Zevia PBC Q2 Earnings Call Highlights

Q2 sales increased 1.1% to $45 million , while adjusted EBITDA improved to approximately $0.5 million from $0.2 million a year earlier. Gross margin edged up to 48.9%, although higher aluminum costs are expected to pressure results in the second half. Zevia is prioritizing its singles business, estimating an approximately $80 million opportunity if it achieves multipack-level market share. The company plans to begin executing a revised singles go-to-market strategy in early 2027, expanding distribution and improving retail activation. The company maintained full-year 2026 guidance of $170 million to $175 million in sales and a $2 million to $4 million adjusted EBITDA loss. Zevia expects continued cost pressure from fuel and aluminum, but anticipates $3 million to $5 million in annualized savings beginning in Q1 2027.

Zevia PBC reported second-quarter 2026 net sales of $45 million, up 1.1% from the prior-year period, as pricing actions helped offset comparisons affected by prior-year customer load-ins and changes in shipment timing. The company said adjusted EBITDA was approximately $0.5 million, compared with $0.2 million a year earlier.

President and Chief Executive Officer Alexandre Ruberti, who was making his first earnings-call appearance in the role, said the company is operating from a stronger financial position and is developing a strategic plan intended to accelerate growth and improve profitability. “We believe that Zevia's truly distinct market position presents a tremendous opportunity that we have yet to capture,” Ruberti said. He said the company would outline the plan, including measurable milestones, in the coming months.

Chief Financial Officer and Principal Accounting Officer Girish Satya said quarterly revenue growth was primarily driven by pricing. Results also reflected the lapping of load-ins to Walgreens and Albertsons during the second quarter of 2025, as well as a shift in sales cadence that the company expects to favor the first and third quarters of 2026. For the first half of 2026, net sales rose 10.4% to $91.1 million. That result includes the effect of Zevia’s decision to discontinue its tea offering, which began during the second quarter.

Gross margin increased 20 basis points to 48.9%, supported by price realization but partly offset by higher aluminum costs. Satya said elevated aluminum costs are expected to have a greater impact during the second half of the year.

Selling and marketing expense was $13.1 million, or 29% of sales, compared with $13.4 million, or 30% of sales, a year earlier. Selling expense declined to $8.1 million from $8.7 million, reflecting lower warehousing and repackaging costs, partly offset by higher fuel costs. Marketing expense rose to $5 million from $4.7 million as Zevia supported product launches, packaging redesigns and its Cardi B partnership. General and administrative expense increased to $8.6 million from $8.1 million, primarily due to personnel-related costs and outside services.

Zevia ended the quarter with approximately $28.5 million in cash and cash equivalents, along with an undrawn $20 million revolving credit line.

Ruberti identified the expansion of Zevia’s singles business as the company’s most immediate commercial opportunity. He said Zevia has about a 10% share in its current business but effectively no share in singles, which he described as a key format for consumer discovery, trial and household penetration. According to Ruberti, Zevia estimates that matching its multipack share in singles could represent an approximately $80 million opportunity. The company has worked on improving t