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JONES SODA CO (JSDA)·Q1 2025 Earnings Summary

Executive Summary

  • Revenue was $4.61M with gross margin of 37.3%; net loss narrowed to $0.85M ($0.01 per share) and Adjusted EBITDA loss improved to $0.58M versus a $0.96M loss YoY .
  • Operating discipline drove OpEx down to $2.40M (selling & marketing $1.19M, G&A $1.21M), reflecting ~20% SG&A cuts under new leadership; management emphasized supply chain optimization and ROI-focused spend .
  • HD9 sales reached $0.90M (fourth consecutive sequential increase), beverages revenue was ~$4.2M, and Cannabis THC revenue ~$0.38M; revenue decline versus Q1 2024 was primarily due to a one-time pipeline fill last year .
  • Strategic catalysts: $5M credit facility to fund growth, accelerated modern soda rollout (Pop Jones now featured in modern beverage aisles with 1,500+ doors in April and over 2,000 by May), and new CEO/CFO appointments to drive turnaround .

What Went Well and What Went Wrong

What Went Well

  • Cost discipline: total operating expenses dropped to $2.40M from $3.04M; management reaffirmed 20% SG&A reductions and ongoing efficiency efforts .
  • Portfolio traction: HD9 sales of $0.90M (fourth consecutive quarter of expansion), Pop Jones expanding nationwide in modern beverage aisles (1,500+ doors April; >2,000 doors by May), Fiesta Jones now in ~2,000 convenience stores .
  • Management tone and strategy: “The first quarter of 2025 was the beginning of the strategic turnaround… we optimized our supply chain operations, tightened P&L oversight, and instilled disciplined cost management” — Scott Harvey, CEO .

What Went Wrong

  • YoY revenue decline tied to non-repeat pipeline fill in Q1 2024; Q1 2025 revenue $4.61M vs $4.999M prior year; beverages ~$4.2M vs ~$4.6M; THC ~$0.38M vs ~$0.41M .
  • Gross profit fell to $1.72M from $1.89M YoY, with gross margin on net revenue 37.3% vs 37.8% prior period due to higher trade spend; COGS as % of gross revenue improved (54% vs 57%) .
  • Balance sheet pressure: cash declined to $0.74M; current liabilities increased to $8.44M, revolving credit facility balance $1.28M, driving equity down to $1.40M .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD)$4,211,000 $2,788,000 $4,608,000
Gross Profit ($USD)$894,000 $(1,271,000) $1,717,000
Gross Margin (%)21.2% -45.6% 37.3%
Selling & Marketing ($USD)$1,644,000 $1,044,000 $1,189,000
General & Administrative ($USD)$1,867,000 $2,230,000 $1,209,000
Total Operating Expenses ($USD)$3,511,000 $3,274,000 $2,398,000
Loss from Operations ($USD)$(2,617,000) $(4,545,000) $(681,000)
Net Loss ($USD)$(2,628,000) $(4,547,000) $(852,000)
Diluted EPS ($USD)$(0.02) $(0.04) $(0.01)
Adjusted EBITDA ($USD)$(2,239,000) $(4,451,000) $(576,000)

Segment Breakdown (Q1 2025 vs Q1 2024)

SegmentQ1 2024Q1 2025
Beverages Revenue ($USD)~$4,600,000 ~$4,200,000
HD9 Revenue ($USD)$0 $900,000
Cannabis THC Revenue ($USD)~$410,000 ~$380,000

KPIs and Operating Metrics

KPIQ3 2024Q4 2024Q1 2025
Pop Jones retail doors——1,500+ (April), >2,000 (May)
Fiesta Jones doors—~2,000 ~2,000
Zero Cola distribution—Launch planned March ’25, 10,000+ stores Launched across 10,000+ stores
New distributors signed>20 HD9 in Q4 pipeline 4 HD9 added 22 new distributors in Q1
SG&A/OpEx trendElevated spend High S&M; legal/write-off impacts OpEx down to $2.40M; ~20% SG&A reductions
Cash ($USD)$2.685M $1.533M $735k
Revolving credit$2M facility New $5M announced Feb ’25 Drawn $1.277M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025NoneNoneMaintained no formal guidance
Gross MarginFY 2025NoneNoneMaintained no formal guidance
OpExFY 2025NoneNone (qualitative focus on cost discipline)Maintained; emphasis on efficiency
EPSFY 2025NoneNoneMaintained no formal guidance
Segment-specificFY 2025NoneNoneMaintained no formal guidance
DividendsOngoingNoneNoneNo dividend policy change disclosed

