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Introduction & Market Context
Zevia PBC (NYSE:ZVIA) presented its second quarter 2025 financial results on August 6, showing significant progress in its turnaround efforts. The zero-sugar beverage maker reported its first positive quarterly Adjusted EBITDA in recent periods, alongside accelerating revenue growth. Zevia’s stock closed at $3.28 on the day of the presentation, up 4.57%, with after-hours trading showing an additional 3.05% gain to $3.38.
The company’s Q2 results demonstrate meaningful improvement from its Q1 2025 performance, when it reported a revenue decline of 2% year-over-year and an Adjusted EBITDA loss of $3.3 million. The latest quarterly presentation reveals Zevia has not only reversed its revenue trajectory but also achieved profitability targets ahead of previous guidance.
Quarterly Performance Highlights
Zevia reported substantial financial improvements across key metrics for Q2 2025. Net sales reached $44.5 million, representing 10.1% growth compared to the prior year, significantly exceeding the company’s previous guidance of $40.5-$42.5 million for the quarter.
As shown in the following quarterly financial overview:
The company achieved a gross margin of 48.7%, an improvement of 680 basis points year-over-year, though slightly below the record 50.1% reported in Q1 2025. Net loss narrowed dramatically to $0.7 million, representing a $6.3 million improvement from Q2 2024. Most notably, Zevia achieved positive Adjusted EBITDA of $0.2 million, a $4.6 million improvement year-over-year and significantly better than the projected loss of $2.2-$2.9 million provided in previous guidance.
For the first half of 2025, Zevia reported net sales of $82.5 million, up 4.2% compared to the same period in 2024, with a gross margin of 49.3% (+550 basis points) and Adjusted EBITDA loss of $3.0 million (improved by $6.8 million).
Detailed Financial Analysis
The year-over-year comparison of quarterly financials illustrates Zevia’s consistent improvement trajectory across multiple metrics:
The company’s Q2 2025 financial highlights revealed that the net sales improvement was driven by expanded distribution across channels, partially offset by increased promotional activity at retailers. The substantial gross margin improvement of 680 basis points year-over-year was attributed to lower product costs and improved inventory management.
For a more comprehensive view of Zevia’s financial progress, the first half 2025 results demonstrate the company’s ability to sustain improvements over multiple quarters:
Strategic Initiatives
Zevia’s presentation highlighted four strategic growth pillars: Amplify Marketing, Drive Product Innovation, Expand Distribution, and Deliver Profitability. The company’s productivity initiative has been particularly successful, delivering $15 million in annual cost savings to date, with an additional $5 million identified for implementation in 2026.
The following chart illustrates the impact of these productivity measures:
On the product innovation front, Zevia has introduced new variety packs and flavors, including Orange Creamsicle (exclusive to Sprouts) and Strawberry Lemon Burst. The company noted that variety packs are now the #1 Zevia SKU at Walmart (NYSE:WMT), while Orange Creamsicle has become the top-selling Zevia product at Sprouts.
Zevia’s marketing strategy has focused on comprehensive product launch campaigns, as demonstrated by the Strawberry Lemon Burst introduction:
Consumer metrics show modest but positive trends, with household penetration increasing from 5.0% to 5.1% year-over-year, while dollar sales per household grew from $37.42 to $39.03. Purchase frequency also improved from 3.6x to 3.7x, and dollar sales per trip increased from $10.26 to $10.52.
Forward-Looking Statements
While the presentation did not include specific updated guidance for the remainder of 2025, Zevia’s strategic focus remains on its four growth pillars. The company emphasized its commitment to building brand awareness, expanding its product portfolio, broadening distribution, and continuing to improve profitability.
The achievement of positive Adjusted EBITDA in Q2 2025 represents a significant milestone in Zevia’s path to sustainable profitability. With continued execution of its productivity initiatives and the identification of additional cost savings for 2026, the company appears positioned to maintain its margin improvements while investing in growth opportunities.
Zevia’s asset-light business model and focus on the growing "better-for-you" beverage category align with consumer health trends, providing potential tailwinds for continued expansion. However, the company will need to navigate competitive pressures and potential cost challenges, particularly as it balances promotional activities with profitability goals.
Full presentation:
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