JSDA Posts Q2 Profit From Cannabis Sale Despite Y/Y Revenue Dip

Shares of Jones Soda Co. JSDA have declined 4.7% since reporting results for the second quarter of 2025. This compares with the S&P 500 index’s 1.3% growth over the same time frame. Over the past month, the stock has lost 1.9% against the S&P 500’s 3.1% rally.The company posted revenues of $4.9 million for the quarter, down 26% from $6.7 million a year ago. Net income came in at $2.6 million, or 2 cents per share, reversing a net loss of $1.6 million, or 2 cents per share, in the year-ago period. The improvement was primarily driven by the divestiture of its cannabis business, which generated a $3.7-million gain, alongside reduced operating costs. Gross profit declined to $1.6 million from $2.3 million last year, reflecting weaker sales volumes. Adjusted EBITDA, a non-GAAP measure, was a loss of $0.5 million, though this marked a 56% year-over-year improvement.Jones Soda Co. Price, Consensus and EPS Surprise  Jones Soda Co. price-consensus-eps-surprise-chart | Jones Soda Co. QuoteOther Key Business MetricsSales in Jones Soda’s HD9 product line rose to $0.8 million in the second quarter from $0.6 million a year earlier. However, core soda revenues fell due to the absence of a large one-time pipeline order that had boosted second-quarter 2024 results. The company also noted growth in food service, convenience stores and direct-to-consumer channels, partially offsetting the revenue decline.Operating expenses dropped significantly, with selling and marketing costs down 39% year over year to $1.1 million, and general and administrative costs down nearly 42% to $1.3 million. Management attributed these reductions to tighter cost controls and supply-chain optimization.Management CommentaryChief executive officer Scott Harvey described the quarter as a “meaningful stride” in Jones Soda’s turnaround efforts. He emphasized that the company’s return to profitability was not only a result of the divestiture of its cannabis unit but also due to improved cost discipline and operational focus.Management reiterated its commitment to driving growth in three main categories — core soda, modern soda (Pop Jones and Fiesta Jones) and adult beverages (including hemp-derived products and the upcoming Spiked Jones line). They highlighted expanding partnerships with national and regional grocery chains, as well as the latest launches like Jones Zero Cola, which debuted across 10,000 stores in March 2025.Factors Influencing ResultsThe key driver of profitability in the quarter was the $3-million sale of the company’s cannabis beverage business, which translated into a $3.7-million gain on disposition. Without this one-time boost, the company would have been in a net loss position, given its continued adjusted EBITDA loss.Revenue pressures were mainly attributable to lower volumes in its core soda segment and the absence of the large pipeline fill from 2024. However, growth in new distribution channels, including food service and convenience, as well as momentum in HD9 and modern sodas, offered some offset.GuidanceManagement did not provide formal quantitative guidance but signaled optimism about the second half of 2025. Growth is expected to be driven by product launches, including additional zero-calorie offerings and Spiked Jones, as well as expanded distribution in both retail and club channels. The company also plans to leverage branded collaborations, such as Fallout and Crayola-themed offerings, to strengthen its direct-to-consumer presence.Other DevelopmentsOn June 19, 2025, Jones Soda completed the sale of its cannabis beverage subsidiaries, including all assets under the Mary Jones brand, to MJ Reg Disrupters LLC for $3 million. The transaction included a $3-million promissory note and an ongoing licensing arrangement, which will provide recurring annual payments of $0.15-$0.255 million over the term of the agreement.Additionally, the company announced entry into retail partnerships. Pop Jones products are now stocked in more than 1,500 Safeway, Kroger, and HyVee locations, with further expansion planned in the Midwest in the third quarter.In summary, while Jones Soda’s revenues and gross profit faced steep year-over-year declines, disciplined cost management and the cannabis business divestiture lifted the company to profitability. The coming quarters will test whether growth initiatives in zero-sugar sodas, Spiked Jones, and expanded retail distribution can sustainably offset declines in its legacy core soda business.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jones Soda Co. (JSDA): Get Free ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks