Zevia PBC Q1 2026 Earnings Call Summary

Achieved document 21% gross sales progress pushed by deliberate value restructuring, sharpened innovation, and expanded distribution channels.
Attributed outperformance to robust base enterprise velocity and faster-than-anticipated realization of value will increase carried out in Q1.
Leveraged a brand new partnership with Cardi B to drive the model’s highest-ever natural social media attain and engagement since launch.
Efficiently executed a nationwide Costco rotation, which served as a key driver for family penetration and rising market discovery.
Launched new fruit-based flavors which can be presently outperforming median portfolio velocities and driving vital retail incrementality.
Carried out a complete package deal redesign to enhance shelf presence and extra successfully talk clean-label product distinctions.
Optimized the provision chain by automation and warehousing efficiencies, leading to a 370-basis-point enchancment in promoting expense as a share of internet gross sales.

Raised full-year internet gross sales steering to $170 million–$175 million, factoring in Q1 power balanced towards Ok-shaped financial uncertainty.
Anticipates Q3 will likely be a high-growth interval because of the strategic shift of promotional and advertising and marketing {dollars} to coincide with peak summer season demand.
Expects the deliberate discontinuation of the tea line to influence total top-line progress by roughly 1 to 1.5 share factors.
Initiatives full-year adjusted EBITDA between detrimental $2 million and detrimental $4 million, incorporating an $11 million whole headwind from gasoline and aluminum prices.
Assumes gross margins will stay roughly in step with Q1 ranges, with slight stress anticipated within the second half of the yr.

Recognized $6 million in new incremental prices, with two-thirds attributed to surging gasoline costs and the rest to fuel-related aluminum spikes.
Recorded $2.3 million in litigation bills through the first quarter, impacting common and administrative prices.
Deliberate $1 million in restructuring prices for Q2 associated to the strategic relocation of a distribution middle.
Famous that whereas $20 million in prices have been eliminated over two years, extra financial savings of $3 million–$5 million probably will not materialize till late 2026 or 2027.

Administration confirmed the partnership is throughout the current 2026 funds and makes use of a shift in promotional timing moderately than incremental spend.
The collaboration focuses on an ‘always-on’ social media technique and a serious summer season promoting marketing campaign to develop the consumer base.