Q2 2025 Reed's Inc Earnings Call Transcript
Key Points
- Reed's Inc (REED) is making meaningful progress in streamlining operations and refining its marketing approach.
- The company is investing in channel development initiatives to restore key placements and open new growth avenues.
- Reed's Inc (REED) has appointed a seasoned executive, Rachel Fox-Greenwood, to lead expansion into food service and convenience channels.
- The new Reed's functional soda line has been well received, with over 9,000 points of distribution secured.
- Reed's Inc (REED) has secured significant commercial wins, including a key milestone at Costco and expanded commitments at Safeway.
- Net sales for the second quarter of 2025 decreased to $9.5 million from $11.9 million in the previous year.
- Gross margin dropped significantly to 8% from 32% in the year-ago quarter, primarily due to inventory write-offs.
- The company experienced elevated delivery and handling costs, which were 17% of net sales compared to 12% last year.
- Reed's Inc (REED) reported a net loss of $6.0 million for the second quarter of 2025, compared to a $3.2 million loss in the previous year.
- The company used approximately $5.0 million of cash from operating activities, significantly higher than the $0.9 million used in the same period in 2024.
Good morning, and welcome to Reed's second quarter 2025 earnings conference call for the three and six months ended June 30, 2025. My name is Annis, and I'll be your conference call operator for today. We will have prepared remarks from Cyril Wallace, Reed's Chief Executive Officer; and Doug McCurdy, Reed's Chief Financial Officer. Following their remarks, they will take your questions.
Before we begin, please take note of the company cautionary statement. Today's call will include forward-looking statements, including statements about Reed's business plans. Forward-looking statements inherently involve risks and uncertainties and only reflect management's view as of today, August 13, 2025, and the company is under no obligation to update them. When discussing results, the presenters may refer to non-GAAP measures, which exclude certain items for operating results.
Please refer to Reed's second quarter 2025 earnings release on Reed's investor website at investor.reedsinc.com and its quarterly report on Form 10-Q for the period ended June 30, 2025, expected to be available on the website
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