Zevia PBC
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
ZVIA$1.49+9.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0000950170-25-104098
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001437749-25-033353
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 121 previous paragraphs and 122 current paragraphs.
72 unchanged; 40 reworded; 10 added; 8 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Net Sales
Current report
Cost of Goods Sold
Current report
Other (expense) income, net
Current report
Net Sales
Current report
Cost of Goods Sold
Current report
Net Sales
Current report
Cost of Goods Sold
Current report
General and administrative expenses were $22.7 million for the nine months ended September 30, 2025 as compared to $23.2 million for the nine months ended September 30, 2024. The decrease of $0.5 million, or 2.0%, was primarily due to decrease in costs as a result of our Productivity Initiative discussed above.
Current report
On August 12, 2025, we and our wholly-owned subsidiary, Zevia LLC, entered into an Equity Distribution Agreement (the “Agreement”) with Piper Sandler & Co. as sales agent (the “Agent”), pursuant to which we may sell from time to time through the Agent, shares of Class A common stock, par value $0.001 (the “Common Stock”), having an aggregate gross sale price of up to $20 million (the “Offering”). Sales of Common Stock, if any, under the Agreement may be made in any transactions that are deemed to be an “at-the-market offering” as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended. In addition, with our prior consent and subject to the terms it may establish, the Agent may also sell the Common Stock by any other method permitted by law, including privately negotiated transactions. Under the Agreement, we will pay the Agent a commission equal to 3.0% of the gross sales price of the Common Stock sold in the Offering. The Agent has agreed to use its commercially reasonable efforts to sell the shares of common stock in the Offering, subject to the terms of the Agreement. During the three months ended September 30, 2025, we elected not to issue shares under this Agreement.
Current report
Net Cash Used in Financing Activities
Removed paragraphs (8)
Previous report
Costs associated with the Productivity Initiative, including restructuring costs, were $31 thousand and $2.2 million during the three and six months ended June 30, 2025, respectively, primarily consisting of employee related severance costs.
Previous report
The Productivity Initiative is expected to result in estimated annualized benefits of approximately $20.0 million, and we began seeing these benefits in the second half of 2024 and expect the savings to continue to be realized in 2025 and through 2026. These benefits include reduction in costs of goods sold and reduction in operating expenses. We have reinvested the majority of these costs savings thus far into brand marketing and promotional activity to drive future growth. Looking forward, we intend to balance reinvesting savings to help drive revenue growth with our plans for achieving profitability.
Previous report
leveraging our platform and mission to grow brand awareness, increase velocity and expand our consumer base;
Previous report
continuing to grow our strong relationships across our retailer network and retain and expand distribution amongst new and existing channels, both in-store and online; and
Previous report
continuous innovation efforts, enhancement of existing products, and introduction of additional flavors within existing categories.
Previous report
During the first quarter of 2025, the U.S. government announced tariffs on certain imports, including imports from Canada. We currently believe that our production in Canada is exempt from these tariffs under the United States-Mexico-Canada Agreement ("USMCA").
Previous report
Other income, net
Previous report
Net Cash Provided By Financing Activities
Reworded paragraphs (40)
Previous wording
We are a better-for-you beverage company that develops, markets, sells, and distributes naturally delicious, zero sugar beverages. We are a Delaware public benefit corporation and have been designated as a “Certified B Corporation,” and are focused on addressing the global health challenges resulting from excess sugar consumption by offering a broad portfolio of zero sugar, zero calorie, naturally sweetened beverages. All Zevia® beverages are made with a handful of simple, plant-based ingredients, contain no artificial sweeteners, and are Non-GMO Project verified, gluten-free, Kosher, and vegan, and include a variety of flavors across Soda, Energy Drinks, and Organic Tea drinks. Our products are distributed and sold principally across the U.S. and Canada through a wide-ranging network of major retailers in the grocery, drug, warehouse club, mass, natural, convenience and e-commerce channels and in natural product stores and specialty outlets. The Company’s products are manufactured and maintained at third-party beverage production and warehousing facilities located in both the U.S. and Canada.
