innovation like the nationwide rollout of orange creamsicle. Distribution: 2025 achieved historical peak distribution, including nationwide presence in Walmart and increased shelf space at Albertsons. 2026 continues to make progress in key and new distribution channels. Management Changes: Andy Rubin was appointed chair of the board, and Suzanne Genestro joined the board.

For 2025, net sales grew 4% and adjusted EBITDA improved threefold from -4.7 million. In the fourth quarter, net sales decreased 4% to $37.9 million, with adjusted EBITDA reaching break-even and exceeding expectations. For the full year 2025, net sales were $161.3 million, an increase of 4%. Gross margin expanded to 48% compared to 46.4% in 2024. Net loss was reduced to $11.1 million from $23.8 million in 2024, and adjusted EBITDA loss improved significantly to $4.7 million from $15.2 million in 2024.

For 2026, full-year net sales are estimated to be in the range of $169 to $173 million, a 6% growth at the midpoint versus 2025. Quarterly net sales volumes are expected to shift, with higher volumes in the first and third quarters. Full-year adjusted EBITDA is expected to range from a loss of $1 million to a positive $0.5 million. The first quarter of 2026 is expected to have net sales between $40 million to $42 million and an adjusted EBITDA loss between $1.6 million and $1.9 million.

Financial information presented is unaudited. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including market competition, distribution challenges, and cost fluctuations such as tariff-related aluminum cost increases.

Q: How does the Costco rotation program work?

A: It's a national rotation that provides stronger visibility for the brand, penetrates new regions, and there are opportunities for new permanent placement or incremental rotations based on performance.

Q: How are you mitigating tariff exposure?

A: Through price increases beginning in Q2 and the last tranche of savings from the productivity initiative starting in Q2.

Q: Why was there a shortfall in 4Q top line guide?

A: Primarily due to the Costco timing shift where regional rotations moved to a broader national rotation in Q1.

Q: When will the new packaging be in market?

A: Packaging is starting to show up on shelf now with a rolling launch largely into Q2.

Q: Which regions are new in Costco program and impact on other channels?

A: About 35 - 40% of regions are new, and these new regions can be a catalyst for growth across other channels.

Q: Implication of Albertsons' success on other retailers?

A: Albertsons' success with increased space and brand block provides a case study to take to other retailers.

Q: Magnitude of price increase and elasticity?

A: Price increase begins in Q2, with elasticity evaluated around 1.1.

Q: Evolution of Walmart's modern soda set?

A: Xevia remains an anchor brand in the set, holding space and seeing growth from innovation and optimized assortment.