Jones Soda Reports Q3 2026 Revenue Up 204% to $13.7 Million, With Positive Net Income

Nine-month operating cash use narrowed to $2.3 million, while management sees potential for positive operating cash flow subject to working capital needs.

Rhea-AI Summary

Jones Soda (JSDA) reported third-quarter 2026 revenue of $13.7 million, up 204% year over year, alongside a return to profitability. Net income from continuing operations reached $471,000 versus a $1.428 million loss, while operating income was $400,000 versus a $1.402 million loss. Gross margin rose to 34.4% from 28.9%.

For the nine months ended September 30, revenue increased 167% to $36.3 million, but continuing operations recorded a $64,000 loss versus $132,000 income. The prior-year period included a $3.663 million subsidiary-disposal gain. Nine-month adjusted EBITDA, a non-GAAP earnings measure, reached $1.121 million versus a $2.650 million loss. Cash was $4.363 million, and working capital was approximately $2.1 million. Jones Soda reaffirmed its fiscal 2026 outlook for revenue above $45 million, growth of more than 80%, and positive adjusted EBITDA.

16 points · 0 major

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Positive

• Moderate pointQ3 revenue rose 204% to $13.7 million from $4.5 million a year earlier.
• Moderate pointQ3 gross profit reached $4.720 million, versus $1.299 million; margin expanded to 34.4% from 28.9%.
• Moderate pointQ3 operating income reached $400,000, versus a $1.402 million loss a year earlier.
• Moderate pointQ3 continuing-operations income reached $471,000, versus a $1.428 million loss; per-share earnings improved to $0.00 from $(0.01).
• Moderate pointQ3 adjusted EBITDA reached $869,000, versus an $897,000 loss a year earlier.
• Moderate pointQ3 selling and marketing expense fell to 17.0% of revenue, from 22.5% a year earlier.
• Moderate pointNine-month revenue increased 167% to $36.3 million, versus $13.6 million a year earlier.
• Moderate pointNine-month gross profit reached $11.410 million versus $4.322 million, although margin fell to 31% from 32%.
• Moderate pointNine-month operating income reached $228,000, versus a $3.083 million loss a year earlier.
• Moderate pointNine-month adjusted EBITDA reached $1.121 million, versus a $2.650 million loss a year earlier.
• Moderate pointWorking capital improved to approximately $2.1 million, from an approximately $0.5 million deficit at December 31, 2025.
• Moderate pointNine-month operating cash use narrowed to $2.3 million, versus $4.0 million for continuing operations a year earlier.
• Moderate pointUS$765,000 private placement closed, adding funding. 2.7% of market cap

3 minor points

• Minor pointCash increased to $4.363 million at September 30, 2026, from $3.599 million at December 31, 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 outlook reaffirmed: revenue above $45 million, growth above 80%, and positive adjusted EBITDA expected.
• Minor pointClub retail and direct-to-consumer activities expanded during the third quarter.

Negative

• Moderate pointCommon shares outstanding increased to 126,028,350 from 118,227,478 at December 31, 2025, diluting existing holders.
• Minor pointNine-month continuing operations lost $64,000 versus $132,000 income; the prior year included a $3.663 million disposal gain.
• Minor pointSelling and marketing costs rose to $2.327 million in Q3 and $6.263 million year-to-date, versus $1.013 million and $3.186 million.
• Minor pointGeneral and administrative costs rose to $1.993 million in Q3 and $4.919 million year-to-date, versus $1.688 million and $4.219 million.
• Minor pointRevolving credit facility and loans increased to $3.456 million from $3.022 million at December 31, 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.Positive operating cash flow remains conditional: management cites working capital and other cash requirements.

News Explained

Jones Soda reports closing a US$765,000 private placement, a sale of securities to selected investors; the release gives no security or share-count terms, so the placement’s dilution effect on existing holders cannot be determined from this disclosure.

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Reaffirms Fiscal 2026 Revenue Outlook of More Than $45 Million and Positive Adjusted EBITDA

• Q3 Gross margin expanded to 34% from 29%
• Q3 Net income from continuing operations of $471,000, an improvement of $1.9 million
• Q3 Adjusted EBITDA of $869,000, an improvement of $1.77 million year over year
• Management sees potential for positive operating cash flow as revenue scales, subject to working capital requirements
• Growth platform includes new products, additional club distribution points, major brands and fandoms and functional-health opportunities that broaden the addressable market
• Expanding into functional health with planned gut-health innovation under Jones Labs
• Management to host a conference call Tuesday, November 10, 2026, at 9 a.m. ET

SEATTLE, Nov. 10, 2026 /PRNewswire/ -- Jones Soda Co. (CSE: JSDA) (OTCQB: JSDA) ("Jones Soda" or the "Company") today announced its financial results for the third quarter and nine months ended September 30, 2026.

