Jones Soda managed to arrest net losses and start generating traction in cannabis drinks in Q1, but lower sales revenue dragged on gross profit as the craft soda company attempts its latest turnaround.
Revenue fell from $5 million in Q1 2024 to $4.6 million in the first quarter of 2025, attributed to a large one-time pipeline fill, while net losses decreased to just under $1 million (compared to $1.9 million in the same period last year), mainly due to a 20% savings from lower selling, general and administrative expenses. Gross profit slipped from $1.9 million to $1.7 million.
Beverage revenue was around $4.2 million in the first quarter, down from approximately $4.6 million in Q1 2024.
“The first quarter of 2025 was the beginning of the strategic turnaround for Jones, and we are off to a good start,” said new CEO Scott Harvey, speaking on an earnings call Thursday for the first time since joining the company in February. His mandate to increase efficiencies and reduce costs was reflected in lower total operational expenses in Q1, $2.4 million compared to $3 million in the year-ago period.
Alongside new CFO Brian Meadows, Harvey has been tasked with revitalizing the 30-year-old company and reversing negative financial trends to “transform Jones from a craft soda company into a full-fledged beverage company.” The company’s strategy focuses on three core pillars: modern soda (Jones Zero Cola, prebiotic Pop Jones and “Latin-inspired” Fiesta Jones), adult beverage (Spiked Jones and THC-infused Mary Jones) and craft soda, where 7.5 oz. Jones Minis accompany the core 12 oz. glass bottles.
In modern soda, the brand pointed to Jones Zero Soda’s debut in March in over 10,000 stores; new flavors Root Beer and Dr. Jones are set to join the line later this year.
In cannabis, Mary Jones line is starting to make some inroads; hemp product sales were around $0.9 million in the quarter, the four consecutive quarterly sales gain. Drinks are now in Missouri via Kansas City-based distributor CLOVR, and Jones’ strategic plan “calls for an increased focus on HD9 product opportunities and a review of the strategic alternatives for the Company’s cannabis business.” But revenue was still relatively muted, slipping from $410,000 in Q1 2024 to $380,000 this year. Harvey added that Mary Jones has signed 32 distribution partners, including 16 in the past quarter alone.
According to a transcript of the call, Meadows confirmed that Jones does not plan to provide quarterly or annual financial guidance, including revenue and profitability targets, for this year.