Jones Soda (JSDA) investor relations material

Executive summary

• Q1 2026 revenue reached $12.4 million, up 194% year-over-year, driven by Fallout branded products and expanded retail and club channel distribution, marking a return to GAAP net income profitability.

• Net income improved to $115,000 from a net loss of $1.1 million in Q1 2025, reflecting higher gross profit and cost controls.

• Growth was supported by operational improvements in logistics, forecasting, and inventory management.

• The company expanded its product portfolio and retail footprint, including new Walmart and Circle K placements and community-driven initiatives.

Financial highlights

• Gross profit increased 179% to $3.9 million, with gross margin slightly down to 31.3% from 32.9% due to lower-margin product mix.

• SG&A rose to $2 million but declined as a percentage of revenue to 16.4% year-over-year.

• Adjusted EBITDA was $0.6 million, up from a loss of $1.1 million, marking the second consecutive positive quarter.

• Cash and cash equivalents increased to $4.4 million from $3.6 million at year-end 2025.

• Total operating expenses rose to $3.5 million from $2.3 million, mainly due to higher selling, marketing, and administrative costs.

Outlook and guidance

• FY2026 revenue is expected to exceed $40 million, representing over 60% growth year-over-year, with potential upside from new products and partnerships.

• Management believes current cash, projected sales, and available credit are sufficient to fund operations for at least 12 months, though uncertainty remains if sales goals are not met.

• No material HD9 revenue expected in 2026 due to regulatory changes.