"The third quarter marked an important step forward for Jones Soda," said Scott Harvey, Chief Executive Officer. "Revenue grew 204% year over year to a record $13.7 million, gross margin expanded to 34.4%, and we generated $400,000 of operating income compared with a $1.4 million operating loss a year earlier. These results reflect the progress we are making in expanding distribution, strengthening our product portfolio and improving operating leverage."

"Our growth initiatives include additional club distribution, our Zero Sugar product lineup in Western Canada, and collaborations that connect the Jones brand with new audiences, including Fallout and Crayola. We are also evaluating opportunities to expand into functional health and nutrition. We remain focused on converting revenue growth into sustainable profitability and improved operating cash flow, while maintaining disciplined management of expenses and working capital."

Third Quarter 2026 Financial Summary vs. Third Quarter 2025

• Revenue increased 204% to $13.7 million compared to $4.5 million in the year ago period.
• Gross margin expanded to 34% compared to 29% in the third quarter of 2025.
• Operating income was $400,000, an improvement of $1.8 million compared to an operating loss of $(1.4) million in the prior year period.
• Net income from continuing operations increased by $1.9 million to $471,000, or $0.00 per share, compared to a net loss from continuing operations of $(1.4) million, or $(0.01) per share, in the third quarter of 2025.
• Adjusted EBITDA from continuing operations was $869,000, compared with an Adjusted EBITDA loss of $897,000 in the third quarter of 2025, an improvement of $1.77 million.

Year-to-Date 2026 Financial Summary vs. Year-to-Date 2025

• For the nine months ended September 30, 2026, revenue increased to $36.3 million, up 167% compared to $13.6 million in the prior year period.
• Gross profit was $11.4 million, or 31% of revenue, compared to $4.3 million, or 32% of revenue, in the prior year period.
• Operating income improved by $3.3 million to $228,000 compared to an operating loss of $(3.1) million for the nine months ended September 30, 2025.
• Net loss from continuing operations was $(64,000), or $(0.00) per share, compared to net income from continuing operations of $132,000, or $0.00 per share, in the prior year period, which included a one-time $3.7 million gain on the disposition of the Company's cannabis subsidiary.
• Adjusted EBITDA from continuing operations was $1.12 million, compared with an Adjusted EBITDA loss of $2.65 million in the first nine months of 2025, an improvement of $3.77 million.

Recent Business Highlights

• Brought Iconic Fallout™ Nuka-Cola Flavors into Reality with Exclusive "Vault-dweller Variety" Pack Ahead of Fallout Day 2026
• Announced Closing of US$765,000 Private Placement
• Expanded Craft Soda Portfolio with Zero Sugar Lineup at Western Canada Club Stores
• Announced Limited-Edition Crayola Collaboration as Part of 30th Anniversary "Dirty 30" Celebration

Third Quarter 2026 Financial Results

Revenue for the third quarter ended September 30, 2026 increased 204% to $13.7 million from $4.5 million in the prior-year period. The Company continued to expand its club retail and direct-to-consumer activities.

For the three months ended September 30, 2026, gross profit increased $3.4 million, or 263%, to $4.7 million from $1.3 million for the corresponding 2025 period. Gross margin improved to 34.4% from 28.9%, an increase of approximately 5.5 percentage points.

Total operating expenses for the third quarter of 2026 were $4.3 million, an increase of $1.6 million compared with $2.7 million in the prior-year period. Selling and marketing expense increased to $2.3 million from $1.0 million, while general and administrative expense increased to $2.0 million from $1.7 million.

Selling and marketing expenses as a percentage of revenue decreased to 17.0% in the third quarter of 2026 from 22.5% in the same quarter of 2025.

Net income from continuing operations was $471,000, or $0.00 per share, an improvement of $1.9 million compared to a net loss from continuing operations of $(1.4) million, or $(0.01) per share, in the third quarter of 2025.

Adjusted EBITDA from continuing operations was $869,000, compared with a loss of $897,000 in the prior-year quarter, an improvement of $1.77 million.

