1. JSDA's revenue fell to $4.6 million, compared to $5 million previous quarter. 2. The net loss decreased to $0.9 million, improving from $1.2 million. 3. Adjusted EBITDA improved by 39%, signaling effective cost management strategies. 4. Strategic focus includes expanding zero-calorie products and cannabis market presence. 5. New CEO and CFO appointed to drive the company's strategic turnaround.
While revenue declined, the management's strategic cost-management led to improved EBITDA. Historical instances, such as beverage companies successfully restructuring and improving profit margins, suggest potential for future growth.
The article discusses financial results and strategic hires, directly impacting company outlook and investor sentiment.
The strategic initiatives outlined may take time to materialize into revenue growth, particularly within competitive markets.
Jones Soda Co. (CSE: JSDA) (OTCQB: JSDA) ("Jones Soda" or the "Company"), today announced its financial results for the first quarter ended March 31, 2025.
Adjusted EBITDA is defined as net income (loss) from operations before interest expense, interest income, taxes, depreciation, amortization and stock-based compensation and is a non-GAAP measure (reconciliation provided below).
Corporate
Beverages Segment
Cannabis (THC) Segment
"The first quarter of 2025 was the beginning of the strategic turnaround for Jones, and we are off to a good start" said Scott Harvey, CEO of Jones Soda. "Since stepping into leadership in February, we've moved quickly to implement meaningful improvements across key areas of the business. We optimized our supply chain operations, tightened P&L oversight, and instilled disciplined cost management measures which have already begun to yield significant results. These early actions reflect our commitment to operational rigor and set the stage for continued momentum in the quarters ahead."
"We remain focused on executing our strategic plan with clear, measurable goals to scale the business while preserving the beloved Jones brand and image. We have leaned into unlocking more efficiencies across our three main categories – Core Soda, Modern Soda, and Adult Beverage - through investing in high-growth opportunities and managing our cost structure with disciplined, ROI-driven decisions. These initiatives represent a commitment to rebuilding sound economic discipline, ensuring SG&A and other costs don't undermine our expansion. With strong industry momentum and the right team in place, the future is bright for Jones."
Revenue in the first quarter of 2025 was $4.6 million compared to $5.0 million in the prior year period. The decline in revenue was primarily attributable to a large one-time pipeline fill in the first quarter of 2024.
The Company's beverages segment, which includes craft soda, HD9, Pop Jones and Fiesta Jones brands, generated approximately $4.2 million in revenue in the first quarter of 2025 compared to approximately $4.6 million in revenue in the first quarter of 2024, including $0.9 million from sales of its HD9 products in the first quarter of 2025.
The Company's Cannabis (THC) segment, which includes Mary Jones branded cannabis products, generated approximately $380,000 in revenue in the first quarter of 2025 compared to approximately $410,000 in revenue in the first quarter of 2024.
Gross profit for the first quarter of 2025 was $1.7 million compared to $1.9 million in the year-ago period. The decline was primarily driven by the lower sales revenue.
Total operating expenses in the first quarter of 2025 were $2.4 million compared to $3.0 million in the year-ago period. The decrease was primarily a result of the rigorous cost management and supply chain optimization efforts by new management in their first months.
Net loss decreased to $0.9 million, or $(0.01) per share, compared to a net loss of $1.2 million, or $(0.01) per share.
The decrease in net loss was primarily driven by the decline in selling, general, and administrative expenses and were partially offset by the decrease in revenue.
Adjusted EBITDA improved 39% to $(0.6) million in the first quarter of 2025 compared to $(1.0) million in the prior period.
Adjusted EBITDA is defined as net income (loss) from operations before interest expense, interest income, taxes, depreciation, amortization and stock-based compensation and is a non-GAAP measure (reconciliation provided below).
Jones Soda will hold a conference call today at 4:30 p.m. Eastern time to discuss its results for the first quarter ended March 31, 2025.
Chief Executive Officer Scott Harvey and Chief Financial Officer Brian Meadows will host the conference call.
Date: Thursday, May 15, 2025
Time: 9:00 a.m. Eastern time (6:00 a.m. Pacific time)
Toll-free dial-in number: 1-877-407-0784
International dial-in number: 1-201-689-8560
Conference ID: 13752687
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860.
The conference call will be broadcast live and available for replay here and via the investor relations section of the Company's website at www.jonessoda.com.
A replay of the conference call will be available after 11:30 a.m. Eastern time on the same day through April 15, 2025.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13752687
This press release contains disclosure of the Company's Adjusted EBITDA which is not a United States Generally Accepted Accounting Principle ("GAAP") financial measure...
Jones Soda Co.® (CSE: JSDA, OTCQB: JSDA) is a leading craft soda manufacturer with a subsidiary dedicated to cannabis products...
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995...
(In thousands, except share and per share data) (Unaudited)
March 31, 2025 (unaudited)
December 31, 2024
| ASSETS | ||
|---|---|---|
| Current assets: | ||
| Cash | $735 | $1,533 |
| Accounts receivable, net of allowance of $31 and $77, respectively | $3,635 | $2,162 |
| Inventories, net | $3,908 | $3,538 |
| Prefunded insurance premiums from financing | $128 | $199 |
| Prepaid expenses and other current assets | $1,311 | $948 |
| Total current assets | $9,717 | $8,380 |
| Other assets | ||
| 22 | 35 | |
| Total assets | $9,834 | $8,523 |
| Three Months Ended March 31, | 2025 | 2024 |
|---|---|---|
| Net Revenue | $4,608 | $4,999 |
| Cost of goods sold | (2,891) | (3,107) |
| Gross profit | 1,717 | 1,892 |
| Operating expenses: | ||
| Selling and marketing | 1,189 | 1,492 |
| General and administrative | 1,209 | 1,545 |
| Total operating expenses | (2,398) | (3,037) |
| Loss from operations | (681) | (1,145) |
| Other income (expenses): | ||
| Interest income | 1 | 9 |
| Interest expense | (78) | - |
| Other expense | (94) | (6) |
| Total other (expense) income | (171) | 3 |
| Loss before income taxes | (852) | (1,142) |
| Income tax expense, net | - | (10) |
| Net loss | (852) | (1,152) |
| Net loss per share - basic and diluted | $(0.01) | $(0.01) |
| Weighted average common shares outstanding - basic and diluted | 115,865,227 | 101,477,735 |
| Three Months Ended March 31, | 2025 | 2024 |
|---|---|---|
| GAAP net income (loss) | $(852) | $(1,152) |
| Stock-based compensation | 91 | 158 |
| Finance costs | 78 | - |
| Depreciation | 13 | 15 |
| Income tax expenses | - | 10 |
| Others | 94 | 6 |
| Non-GAAP Adjusted EBITDA | $(576) | $(963) |
SOURCE Jones Soda Co.