Jones Soda Reports First Quarter 2025 Results
- Net loss decreased from $1.2M to $0.9M
- Adjusted EBITDA improved 39% to -$0.6M
- Secured $5M revolving credit facility for expansion
- Reduced selling and marketing expenses by 20% without productivity loss
- HD9 sales reached $0.9M, marking fourth consecutive quarter of expansion
- Expanded cannabis business to Missouri market
- Revenue declined from $5.0M to $4.6M year-over-year
- Beverages segment revenue dropped from $4.6M to $4.2M
- Cannabis segment revenue decreased from $410,000 to $380,000
- Gross profit declined from $1.9M to $1.7M
First Quarter 2025 Financial Summary vs. Year-Ago Quarter
- Revenue was
$4.6 million $5.0 million $0.4 million $0.4 million - Net loss decreased to
$0.9 million $(0.01) $1.2 million $(0.01) - Adjusted EBITDA1 improved
39% to$(0.6) million $(1.0) million
_____________________________________________________ |
1 Adjusted EBITDA is defined as net income (loss) from operations before interest expense, interest income, taxes, depreciation, amortization and stock-based compensation and is a non-GAAP measure (reconciliation provided below). |
First Quarter 2025 and Recent Activity Update
Corporate
- Announced the hiring of proven business executives Scott Harvey and Brian Meadows to serve as the Company's new Chief Executive Officer and Chief Financial Officer, respectively.
- Secured a
$5 million - Reduced both selling and marketing and general and administrative expenses by
20% , with no apparent productivity dilution, a testament to new management's dedication to operational rigor.
Beverages Segment
- Announced in April that Pop Jones, is now featured in Modern Beverage POGs across over 1500 national and regional chain stores.
- Launched Jones Zero Cola in March across 10,000+ national and regional grocery stores, with plans to introduce additional zero-calorie flavors, including Jones Zero Root Beer and Zero Dr. Jones, later in 2025.
- Development of a strategic plan that calls for an increased focus on HD9 product opportunities and a review of the strategic alternatives for the Company's Cannabis THC business.
- HD9 sales were
$0.9 million
Cannabis (THC) Segment
- Expanded to
Missouri , the country's fifth largest legal cannabis market, through a manufacturing and distribution partnership withKansas City -based CLOVR.
Management Commentary
"The first quarter of 2025 was the beginning of the strategic turnaround for Jones, and we are off to a good start" said Scott Harvey, CEO of Jones Soda. "Since stepping into leadership in February, we've moved quickly to implement meaningful improvements across key areas of the business. We optimized our supply chain operations, tightened P&L oversight, and instilled disciplined cost management measures which have already begun to yield significant results. These early actions reflect our commitment to operational rigor and set the stage for continued momentum in the quarters ahead.
"We remain focused on executing our strategic plan with clear, measurable goals to scale the business while preserving the beloved Jones brand and image. We have leaned into unlocking more efficiencies across our three main categories – Core Soda, Modern Soda, and Adult Beverage - through investing in high-growth opportunities and managing our cost structure with disciplined, ROI-driven decisions. These initiatives represent a commitment to rebuilding sound economic discipline, ensuring SG&A and other costs don't undermine our expansion. With strong industry momentum and the right team in place, the future is bright for Jones."
First Quarter 2025 Financial Results
Revenue in the first quarter of 2025 was
The Company's beverages segment, which includes craft soda, HD9, Pop Jones and Fiesta Jones brands, generated approximately
The Company's Cannabis (THC) segment, which includes Mary Jones branded cannabis products, generated approximately
Gross profit for the first quarter of 2025 was
Total operating expenses in the first quarter of 2025 were
Net loss decreased to
The decrease in net loss was primarily driven by the decline in selling, general, and administrative expenses and were partially offset by the decrease in revenue.
Adjusted EBITDA2 improved
______________________________ |
2 Adjusted EBITDA is defined as net income (loss) from operations before interest expense, interest income, taxes, depreciation, amortization and stock-based compensation and is a non-GAAP measure (reconciliation provided below). |
Conference Call
Jones Soda will hold a conference call today at 4:30 p.m. Eastern time to discuss its results for the first quarter ended March 31, 2025.
Chief Executive Officer Scott Harvey and Chief Financial Officer Brian Meadows will host the conference call.