As of September 30, 2026, the Company had cash of $4.4 million and positive working capital of approximately $2.1 million, compared with cash of $3.6 million and a working capital deficit of approximately $0.5 million at December 31, 2025. Net cash used in continuing operating activities was $2.3 million during the first nine months of 2026, compared with $4.0 million in the year-earlier period.

Outlook

The following forward-looking fiscal 2026 outlook reflects management's expectations as of November 10, 2026 and is subject to substantial risks and uncertainties. In particular, revenue growth and operating income do not necessarily imply positive cash flow because working capital and other cash requirements may vary.

The Company reaffirms its fiscal 2026 outlook for net revenue in excess of $45 million, representing growth of more than 80% over fiscal 2025, and positive Adjusted EBITDA.

Conference Call

Jones Soda will hold a conference call at 9 a.m. Eastern time on November 10, 2026, to discuss its results for the third quarter ended September 30, 2026.

Chief Executive Officer Scott Harvey and Chief Financial Officer Brian Meadows will host the conference call, followed by a question-and-answer period. During the question-and-answer period, management will address common themes and questions submitted through the webcast portal. Participants who wish to ask a question should join the call via the webcast.

Date: Tuesday, November 10, 2026
Time: 9 a.m. Eastern time (6 a.m. Pacific time)
Webcast and Q&A: https://viavid.webcasts.com/starthere.jsp?ei=1781378&tp_key=bf157e0d66
Toll-free dial-in number: 1-877-407-0784
International dial-in number: 1-201-689-8560
Conference ID: 13763628

Please call the conference telephone number five minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting to the call, please contact Hayden IR at 1-646-755-7412.

A telephonic replay of the conference call will be available approximately three hours after the conclusion of the call through Tuesday, November 24, 2026, at 11:59 p.m. Eastern time. To access the replay, dial 1-844-512-2921 (toll-free) or 1-412-317-6671 (international) and enter access ID 13763628.

Presentation of Non-GAAP Information

This release includes Adjusted EBITDA, a non-GAAP financial measure, which management uses as a supplemental measure of operating performance. Adjusted EBITDA is reconciled below to net income (loss) from continuing operations, the most directly comparable U.S. GAAP measure, through adjustments for interest expense, income taxes, depreciation, amortization, stock-based compensation, finance income and specified other items as shown in the reconciliation. Adjusted EBITDA should not be considered a substitute for GAAP results and may not be comparable with similarly titled measures used by other companies.

About Jones Soda Co.

Jones Soda Co.^® (CSE: JSDA, OTCQB: JSDA) is a leading craft soda manufacturer. The Company markets and distributes premium craft sodas under the Jones^® Soda 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, Washington. For more information, visit www.jonessoda.com.

Forward-Looking Statements Disclosure

Certain statements in this press release are forward-looking statements within the meaning of applicable U.S. and Canadian securities laws. These include statements about fiscal 2026 revenue and Adjusted EBITDA expectations, anticipated product introductions and distribution opportunities, strategic collaborations, functional-health initiatives, and management's plans to improve profitability and cash flow. Forward-looking statements are based on estimates and assumptions and involve known and unknown risks and uncertainties. Actual outcomes may differ materially because of, among other factors, changes in customer demand and product mix; performance of distributors and retail accounts; the timing of shipments; promotional and royalty costs; raw-material, production and freight costs; working-capital needs; the ability to secure financing; competition; product development and launch risk; regulatory changes, including rules governing hemp-derived products; and other risks discussed in the Company's Form 10-K for the year ended December 31, 2025 and subsequent SEC reports. The Company has historically experienced operating losses and negative operating cash flows, and its September 30, 2026 Form 10-Q includes a substantial-doubt going-concern disclosure. Forward-looking statements speak only as of the date made. Except as required by law, the Company undertakes no obligation to update them.

--Tables Follow--

JONES SODA CO. — CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)

