Q2 2026 Jones Soda Co Earnings Call Transcript
Key Points
- Revenue surged 108% year-over-year to $10.8 million in Q2 2026, with six-month revenue up 148% to $22.6 million, nearly 90% of full-year 2025 revenue.
- Company raised full-year 2026 revenue growth guidance from 60% to approximately 80% and introduced positive adjusted EBITDA guidance for the year.
- Adjusted EBITDA loss improved significantly to $312,000 in Q2 from $739,000 in the prior year, with six-month adjusted EBITDA turning positive at $0.2 million.
- Working capital management improved dramatically: DSO dropped from 78.4 days to 29.4 days, inventory turns rose from 2.8x to 6.8x, and DPO improved from 122 days to 60 days.
- New branded collaborations, including Rap Snacks (expected to contribute in 2027) and continued Fallout success, are driving consumer excitement and opening new retail doors.
- Zero Sugar Craft Soda launch at Western Canadian club stores saw strong sell-through and reorders, with plans for broader distribution in the U.S.
- Freight cost reductions of 10-36% on key lanes are expected to boost gross margins back to the 30s in the second half of 2026.
- Revenue per employee improved 47% year-over-year to $1.3 million, reflecting strong operating leverage and productivity gains.
- Gross margin declined to 27.5% from 33.3% in Q2, driven by higher freight costs due to rising oil prices.
- Modern soda and adult beverage (HD9) segments underperformed expectations, with HD9 sales declining significantly due to regulatory challenges.
- Net loss of $650,000 in Q2, compared to net income of $2.6 million in the prior year (though prior year included a one-time gain).
- Approximately $2 million in shipments shifted from Q2 to Q3, impacting quarterly results and creating timing volatility.
- Cash position decreased to $2.4 million from $3.6 million at year-end, necessitating additional private placement financings of $1.9 million.
- D2C fulfillment transition to a new 3PL caused shipping delays and startup pain points, though management is confident in the new partner.
- Uplisting to a national exchange remains uncertain, with a capital raise of $10-15 million needed and no guaranteed timeline.
Good morning, everyone, and thank you for participating in today's conference call to discuss Jones Soda's financial results for the second quarter ended June 30, 2026. Before we begin, let me remind everybody of the company's safe harbor disclaimer. Certain portions of our comments today will concern.
Future expectations, plans, and prospects of the company that constitute forward-looking statements for the purposes of safe harbor provisions under the Private Securities Litigation Reform Act of 1,995. Forward-looking statements include all statements containing verbs such as aims, anticipates, estimates, expects, believes, intends, plans, predicts, will, may, continue, projects, or targets and negatives of these words and similar words and expressions. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially than those indicated by forward-looking statements. Factors that could affect our actual results include, among other things, those that are discussed under the heading risk factors and our most recently filed reports with
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