Reed’s Reports Second Quarter 2026 Results
Rhea-AI Summary
Reed’s (NYSE American: REED) reported Q2 2026 net sales of $7.5 million, down from $9.5 million in Q2 2025, but sequentially up 5% from Q1 2026. Gross profit rose to $1.8 million with gross margin improving to 24% from 8%, mainly due to inventory write-offs falling to $0.1 million from $1.6 million.
Delivery and handling expense declined 30% to $1.1 million (15% of sales, $2.54 per case), and SG&A fell 6% to $4.7 million. Net loss narrowed to $4.3 million (–$0.36 per share) from $6.0 million (–$0.78), and EBITDA loss improved to $4.0 million from $5.7 million. Operating cash use improved to $2.2 million for the quarter versus $5.0 million a year earlier, but cash decreased to $2.4 million and stockholders’ equity turned to a $1.5 million deficit. Reed’s is evaluating financing alternatives and continuing cost and working capital initiatives.
Positive
- Gross margin rose to 24% from 8% YoY on lower write-offs
- Net loss narrowed to $4.3 million from $6.0 million YoY
- EBITDA loss improved to $4.0 million from $5.7 million YoY
- Delivery and handling expense fell 30% to $1.1 million
- Cash used in operations for Q2 dropped to $2.2 million from $5.0 million
- Inventory reduced to $7.0 million, improving working capital efficiency
Negative
- Net sales declined to $7.5 million from $9.5 million YoY
- Six-month net loss increased to $10.7 million from $8.1 million
- Cash balance fell sharply to $2.4 million from $10.4 million year-end
- Stockholders’ equity moved to a $1.5 million deficit from $9.2 million positive
- Six-month EBITDA loss widened to $10.1 million from $7.3 million
- Senior secured loan balance remained high at about $9.2 million
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 12 | Q1 2026 earnings | Negative | -28.4% | Sales declined, margins compressed, and losses widened amid corrective actions. |
| Nov 03 | Q3 2025 earnings | Negative | -47.6% | Operating losses widened despite higher sales and lower delivery costs. |
| Aug 12 | Q2 2025 earnings | Negative | +5.7% | Sales and gross profit declined following substantial inventory write-offs. |
| May 13 | Q1 2025 earnings | Negative | -28.6% | Sales increased, but margins declined and operating losses widened. |
| Mar 27 | Q4 2024 earnings | Positive | +0.3% | Gross profit and margin improved alongside distribution gains and financing. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The selected earnings history showed four aligned reactions and one divergence, with an average move of -19.71%.
Key Terms
ebitda financial
non-gaap financial measure financial
cash conversion cycle financial
inventory write-offs financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Management Team to Host Conference Call Tomorrow at 8:30 a.m. ET
NORWALK, Conn., Aug. 11, 2026 (GLOBE NEWSWIRE) -- Reed’s, Inc. (NYSE American: REED) (“Reed’s” or the “Company”), owner of the nation’s leading portfolio of handcrafted, natural ginger beverages, today announced financial results for the three and six months ended June 30, 2026.
Q2 2026 Financial Highlights (vs. Q2 2025):
- Net sales were
$7.5 million compared to$9.5 million . - Gross profit was
$1.8 million compared to$0.8 million , with gross margin of24% compared to8% . - Delivery and handling expenses were
$2.54 per case compared to$2.95 per case. - Selling, general and administrative expenses were
$4.7 million compared to$5.0 million . - Net loss was
$4.3 million compared to$6.0 million . - EBITDA1 loss was
$4.0 million compared to$5.7 million .
Neal Cohane, Reed's interim CEO, stated, "We are seeing early traction from the corrective actions we took earlier this year, with sequential improvement in net sales, gross margin and overall operating performance. During the quarter, we prioritized our efforts on reengaging key retail and distribution partners, regaining shelf space, increasing doors, restoring our heritage glass bottle packaging, tightening inventory controls, and continuing cost reduction efforts."
