Reed's (REED) Q1 2026 earnings summary

Executive summary

• Net sales declined to $7.1 million in Q1 2026 from $10.0 million year-over-year, driven by lower volumes and higher promotional allowances.

• Gross profit fell to $0.7 million with a gross margin of 10%, down from $3.4 million and 34% in Q1 2025.

• Net loss widened to $6.5 million ($0.55 per share) from $2.0 million ($0.27 per share) year-over-year.

• Management initiated corrective actions early in 2026 to address operational and commercial challenges.

Financial highlights

• EBITDA was $(6.2) million, compared to $(1.7) million in Q1 2025.

• Delivery and handling costs decreased to $2.57 per case from $3.17 per case year-over-year.

• SG&A expenses increased to $5.8 million from $3.5 million, mainly due to investments in personnel and marketing.

• Cash used in operations was $5.8 million, up from $5.4 million in the prior year.

• Cash balance at March 31, 2026 was $4.6 million, down from $10.4 million at year-end 2025.

Outlook and guidance

• Management does not view Q1 2026 performance as indicative of full-year expectations, citing transitional factors.

• Corrective actions are expected to improve execution, margins, and topline momentum through 2026.