Zevia reports dip in Q1 2025 sales but exceeds EBITDA expectations
Zevia posts a 2% decline in quarterly revenue but achieves improved margins and stronger adjusted EBITDA through cost savings and innovation.
UK – Zevia, a beverage company focused on zero-sugar, clean-label products, reported a 2.0% decline in net sales for the first quarter ended March 31, 2025, with revenue totaling US$38.0 million.
The drop in sales was attributed to increased promotional activity at retail outlets, partially offset by improved volumes and pricing actions.
Despite the sales decline, Zevia achieved a gross profit margin of 50.1%, up from 45.7% in the first quarter of 2024. The improvement was driven by reduced product costs and better inventory management, although higher promotional spending partially offset the gains.
Selling and marketing expenses rose slightly to US$15.3 million from US$15.1 million the previous year. The increase reflected the company’s continued investment in marketing campaigns to boost brand awareness.
These investments were made possible by savings from the company’s ongoing Productivity Initiative, which helped reduce direct selling expenses.
Zevia reported an adjusted EBITDA loss of US$3.3 million, marking a year-over-year improvement of US$2.2 million. The company exceeded expectations on this metric, driven by strong consumer engagement and successful product innovations.
CEO Amy Taylor highlighted the early success of Zevia’s new variety pack, now the best-selling SKU at Walmart. She also noted the positive reception of a new marketing campaign that generated record engagement levels.
Looking ahead, Zevia reaffirmed its full-year 2025 guidance. The company expects net sales to range from US$158 million to US$163 million and an adjusted EBITDA loss between US$8 million and US$11 million.
For the second quarter of 2025, net sales are projected between US$40.5 million and US$42.5 million, with an adjusted EBITDA loss expected between US$2.2 million and US$2.9 million.
Taylor emphasized the company’s focus on its core strategic pillars: enhancing marketing to sharpen brand identity, expanding distribution, and driving product innovation, particularly around taste improvements.
Zevia continues to position itself for long-term growth within the expanding better-for-you beverage segment.
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