Shares of Jones Soda Co. JSDA have fallen 6.8% since releasing fourth-quarter 2024 outcomes, underperforming the S&P 500 index’s 1.1% development. Over the previous month, the inventory declined 19% in contrast with the S&P 500’s 3.1% slide.
Earnings & Income Efficiency
The corporate posted a big year-over-year decline in fourth-quarter revenues to $2.8 million from $3.5 million as distribution transitions and the lack of a key low cost retail buyer took a toll. The online loss widened sharply to $4.6 million, or 4 cents per share, from $1.5 million, or 2 cents per share, within the prior 12 months.
Adjusted EBITDA deteriorated 12 months over 12 months to damaging $4.4 million from damaging $1.4 million. For 2024, nevertheless, Jones Soda delivered a 15% income improve to $19.1 million from $16.7 million in 2023, led by energy in its core beverage section and development in Mary Jones branded merchandise. But, the web loss deepened to $9.9 million, or 9 cents per share, from $4.9 million, or 5 cents per share, the earlier 12 months.
Jones Soda Co. Worth, Consensus and EPS Shock
Jones Soda Co. price-consensus-eps-surprise-chart | Jones Soda Co. Quote
Growth in Core & Adjoining Classes
Jones Soda’s beverage division generated $17.8 million in 2024 revenues, rising 15.6% 12 months over 12 months. Notably, the hemp-derived HD9 merchandise contributed $1.7 million of their first 12 months in the marketplace. The hashish (THC) section additionally expanded modestly, delivering $1.3 million in revenues versus $1.2 million in 2023, supported primarily by Canada gross sales.
Nonetheless, the corporate’s gross margin compressed considerably to 21.3% from 29.1% the 12 months prior because of a $1.2-million stock write-off associated to discontinued low-performing merchandise. Working bills climbed to $14 million from $9.7 million in 2023, pushed by stepped-up promoting and advertising and marketing efforts, in addition to larger authorized prices totaling round $1 million. Administration emphasised that this stuff had been largely non-recurring, aiming to revive expense self-discipline in 2025.
Management Reset & Centered Technique
New CEO Scott Harvey, appointed in February 2025, described the corporate’s efficiency as “examined by operational challenges and poor monetary self-discipline” within the second half of the 12 months. He pressured that fast corrective actions have been taken, together with tighter price controls and a give attention to money move optimization. Harvey, a seasoned government with over 4 a long time of expertise in shopper items and meals service, reiterated the corporate’s development pillars — core soda, trendy soda and grownup beverage.
CFO Brian Meadows, who joined the management crew this 12 months, pinpointed three essential drivers behind the broader internet loss — the stock write-off, authorized bills, and elevated spending on product innovation and advertising and marketing. Meadows highlighted that the administration crew tightened spending controls and emphasised ROI-driven decision-making transferring ahead.
Monetary Headwinds & Operational Changes
Income softness within the fourth quarter mirrored each exterior and inner hurdles, notably the shift to a brand new distributor in Canada and the lack of a U.S. low cost retail account. The 12 months additionally noticed heightened promotional spending, which administration contends laid a basis for future development however strained near-term profitability. The fourth-quarter stock impairment added strain tied to the discontinuation of underperforming merchandise.
Authorized bills emerged as one other burden however have since been resolved. Meadows reported that administration has overhauled contract approval processes, with solely the CEO and CFO licensed to finalize agreements, aiming to stop related prices going ahead.
Progress Initiatives
Administration expressed optimism about bettering gross margins and operational effectivity. Harvey pointed to shopper curiosity in trendy soda and grownup drinks as promising tailwinds, citing the early success of the Mary Jones HD9 line and the launch of Jones Zero Cola throughout greater than 10,000 shops nationwide.
To assist its development ambitions, Jones Soda secured a $5-million revolving credit score facility in February 2025, enhancing liquidity to fund stock and gross sales enlargement plans.
Different Developments
Alongside government adjustments, Jones Soda expanded its retail footprint, growing its distribution community from 75 to 81 companions throughout 37 states. Comfort retailer placements additionally grew to just about 2,000 shops, together with a number of Circle Ok divisions and DK Comfort Shops.
The corporate broadened its product portfolio by introducing Fiesta Jones and Pop Jones traces, focusing on the fast-growing purposeful beverage class. Jones Soda plans to roll out further zero-calorie flavors below the Jones Zero banner later this 12 months. Within the hashish area, the corporate prolonged its attain into Missouri, the fifth-largest authorized hashish market in the US, and signed 4 distribution companions to enter two further states.
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