Zevia’s third quarter was marked by a significant positive market reaction, reflecting the company’s ability to drive double-digit revenue growth and outperform Wall Street’s expectations. Management attributed the momentum to marketing campaigns that resonated with consumers, new product launches like Strawberry Lemon Burst, and expanded distribution, particularly in large retail partners such as Walmart and club channels. CEO Amy Taylor emphasized that, "our initiatives are positioning us for durable growth," and highlighted that proprietary survey data showed double-digit gains in both brand consideration and purchase intent.
Is now the time to buy ZVIA? Find out in our full research report (it’s free for active Edge members).
Zevia (ZVIA) Q3 CY2025 Highlights:
- Revenue: $40.84 million vs analyst estimates of $39.39 million (12.3% year-on-year growth, 3.7% beat)
- Adjusted EPS: -$0.04 vs analyst estimates of -$0.05 ($0.01 beat)
- Adjusted EBITDA: -$1.72 million vs analyst estimates of -$3.57 million (-4.2% margin, 51.7% beat)
- Revenue Guidance for Q4 CY2025 is $40 million at the midpoint, roughly in line with what analysts were expecting
- EBITDA guidance for the full year is $5.25 million at the midpoint, above analyst estimates of -$8.8 million
- Operating Margin: -7%, up from -8.2% in the same quarter last year
- Sales Volumes rose 12.6% year on year, in line with the same quarter last year
- Market Capitalization: $182 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Zevia’s Q3 Earnings Call
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James Salera (Stephens Inc.) inquired about the impact of Walmart Canada expansion on the sales outlook. CEO Amy Taylor clarified it is a positive indicator but not the primary growth driver for the near term, suggesting broader distribution and product innovation are more significant contributors.
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James Salera (Stephens Inc.) also asked about the timing and rollout of new packaging. Taylor explained the full transition will occur in early 2026, with a rolling launch rather than a hard cutover.
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Sarang Vora (Telsey Advisory Group) questioned household penetration drivers and new customer demographics. Taylor detailed gains in millennial families and noted the category’s 20% penetration versus Zevia’s 5%, indicating substantial runway.
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Sarang Vora (Telsey Advisory Group) followed up on the energy drinks segment. Taylor stated the company’s focus remains on soda, but acknowledged potential for energy drinks growth in the future, particularly after establishing stronger brand recognition in soda.
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Andrew Strelzik (BMO Capital Markets) asked about seasonality trends and baseline revenue expectations for the next year. CFO Girish Satya attributed the improved baseline to distribution gains and incremental club channel opportunities, rather than reduced seasonality.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the effectiveness of new packaging and flavor rollouts in driving consumer trial and repeat purchases; (2) Zevia’s ability to sustain margin improvements despite ongoing aluminum tariff pressures and marketing investments; and (3) further gains in household penetration and shelf space, particularly in key retail and club channels. Performance in the convenience channel and the pace of expansion in Canada will also be important indicators.
Zevia currently trades at $2.72, up from $2.36 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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