“We believe we are making progress centered on sequential improvement. Net sales increased
During the second quarter, Reed’s continued to execute the corrective actions initiated earlier this year to stabilize the business, improve operational performance, and position the Company for profitable growth, resulting in the following developments:
- Regained shelf space and grew doors by reengaging national and regional retail accounts.
- Invested in sales brokers to increase retail coverage and improve in-market execution across key channels.
- Improved trade spend efficiency, contributing to higher gross margin.
- Improved working capital efficiency, reducing inventory to
$7.0 million and improving the Company's cash conversion cycle. - Continued progress optimizing selling, general and administrative expenses.
__________________________________
1 EBITDA is a non-GAAP financial measure. Definition of the non-GAAP measure used by Reed’s and a reconciliation of such measure to the related GAAP financial measure can be found under the sections below titled “Non-GAAP Financial Measures” and “Reconciliation of GAAP Financial Measure to Non-GAAP Financial Measure.”
Second Quarter 2026 Financial Results
During the second quarter of 2026, net sales were
Gross profit for the second quarter of 2026 increased to
Delivery and handling expenses decreased by
Selling, general and administrative expenses decreased by
Net loss during the second quarter of 2026 decreased by
EBITDA1 loss decreased by
Liquidity and Cash Flow
For the second quarter of 2026, cash used in operations improved to
As of June 30, 2026, the Company had
Conference Call
The Company will conduct a conference call tomorrow, August 12, 2026, at 8:30 a.m. Eastern time to discuss its results for the three and six months ended June 30, 2026.
Reed’s leadership team will host the conference call, followed by a question-and-answer period.
Date: Wednesday, August 12, 2026
Time: 8:30 a.m. Eastern time
Toll-free dial-in number: (800) 717-1738
International dial-in number: (646) 307-1865
Conference ID: 72811
Webcast: Reed’s Q2 2026 Conference Call
Please dial into the conference call 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 the Company’s investor relations team at (720) 330-2829.
The conference call will also be broadcast live and available for replay on the investor relations section of the Company’s website at https://investor.reedsinc.com.
About Reed's, Inc.
Reed’s is an innovative company and category leader that provides the world with high quality, premium and better-for-you sodas. Established in 1989, Reed's is a leader in craft beverages under the Reed’s®, Virgil’s® and Flying Cauldron® brand names. The Company’s beverages are now sold in over 32,000 stores nationwide.
Non-GAAP Financial Measures
In addition to our U.S. GAAP results, we present EBITDA as a supplemental measure of our performance. However, EBITDA is not a recognized measurement under U.S. GAAP and should not be considered as an alternative to net income, income from operations or any other performance measure derived in accordance with U.S. GAAP, or as an alternative to cash flow from operating activities as a measure of liquidity. We define EBITDA as net income (loss), plus interest expense, tax expense, and depreciation and amortization.
Management considers our core operating performance to be that which our managers can affect in any particular period through their management of the resources that affect our underlying revenue and profit generating operations during that period. Non-GAAP adjustments to our results prepared in accordance with U.S. GAAP are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
We present EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use EBITDA in developing our internal budgets, forecasts and strategic plan; in analyzing the effectiveness of our business strategies in evaluating potential acquisitions; making compensation decisions; and in communications with our board of directors concerning our financial performance. EBITDA has limitations as an analytical tool, which includes, among others, the following:
- EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
- EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
- EBITDA does not reflect future interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; and
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical are forward-looking statements. These forward- looking statements may be identified by terms such as "believe," “expect,” "intends," "outlook," “may,” “will” and similar expressions. Forward-looking statements include, but are not limited to, statements herein with respect to implied or express statements regarding the Company’s expectations relating to its financial projections, including expected expansion of gross margin, business strategy, growth initiatives, operational improvements, potential financing alternatives, and the Company’s belief that its corrective efforts will help reposition the Company for long-term sustainable growth, profitability and shareholder value creation. These forward-looking statements are based on current expectations. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties, and assumptions, many of which involve factors or circumstances that are beyond our control. These risks could materially impact our ability to access raw materials, production, transportation and/or other logistics needs.