Date: Thursday, May 15, 2025
Time: 9:00 a.m. Eastern time (6:00 a.m. Pacific time)
Toll-free dial-in number: 1-877-407-0784
International dial-in number: 1-201-689-8560
Conference ID: 13752687
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860.
The conference call will be broadcast live and available for replay here and via the investor relations section of the Company's website at www.jonessoda.com.
A replay of the conference call will be available after 11:30 a.m. Eastern time on the same day through April 15, 2025.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13752687
Presentation of Non-GAAP Information
This press release contains disclosure of the Company's Adjusted EBITDA which is not a United States Generally Accepted Accounting Principle ("GAAP") financial measure. The difference between Adjusted EBITDA (a non-GAAP measure) and Net Loss (the most comparable GAAP financial measure) is the exclusion of interest expense and income, income tax expense, depreciation and amortization expense and stock-based compensation. We have included a reconciliation of Adjusted EBITDA to Net Loss under "Jones Soda Co. Non-GAAP Reconciliation" at the end of this press release. This non-GAAP measure should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP. Adjusted EBITDA has certain limitations in that it does not take into account the impact of certain expenses to our consolidated statements of operations. In addition, because Adjusted EBITDA may not be calculated identically by all companies, the presentation here may not be comparable to other similarly titled measures of other companies. We believe that Adjusted EBITDA provides useful information to investors about the Company's results attributable to operations, in particular by eliminating the impact of non-cash charges related to stock-based compensation, amortization and depreciation that is consistent with the manner in which management evaluates the Company's performance. These adjustments to the Company's GAAP results are made with the intent of providing a more complete understanding of the Company's underlying operational results and provide supplemental information regarding the Company's current ability to generate cash flow. Adjusted EBITDA is not intended to be considered in isolation or as a replacement for, or superior to Net Loss as an indicator of the Company's operating performance, or cash flow, as a measure of its liquidity. Adjusted EBITDA should be reviewed in conjunction with Net Loss as calculated in accordance with GAAP.
About Jones Soda Co.
Jones Soda Co.® (CSE: JSDA, OTCQB: JSDA) is a leading craft soda manufacturer with a subsidiary dedicated to cannabis products. The company markets and distributes premium craft sodas under the Jones® Soda brand, and a variety of cannabis products under the Mary Jones brand. Jones' mainstream soda line is sold across North America in glass bottles, cans and on fountain through traditional beverage outlets, restaurants and alternative accounts. The company is headquartered in Seattle,
Forward-Looking Statements Disclosure
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all passages containing words such as "will," "aims," "anticipates," "becoming," "believes," "continue," "estimates," "expects," "future," "intends," "plans," "predicts," "projects," "targets," or "upcoming." Forward-looking statements also include any other passages that are primarily relevant to expected future events or that can only be evaluated by events that will occur in the future. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Factors that could affect the Company's actual results, including its financial condition and results of operations, include, among others: its ability to successfully execute on its growth strategies and operating plans for the future;; the Company's ability to continue to develop and market THC/CBD-infused and/or cannabis-infused beverages and edibles, and comply with the laws and regulations governing cannabis, hemp or related products, and the timing and costs of the development of these new product lines; the Company's ability to manage operating expenses and generate sufficient cash flow from operations; the Company's ability to create and maintain brand name recognition and acceptance of its products; the Company's ability to adapt and execute its marketing strategies; the Company's ability to compete successfully against much larger, well-funded, established companies currently operating in the beverage industry generally and in the craft beverage segment specifically; the Company's ability to respond to changes in the consumer beverage marketplace, including potential reduced consumer demand due to health concerns (including obesity) and legislative initiatives against sweetened beverages (including the imposition of taxes); its ability to develop and launch new products and to maintain brand image and product quality; the Company's ability to maintain and expand distribution arrangements with distributors, independent accounts, retailers or national retail accounts; its ability to manage inventory levels and maintain relationships with manufacturers of its products; its ability to maintain a consistent and cost-effective supply of raw materials and flavors and to manage factors affecting its supply chain; its ability to attract, retain and motivate key personnel; its ability to protect its intellectual property; the impact of future litigation and the Company's ability to comply with applicable regulations; its ability to maintain an effective information technology infrastructure, fluctuations in freight and fuel costs; the impact of currency rate fluctuations; its ability to access the capital markets for any future equity financing; the Company's ability to maintain disclosure controls and procedures and internal control over financial reporting; dilutive and other adverse effects from future potential securities issuances; and any actual or perceived limitations by being traded on the OTCQB Marketplace. More information about factors that potentially could affect the Company's operations or financial results is included in its most recent annual report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission ("SEC") on April 1, 2024 and in the other reports filed with the SEC since that that date. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Except as required by law, the Company undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.
