Zevia PBC (ZVIA) investor relations material

Executive summary

• Achieved record Q1 net sales growth of 21.2% year-over-year to $46.1 million, driven by expanded distribution, 20.4% volume growth, and strong performance in club, mass, and e-commerce channels.

• Adjusted EBITDA was $0.9 million, a $4.2 million improvement from the prior year, and net loss improved to $2.4 million, reflecting higher sales and lower restructuring costs.

• Gross margin declined by 1.7 percentage points to 48.4%, mainly due to higher aluminum and fuel costs.

• Strategic initiatives included cost structure optimization, impactful marketing campaigns such as the Cardi B partnership, and innovation pipeline enhancements.

• Focus on cost savings, reinvestment in marketing, and productivity initiatives is expected to drive continued momentum.

Financial highlights

• Net sales reached $46.1 million in Q1 2026, up 21.2% year-over-year.

• Gross margin was 48.4%, down from 50.1% in Q1 2025.

• Adjusted EBITDA was $0.9 million, up from a $3.3 million loss in the prior year.

• Net loss improved to $2.4 million, a $4.0 million year-over-year improvement.

• Ended Q1 with $26.6 million in cash and no outstanding debt, with an undrawn $20 million credit line.

Outlook and guidance

• Full-year 2026 net sales guidance raised to $170–$175 million, with adjusted EBITDA loss expected between $2 million and $4 million.

• Q2 2026 net sales expected between $43 million and $45 million, with adjusted EBITDA loss of $0.5 million to $1 million.

• Cost headwinds from fuel and aluminum estimated at $11 million for the year, with ongoing productivity initiatives targeting further savings.

• Guidance reflects planned discontinuation of the tea line and expects Q1 and Q3 to be the strongest growth quarters.

• Management remains cautious due to macroeconomic volatility and inflationary pressures.