Jones Soda's Q3 Revenues Rise as Loss Narrows, Outlook Improves

Shares of Jones Soda Co. JSDA have declined 3.1% since the company reported its earnings for the third quarter of 2025. This compares to the S&P 500 Index’s 2% decrease over the same time frame. Over the past month, the stock has plunged 3.1% compared with the S&P 500’s 2.7% decrease.Jones Soda posted third-quarter net revenues of $4.5 million, up about 15% from $3.9 million a year ago. The company’s net loss narrowed to $1.4 million, or 1 cent per share, versus a net loss of $2.6 million, or 2 cents per share, in the year-ago quarter. Management attributed the year-over-year improvement primarily to higher gross profit and lower operating expenses.Jones Soda Co. Price, Consensus and EPS Surprise Jones Soda Co. price-consensus-eps-surprise-chart | Jones Soda Co. QuoteOther Key Business Metrics of JSDAGross profit rose to $1.3 million from $0.7 million, and gross margin expanded to 28.9% from 18.8%. The company said the margin lift reflected lower trade spend, reduced product costs, and lower freight and warehousing charges following supply-chain and logistics initiatives. Operating expenses fell to $2.7 million from $3.4 million, led by a 33% drop in selling and marketing expenses to about $1 million and a modest decline in G&A expenses to $1.7 million. Adjusted EBITDA narrowed to a loss of $0.9 million from $2.2 million, underscoring the impact of cost controls.On the balance sheet, cash was about $0.2 million as of Sept. 30, 2025, down from $1.3 million at year-end 2024, while working capital stood near $0.6 million. Accounts payable increased to $5.6 million, and the company had $1.7 million drawn on a new revolving credit facility that expands borrowing capacity to $5 million against a broader collateral base. Management emphasized that this facility is intended to support inventory builds for expected fourth-quarter demand.JSDA: Management CommentaryCEO Scott Harvey framed the quarter as a continuation of a turnaround focused on disciplined cash management, supply-chain strengthening and portfolio “right-sizing.” Executives highlighted actions to consolidate MyJones and e-commerce fulfillment under a single partner, centralize warehousing and logistics and move toward a more just-in-time inventory model. They argued these steps should allow higher volumes without comparable cost inflation, positioning the company to pursue growth in its three categories — Core, Modern (Pop Jones and Fiesta Jones) and Adult beverages.Marketing strategy leaned on cultural and licensed partnerships. Management cited Crayola and Bethesda/Fallout collaborations as drivers of record direct-to-consumer performance, saying such campaigns deliver social-media reach more efficiently than traditional advertising. The company also noted the hiring of a new chief marketing officer to sharpen brand communication and consumer targeting across categories.Factors Influencing JSDA’s Headline NumbersThe quarter’s revenue growth was driven by higher sales of HD9 hemp-derived products, direct-to-consumer offerings, fountain products and the newly launched Spiked Jones hard craft sodas, along with reduced trade spend. These gains were partly offset by weaker core soda sales, which management attributed to a large “pipeline fill” order from a customer in the prior year, which did not repeat. In the Q&A, executives added that some HD9 sales slipped later than expected due to co-manufacturer issues, though they expect improvement as supply normalizes.Regulatory risk around hemp-derived beverages was another theme. Management discussed the recently passed U.S. legislation that could restrict intoxicating hemp products, including HD9 lines, but stressed that effective dates are expected in 2026 and that near-term sales should not be materially impacted. The company is monitoring guidance closely and intends to keep HD9 inventory lean to limit exposure.Guidance by JSDAJones Soda issued fourth-quarter sales guidance based on gross sales to date and customer purchase orders. As of Nov. 14, 2025, the company expects fourth-quarter gross sales to exceed $8 million, led by Fallout-themed core soda products shipping through club and direct store delivery channels, alongside contributions from Modern and Adult beverages. Management characterized this outlook as a sign that cost reductions are becoming a platform for renewed top-line growth.Other Developments at JSDADuring 2025, Jones Soda completed the divestiture of its cannabis beverage subsidiaries, which are now treated as discontinued operations. The sale generated a $3.7 million gain and included a $3.0 million promissory note payable in installments through 2028 and a trademark licensing arrangement providing annual fees. Management said the transaction helped simplify the business around beverages while adding non-operating cash inflow and receivables.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. 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