SUJA

• Overall Q2 2026 Financial Performance

  • Total company net sales grew 11.6% year-over-year to $83.9 million
  • Adjusted EBITDA grew 50% year-over-year to $14.6 million, with a margin of 17.5% up from 13% in the prior year
  • Gross profit increased 10% to $39.2 million (46.8% margin), with a slight 60 basis point year-over-year decline driven by unfavorable fixed cost absorption timing from Q1 inventory build; adjusted for this timing, margins improved year-over-year due to operational efficiency gains that offset inflation
  • Net loss was $27.8 million, which included $25.1 million in one-time IPO-related transaction costs and a $2.3 million loss on debt extinguishment
  • Liquidity: Ended Q2 with $20.6 million in cash and $163 million in total debt, sufficient to support ongoing growth plans

• Brand and Category Performance

  • Suja Life outperformed the natural healthy beverage (NHB) category, gained overall market share, and widened its performance gap in cold-pressed juice versus its primary competitor
  • Suja Organic cold-pressed juice scan dollars grew ~18% year-over-year in Q2, with the refresher line up over 75% and boosted juice up over 30%; new product Watermelon Love won a 2026 People's Magazine Food Award
  • Both wellness shots and Emerging Brands delivered double-digit year-over-year growth, but performance came in below internal expectations
  • 16% year-over-year increase in total distribution points (TDPs) through Q2, with the company ahead of its 2026 distribution expansion plan
  • The company is currently expanding its vertical manufacturing campus in Oceanside, California to support future demand, with additional space that will reduce third-party logistics and freight transfer costs to support margin improvement
  • The company is actively pursuing a refinancing of its existing debt, expected to close in Q3 2026, which will deliver a substantial reduction in borrowing spreads and improve free cash flow without adding leverage

• Strategic Action Plan for Near-Term Softness

  • Reallocate the company's 10% of net sales marketing budget toward lower-funnel programs that drive immediate velocity and near-term demand, while maintaining total marketing spend as a percentage of sales
  • Accelerate distribution expansion via back-half shelf resets, adding shelf space for high-performing new products across grocery, club, and away-from-home channels; leverage the company's category captain position at major retailers to grow the overall NHB category and gain share
  • Compete aggressively on promotion with competitors, leveraging the company's position as the lowest-cost producer in the category to fund promotional activity without eroding margins
  • Expand value-focused programming and distribution in club and mass channels, where value-seeking consumers are increasingly shifting
  • Accelerate development of the 2027 new product innovation pipeline to reinforce category leadership and drive long-term growth

• Full-year 2026 net sales guidance has been revised to a widened range of $360 million to $369 million, down from the prior range of $367 million to $371 million, representing 10.2% to 13% year-over-year growth from 2025's $326.6 million net sales
  • The downward adjustment reflects expected near-term softness concentrated in the grocery channel, driven by broader consumer channel shifting and value-seeking trends
• Full-year 2026 adjusted EBITDA guidance is maintained at the prior range of $70 million to $72 million, representing 72.8% to 77.7% year-over-year growth from 2025's $40.5 million adjusted EBITDA
  • Management confirmed that cost discipline and operational efficiency gains from vertical integration are sufficient to protect profitability despite the softer top-line outlook
• Q3 2026 net sales are currently projected to be approximately $71 million, with a gross margin of ~47.8% and adjusted EBITDA margin of ~15.2%, aligned with the midpoint of full-year guidance
• The expected Q4 2026 sales reacceleration to mid-teens year-over-year growth is supported by favorable seasonal tailwinds, already approved aggressive retail promotional programs, full benefit of 2026's distribution gains, and targeted lower-funnel marketing investment

Suja Life operates two product segments: 1) Suja Core: Comprising cold-pressed juices and wellness shots under the Suja Organic and Vive Organic brands. Q2 2026 net sales increased 9.8% year-over-year to $81.9 million, accounting for 97.6% of total company net sales. Adjusted EBITDA for Suja Core increased 2.9% year-over-year to $16 million. 2) Emerging Brands: Comprising early-stage brand Slice. Q2 2026 net sales increased 61.2% year-over-year to $3 million, accounting for 2.4% of total company net sales. Adjusted EBITDA for Emerging Brands was a $1.3 million loss, representing a $4.4 million improvement in performance versus Q2 2025.

• Near-term macroeconomic pressure has driven consumer value-seeking behavior and channel shifting, resulting in slower-than-planned growth in the grocery channel (which makes up roughly one-third of the company's Q2 revenue mix)
• Competitors have increased promotional activity in response to consumer demand for value, creating near-term pricing and share pressure in grocery
• The broader NHB category has slowed to 4% year-over-year growth in Q2 2026, down from double-digit growth in 2025, creating broader category headwinds
• The company faces ongoing commodity and transportation cost pressures, most notably related to fuel, that impact overall margins
• Refinancing of existing debt will incur one-time transaction costs associated with retiring the existing credit facilities, though these costs are not expected to materially alter full-year profitability guidance

Q: After lowering full-year net sales guidance but maintaining adjusted EBITDA guidance amid grocery channel softness, what is driving margin retention, and what strategic moves is management prioritizing to offset the softness?

A: The softness in grocery bookings became visible in early July, driven by broader consumer traffic pressure at grocery and a shift toward value-focused channels like club and mass. Management is responding with aggressive in-channel promotional programs aligned with retailers, shifting marketing spend to lower-funnel initiatives that drive immediate velocity, and expanding distribution in high-growth channels. Margin retention is supported by company-wide cost discipline, and the vertical integration competitive moat that has allowed operational efficiency gains to offset inflationary pressures.

Q: What portion of the current grocery softness comes from consumer channel shifting versus increased competitive promotion, and how is the company positioned to respond?

A: The vast majority of the softness stems from broad consumer channel shifting, as value-seeking shoppers move away from grocery to club and mass channels. There has been some increase in competitive promotional activity, and the company plans to match this promotion directly. The company's vertical, in-house production structure and existing margin profile allow it to fund additional promotional activity without meaningful margin degradation. Suja Life also continues to outpace NHB category growth and gained 1.1 share points in Q2 2026, supporting its ability to gain share through the current cycle.

Q: Q3 guidance implies a mid-single-digit year-over-year sales decline, which requires a double-digit fourth quarter acceleration to hit the full-year range. What gives management confidence this reacceleration will occur?

A: The math is accurate, and the expected reacceleration is supported by multiple factors. Management identified the softness very early and immediately put action plans in place that have already been approved by retail partners. The company has already delivered 16% year-over-year distribution growth in 2026, which will provide volume tailwinds in the back half. The company is shifting marketing spend to lower-funnel, conversion-focused initiatives that have a proven track record of driving immediate demand, and it has expanded value-focused programming in high-growth club and mass channels. Q4 also brings strong seasonal tailwinds for Suja's business.

Q: What is driving the ability to preserve full-year EBITDA margins while expanding the Oceanside manufacturing campus?

A: The additional Oceanside campus space is for cold storage and production capacity, and it actually reduces costs by eliminating third-party logistics and freight transfer costs, providing a modest margin benefit. The company also has a broad pipeline of ongoing operational efficiency initiatives across production, transportation, and procurement that are delivering savings that offset any incremental overhead and broader cost pressures.