Zevia raises FY26 sales guidance as third-quarter revenue jumps 18.4%
The beverage maker narrowed its adjusted EBITDA loss, secured a $20 million growth equity investment and revised its full-year profitability outlook to break-even or a small loss.
USA – Zevia PBC has raised its full-year fiscal 2026 sales guidance after reporting an 18.4% increase in third-quarter net sales to US$48.3 million, supported by strong performance in club retail channels and e-commerce platforms.
The beverage company narrowed its adjusted EBITDA loss to $900,000 from $1.7 million in the corresponding quarter last year, outperforming management expectations.
Gross margin increased by 80 basis points to 46.4%, reflecting improved pricing acceptance and lower fuel costs than initially forecast.
Volume contributed 14 percentage points to the sales increase, while pricing accounted for the remaining four percentage points.
Following the performance, Zevia raised its FY26 net sales guidance to between $177 million and $179 million, representing approximately 10% growth at the midpoint.
The revised outlook factors in approximately $8.5 million in additional costs associated with fuel prices and higher aluminium expenses, down from the previously anticipated $11 million.
Zevia also revised its full-year adjusted EBITDA guidance to a range of break-even to a loss of $400,000, indicating the possibility of achieving EBITDA break-even this year.
“We delivered a strong quarter, raised our outlook and announced a growth equity investment that strengthens our ability to accelerate our strategic reset,” said CFO Girish Satya.
Last month, Zevia secured a $20 million growth equity investment from a fund managed by investment firm GP Investments. The transaction followed a strategic business review conducted by Piper Sandler, which identified the capital injection as the best path forward to accelerate shareholder value creation.
In August, activist investor Kanen Wealth Management called on Zevia to undertake a strategic review of its business.
Satya said the investment would provide greater flexibility to support the company’s growth priorities.
“With greater flexibility to invest in innovation, portfolio expansion, distribution and brand building, we believe we are well positioned to move faster against our growth priorities and capture the opportunities ahead,” he said.
For the fourth quarter of FY26, Zevia expects net sales of between $37.5 million and $39.5 million, reflecting seasonal weakness and retailer inventory adjustments.
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