Jones Soda (OTCMKTS:JSDA) executives pointed to a “transformational” 2025, driven by expanded distribution and a surge in licensed product sales, while outlining a 2026 strategy centered on execution, operational discipline, and selective growth across core soda, modern soda, and adult beverage lines.
Fourth-quarter surge led by Fallout club and DTC sales
CEO Scott Harvey said 2025 “culminat[ed] in a strong fourth quarter,” with fourth-quarter revenue of $11.7 million, which he described as “the highest gross sales Jones Soda has ever delivered in its history.” Management attributed the spike primarily to sales of Fallout-licensed products, including shipments of “Fallout the Vault-Tec packs to club stores nationwide,” along with initial shipments to select locations in Canada.
Full-year 2025 revenue up 42%; profitability metrics improved
Management reported full-year 2025 revenue of $25.3 million, up from $17.8 million in 2024, a 42% increase. The company’s finance lead said Fallout licensed products sold through the club channel and direct-to-consumer channels were the main drivers, with additional contribution from Pop Jones SKUs.
On margins, the company reported an adjusted gross margin (a non-GAAP measure) of 32% for 2025, compared with 27% in the prior year. Management said results included $1.2 million in one-time inventory write-downs tied to the HD9 business and inventory “stranded with a co-man we had a legal dispute with.” The executive added that the “majority of the write-down” was tied to federal legislative changes enacted in November 2025 affecting hemp-derived products, prompting Jones to mark down year-end HD9 inventories to reflect current marketplace conditions.
Management attributed the year-over-year adjusted margin improvement to two main factors:
- A reduction in trade spend, which management said fell from 20% in 2024 to about 10% on average in 2025, supported by a mix shift toward channels with lower trade spend (club and DTC) and the exit of a high trade-spend DSD relationship in Canada, effective after Q1 2025.
- Improvements in freight and warehousing, which management said declined from 17% of gross sales in 2024 to 16% in 2025.
For the fourth quarter, adjusted gross margin was 32% versus 10% a year earlier. Management said trade spend as a percentage of gross sales fell from 33% in Q4 2024 to 10% in Q4 2025, while cost of goods sold as a percentage of gross sales declined from 71% to 54% over the same period.
Operating discipline was also a central theme. Management said SG&A for the full year fell 14%, and that excluding higher broker payments and licensing costs tied to higher revenue, SG&A fell 20% year over year. The company said it reduced SG&A by $2.4 million versus 2024 in areas including “consulting, travel, marketing and promotions, rent and utilities, and legal expenses,” and implemented tighter controls over contracts, purchase orders, marketing spend, travel, and cash disbursements.
Net loss for 2025 improved to $1.8 million from $9.9 million in 2024. Management attributed the improvement to a $3.9 million gain on the sale of the company’s cannabis business and a $5 million reduction in operating loss. Adjusted EBITDA loss narrowed to $2.0 million from a $7.2 million loss the prior year. In the fourth quarter, adjusted EBITDA was positive $0.5 million, compared with a $2.7 million loss a year earlier.
Balance sheet updates and liquidity actions
Jones ended 2025 with $3.6 million in cash, up from $1.3 million at the end of 2024. Management also said it expanded its line of credit with Two Shores Capital to $10 million from $5 million, with $3 million borrowed as of year-end.
Subsequent to year-end, the company sold a promissory note related to the cannabis business sale. Management said the note had a face value of $2.0 million and was sold for $1.4 million, with the goal of increasing near-term liquidity to support expected 2026 growth and reduce legacy payables. Management later identified the buyer of the cannabis business as MJReg Disrupters and said the promissory note was part of the transaction structure.
2026 outlook: Q1 revenue expected to exceed $12 million; full-year growth guided above 60%
Management provided revenue guidance for early 2026. Based on preliminary results recognized as of March 30, 2026, the company said it expects first-quarter revenue to exceed $12 million, which it described as a 260% increase over the prior-year first quarter. It also guided that 2026 full-year revenue growth is expected to exceed 60% compared with 2025.
During Q&A, management cautioned investors about quarter-to-quarter variability. The finance executive said the business has historically experienced seasonality and advised focusing on the full-year growth outlook, noting results “may ebb and flow a little bit between quarters.” The company did not provide guidance for GAAP profitability or full-year EBITDA, though management pointed to the fourth quarter’s adjusted EBITDA performance as an example of progress.
Strategic priorities: core soda momentum, Pop Jones relaunch, and adult beverage repositioning
Harvey said Jones is focused on “three core channels of growth, core soda, modern, and adult beverages.” In core soda, he cited distribution expansion across the U.S. and Canada, including direct-store-delivery partners serving major national retailers, and said collectible product launches are increasing brand visibility and retailer interest.
In modern soda, Harvey said Pop Jones expanded into 1,500 retail doors and performed well in taste evaluations, but he characterized 2025 growth as limited amid a “crowded and competitive category.” For 2026, he outlined plans to add new flavors, including “high demand core profiles such as root beer and cream soda,” and to evolve the go-to-market approach with a “four walls, four blocks, four-mile strategy” aimed at driving localized awareness and velocity. In Q&A, he said Pop Jones and Fiesta Jones combined were in about 1,700 stores, and that the company is testing marketing-supported approaches in two states.
In adult beverages, management discussed regulatory uncertainty for hemp-derived products following federal legislation enacted in 2025. Harvey said the law is not expected to take effect until late 2026 and enforcement remains uncertain; he said the company is evaluating impacts and has contingency plans. He added Jones does not expect HD9 to be a “material growth product line in 2026,” but plans to support distribution partners. Harvey also said Spiked Jones faced distribution challenges due to high alcohol by volume and sugar content, and that the company plans to reformulate and reposition it in 2026 with “a revised 4%-5% alcohol by volume,” new flavors, refreshed packaging, and a more targeted regional strategy.
Beyond product and channel initiatives, Harvey described plans to reintroduce the company’s direct-to-consumer platform with a more integrated approach, including a “service-based offering and membership programs,” and upgrades to the website and digital tools such as a product locator. He also outlined operational technology investments, including an integrated transportation management solution and project management workflows, and said the company has strengthened leadership across sales, marketing, and supply chain while maintaining a focus on SG&A control.
On capital markets, management said it remains committed to an S-1 process and an up-listing to Nasdaq or NYSE, though it did not provide a definitive timeline. The finance executive said it “could happen in 2026,” and added that while the company has supported recent growth without issuing equity, it may consider additional equity in the future, including as part of an uplisting process.
About Jones Soda (OTCMKTS:JSDA)
Jones Soda Co is a Seattle-based beverage company known for its craft sodas featuring unconventional flavors and personalized label artwork. Founded in 1995, the company produces a variety of carbonated soft drinks, including its signature Tomato, Creamy Red & Black, and Blue Bubblegum flavors, alongside diet and zero-sugar alternatives. In addition to traditional soda offerings, Jones Soda has expanded its portfolio to include energy drinks, sparkling waters and limited-edition seasonal flavors that cater to niche consumer preferences.
Beyond its core product lineup, Jones Soda operates a direct-to-consumer ecommerce platform that allows customers to create custom photo labels for special occasions and corporate events.
