ZEVIA PBC-A (NYSE:ZVIA), the maker of zero-sugar, naturally sweetened beverages, reported financial results for the fourth quarter and full year ended December 31, 2025. The company's quarterly performance presented a mixed picture, with revenue falling short of Wall Street's expectations while profitability metrics showed significant year-over-year improvement. The market's immediate reaction was negative, with shares declining in after-hours trading.
Earnings and Revenue Versus Estimates
The core financial metrics for the quarter revealed a notable miss on the top line but a bottom-line result that met analyst forecasts.
- Revenue: The company reported net sales of $37.9 million for Q4 2025. This represents a 4.0% decline compared to the same period last year and fell short of the analyst consensus estimate of approximately $41.0 million.
- Earnings Per Share (EPS): Zevia reported a GAAP net loss of $0.02 per share. This figure was in line with the analyst estimate, which also projected a loss of $0.02 per share.
The sales decline was attributed by management to the "lapping" of expanded distribution at Walmart in the prior-year period and reduced promotional activity. This suggests the quarter faced a difficult comparison rather than a fundamental loss of demand.
Market Reaction and Forward Guidance
The stock traded lower following the earnings release. This price action appears to be a direct response to the revenue miss, as investors weighed the sales shortfall against the improved profitability.
However, the company's forward-looking guidance may provide a counterbalance to the quarterly disappointment. For the first quarter of 2026, Zevia anticipates net sales between $40.0 million and $42.0 million. The midpoint of this range, $41 million, slightly exceeds the current analyst sales estimate of $41.2 million for Q1 2026. Furthermore, the full-year 2026 sales outlook of $169 million to $173 million brackets the analyst consensus of approximately $177.6 million, indicating management's expectations are broadly in line with, though at the lower end of, Wall Street's projections.
Key Highlights from the Press Release
Beyond the headline numbers, Zevia's earnings report emphasized a year of substantial operational improvement and strategic positioning.
Full-Year 2025 Improvements:
- Net sales increased 4.0% year-over-year to $161.3 million.
- Gross profit margin expanded by 1.6 percentage points to 48.0%.
- The net loss narrowed dramatically to $11.2 million from $23.8 million in 2024.
- Adjusted EBITDA loss improved by $10.5 million to a loss of $4.7 million.
Fourth Quarter 2025 Details:
- Despite the sales dip, the company drastically reduced its operating loss. Selling and marketing expenses dropped to 29.1% of sales from 41.7% a year ago, a result of the company's "Productivity Initiative" which saved on warehousing and freight costs.
- Adjusted EBITDA reached approximately $50 thousand, a $3.9 million improvement from a loss of $3.9 million in Q4 2024.
- The company ended the year with a strong balance sheet, holding $25.4 million in cash and cash equivalents with no outstanding debt.
Strategic Developments: Management highlighted 2025 as a "pivotal year" where it gained traction in marketing, innovation, and distribution. A significant subsequent event was the appointment of Lead Independent Director Andrew Ruben as Chair of the Board. For 2026, the company is investing in a new national program with Costco, which is expected to support future growth in brand trial and awareness despite a temporarily dilutive margin impact.
For a detailed look at historical earnings and future analyst estimates for Zevia PBC, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