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q3’24 and Q-1: Q4’24)Current Period (Q1’25)Trend
Cost discipline/SG&AOver-budget spend; intent to restore rigor 20% SG&A cuts; OpEx down to $2.40M; further reductions targeted Improving
Supply chain optimizationCanadian distributor transition impacted margins “Optimized supply chain operations” under new team Improving
Modern soda (Pop Jones)Launch and retailer interest; functional category momentum Featured in modern beverage POGs; 1,500+ doors April; >2,000 May Expanding
C-store strategy (Fiesta Jones)Test and rollout to ~2,000 stores ~2,000 convenience stores; Latin-inspired flavors Stable/Scaling
HD9/Adult beverageSequential growth; new cola variants; regulatory watch $0.90M sales; zero-sugar HD9 launching; continued momentum Expanding
Regulatory/legal (HD9)Monitoring evolving HD9 regs; legal costs in 2024 Continued compliance focus and engagement Ongoing vigilance
Brand partnershipsHoliday limited editions; pipeline Bethesda Fallout “Nuka Cola Quantum” ~$275k in <2 weeks Active
Guidance policyNo detailed guidanceNo guidance planned for 2025 Maintained

Management Commentary

  • “We optimized our supply chain operations, tightened P&L oversight, and instilled disciplined cost management measures… early actions reflect our commitment to operational rigor and set the stage for continued momentum” — Scott Harvey, CEO .
  • “Total operating expenses decreased 21% to $2.4M… we see room for additional SG&A reductions… next area of focus will be on cost of goods sold, including freight and warehousing” — Brian Meadows, CFO .
  • “Pop Jones is now featured in modern beverage aisles… making it available in over 2,000 retail doors” ; “Fiesta Jones… is also now available in over approximately 2,000 convenience stores” .
  • “Our HD9 business continues to gain strong traction, delivering $946,000 worth of revenue in Q1… sequential growth every quarter since launch” — CEO .

Q&A Highlights

  • Packaging/brand innovation: Management continues to pursue immersive brand experiences and packaging innovation to deepen consumer connection .
  • Marketing collaborations: Ongoing influencer/partner efforts; Bethesda Fallout tie-in driving early sales momentum .
  • Guidance policy: No quarterly/annual guidance in 2025; focus on expanding doors and launching products in high-growth categories .
  • Channel expansion: Positive stance on military bases/college campuses; leveraging GoPuff for campus reach .
  • Margin levers: Volume-driven COGS reductions via co-man pricing and differentiated pricing for special programs; focus on freight/warehousing .

Estimates Context

  • S&P Global consensus for EPS and revenue was not available for Q1 2025 (no published consensus values or estimate counts observed). Values retrieved from S&P Global.*
  • Actual reported figures: Revenue $4.61M, Adjusted EBITDA $(0.58)M, EPS $(0.01), per company disclosures .

Key Takeaways for Investors

  • Operational turnaround is gaining traction: OpEx fell to $2.40M with ~20% SG&A reductions; management is targeting further efficiency and COGS improvements .
  • Revenue mix improving: HD9 posted $0.90M and continues sequential growth; modern soda and C-store channels are scaling (Pop Jones >2,000 doors; Fiesta ~2,000 doors) .
  • Near-term revenue comps clean up post 2024 pipeline anomalies; Q1 YoY softness tied to non-repeat pipeline fill, not underlying demand deterioration .
  • Distribution momentum and brand partnerships (e.g., Bethesda Fallout) are concrete catalysts for sell-through and pricing power in specialty SKUs .
  • Liquidity supported by $5M credit line; working capital is tight (cash $0.74M), but facility utilization and inventory build are aligned to product launches and seasonality .
  • No formal guidance reduces near-term visibility; monitor quarterly updates for margin trajectory (trade spend normalization, freight/warehousing) and door growth pacing .
  • Watch regulatory developments in HD9; management is proactive on compliance, with diversified focus across core soda, modern soda, and adult beverage .

Footnote: *Values retrieved from S&P Global.