Jones Soda Co.

Jones reported Q2 2026 revenue of $10.2 million, up 108% from $4.9 million a year ago. Gross profit was $2.8 million, up 72% from $1.6 million, while gross margin declined to 27.5% from 33.3%. Net loss was $650,000, or negative $0.01 per share, versus net income of $2.6 million, or $0.02 per share, in the prior year, which included a one-time $3.7 million gain on the disposition of the cannabis business. Adjusted EBITDA was a loss of $312,000, improved from a loss of $739,000 in the prior-year quarter; for the first half, 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 guidance from 60% to at least 80% and introduced full-year positive adjusted EBITDA guidance; it also said the approximately $2 million of shipments that moved out of Q2 all shipped in July and should help the second half, which it expects to be one of the strongest periods in company history.

Scott Harvey framed the quarter as evidence that Jones is becoming a stronger, more disciplined business while still growing quickly. He emphasized three strategic pillars: core craft soda, better-for-you Zeros, and branded collaborations that can open new retail doors and new consumers. He was especially upbeat about Rap Snacks, saying it could be broader than a limited edition product and may extend Jones into wider consumer lifestyle opportunities over time. His tone was confident and forward-looking, but he repeatedly stressed discipline in capital allocation and product selection.

Brian Meadows focused on the mechanics behind the quarter’s improvement and the path to margin recovery. He said the gross margin decline to 27.5% was mainly driven by higher freight charges tied to oil prices, but the company has already secured lower freight rates in key lanes, with reductions of 10% to 34% in the Southeast, 35% in the Midwest, and 36% in the Northeast; he expects gross margin to return to the 30s in the second half if WTI stays around $80 per barrel. He also highlighted improving working capital: cash was $2.4 million at June 30 versus $3.6 million at year-end, subsequent private placements raised about $1.9 million, AR days fell to 29.4 from 78.4, inventory turns improved to 6.8x from 2.8x, and DPO improved to about 60 days from 122 days. He added that the company filed an updated S-1 and is still considering an uplisting, which he said may require raising $10 million to $15 million.

In Q&A, management addressed whether Fallout could expand into big-box retailers and said they expect only selective single-bottle placements rather than the full club pack format, while some other collaborations such as Rap Snacks or Crayola could have broader distribution. They said Rap Snacks should launch in 2027, likely in the first or second quarter, and could be a meaningful contributor if execution is right. On Zeros, Scott said Costco Canada sell-through was strong and reorder shipments are already underway, with broader U.S. distribution a priority because fans want it in more places. They also said Walmart 4-packs are performing above expectations, gross margin should recover in the back half as freight savings flow through, D2C fulfillment has been moved to a more capable 3PL, and the uplist remains a back-half-of-year focus.