Jones Soda Co.

Revenue increased $5.9 million, or 108%, to $10.2 million in Q2 2026 from $4.9 million in Q2 2025. Gross profit rose to about $2.8 million from $1.6 million, while gross margin declined to 27.5% from 33.3%. The company reported a net loss of $650,000, or $(0.01) per share, versus net income of $2.6 million, or $0.02 per share, last year; prior-year net income included a one-time $3.7 million gain on the cannabis business disposition. Adjusted EBITDA was a loss of $312,000, an improvement from a $739,000 loss a year ago. For the first half of 2026, revenue was $22.6 million, gross profit was $6.7 million, and adjusted EBITDA was positive $0.2 million. Management raised full-year fiscal 2026 revenue growth expectation to at least 80% from 60% and introduced guidance for positive adjusted EBITDA in fiscal 2026. The company said about $2 million of shipments shifted from Q2 into July, and those sales all shipped in July. Cash was $2.4 million at June 30, 2026, and subsequent private placements raised about $1.9 million in gross proceeds; Jones also cited a $10 million credit facility with Two Shores Capital.

Scott Harvey framed the quarter as evidence that Jones is becoming a more disciplined and more profitable business while still growing quickly. He emphasized the core craft soda business, Zero Sugar expansion, D2C improvements, and branded collaborations as the main pillars of the strategy. His tone was upbeat but disciplined, repeatedly saying the company will prioritize the right opportunities rather than chase every idea.

Brian Meadows focused on the financial leverage from higher volumes, but also on the margin hit from freight. He said gross margin fell 580 basis points to 27.5% because of higher freight charges tied to oil prices, but the company has already renegotiated lanes with reductions of 10% to 36% in key regions and expects margins back in the 30s in the second half if WTI stays around $80 per barrel. He also highlighted improved working capital metrics: AR days improved to 29.4 from 78.4, inventory turns improved to 6.8x from 2.8x, and DPO moved to about 60 days from 122 days. He said cash was $2.4 million at quarter-end, plus roughly $1.9 million from post-quarter private placements, and reiterated confidence in positive adjusted EBITDA for fiscal 2026.

Analysts pressed management on whether Fallout could reach big-box retailers, how Rap Snacks would be distributed, and what its 2027 contribution could look like. Scott said Fallout is unlikely to be sold in the same full-pack format at other retailers, but single bottles may appear, while Rap Snacks could open doors in convenience, bodegas, second-tier grocery, and some club channels. He said Rap Snacks should launch in 2027, likely in the first or second quarter, and could be a meaningful contributor if executed well. Management also said Jones Zero Sugar is selling strongly at Costco Canada, Walmart 4-packs are performing above expectations, and the D2C fulfillment transition should improve shipping reliability after past pain points.