Beverage company Zevia (NYSE:ZVIA) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 1.1% year on year to $45 million. The company expects next quarter’s revenue to be around $45 million, coming in 2.2% above analysts’ estimates. Its GAAP loss of $0.04 per share was $0.01 below analysts’ consensus estimates.
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Zevia (ZVIA) Q2 CY2026 Highlights:
- Revenue: $45 million vs analyst estimates of $44.22 million (1.1% year-on-year growth, 1.8% beat)
- EPS (GAAP): -$0.04 vs analyst estimates of -$0.03 ($0.01 miss)
- Adjusted EBITDA: $500 (0% margin, 99.8% year-on-year decline)
- The company reconfirmed its revenue guidance for the full year of $172.5 million at the midpoint
- EBITDA guidance for the full year is -$3 million at the midpoint, above analyst estimates of -$3.09 million
- Operating Margin: -6.4%, down from -2.3% in the same quarter last year
- Free Cash Flow was $2.19 million, up from -$1.42 million in the same quarter last year
- Sales Volumes were up 3.7% year on year
- Market Capitalization: $124.2 million
Company Overview
With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE:ZVIA) is a better-for-you beverage company.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.
With $169.8 million in revenue over the past 12 months, Zevia is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers.
As you can see below, Zevia struggled to increase demand as its $169.8 million of sales for the trailing 12 months was close to its revenue three years ago. This shows demand was soft, a poor baseline for our analysis.
This quarter, Zevia reported modest year-on-year revenue growth of 1.1% but beat Wall Street’s estimates by 1.8%. Company management is currently guiding for a 10.2% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 5.1% over the next 12 months, an acceleration versus the last three years. This projection is above average for the sector and indicates its newer products will spur better top-line performance.
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Cash Is King
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
Zevia broke even from a free cash flow perspective over the last two years, giving the company limited opportunities to return capital to shareholders.
Taking a step back, an encouraging sign is that Zevia’s margin expanded by 3.4 percentage points over the last year. We have no doubt shareholders would like to continue seeing its cash conversion rise as it gives the company more optionality.
Zevia’s free cash flow clocked in at $2.19 million in Q2, equivalent to a 4.9% margin. Its cash flow turned positive after being negative in the same quarter last year, building on its favorable historical trend.
Key Takeaways from Zevia’s Q2 Results
We were impressed by Zevia’s optimistic EBITDA guidance for next quarter, which blew past analysts’ expectations. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. On the other hand, its EPS was in line and its full-year revenue guidance fell slightly short of Wall Street’s estimates. Overall, we think this was still a solid quarter with some key areas of upside. The market seemed to be hoping for more, and the stock traded down 2.3% to $1.68 immediately following the results.
So should you invest in Zevia right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).