Zevia PBC (ZVIA) Q4 2024 earnings summary

Executive summary

• Q4 2024 net sales grew 4.4% year-over-year to $39.5 million, driven by expanded Walmart distribution, higher volumes, and brand elevation through strategic marketing and product innovation.

• Full year 2024 net sales declined 6.8% to $155.1 million, mainly due to lost distribution in club and mass channels, partially offset by Walmart gains.

• Gross margin reached a record 49.2% in Q4 2024, up 850 basis points year-over-year, reflecting productivity initiatives and improved inventory management.

• Net loss improved to $6.8 million in Q4 and $23.8 million for the year; adjusted EBITDA loss narrowed to $3.9 million in Q4 and $15.2 million for the year.

• Focused on the Better For You Soda category, leveraging zero sugar, natural sweeteners, and accessible pricing.

Financial highlights

• Q4 2024 gross profit was $19.4 million, with gross margin at 49.2%, up from 40.7% in Q4 2023.

• Full year 2024 gross profit was $71.9 million, gross margin 46.4%, up from 44.9% in 2023.

• Q4 selling and marketing expenses rose to $16.5 million (41.7% of sales), reflecting increased marketing investment.

• Q4 general and administrative expenses fell to $6.8 million (17.3% of sales) due to productivity initiatives.

• Operating cash flow improved significantly, with Q4 2024 at $(1.0) million versus $(6.9) million in Q4 2023.

Outlook and guidance

• FY 2025 net sales expected between $158 million and $163 million, reflecting distribution gains and product line discontinuations.

• Adjusted EBITDA loss for 2025 projected at $8 million–$11 million, with gross margins in the high 40% range.

• Q1 2025 net sales guidance of $36–$38 million, with adjusted EBITDA loss of $5.6–$6 million, reflecting increased marketing spend and distribution losses.

• Targeting positive adjusted EBITDA by 2026, with $15 million in annualized savings from productivity initiatives and an additional $2 million in cost savings expected in 2025–2026.