Current wording
We are a better-for-you beverage company that develops, markets, sells, and distributes naturally delicious, zero sugar beverages. We are a Delaware public benefit corporation and have been designated as a “Certified B Corporation,” and are focused on addressing the global health challenges resulting from excess sugar consumption by offering a broad portfolio of zero sugar, zero calorie, naturally sweetened beverages. All Zevia® beverages are made with a handful of simple, plant-based ingredients, contain no artificial sweeteners, and are Non-GMO Project verified, gluten-free, Kosher, and vegan, and include a variety of flavors across Soda, Energy Drinks, and Tea drinks. Our products are distributed and sold principally across the U.S. and Canada through a wide-ranging network of major retailers in the grocery, drug, warehouse club, mass, natural, convenience and e-commerce channels and in natural product stores and specialty outlets. The Company’s products are manufactured and maintained at third-party beverage production and warehousing facilities located in both the U.S. and Canada.
Previous wording
Key Events During the First Half of 2025
Current wording
Key Events During the Nine Months Ended September 30, 2025
Previous wording
Restructuring charges related to the Productivity Initiative were substantially complete as of June 30, 2025.
Current wording
Restructuring charges related to the Productivity Initiative were completed as of September 30, 2025.
Previous wording
We continue to monitor macroeconomic trends and uncertainties such as key ingredient inflation, the effects of tariffs, and the potential imposition of modified or additional tariffs, which may adversely affect our net sales and profitability. As a result of the rapid changes in global trade policies, including tariffs, and potential tariff modifications or the imposition of tariffs, export controls or other retaliatory actions by other countries, we have experienced and anticipate continuing to experience increased supply chain challenges, commodity cost volatility, and consumer and economic uncertainty. This has also created a complex and challenging retail environment for us as consumers reduce discretionary spending. A decline in consumer spending may have an adverse effect on our revenues, margins, and operating results. We, along with our competitors, have increased pricing on a number of products in response to widespread inflation, which could be exacerbated as a result of the tariffs. These pricing increases may result in future reductions in volume.
Current wording
We continue to monitor macroeconomic trends and uncertainties such as key ingredient inflation, the shutdown of the U.S. government, the effects of tariffs, and the potential imposition of modified or additional tariffs, which may adversely affect our net sales and profitability. As a result of the rapid changes in global trade policies, including tariffs, and potential tariff modifications or the imposition of tariffs, export controls or other retaliatory actions by other countries, we have experienced and anticipate continuing to experience increased supply chain challenges, commodity cost volatility, and consumer and economic uncertainty. This has also created a complex and challenging retail environment for us as consumers reduce discretionary spending. A decline in consumer spending may have an adverse effect on our revenues, margins, and operating results. We, along with our competitors, have increased pricing on a number of products in response to widespread inflation, which could be exacerbated as a result of the tariffs. These pricing increases may result in future reductions in volume.
Previous wording
The following summarizes the components of our results of operations for the three and six months ended June 30, 2025 and 2024, respectively.
Current wording
The following summarizes the components of our results of operations for the three and nine months ended September 30, 2025 and 2024, respectively.
Previous wording
We generate net sales from the sales of our products, including Soda, Energy Drinks, and Organic Tea drinks, to our customers, which include grocery distributors, national retailers, convenience retailers, natural products retailers, warehouse club retailers and retailers with e-commerce channels, in the U.S. and Canada.
Current wording
We generate net sales from the sales of our products, including Soda, Energy Drinks, and Tea drinks, to our customers, which include grocery distributors, national retailers, convenience retailers, natural products retailers, warehouse club retailers and retailers with e-commerce channels, in the U.S. and Canada.
Previous wording
We expect our future growth to be driven by a combination of new distribution, increased organic sales from existing outlets, package and product innovation, and continued pricing strength; however, sales levels in any given period may continue to be impacted by seasonality, increased level of competition, customers’ efforts to manage inventory, and our ability to fulfill customer demands.
Current wording
We expect our future growth to be driven by a combination of new distribution, increased organic sales from existing outlets, package and product innovation, and continued pricing strength; however, sales levels in any given period may continue to be impacted by seasonality, increased level of competition, and customers’ efforts to manage inventory.