If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, Reed’s actual results could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties referred to above include, but are not limited to: inventory shortages; risks associated with new product releases; the impacts of further inflation; risks that customer demand may fluctuate or decrease; risks that we are unable to collect unbilled contractual commitments, particularly in the current economic environment; our ability to compete successfully and manage growth; our ability to attract and retain qualified management and personnel; our ability to develop and expand strategic and third party distribution channels; our dependence on third party suppliers, brewers and distributors; third party co-packers meeting contractual commitments; risks related to our business expansion and international operations; our ability to continue to innovate; our strategy of making investments in sales to drive growth; increasing costs of fuel and freight; protection of intellectual property; competition; general political or destabilizing events; general economic conditions; the effect of evolving domestic and foreign government regulations; and other risks detailed from time to time in Reed’s public filings, including Reed’s annual report on Form 10-K filed on March 25, 2026, which is available on the Securities and Exchange Commission’s web site at www.sec.gov. These forward-looking statements are based on current expectations and speak only as of the date hereof. Reed’s assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Investor Relations Contact
Sean Mansouri, CFA or Aaron D’Souza
Elevate IR
ir@reedsinc.com
(720) 330-2829
| REED’S, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited) (Amounts in thousands, except share and per share amounts) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net sales | $ | 7,488 | $ | 9,523 | $ | 14,630 | $ | 19,552 | ||||||||
| Cost of goods sold | 5,607 | 7,110 | 11,314 | 13,682 | ||||||||||||
| Inventory write-offs | 92 | 1,606 | 830 | 1,661 | ||||||||||||
| Total cost of goods sold | 5,699 | 8,716 | 12,144 | 15,343 | ||||||||||||
| Gross profit | 1,789 | 807 | 2,486 | 4,209 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Delivery and handling expense | 1,107 | 1,572 | 2,227 | 3,199 | ||||||||||||
| Selling and marketing expense | 1,709 | 1,271 | 3,456 | 2,773 | ||||||||||||
| General and administrative expense | 3,037 | 3,757 | 7,082 | 5,772 | ||||||||||||
| Total operating expenses | 5,853 | 6,600 | 12,765 | 11,744 | ||||||||||||
| Loss from operations | (4,064 | ) | (5,793 | ) | (10,279 | ) | (7,535 | ) | ||||||||
| Other income (expense) | (5 | ) | 46 | (50 | ) | 46 | ||||||||||
| Interest expense | (204 | ) | (301 | ) | (408 | ) | (590 | ) | ||||||||
| Net loss | (4,273 | ) | (6,048 | ) | (10,737 | ) | (8,079 | ) | ||||||||
| Dividends on Series A Convertible Preferred Stock | - | (5 | ) | - | (5 | ) | ||||||||||
| Net Loss Attributable to Common Stockholders | $ | (4,273 | ) | $ | (6,053 | ) | $ | (10,737 | ) | $ | (8,084 | ) | ||||
| Loss per share – basic and diluted | $ | (0.36 | ) | $ | (0.78 | ) | $ | (0.91 | ) | $ | (1.06 | ) | ||||
| Weighted average number of shares outstanding – basic and diluted | 11,846,210 | 7,727,840 | 11,833,391 | 7,645,316 | ||||||||||||
| REED’S, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share amounts) | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 2,410 | $ | 10,424 | ||||
| Accounts receivable, net of allowance of | 3,107 | 2,317 | ||||||
| Inventory, net | 6,992 | 8,046 | ||||||
| Prepaid expenses and other current assets | 1,153 | 673 | ||||||
| Total current assets | 13,662 | 21,460 | ||||||
| Property and equipment, net of accumulated depreciation of | 1,137 | 1,231 | ||||||
| Intangible assets | 650 | 650 | ||||||
| Total assets | $ | 15,449 | $ | 23,341 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 6,200 | $ | 3,496 | ||||
