Zevia’s rebound is official as the stevia-sweetened beverage maker reported its first positive adjusted EBITDA gain in four years during its Q2 2025 earnings report today.
The brand announced adjusted EBITDA of $0.2 million, up from a $4.4 million loss this time last year. This comes as net sales leapt 10.1% year-over-year to $44.5 million and gross profit margin improved 6.8 percentage points to 48.7%.
Net losses were also reined in at just $0.7 million, versus a full $7 million loss in Q2 2024.
“We are pleased with our performance in the second quarter with net sales and adjusted EBITDA exceeding our expectations,” said president and CEO Amy Taylor in a statement. “Our distinctive marketing is driving engagement, product innovation is resonating with new and existing customers, and we are building distribution beyond historical peak levels with strong sell-through across channels. Looking ahead, we are well underway in laying the groundwork for future growth and sustained profitability.”
The quarter saw Zevia extend its distribution with Walmart and “one customer in the drug channel,” with higher price realization propelling growth, although it was partially offset by higher promo activity in retail.
Zevia has long struggled with declining volumes and sales, but the company projected that a return to growth was on the horizon last year.
The company’s ongoing Productivity Initiative has also contributed to the stronger performance, with selling expenses down 7.1% in Q2 thanks to lower freight and warehousing costs, with annual savings last year totalling around $15 million, Taylor said during a call yesterday afternoon.
Taylor highlighted innovations such as variety packs and flavors like Orange Creamsicle and Strawberry Lemon Burst as also driving incremental sales growth, while summer marketing campaigns leaning on influencers and in-store promotion pushed velocities higher.
“We are complimenting our legacy classic soda flavors and more nostalgic launches with new on-trend fruity flavors,” Taylor said. “Strawberry Lemon Burst and Orange Creamsicle have been our most successful launches to date. On the heels of these best-ever innovation launches for our brand we have expanded our pipeline with the launches of Peaches & Cream online and a second exclusive at retail.”
The innovation has been bolstered by a packaging refresh which Taylor said does more to promote the brand’s health benefits while providing a more vibrant look on shelf.
Zevia is also continuing to focus on expanding its presence in retail, particularly as it makes a stronger push into the convenience channel, Taylor added.
“In convenience we’re pleased with the initial response across a growing network of regional chains and with regional tests at national players,” Taylor added. “It’s still very early but recent scan data indicates our performance is on par with larger and more established SKUs which is encouraging and also an indicator of Zevia’s potential in impulse channels.”