Jones Soda Reports Second Quarter 2025 Results

Executive Summary

• Jones Soda Co. reported a return to profitability for Q2 2025, driven primarily by a $3.66 million gain from the sale of its cannabis beverage business (Mary Jones™ brand) to MJ Reg Disrupters LLC.
• The company reported a net income of $2.6 million ($0.02 per share) compared to a net loss of $1.6 million in the prior year period, while Adjusted EBITDA improved to $(0.5) million from $(1.2) million.
• Revenue declined to $4.9 million from $6.7 million year-over-year, largely due to the divestiture of the cannabis segment and a one-time pipeline fill in Q2 2024, though HD9 sales and direct-to-consumer channels showed growth.

Key Details

• Financial Performance (Q2 2025 vs. Q2 2024):
  • Revenue: $4.9 million (down from $6.7 million).
  • Net Income: $2.6 million ($0.02/share) vs. Net Loss of $1.6 million ($(0.02)/share).
  • Adjusted EBITDA: $(0.5) million (improvement of $0.7 million or 56% over prior year).
  • Gross Profit: $1.6 million (down from $2.3 million).
  • Operating Expenses: $2.4 million (down from $4.0 million), driven by cost management and supply chain optimization.
• Divestiture Details:
  • Sold the cannabis beverage business, including all assets under the Mary Jones™ brand, to MJ Reg Disrupters LLC.
  • Transaction value: $3 million.
  • Gain on disposition recorded in Q2 2025: $3.66 million.
• Operational Updates & Product Sales:
  • HD9 Sales: $0.8 million (up $0.2 million from Q2 2024).
  • Distribution Expansion: Expanding into the Club Channel in Q3 with the 12oz glass bottle.
  • Pop Jones: Featured in Modern Beverage POGs across over 1,500 national and regional chains (including Safeway, Albertsons, Kroger, Market Basket, HyVee); expanding into another major mid-west chain in Q3.
  • Jones Zero Cola: Launched in March across 10,000+ national and regional grocery stores; plans to introduce additional zero-calorie flavors and Jones Zero Root Beer later in 2025.
  • Direct-to-Consumer: Strong demand noted for Crayola and Fallout offerings; upcoming unique offering in Q4 in coordination with Bethesda and Fallout II.
• Balance Sheet Highlights (as of June 30, 2025):
  • Cash: $650,000.
  • Total Assets: $11.9 million.
  • Total Liabilities: $7.6 million.
  • Shareholders' Equity: $4.3 million.

Notable Quotes

• "In the second quarter of 2025, we built on the solid foundation laid in the first quarter, making meaningful strides in our strategic turnaround and are maintaining strong early momentum... Most significantly, the second quarter marked a return to positive net income of $2.6 million, primarily driven by the gain on the sale of our Cannabis business." — Scott Harvey, CEO
• "With a disciplined cost structure and clear operational levers, we are prioritizing driving top-line growth across our three main categories: core soda, modern soda, and adult beverages. Our priority remains accelerating sales through strategic partnerships while continuing to strengthen relationships with our suppliers to capture market opportunities in all channels." — Scott Harvey, CEO