| Accrued expenses | 634 | 669 | ||||||
| Deferred revenue | 51 | - | ||||||
| Senior secured loan, net of deferred financing costs of | 9,227 | 9,182 | ||||||
| Current portion of lease liabilities | 35 | 40 | ||||||
| Total current liabilities | 16,147 | 13,387 | ||||||
| Lease liabilities, less current portion | 787 | 803 | ||||||
| Total liabilities | 16,934 | 14,190 | ||||||
| Stockholders’ equity (deficiency): | ||||||||
| Series A Convertible Preferred stock, | 94 | 94 | ||||||
| Common stock, $.0001 par value, 60,000,000 shares authorized; 11,857,086 and 11,820,429 shares issued and outstanding, respectively | 5 | 5 | ||||||
| Additional paid in capital | 176,884 | 176,783 | ||||||
| Accumulated deficit | (178,468 | ) | (167,731 | ) | ||||
| Total stockholders’ equity (deficiency): | (1,485 | ) | 9,151 | |||||
| Total liabilities and stockholders’ equity (deficiency): | $ | 15,449 | $ | 23,341 | ||||
| REED’S, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2026 and 2025 (Unaudited) (Amounts in thousands) | ||||||||
| June 30, 2026 | June 30, 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (10,737 | ) | $ | (8,079 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | 55 | 92 | ||||||
| Amortization of debt discount | 45 | 199 | ||||||
| Fair value of vested options | 8 | 56 | ||||||
| Fair value of vested restricted shares | 94 | - | ||||||
| Change in allowance for doubtful accounts | 1,060 | 1,091 | ||||||
| Inventory write-offs and change in reserve | 830 | 1,661 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (1,850 | ) | (2,114 | ) | ||||
| Inventory | 224 | (6,728 | ) | |||||
| Prepaid expenses and other assets | (480 | ) | (179 | ) | ||||
| Decrease in right of use assets | 24 | 23 | ||||||
| Accounts payable | 2,718 | 1,637 | ||||||
| Accrued expenses | (35 | ) | 1,906 | |||||
| Deferred revenue | 51 | - | ||||||
| Lease liabilities | (21 | ) | 25 | |||||
| Net cash used in operating activities | (8,014 | ) | (10,410 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Trademark costs | - | (6 | ) | |||||
| Purchase of property and equipment | - | (95 | ) | |||||
| Net cash used in investing activities | - | (101 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from sale of common stock | - | 3,000 | ||||||
| Payment of cash recorded as debt discount | - | (34 | ) | |||||
| Amounts from former related party, net | - | (169 | ) | |||||
| Net cash provided by financing activities | - | 2,797 | ||||||
| Net decrease in cash | (8,014 | ) | (7,714 | ) | ||||
| Cash at beginning of period | 10,424 | 10,391 | ||||||
| Cash at end of period | $ | 2,410 | $ | 2,677 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for interest | $ | 372 | $ | 400 | ||||
| Non-cash investing and financing activities: | ||||||||
| Reduction in property and equipment and accounts payable | 15 | - | ||||||
| Reclass SAFE agreement from accounts payable to equity | - | 115 | ||||||
| Dividends on Series A Convertible Preferred Stock | $ | - | $ | 5 | ||||
| REED’S, INC. RECONCILIATION OF GAAP FINANCIAL MEASURE TO NON-GAAP FINANCIAL MEASURE For the Three and Six Months Ended June 30, 2026 and 2025 (Unaudited) (Amounts in thousands) | ||||||||
| Three Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Net loss | $ | (4,273 | ) | $ | (6,048 | ) | ||
| EBITDA adjustments: | ||||||||
| Interest expense | 204 | 301 | ||||||
| Tax expense | 61 | 28 | ||||||
| Depreciation and amortization | 37 | 39 | ||||||
| Total EBITDA adjustments | $ | 302 | $ | 368 | ||||
| EBITDA | $ | (3,971 | ) | $ | (5,680 | ) | ||
| Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Net loss | $ | (10,737 | ) | $ | (8,079 | ) | ||
| EBITDA adjustments: | ||||||||
| Interest expense | 408 | 590 | ||||||
| Tax expense | 110 | 48 | ||||||
| Depreciation and amortization | 79 | 92 | ||||||
| Total EBITDA adjustments | $ | 597 | $ | 730 | ||||
| EBITDA | $ | (10,140 | ) | $ | (7,349 | ) | ||
