Zevia Q2 2026 earnings: Pricing supports sales as GAAP loss widens

Zevia PBC (NYSE: ZVIA) reported Q2 2026 net sales of $45.0 million, up 1.1% from $44.5 million, while diluted loss per share widened to $0.04 from $0.01. Pricing offset a 3.7% volume decline and supported a modest gross-margin increase, but higher equity-based compensation, restructuring costs and general and administrative expenses deepened the GAAP loss.

Core earnings data

Sales remained close to the prior-year level because pricing actions compensated for lower volume, which management attributed mainly to comparisons against distribution load-ins in Q2 2025. Adjusted EBITDA improved, but GAAP and adjusted net losses both widened under different expense definitions.

Adjusted net loss and adjusted EBITDA are non-GAAP measures. Zevia’s adjusted net loss excludes restructuring and certain litigation expenses, while adjusted EBITDA also excludes items including equity-based compensation, depreciation and amortization, taxes, and other income or expense.

Pricing protected gross margin, but compensation and restructuring widened the GAAP loss

Net sales increased despite the 3.7% decline in volume because of pricing actions. The same pricing benefit lifted gross margin by 20 basis points to 48.9%, although higher aluminum costs absorbed part of the improvement.

Operating expenses increased to $24.9 million from $22.7 million. Equity-based compensation more than doubled to $2.1 million from $1.0 million, primarily because of awards connected with Zevia’s brand endorsement agreement with Cardi B. Restructuring expense reached $1.0 million, compared with $31,000 a year earlier, reflecting contract termination costs and freight expenses associated with transferring inventory under productivity initiatives.

General and administrative expense also rose to $8.6 million from $8.1 million because of higher personnel and outside-service costs. In contrast, selling and marketing expense declined to $13.1 million from $13.4 million. Savings in warehousing, repackaging, distribution fees and other direct selling costs were partly offset by higher fuel-related freight costs, while marketing investment increased by $0.3 million to $5.0 million.

These differences explain why adjusted EBITDA improved while the GAAP loss widened. Adjusted EBITDA excludes both equity-based compensation and restructuring costs, whereas adjusted net loss continues to include equity-based compensation and therefore also deteriorated year over year.

Cash flow and balance sheet

Zevia disclosed cash flow only for the first six months of 2026, rather than separately for Q2. Six-month operating cash flow improved to positive $4.0 million from negative $4.3 million a year earlier, even though the company recorded a $5.3 million six-month net loss.

Cash generation was supported by $3.0 million of non-cash equity-based compensation and favorable working-capital movements. Inventory declined by $2.9 million during the first half, accounts receivable decreased by $1.1 million and accounts payable increased by $2.6 million.

At June 30, 2026, Zevia held $28.5 million in cash and cash equivalents, up from $25.4 million at the end of 2025. The company had no outstanding debt and had access to an unused $20 million credit line.

Outlook

Zevia maintained its full-year 2026 outlook while introducing quantitative guidance for Q3. The Q3 adjusted EBITDA forecast indicates a near-term reversal from the positive $0.5 million recorded in Q2, although the company did not disclose the specific drivers behind that expected change.

Zevia did not provide GAAP equivalents for its adjusted EBITDA outlook because stock compensation, restructuring charges, litigation expenses and other reconciling items are uncertain and potentially significant.

Management commentary

New President and CEO Alexandre Ruberti identified four immediate priorities: evolving the go-to-market strategy, sharpening and scaling the brand identity, maintaining financial discipline and establishing a performance-driven culture. He pointed to first-half net sales growth of 10.4%, a six-month figure that should not be confused with Q2’s 1.1% growth.

CFO Girish Satya emphasized improved profitability and commercial execution alongside targeted investments intended to strengthen Zevia’s capabilities. Management did not provide additional quantitative targets beyond the formal outlook.

Recent insider transactions

The supplied insider data reports 10 purchase or acquisition transactions totaling 2,952,600 shares and four sales totaling 2,375,670 shares over the past six months. That produced a net increase of 576,930 shares, or 14.1%, with total insider holdings listed at approximately 4.66 million shares.

Recent individual records were dominated by zero-price stock awards, while the two disclosed cash sales had reported transaction values of approximately $4.1 million and $166,068.

A zero-dollar grant price does not mean the awarded shares had no economic value. The supplied records do not provide share counts for the individual grants, and the aggregate acquisition data should not be treated as equivalent to open-market insider buying.

Risks investors should monitor

• Volume remains under pressure: Q2 volume fell 3.7%. Although the decline reflected a difficult comparison with prior-year distribution load-ins, continued weakness could make sales growth more dependent on pricing.
• Packaging and freight costs could constrain margins: Higher aluminum prices partly offset the benefit of pricing, while increased fuel rates raised freight expense.
• GAAP profitability remains sensitive to compensation and restructuring: Equity-based compensation more than doubled, and restructuring costs rose to $1.0 million. Stock awards may also have a dilutive effect.
• Q3 profitability is expected to weaken: Management forecasts an adjusted EBITDA loss of $3.0 million to $3.5 million after positive adjusted EBITDA in Q2.
• Cash conversion benefited from working capital: Lower inventory and receivables and higher accounts payable supported first-half operating cash flow, and similar benefits may not recur at the same level.

Conclusion

Zevia’s Q2 sales and gross margin benefited from pricing, but lower volume and increased compensation, restructuring and administrative costs widened the GAAP loss. Positive adjusted EBITDA and improved first-half operating cash flow provided some operating and liquidity support, while Q3 guidance shifts attention to whether the company can control near-term losses without undermining its commercial and brand investments.