Q2 2026 Zevia PBC Earnings Call Transcript
Key Points
- Zevia PBC (ZVIA) delivered second-quarter net sales of $45 million, at the high end of guidance, with adjusted EBITDA of $0.5 million, exceeding expectations.
- The company's first-half 2026 net sales increased 10.4% to $91.1 million, demonstrating strong momentum.
- Gross margin improved to 48.9%, a 20 basis point increase year-over-year, driven by strong price realization.
- The 'Refreshingly Real' campaign with Cardi B generated massive engagement, including nearly 29.5 billion social video views and 1.8 billion PR earned media impressions.
- Management identified a significant growth opportunity in the singles channel, estimating an $80 million potential if it can match its current multi-pack market share.
- The company maintains a strong balance sheet with approximately $28.5 million in cash and an undrawn $20 million revolving credit line.
- Zevia PBC (ZVIA) is on track to achieve an additional $3 million to $5 million in cost savings beginning in Q1 2027.
- Third-quarter 2026 guidance projects an adjusted EBITDA loss of between $3 million and $3.5 million, a significant drop from the positive EBITDA in Q2.
- The company faces ongoing cost pressures from elevated aluminum and fuel prices, which are expected to have a larger impact in the back half of the year.
- Gross margin is expected to decline to approximately 46% in Q3 due to higher aluminum costs, promotions, and channel mix.
- Full-year 2026 guidance implies a weaker fourth quarter, with growth rates expected to decelerate due to timing shifts in marketing spend and innovation launches.
- The company's go-to-market execution is underperforming, with management acknowledging a need for significant improvement in in-store activation and merchandising.
- Zevia PBC (ZVIA) remains underpenetrated in key channels such as mass, club, and food service, limiting its reach and consumer accessibility.
- The discontinuation of its tea offering is expected to have an approximately 1.5 percentage point negative impact on full-year net sales growth.
Greetings. Welcome to the Zevia PBC Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press *0 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Jean Fontana of Investor Relations.
Thank you, Jean. You.
Thank you, and welcome to Zevia's second quarter 2026 earnings conference call.
On today's call are Alessandre Ruberti, President and Chief Executive Officer and Girish Satya, Chief Financial Officer and Principal Accounting Officer. By now, everyone should have access to the company's second quarter 2026 earnings press release and investor presentation made available this afternoon. This information is available on the Investor Relations section of Zevia's website at. Before we begin, please note that all financial
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