# ZVIA earnings call intelligence

LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/ZVIA) · [Earnings tab](https://www.lopjlb.com/stock/ZVIA?tab=earnings)

Updated: 2026-08-05T05:55:22

Quarters analyzed: 8

## Cross-quarter narrative

Across eight quarterly call summaries Zevia moved from a mixed performance in 2024 toward a clearer growth trajectory in 2025‑2026. After a strong Q2 2024 retail scan lift and a $12 M productivity plan, the company faced club‑distribution volatility and inventory‑related margin hits. By Q3 2024 gross margin rose to 49 % and Walmart rollout to 4,300 stores began, while EBITDA loss narrowed. 2024 Q4 marked the first top‑line growth quarter and a viral marketing push, setting FY 2025 sales guidance of $158‑163 M. 2025 Q1 delivered record 50.1 % margin and a high‑end sales beat, followed by the first positive adjusted EBITDA in Q2 after the public listing. Q3 2025 saw a margin dip to 45.6 % due to a packaging refresh and aluminum tariffs, but household penetration topped 5 % and guidance was raised. FY 2025 ended with modest sales growth and a three‑fold EBITDA improvement. In Q1 2026 sales surged 21 % and adjusted EBITDA turned positive despite macro cost pressures from fuel and aluminum. Throughout, distribution expansion (Walmart, Costco, DSD pilots) and product innovation remained on‑track, while tariff‑related margin pressure and broader macro costs emerged as persistent challenges.

## Latest CallCard · Q1

Zevia Q1 2026 delivered 21% sales growth and $1M adjusted EBITDA, raised full‑year sales guidance, but faces macro cost pressures from fuel and aluminum.

**Guidance:** raised — full‑year net sales guidance raised to $170‑$175M (7% growth); adjusted EBITDA guidance remains negative $2M‑$4M due to $11M cost headwind

**Tone:** mgmt 0.8 · Q&A pressure 0.4 · divergence 0.3

record sales growth of 21% and adjusted EBITDA of approximately $1 million, both exceeding expectations, reflecting momentum across marketing, product innovation and distribution

### Demand visibility

Strong demand across channels with record 21% sales growth and expanding distribution

Growth driven by new flavors, club channel (Costco rotation), mass channel (Walmart digital), grocery expansion (Kroger, HEB, Publix) and e‑commerce, with early incremental velocity

### Margins / costs

Gross margin pressured by higher aluminum costs and mix shift

Margin fell to 48.4% (down 170 bps) due to higher aluminum prices and higher club sales mix; partially offset by higher average selling price and Q1 price increase

### Capital allocation

Reinvesting in marketing, product innovation and packaging while managing cost discipline

Marketing $5.2M (11.2% of sales), selling expense $9.4M, $2.3M litigation, $20M cost reductions already achieved, $1M restructuring for distribution‑center relocation

### Milestones

- **Cardi B partnership** [on_track]: launched March, generating 152M editorial impressions, supporting summer campaign
- **New packaging rollout** [on_track]: aim to have shelves stocked with new packaging by end of Q2
- **Spring‑reset flavors (Orange Creamsicle, Peaches & Cream)** [delivered]: launched end of Q1, on shelves, driving incremental velocity
- **Costco national rotation** [delivered]: completed Q1, additive to growth, potential future rotations
- **DSD regional pilots West Coast** [new]: focused on Northwest and Southwest, no expansion beyond current footprint
- **Discontinuation of tea line** [new]: planned, expected to reduce growth by 1‑1.5 points
- **Distribution‑center relocation restructuring** [new]: $1M cost in Q2
- **Additional cost‑savings initiatives** [at_risk]: potential $3‑$5M savings expected Q4 or next year

### Fears / risks

- **Macro cost pressures**: higher fuel and aluminum prices add $11M headwind to profitability
- **Pricing constraints**: management unlikely to raise prices further in H2, limiting ability to offset costs
- **Litigation expense**: $2.3M litigation expense recorded in Q1 adds to G&A
- **Distribution‑center relocation cost**: $1M restructuring cost in Q2
- **Macro uncertainty**: potential slowdown in consumer spending could affect growth
- **Packaging rollout timing risk**: if new packaging not fully on shelves by Q2, could dampen Q3 acceleration
- **Club channel reliance**: future national rotations not guaranteed, could affect incremental growth
- **DSD footprint limitation**: no plans to expand DSD beyond current footprint may limit channel growth

### Key quotes

> “We're off to a strong start to the year with record sales growth of 21% and adjusted EBITDA of approximately $1 million, both exceeding our expectations for the quarter.”

