Zevia PBC (NYSE: ZVIA), the maker of naturally sweetened, zero-sugar beverages, delivered first-quarter results that landed at the upper end of guidance and showcased margin improvements despite a modest revenue dip. Net sales came in at US $38.0 million, down 2 percent from US $38.8 million in Q1 2024, reflecting heightened promotional activity even as pricing actions and a small volume uptick partially offset channel disruptions Nasdaq.
Strong Margin Performance
Gross profit margin climbed to a record 50.1 percent, a 4.4-point year-over-year gain driven by lower product costs and more efficient inventory management, partially tempered by increased trade spend Nasdaq. This marks the highest quarterly margin in Zevia’s public-company history and underscores the early benefits of its Productivity Initiative, which also fuelled a 25.8 percent reduction in selling expenses as a percentage of sales Nasdaq.
Improved Profitability Metrics
Zevia narrowed its net loss to US $6.4 million (US $0.08 per share), down from US $7.2 million (US $0.10 per share) in the year-ago quarter. Non-GAAP adjusted EBITDA loss improved by US 2.2 million to US 3.3 million, outperforming the company’s own forecast of a US 5.6 million to US 6.0 million loss, largely thanks to stronger-than-anticipated margin expansion Nasdaq.
Operational Investments and Cost Savings
Selling and marketing outlays rose to US $15.3 million (40.3 percent of net sales), primarily reflecting a US 3.5 million increase in marketing spend aimed at bolstering brand awareness through new campaign activations and innovation support. Conversely, direct selling costs fell significantly, fueled by freight and warehousing efficiencies achieved under the Productivity Initiative. General and administrative expenses declined to US $7.0 million, or 18.4 percent of sales, down from 20.9 percent in Q1 2024 Nasdaq.
Market Reaction and Analyst Commentary
Zevia’s earnings beat consensus forecasts, with adjusted EPS of –US $0.08 surpassing the –US $0.10 estimate by roughly 20 percent; some analysts noted this represented a 31 percent upside to street expectations Yahoo Finance. Despite the modest sales contraction—below analyst revenue forecasts of approximately US $40.8 million—the stock saw a positive reaction, buoyed by confidence in Zevia’s path to profitability and sufficient liquidity, as the company held US $27.7 million in cash with no debt and an unused US $20 million credit line at quarter-end Nasdaq.
Maintained 2025 Outlook
Management reaffirmed full-year guidance, expecting net sales between US $158 million and US $163 million and an adjusted EBITDA loss of US $8 million to US $11 million. The second-quarter outlook calls for US $40.5 million to US $42.5 million in net sales and an adjusted EBITDA loss of US $2.2 million to US $2.9 million Nasdaq. Zevia emphasizes reinvestment of productivity gains into marketing and innovation, alongside distribution expansion to deepen penetration in both core and emerging retail channels.
With record margins underscoring the efficacy of its cost-management programmes and a sharpened focus on brand building and product pipeline expansion, Zevia is positioning itself to capitalize on growing consumer demand for clean-label, zero-sugar beverages. As it navigates the balance between promotional intensity and profitability, industry observers will be watching for sustained volume growth and further margin optimization through the remainder of 2025.
