Jones Soda (JSDA) Q2 2025 earnings summary

Executive summary

• Achieved net income of $2.6 million in Q2 2025, reversing a $1.6 million loss year-over-year, mainly due to the cannabis business sale and cost reductions.

• Revenue declined to $4.9 million from $6.7 million, impacted by prior year pipeline fill and loss of a discount market customer.

• Completed divestiture of cannabis business for $3 million, resulting in a $3.7 million gain and a shift to a single beverage segment.

• Expanded distribution with 50 new distributors, entry into 829 convenience channels, and strong momentum in zero sugar and HD9 THC products.

• Launched innovative products and partnerships, including Jones Zero Cola, Jones Zero Root Beer, and collaborations with Crayola and Fallout.

Financial highlights

• Q2 2025 revenue: $4.9 million, down from $6.7 million in Q2 2024.

• Gross profit margin was 33.3%, nearly flat year-over-year, supported by cost reduction efforts.

• Operating expenses decreased to $2.4 million, down 37–41% year-over-year, driven by reductions in selling, marketing, and G&A expenses.

• Adjusted EBITDA improved to negative $0.5 million, a 56% year-over-year improvement.

• Cash balance was $0.7 million as of June 30, 2025.

Outlook and guidance

• Management anticipates revenue growth in Q3 and Q4 2025, driven by new product launches, expanded distribution, and club channel entry.

• Expects growth from core soda, HD9 THC (including HD9 Zeros), Spike Jones, and modern soda formats, with expansion into direct-to-consumer, club, food service, and convenience channels.

• Plans to increase marketing spend in the second half of 2025 to support brand awareness, especially for Pop Jones.