> “Gross margin was 48.4%, a 170 basis point decline from a record high of 50.1% in the first quarter of last year. The decline reflects the impact of higher aluminum costs and to a lesser degree, the higher mix of club sales.”

> “We're unlikely to be passing through incremental pricing in the back half of the year.”

## Quarter one-liners

- **2026 Q1:** Zevia Q1 2026 delivered 21% sales growth and $1M adjusted EBITDA, raised full‑year sales guidance, but faces macro cost pressures from fuel and aluminum.
- **2025 Q4:** Zevia delivered 4% FY25 sales growth and 3x adj EBITDA improvement; 2026 guide calls for 6% sales growth to $169-173M with adj EBITDA near breakeven, driven by marketing, innovation, and distribution expansion despite aluminum tariff headwinds.','tone': {'mgmt': 0.6, 'mgmt_rationale': 'Management hi
- **2025 Q3:** Zevia Q3 sales rose 12% to $40.8M, adj EBITDA loss $1.7M; raised FY2025 guidance to $162-164M sales and $5-5.5M adj EBITDA loss on marketing, innovation, distribution progress. Gross margin fell 350bps on packaging refresh and aluminum tariffs. Household penetration >5% vs category ~20%.
- **2025 Q2:** Zevia Q2 net sales +10% to $44.5M, first positive adj EBITDA ($0.2M) as public co; marketing, innovation, distribution driving growth; FY sales guidance maintained $158-163M, adj EBITDA loss narrowed to $7-9M; tariffs ~200bps headwind in H2.','tone': {'mgmt': 0.6, 'mgmt_rationale': 'Management highl
- **2025 Q1:** Zevia Q1 net sales $38M at high end of guidance, gross margin record 50.1%, adj EBITDA loss narrowed to -$3.3M; maintained FY sales $158-163M and EBITDA loss $8-11M despite tariffs; marketing campaign with Jelly Roll drove 2.4B impressions, new flavors launching, distribution expanding at Walmart, A
- **2024 Q4:** Zevia returned to top-line growth in Q4 (+4.4%), expanded Walmart distribution to 4,300 doors, launched viral marketing campaign, and targets $158-163M sales in 2025 with positive adjusted EBITDA by 2026.','tone':{'mgmt':0.5,'mgmt_rationale':'Management expresses strong optimism about category tailw
- **2024 Q3:** Zevia Q3: EBITDA loss narrows to $1.5M, gross margin hits 49%, Walmart rollout to 4,300 stores underway, but net sales miss on distribution losses; 2025 growth gradual.','tone': {'mgmt': 0.2, 'mgmt_rationale': 'Management highlights record gross margin, improved EBITDA, increased cost savings target
- **2024 Q2:** Zevia Q2 2024 net sales $40.4M beat guidance, reaffirmed FY sales range low‑end, saw strong retail scan growth, launched Pacific Northwest DSD, new Cran‑Raspberry flavor and pushed a $12M productivity savings plan amid club distribution setbacks.

## Theme arcs

- **Revenue growth** (improving): Quarterly sales moved from modest growth to double‑digit increases, culminating in 21% Q1 2026 growth.
- **Gross margin** (deteriorating): Margins peaked above 50% in early 2025 then fell to 45.6% in Q3 2025 due to aluminum tariffs and packaging refresh.
- **EBITDA trajectory** (improving): Adjusted EBITDA shifted from multi‑million losses to a small positive figure in Q2 2025 and again in Q1 2026.
- **Distribution expansion** (improving): Walmart rollout to 4,300 stores, Costco national rotation, and new DSD pilots broadened reach.
- **Product innovation** (improving): New flavors, seasonal offers, packaging refresh, and celebrity partnership (Cardi B) were launched or on track.
- **Cost pressures (tariffs, fuel)** (deteriorating): Aluminum tariffs introduced a 200‑350 bps margin headwind; 2026 added fuel cost pressure.
- **Household penetration** (improving): Penetration rose above 5% in Q3 2025, still below the ~20% category benchmark.

## Guidance path

2024 Q2:maintained → 2024 Q3:vague → 2024 Q4:vague → 2025 Q1:vague → 2025 Q2:vague → 2025 Q3:raised → 2025 Q4:vague → 2026 Q1:raised

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