Executive Summary

Q3 2025 delivered resilient profitability despite volume headwinds: operating profit rose 5% to $51M, EPS was $0.42, and net sales were $267M; management cited severe winter weather and Southern California fires as demand constraints .
Versus prior year, EPS was flat (Q3 2025: $0.42 vs. Q3 2024: $0.42), net income edged up to $39.6M, and revenue dipped modestly; sequentially, EPS declined from Q2’s $0.49 and Q1’s $0.61, reflecting seasonality and weather impacts .
Trailing twelve months strengthened: net income +10% to $186M, operating profit +8% to $231M, and EPS rose to $1.99, underscoring margin discipline and brand momentum .
No formal guidance issued; themes emphasized marketing execution, in-store activations, and an in-development LaCroix “game changer” being tested at Expo West—potential narrative catalyst pending commercialization and consumer adoption .

What Went Well and What Went Wrong

Operating profit growth: Q3 operating profit increased 5% to $51M; TTM operating profit +8% to $231M, demonstrating continued margin rigor .
Brand/marketing execution: “theme-oriented in-store displays,” experiential consumer engagements, social media reinforcement, and sports sponsorships supported awareness and trial .
Innovation pipeline: LaCroix is testing a “new creativity” at Expo West that could be a “game changer,” with early trials “exceeding expectations” .

Quotes:

“Our marketing strategy and execution continues to reinforce brand awareness... delightful and theme-oriented in-store displays, consumer ‘experiential’ engagements... social media posts provide wonderful testimony to the ‘Wonderfulness of La Croix!’” .
“Innovation is often accomplished in steps of trial and error. Thus far, this new concept is exceeding expectations. Thumbs up for a game changer” .

Weather and disaster-related volume headwinds: Disastrous Southern California fires and severe winter weather in the Midwest/Northeast adversely impacted volumes in key markets .
Top-line softness: Q3 net sales were $267M, down slightly YoY and sequentially below Q2’s $291M and Q1’s $329M amid seasonality and weather disruptions .
Lack of formal guidance: Company did not provide explicit forward financial guidance, limiting visibility for estimate recalibration and near-term modeling .

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$329.5	$291.2	$267.1
Net Income ($USD Millions)	$56.8	$45.6	$39.6
Diluted EPS ($USD)	$0.61	$0.49	$0.42
Operating Income ($USD Millions)	$70	$58	$51
Gross Margin %	N/A	38%	N/A
Cash ($USD Millions)	>$77 (post $304M dividend)	N/A	$149

KPI	Value
TTM Net Sales ($USD Billions)	$1.185
TTM Operating Profit ($USD Millions)	$231
TTM Net Income ($USD Millions)	$185.8
TTM Diluted EPS ($USD)	$1.98–$1.99 (diluted/basic)
Average Diluted Shares (Q3) (Millions)	93.691

Segment breakdown: Not disclosed in press release for Q3 .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025/Q4	None provided	None provided	Maintained (no guidance)
Operating Margin/Margins	FY2025/Q4	None provided	None provided	Maintained (no guidance)
OpEx	FY2025/Q4	None provided	None provided	Maintained (no guidance)
OI&E	FY2025/Q4	None provided	None provided	Maintained (no guidance)
Tax Rate	FY2025/Q4	None provided	None provided	Maintained (no guidance)
Segment-specific guidance	FY2025/Q4	Not disclosed	Not disclosed	Maintained (no guidance)
Dividend	FY2025	Special dividend of $3.25/sh paid July 2024 (historical)	No new guidance	Maintained (no guidance)

No earnings call transcript was published in the document catalog; themes below reflect quarter press releases.

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Product Innovation	LaCroix Strawberry Peach launched; strong response	Continued innovation; expanding flavors, packaging	“New creativity” in testing at Expo West; potential “game changer”	Strengthening innovation narrative
Marketing & In-Store Execution	Emphasis on packaging design and consumer appeal	Expanded in-store merchandising/sampling; influencers/digital	Theme-oriented displays; experiential retail; sponsorships	Sustained focus; broader activations
Supply Chain/Operations	N/A	Storms caused supply-chain disruptions, store closures in Southeast	Fires and severe winter weather constrained volumes in key markets	Ongoing external headwinds
Macroe/Consumer Demand	N/A	Changes in shopping habits; reduced purchasing power headwinds	Weather-driven access issues to purchase/consume	Mixed; near-term pressure
Financial Discipline/Margins	Record results, strong cash generation; special dividend	Operating margin improved for 8th straight quarter	Operating profit +5% YoY, TTM op profit +8%	Margin rigor intact

Demand headwinds: “Disastrous Southern California fires... and severe winter weather... adversely impacted volumes in our largest and better-performing markets” .
Marketing flywheel: “Theme-oriented in-store displays, consumer ‘experiential’ engagements... social media posts... testimony to the ‘Wonderfulness of La Croix!’” .
Innovation outlook: “A new creativity... being tested at Natural Products Expo West... exceeding expectations... Thumbs up for a game changer” .
Health positioning: Media’s focus on “improving the health of America” supports “innocent refreshment” positioning .

Not applicable—no earnings call transcript was provided in the document catalog; investor communication for the quarter was via press release .

Wall Street consensus estimates from S&P Global were unavailable at time of request due to rate limits; comparison vs estimates could not be performed. Values retrieved from S&P Global were unavailable due to API limit.

Profit resilience amid external shocks: Despite fires and severe winter weather, Q3 operating profit grew 5% YoY and TTM profitability advanced, evidencing margin control and disciplined execution .
Sequential normalization consistent with seasonality: EPS stepped down from $0.61 (Q1) to $0.49 (Q2) to $0.42 (Q3), with management explicitly tying Q3 softness to weather-driven demand constraints; use caution in near-term run-rate extrapolation .
Innovation as potential catalyst: Expo West testing of a “game changer” concept could drive category differentiation and brand momentum if commercialized successfully; monitor follow-up disclosures and retail adoption .
Marketing investments underpin share/velocity: Expanded in-store and experiential activations continue to be a strategic lever; track sell-through and display activity intensity across key regions .
Limited guidance visibility: Absence of formal guidance increases reliance on trend analysis and sell-through data; near-term model updates should incorporate weather normalization and potential innovation rollout timing .
TTM strength supports thesis durability: Net income +10% and EPS nearing $2.00 TTM reflect ongoing efficiency; watch gross margin trajectory given Q2’s 38% disclosure and any future margin commentary .
Positioning for medium term: Brand equity, health-oriented messaging, and new flavor/concept pipeline suggest medium-term growth potential once transient weather/disaster impacts fade .