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Reed's (REED) investor relations material

Reed's Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary4 Nov, 2025

Executive summary

  • Achieved 4% year-over-year net sales growth in Q3 2025 to $7.0 million, driven by recurring national customers and expanded distribution, with operational improvements and new leadership appointments supporting growth and rebranding.

  • Focused on margin improvement, cost reduction, and process streamlining, including a 14% reduction in delivery and handling costs and a shift to a 52-week trade spend strategy.

  • Expanded into Asia Pacific with the formation of Reed's (Asia) Limited and subsidiaries, and continued investment in international growth.

  • Strategic initiatives included debt repayment, refinancing, preparations for uplisting to a major exchange, and a 1-for-6 reverse stock split effective October 31, 2025.

  • Strengthened leadership team with key hires in marketing, go-to-market strategy, and board governance.

Financial highlights

  • Net sales for Q3 2025 were $7.0 million, up 4% year-over-year; nine-month net sales were $26.6 million, down 6%.

  • Gross profit was $1.2 million with a 17% margin (19% excluding inventory write-offs); nine-month gross margin was 20%.

  • Net loss improved to $4.0 million (negative $0.48/share) from $4.2 million (negative $4.91/share) year-over-year; nine-month net loss was $12.1 million.

  • Modified EBITDA loss was $3.9 million in Q3 2025, compared to $3.0 million in Q3 2024; nine-month modified EBITDA loss was $10.2 million.

  • Cash at period end was $4.1 million, with total debt at $9.2 million; cash used in operations was $2.8 million for Q3 and $13.2 million for nine months.

Outlook and guidance

  • Focus remains on margin improvement, operational optimization, and sales growth in core portfolios, with anticipated gross margin expansion as distributor strategy shifts and cost-saving initiatives take effect.

  • Major product restages and new launches are planned for July 2026, with packaging transitions and international expansion underway.

  • Management expects existing cash, operations, and committed financing to fund the operating plan for at least 12 months, but additional funding may be needed for further growth.

  • Preparing for an uplist to a major exchange to enhance visibility, liquidity, and access to capital.

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Frequently asked questions

Reed's Inc. is a U.S.-based company specializing in the development, manufacturing, and distribution of natural, handcrafted beverages. Known for its Reed’s Ginger Beer, the company also produces a variety of ginger ales, mules, and sodas under the Virgil’s brand. Their products are sold through a wide network of retail channels, including grocery stores, convenience stores, and online platforms. Reed's emphasizes using natural ingredients, such as fresh ginger root, to create its beverages. The company is headquartered in Norwalk, Connecticut, and its shares are traded on OTC Markets.

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