This article first appeared on GuruFocus .
Release Date: November 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Zevia PBC ( NYSE:ZVIA ) delivered strong Q3 2026 net sales growth of 18.4% to $48.3 million, driven by club channel rotation and e-commerce strength.
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Adjusted EBITDA loss improved to $0.9 million from $1.7 million in the prior year, significantly beating expectations.
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The company raised full-year 2026 net sales guidance to $177-$179 million and adjusted EBITDA outlook to breakeven to negative $400,000.
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Zevia PBC ( NYSE:ZVIA ) closed a $20 million growth equity investment from GP Investments, strengthening its balance sheet with approximately $50 million in cash.
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Early proof points from strategic initiatives: Singles platform expansion, reentry into Target and Sam's Club, and the Cardi B campaign generated over 1.8 billion impressions and increased brand awareness by 5 points among young consumers.
Negative Points
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Zevia PBC ( NYSE:ZVIA ) expects Q4 2026 net sales growth of only ~2% year-over-year, a significant deceleration from Q3, due to seasonal lows and potential retailer inventory adjustments.
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The company continues to face cost pressures from higher aluminum and fuel costs, with $8.5 million in incremental costs expected for the full year.
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Marketing expenses increased to 14.8% of net sales in Q3 2026 from 12.1% in the prior year, weighing on profitability.
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Singles distribution expansion is still in early stages, with full rollout not expected until 2027, and operational capabilities are not yet fully in place.
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New product innovations outside traditional soda are not planned until second-half 2027, with full rollout in 2028, limiting near-term growth drivers.
Q & A Highlights
Q: How should investors think about the innovation pipeline beyond traditional soda, and what is the timing? A: CEO Alessandra Roberti said Zevia is taking a more consumer-led approach focused on taste, functionality and occasions, and sees opportunity in functional and wellness beverages. The company plans to launch two to three new products outside traditional CSD in the second half of 2027, starting in digital channels before a full rollout in 2028. She emphasized a test-measure-iterate-scale approach and said products that do not pass internal gates will not launch.
Q: What drove the third-quarter top-line upside versus guidance? A: CFO Girish Satya said the 18% growth comprised roughly 14 points of volume and 4 points of price. Upside came from stronger-than-planned sell-through on the club rotation, greater-than-expected strength in digital channels, and less promotional activity than anticipated, which allowed the company to hold back some spending. He characterized it as a uniformly strong quarter from a top-line perspective.
Q: How is the marketing strategy evolving, and what is the right level of marketing spend over the next 12 to 24 months? A: CEO Alessandra Roberti said the Cardi B partnership was designed to build top-of-funnel awareness, delivering more than 1.8 billion impressions, a 63% increase in daily Zevia.com users, a 13% increase in net new social followers and over 70,000 email sign-ups. The next phase shifts toward lower- and mid-funnel activation, including a new flavor collaboration with Cardi B and greater use of creators and influencers to drive conversion in 2027.
Q: What are the margin implications of the strategic investment and new product launches? A: CFO Girish Satya said the focus remains on improving unit economics, and new innovation is expected to be accretive to current gross margins. However, the company will invest behind these product families, meaning higher marketing and launch support spend in the short run. Over the longer term, the launch of more premium product families is expected to be accretive to margins.
Q: Does Zevia have the operational capabilities needed to scale singles, and what investment is required? A: CEO Alessandra Roberti said singles are the key entry point for new consumers, and Zevia historically launched only in multi-packs. The company has defined a number of initiatives, including category management work to demonstrate the volume lost without singles on shelf. Some 2027 confirmations are already in place but not yet complete. She said 2027 will be the year Zevia proves out singles, noting that where both singles and multi-packs are available, the brand has a better share than in multi-pack-only locations.
Q: What is changing in the hybrid go-to-market strategy, particularly around DSD and third-party merchandising? A: CEO Alessandra Roberti said Zevia is investing modestly to strengthen its internal team managing the West Coast DSD network through more guidance and training. Outside the DSD network, the company is partnering with third-party merchandising agencies to improve in-store visibility and execution, an incremental investment planned for 2027. E-commerce remains the third lever, with strong recent results across awareness, conversion, retention and ROI.
Q: How is Zevia evaluating which adjacent better-for-you beverage categories to enter? A: CEO Alessandra Roberti said the approach is consumer-led rather than category-led, since consumers shop beverages by occasion. Zevia sees opportunity in functional and wellness beverages and is already testing one or two products. She said the company will be practical and data-driven, testing, measuring, iterating and scaling only products that pass internal gates, while leveraging its clean-ingredient brand, growing digital engagement and distribution platform.
Q: What is the outlook for distribution expansion, including Target, Sam's Club and Costco? A: CEO Alessandra Roberti declined to provide specific guidance but outlined upcoming activity: a singles rollout beginning in the first quarter, a confirmed additional Costco rotation, a three-month Sam's Club test across 80 locations starting in March, and a national limited-time offer at Target with endcap placement in more than 900 stores beginning in February. She said 2027 growth will be driven mainly by the core business.
Q: What is the updated full-year 2026 guidance? A: CFO Girish Satya raised 2026 net sales guidance to $177 million to $179 million, reflecting approximately 10% growth at the midpoint, noting the discontinuation of Tea reduced the outlook by about 2%. Full-year adjusted EBITDA guidance was revised to breakeven to negative $400,000, reflecting approximately $8.5 million in incremental fuel and aluminum-related costs versus the prior $11 million expectation. The company remains on track for $3 million to $5 million in additional cost savings beginning in the first quarter of 2027, to be reinvested in the strategic reset.
Q: What is the fourth-quarter outlook? A: CFO Girish Satya guided fourth-quarter net sales to $37.5 million to $39.5 million, reflecting approximately 2% growth at the midpoint, noting the fourth quarter is typically the seasonal low and the guidance reflects potential retailer adjustments to shipment timing and inventory levels. He expects a fourth-quarter adjusted EBITDA loss of $0.5 million to $0.9 million, assuming gross margin remains approximately flat to last year.
Q: How is the GP equity investment expected to support the business? A: CEO Alessandra Roberti said the $20 million growth equity investment from GP Investments brings capital as well as strategic resources and operational expertise at the board level. Combined with approximately $29.5 million in cash at quarter-end, Zevia expects roughly $50 million in cash on hand following the close. The capital is intended to accelerate product innovation in functional beverages, scale a digital-first consumer ecosystem and support a hybrid go-to-market model, with management believing the plan could triple the size of the business over time.
Q: How is the Cardi B partnership performing, and what comes next? A: CEO Alessandra Roberti said the campaign is still early but has delivered strong top-of-funnel results, including a 5-point increase in brand awareness to 25% as of September 2026 among 18- to 34-year-olds versus the prior year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