JONES SODA CO. | ||||||||
March 31, 2025 (unaudited) | December 31, 2024 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 735 | $ | 1,533 | ||||
Accounts receivable, net of allowance of | 3,635 | 2,162 | ||||||
Inventories, net | 3,908 | 3,538 | ||||||
Prefunded insurance premiums from financing | 128 | 199 | ||||||
Prepaid expenses and other current assets | 1,311 | 948 | ||||||
Total current assets | 9,717 | 8,380 | ||||||
Other assets | 22 | 35 | ||||||
Fixed assets, net of accumulated depreciation of | 95 | 108 | ||||||
Total assets | $ | 9,834 | $ | 8,523 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 5,182 | $ | 3,404 | ||||
Accrued expenses | 1,851 | 2,473 | ||||||
Revolving credit facility | 1,277 | 291 | ||||||
Insurance premium financing | 128 | 199 | ||||||
Total current liabilities | 8,438 | 6,367 | ||||||
Total liabilities | 8,438 | 6,367 | ||||||
Commitments and contingencies (Note 9) | ||||||||
Shareholders' equity: | ||||||||
Common stock, no par value: | ||||||||
Authorized — 800,000,000 issued and outstanding shares — | 94,974 | 94,883 | ||||||
Accumulated other comprehensive income | 223 | 222 | ||||||
Accumulated deficit | (93,801) | (92,949) | ||||||
Total shareholders' equity | 1,396 | 2,156 | ||||||
Total liabilities and shareholders' equity | $ | 9,834 | $ | 8,523 | ||||
JONES SODA CO. | ||||||||
Three Months Ended March 31, | ||||||||
2025 | 2024 | |||||||
Net Revenue | $ | 4,608 | $ | 4,999 | ||||
Cost of goods sold | (2,891) | (3,107) | ||||||
Gross profit | 1,717 | 1,892 | ||||||
Operating expenses: | ||||||||
Selling and marketing | 1,189 | 1,492 | ||||||
General and administrative | 1,209 | 1,545 | ||||||
Total operating expenses | (2,398) | (3,037) | ||||||
Loss from operations | (681) | (1,145) | ||||||
Other income (expenses): | ||||||||
Interest income | 1 | 9 | ||||||
Interest expense | (78) | - | ||||||
Other expense | (94) | (6) | ||||||
Total other (expense) income | (171) | 3 | ||||||
Loss before income taxes | (852) | (1,142) | ||||||
Income tax expense, net | - | (10) | ||||||
Net loss | $ | (852) | $ | (1,152) | ||||
Net loss per share - basic and diluted | $ | (0.01) | $ | (0.01) | ||||
Weighted average common shares outstanding - basic and diluted | 115,865,227 | 101,477,735 | ||||||
JONES SODA CO. | ||||||||
Three Months Ended March 31, | ||||||||
2025 | 2024 | |||||||
GAAP net income (loss) | $ | (852) | $ | (1,152) | ||||
Stock-based compensation | 91 | 158 | ||||||
Finance costs | 78 | - | ||||||
Depreciation | 13 | 15 | ||||||
Income tax expenses | - | 10 | ||||||
Others | 94 | 6 | ||||||
Non-GAAP Adjusted EBITDA | $ | (576) | $ | (963) | ||||
View original content to download multimedia:https://www.prnewswire.com/news-releases/jones-soda-reports-first-quarter-2025-results-302456475.html
SOURCE Jones Soda Co.
FAQ
What were Jones Soda's (JSDA) Q1 2025 earnings results?
Who are the new executives at Jones Soda (JSDA)?
What new products did Jones Soda (JSDA) launch in Q1 2025?
How is Jones Soda's (JSDA) cannabis business performing?
What cost-cutting measures did Jones Soda (JSDA) implement in Q1 2025?