	September 30, 2026 (unaudited)	December 31, 2025
ASSETS
Current assets:
Cash	$ 4,363	$ 3,599
Accounts receivable, net of allowance of $75 and $50, respectively	5,578	3,603
Note receivable	–	1,400
Current licensing fees receivable	225	150
Inventories, net	6,537	2,657
Prefunded insurance premiums from financing	–	214
Prepaid expenses and other current assets	683	1,224
Deferred financing costs	458	415
Total current assets	17,844	13,262
Long-term licensing fees receivable	1,791	1,647
Fixed assets, net of accumulated depreciation of $851 and $583, respectively	107	321
Total assets	$ 19,742	$ 15,230
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$ 6,836	$ 6,378
Accrued expenses	5,468	3,960
Revolving credit facility and loans	3,456	3,022
Insurance premium financing	–	214
Promissory notes	–	190
Total current liabilities	15,760	13,764
Total liabilities	15,760	13,764
Commitments and contingencies (Note 14)
Shareholders' equity:
Common stock, no par value: Authorized — 800,000,000; issued and outstanding shares — 126,028,350 and 118,227,478 shares, respectively	98,541	95,895
Accumulated other comprehensive income	233	299
Accumulated deficit	(94,792)	(94,728)
Total shareholders' equity	3,982	1,466
Total liabilities and shareholders' equity	$ 19,742	$ 15,230

JONES SODA CO. — CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited — In thousands, except share and per share data)

	Three Months Ended Sept. 30, 2026	Three Months Ended Sept. 30, 2025	Nine Months Ended Sept. 30, 2026	Nine Months Ended Sept. 30, 2025
Net Revenue	$ 13,705	$ 4,500	$ 36,305	$ 13,624
Cost of goods sold	(8,985)	(3,201)	(24,895)	(9,302)
Gross profit	4,720	1,299	11,410	4,322
Operating expenses:
Selling and marketing	2,327	1,013	6,263	3,186
General and administrative	1,993	1,688	4,919	4,219
Total operating expenses	(4,320)	(2,701)	(11,182)	(7,405)
Income (loss) from operations	400	(1,402)	228	(3,083)
Other income (expenses):
Interest income	116	54	19	60
Interest expense	–	(87)	(250)	(235)
Other (expense) income, net	(45)	9	(56)	(264)
Gain on disposition of subsidiaries	–	–	–	3,663
Total other (expenses) income	71	(24)	(287)	3,224
Income (loss) before income taxes	471	(1,426)	(59)	141
Income tax expense, net	–	(2)	(5)	(9)
Income (loss) from continuing operations	471	(1,428)	(64)	132
Income from discontinued operations	–	–	–	199
Net income (loss)	$ 471	$ (1,428)	$ (64)	$ 331
Earning (loss) per share – basic and diluted:
Income (loss) from continuing operations	$ 0.00	$ (0.01)	$ (0.00)	$ 0.00
Income from discontinued operations	$ –	$ –	$ –	$ 0.00
Total earning (loss) per share	$ 0.00	$ (0.01)	$ (0.00)	$ 0.00
Weighted average common shares outstanding – basic and diluted	124,965,046	117,313,096	120,810,210	116,459,818

JONES SODA CO. — RECONCILIATION OF GAAP NET INCOME (LOSS) FROM CONTINUING OPERATIONS TO NON-GAAP ADJUSTED EBITDA
(Unaudited — In thousands of dollars)

	Three Months Ended Sept. 30, 2026	Three Months Ended Sept. 30, 2025	Nine Months Ended Sept. 30, 2026	Nine Months Ended Sept. 30, 2025
Net income (loss) from continuing operations	$ 471	$ (1,428)	$ (64)	$ 132
Add: Interest expense	108	61	474	178
Add: Income tax expenses	–	–	5	–
EBIT	579	(1,367)	415	310
Add: Depreciation	97	15	268	45
Add: Amortization	–	–	–	–
EBITDA	676	(1,352)	683	355
Add: Loss on disposal	–	10	–	10
Less: Gain on disposition of subsidiaries	–	–	–	(3,663)
Add: Stock-based compensation	406	455	641	742
Add: Impairment of receivable	–	(2)	25	(48)
Add: Impairment of note receivable	–	–	–	–
Add: Impairment of inventory	–	–	–	(38)
Less: Finance income	(213)	(8)	(228)	(8)
ADJUSTED EBITDA	$ 869	$ (897)	$ 1,121	$ (2,650)

 

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SOURCE Jones Soda Co.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Jones Soda's Q3 2026 revenue and earnings?

Jones Soda generated $13.7 million in revenue, up 204% year over year, and $471,000 in net income from continuing operations. The comparable quarter had $4.5 million in revenue and a $1.428 million continuing-operations loss. Earnings per share were $0.00 versus $(0.01).

What is Jones Soda's fiscal 2026 outlook?

Jones Soda reaffirmed its expectation for net revenue above $45 million, representing growth of more than 80% over fiscal 2025, and positive adjusted EBITDA. This outlook reflects management's expectations as of November 10, 2026.