Zevia’s second quarter saw revenue growth surpass Wall Street expectations, but the market responded negatively, reflecting concerns beyond the headline numbers. Management attributed the solid sales performance to expanded distribution, successful new flavor launches like Strawberry Lemon Burst and Orange Creamsicle, and a national marketing campaign that boosted brand engagement. CEO Amy Taylor highlighted progress in productivity initiatives, stating, “Our distinctive marketing is driving engagement, product innovation is resonating both with new and existing consumers, and we are expanding our distribution with strong sell-through across channels.”

Is now the time to buy ZVIA? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Zevia’s Q2 Earnings Call

• Sarang Vora (Telsey Group) asked for detail on the drivers of sales growth and the contribution of new flavors. CEO Amy Taylor emphasized balanced growth across channels and highlighted that new items are contributing, but distribution gains were the primary factor.
• Sarang Vora (Telsey Group) also inquired about the incremental $5 million in productivity gains. CFO Girish Satya explained these savings will be realized primarily in cost of goods sold and selling expenses starting in late 2025 and 2026.
• Ethan David Huntley (Goldman Sachs) questioned the company’s more cautious Q4 outlook. Satya cited the lapping of last year’s Walmart pipeline fill and overall consumer uncertainty as key reasons.
• Ethan David Huntley (Goldman Sachs) sought clarification on tariff impacts. Satya confirmed tariffs were less impactful in Q2 due to timing, but expects a 200-basis-point gross margin impact beginning in Q3, with future cost savings offsetting this effect.
• James Ronald Salera (Stephens) probed the rise in household penetration and purchase frequency. Taylor credited increased visibility from expanded distribution and strong innovation as drivers for new and repeat customers.

Catalysts in Upcoming Quarters

As we look to the next few quarters, the StockStory team will be watching (1) whether Zevia can sustain momentum from new product launches and refreshed packaging, (2) the impact of cost savings and productivity efforts on gross and operating margins, and (3) the company’s ability to navigate tariff pressures and shifting consumer demand, especially as it laps last year’s significant Walmart pipeline fill. Continued growth in club and convenience channels will also be critical for future expansion.

Zevia currently trades at $3, down from $3.44 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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