Zevia Q3 sales rise on volume growth, pricing actions

Overview

• U.S. zero sugar beverage maker's Q3 net sales rose 18%, beating analyst expectations

• Q3 adjusted EBITDA beat analyst expectations

• Company announced full-year 2026 net sales and adjusted EBITDA outlook

Outlook

• Zevia raises 2026 net sales outlook to $177 mln-$179 mln

• Company now sees 2026 adj EBITDA between breakeven and a loss of $0.4 mln

• Zevia expects Q4 net sales of $37.5 mln-$39.5 mln and adj EBITDA loss of $0.5 mln-$0.9 mln

Result Drivers

• VOLUME GROWTH - Co said Q3 net sales rose due to a 14.4% increase in volume, driven by national rotation in the club channel and strength in e-commerce channels

• PRICING ACTIONS - Co attributed higher Q3 net sales and improved gross margin in part to pricing actions

• HIGHER MARKETING SPEND - Co said Q3 marketing expenses rose $2.2 mln year over year due to increased investments to drive brand awareness

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-alcoholic beverages peer group is "buy"

• Wall Street's median 12-month price target for Zevia PBC is $4.00, about 241.9% above its November 3 closing price of $1.17

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)