ZVIA

Leadership Transition & New CEO Priorities

• New CEO Alexandre Ruberti took over the role, after a period as a board member, and thanked the previous leadership for the company's strong foundational transformation over the last two years
• Ruberti outlined four core strategic focus areas to accelerate growth and drive long-term shareholder value: evolving the go-to-market strategy, sharpening and scaling brand identity, maintaining financial discipline and operational efficiency, and establishing a performance-driven company culture

Operational & Marketing Highlights

• Q2 2026 net sales came in at the high end of guidance, and adjusted EBITDA was $0.5 million above management expectations, with positive momentum heading into Q3
• The national rollout of new packaging and refreshed product flavors was completed in Q2
• The 360-degree "Refreshingly Real" marketing campaign starring Cardi B launched in Q2, generating nearly 29.5 billion social video views, over 1.7 million social engagements, 1.8 billion earned media impressions, and 473 media placements; additional campaign activations including a co-developed signature product launching in early 2027 are planned

Go-to-Market Strategy Updates

• The top priority is unlocking the full potential of single-can product formats, viewed as the most effective vehicle to drive consumer discovery, trial, and household penetration; the company has refined the single-can product format, optimized flavor assortment, and improved product taste
• The company plans targeted distribution expansion across under-penetrated attractive channels including mass, club, food service, value retail, and e-commerce, leveraging the improved single-can platform to secure new distribution gains
• The company is prioritizing improved in-store execution, merchandising, and category management to increase velocity, improve retailer economics, and strengthen its position in the beverage category

Brand Positioning Updates

• The company is refining its brand positioning to target a specific core consumer: wellness-aspirational, younger, digitally engaged families that want the enjoyment of soda without compromising on ingredient or health quality
• Marketing investment will be focused on an ROI-driven strategy to increase awareness, strengthen brand affinity, and improve customer acquisition efficiency, to expand the company's addressable market

Financial & Operational Culture

• Management will continue strong financial discipline, redirecting resources to align with strategic priorities and reinvesting savings from ongoing efficiency gains
• The company is building a performance-driven culture focused on accountability, ownership, fast decision-making, and learning from setbacks to drive long-term results while maintaining trust and empowerment across the organization

• Q3 2026 net sales guidance is set at $44 million to $46 million, representing 10% year-over-year growth at the midpoint; the guidance incorporates new club distribution gains, ongoing digital channel strength, and incremental promotional support for the national packaging refresh, partially offset by the discontinuation of the company's tea product line
• Q3 2026 adjusted EBITDA is expected to be a loss of negative $3 million to negative $3.5 million, with gross margin projected to fall to approximately 46% due to elevated aluminum costs, higher promotional activity, increased fuel costs, and higher marketing investment for the Cardi B campaign and packaging rollout
• Full-year 2026 net sales guidance is maintained at $170 million to $175 million, representing 7% year-over-year growth at the midpoint; this guidance incorporates a 1.5 percentage point negative impact from the tea product discontinuation
• Full-year 2026 adjusted EBITDA guidance is maintained at a loss of negative $2 million to negative $4 million; the range includes $11 million in expected costs from elevated fuel and aluminum prices
• The company is on track to achieve $3 million to $5 million in incremental annual cost savings starting in Q1 2027

This transcript does not break out financial performance for separate product segments. Aggregate company performance for Q2 2026 is as follows: net sales of $45 million, a 1.1% increase year-over-year. Gross margin was 48.9%, a 20 basis point increase year-over-year. Selling and marketing expenses totaled $13.1 million (29% of net sales), with selling expense of $8.1 million (17.9% of net sales) and marketing expense of $5 million (11.1% of net sales). General and administrative expenses were $8.6 million (19% of net sales). Adjusted EBITDA was approximately $0.5 million, up from $0.2 million in the prior year quarter. Year-to-date 2026 net sales totaled $91.1 million, a 10.4% increase year-over-year, and year-to-date adjusted EBITDA increased $4.5 million versus the prior year period.

• Aluminum costs have increased, and a larger impact from elevated aluminum prices is expected in the second half of 2026, putting downward pressure on gross margin
• Higher fuel and transportation/freight costs create upward pressure on selling expenses and reduce profitability
• Ongoing macroeconomic volatility creates uncertainty for cost projections and consumer demand
• Distribution expansion and go-to-market improvements will take time to deliver operational and financial results, with near-term performance not expected to reflect the full benefit of these strategic initiatives
• While early metrics are positive, it is too early to draw definitive conclusions about the long-term performance impact of new packaging, new flavors, and the new Cardi B marketing campaign

Q: Which of the new CEO's strategic priorities will deliver performance benefits the fastest, and which will take the longest? What is the cadence for improvements? / A: The single-can product initiative is the most urgent and highest-impact immediate priority. Currently, Xevia holds 10% overall category share and 20% share in multi-packs, but no meaningful share in the single-can segment; hitting the same 20% share in singles would represent an $80 million revenue opportunity. The company is prioritizing single-can activation in the current selling season ahead of all other initiatives.

Q: Why focus on singles now, what operational infrastructure supports this launch, and what is the rollout cadence? / A: The timing is right because Xevia now has the right product: improved taste, standard size cans (replacing smaller previous formats), and a competitive price-value equation. The company is currently finalizing its go-to-market plan, evaluating a mix of DSD networks, brokers, and merchandising partners to deliver national distribution and strong in-store execution. Execution is targeted to start in early 2027.

Q: Are there incremental headwinds to Q4 that result from maintaining full-year guidance after a strong Q2? What is the outlook for incremental pricing to offset higher input costs? / A: The flat implied Q4 growth matches prior guidance, driven by a pre-committed timing shift in marketing spend and innovation launches, with no new incremental headwinds. The recent price increase was preemptive against ongoing aluminum cost pressures, and no additional price increases are planned for 2026 due to consumer flight to value in the current macro environment. Some Q3 gross margin pressure from promotional spending will reverse in Q4.

Q: Will the new strategic initiatives require a step-up in investment, or can they be executed within the existing P&L envelope? / A: It is too early to specify the exact total investment, as the full strategic plan is still in development. The team is focused on improving efficiency and reallocating existing capital to the highest-return initiatives rather than just adding new spending, but some incremental investment will be required for expanded distribution, in-store execution, and marketing to build brand awareness.