5 days ago
Jones Soda Co (JSDA) Q2 2025 Earnings Call Highlights: Revenue Decline Offset by Strategic ...
Net Revenue: $4.9 million in Q2 2025, down from $6.7 million in Q2 2024.
HD9 THC Product Revenue: $0.8 million in Q2 2025, up from $0.6 million in Q2 2024.
Gross Profit Margin: 33.3% in Q2 2025, compared to 34.3% in Q2 2024.
Total Operating Expenses: Decreased 37% to $2.4 million in Q2 2025 from $3.8 million in Q2 2024.
Net Income: $2.6 million or $0.02 per share in Q2 2025, compared to a net loss of $1.6 million or $0.02 loss per share in Q2 2024.
Adjusted EBITDA: Improved to negative $571,000 in Q2 2025 from a loss of $1.1 million in Q2 2024.
Cash Position: Approximately $0.7 million as of June 30, 2025.
Divestiture Proceeds: $3 million from the sale of the cannabis business.
New Distributors: Signed five new distributors and expanded into 829 additional convenience channels in Q2 2025.
Warning! GuruFocus has detected 6 Warning Signs with JSDA.
Release Date: August 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Jones Soda Co (JSDA) successfully completed the divestiture of its cannabis business, generating $3 million in proceeds, allowing the company to focus on its core beverage operations.
The company signed five new distributors and expanded its presence into an additional 829 convenience channels, indicating strong distribution growth.
Jones Soda Co (JSDA) reported strong traction and growth in its core Zero sodas and HD9 THC zero-sugar products, showing effective market adaptation.
The company maintained similar gross profit margins despite a decrease in revenue, thanks to cost reduction efforts.
Jones Soda Co (JSDA) achieved a net income of $2.6 million in the quarter, a significant improvement from a net loss of $1.6 million in the previous year, driven by the gain on the sale of its cannabis business and reduced operating costs.
Negative Points
Net revenue for the second quarter was $4.9 million, down from $6.7 million in the same period last year, primarily due to a onetime pipeline fill in 2024 and the loss of a discount market customer.
The company faced a temporary sales impact in Q2 due to an HD9 THC supply issue, although this has been resolved.
Gross profit as a percentage of revenue slightly decreased to 33.3% from 34.3% in the prior year period.
Adjusted EBITDA remained negative at $571,000, although it showed a 48% improvement from the previous period.
The company had only $0.7 million in cash as of June 30, 2025, indicating limited liquidity, although it has ample capacity under its credit line for additional needs.
Q & A Highlights
Q: What is the company's approach to operating in today's virality-driven marketing landscape, and is the company leveraging AI for advertisements? A: Scott Harvey, CEO, explained that Jones Soda is deploying a social media strategy using brand influencers and digital marketing to drive product awareness. The company is exploring AI for creating low-cost, catchy advertisements and plans to test this approach soon.
Q: Has Jones Soda landed any new accounts in the past three months? A: Scott Harvey, CEO, confirmed that Jones Soda has secured new retailers and distributors, including a new club opportunity set to roll out at the end of the month, indicating positive momentum for the brand.
Q: How has sell-through been at current retailers, and can you provide specific metrics? A: Scott Harvey, CEO, reported that Jones core soda single bottles sell at $3.23 per SKU per store per week, ranking third in the craft soda category. Pop Jones sells at $2.09 per SKU per store per week, ranking 11th in the modern soda category, with expectations to move into the top five after marketing efforts in September.
Q: Can you provide an update on the product roadmap and priorities? A: Scott Harvey, CEO, stated that the company remains focused on its core, modern, and adult beverage categories, driving innovation within these areas to maintain focus and avoid distractions.
Q: Are there plans to offer the full Jones Soda and HD9 lineup in zero-sugar variations? A: Scott Harvey, CEO, confirmed that zero-sugar products are available in the core lineup, with plans to expand based on product velocity. The company is rolling out HD9 Zeros this quarter to cater to health-conscious consumers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Inicia sesión para acceder a tu cartera de valores