Previous wording
Our cost of goods sold is subject to price fluctuations in the marketplace, particularly in the price of aluminum and other raw materials, as well as in the cost of production, packaging, in-bound freight and logistics. Due to the implementation of a tariff on all steel and aluminum entering the U.S. (25% from March to June and 50% starting in June), and the impact of reciprocal tariff on certain countries where stevia is purchased, we began to see an increase in our cost of goods sold during the three months ended June 30, 2025, and expect to continue to see an increase in our cost of goods going forward.
Current wording
Our cost of goods sold is subject to price fluctuations in the marketplace, particularly in the price of aluminum and other raw materials, as well as in the cost of production, packaging, in-bound freight and logistics. Due to the recent implementation of tariffs, we began to see an increase in our cost of goods sold during the three months ended June 30, 2025, and expect to continue to see an increase in our cost of goods going forward.
Previous wording
Marketing expenses are expected to increase as we invest in brand awareness, which are expected to be partially funded by the Productivity Initiative. We significantly increased our investment in marketing in the first half of 2025, and expect these additional marketing costs to continue throughout 2025, in order to help build our brand, with a focus on driving trial and customer conversions.
Current wording
Marketing expenses are expected to increase as we invest in brand awareness, which are expected to be partially funded by the Productivity Initiative. We significantly increased our investment in marketing in the first nine months of 2025, in order to help build our brand, with a focus on driving trial and customer conversions. We expect marketing investments in the fourth quarter of 2025 to decline compared to the fourth quarter of 2024 due to an opportunistic marketing investment made in the prior year.
Previous wording
General and administrative expenses include all salary and other personnel expenses (other than equity-based compensation expense) for our employees, including employees related to management, marketing, sales, product development, quality control, accounting, information technology and other functions. Our ongoing general and administrative expenses are expected to remain relatively flat as a percentage of net sales over time.
Current wording
General and administrative expenses include all salary and other personnel expenses (other than equity-based compensation expense) for our employees, including employees related to management, marketing, sales, product development, quality control, accounting, information technology and other functions. Our ongoing general and administrative expenses are expected to remain relatively flat as a percentage of net sales over time, but may fluctuate in any given quarter as a result of timing and amount of variable compensation expense.
Previous wording
Restructuring expenses include employee severance and benefit costs to terminate a specified number of employees as well as costs for restructuring consulting services, impairment loss of certain assets, contract termination costs and other related charges designed to reduce costs and improve efficiency while continuing to invest in our brand and related initiatives. Restructuring charges related to the Productivity Initiative were substantially complete as of June 30, 2025.
Current wording
Restructuring expenses include employee severance and benefit costs to terminate a specified number of employees as well as costs for restructuring consulting services, impairment loss of certain assets, contract termination costs and other related charges designed to reduce costs and improve efficiency while continuing to invest in our brand and related initiatives. Restructuring charges related to the Productivity Initiative were complete as of September 30, 2025.
Previous wording
Other income, net consists primarily of interest income (expense), and foreign currency (loss) gains.
Current wording
Other (expense) income, net consists primarily of interest income (expense), and foreign currency (loss) gains.
Previous wording
Net sales were $44.5 million for the three months ended June 30, 2025 as compared to $40.4 million for the three months ended June 30, 2024. Equivalized cases sold were 3.5 million during the three months ended June 30, 2025 as compared to 3.1 million during the three months ended June 30, 2024. The increase in net sales was primarily due to a 14.3% increase in the number of equivalized cases sold, which resulted in $5.8 million higher net sales largely the result of expanded distribution at one customer in the mass channel and one customer in the drug channel, and pricing increases of $0.3 million, partially offset by higher allowance for incentives and discounts of $2.0 million resulting from greater promotional levels at retailers. We define an equivalized case as a 288 fluid ounce case.
Current wording
Net sales were $40.8 million for the three months ended September 30, 2025 as compared to $36.4 million for the three months ended September 30, 2024. Equivalized cases sold were 3.3 million during the three months ended September 30, 2025 as compared to 2.9 million during the three months ended September 30, 2024. The increase in net sales was primarily due to a 12.6% increase in the number of equivalized cases sold, which resulted in $4.6 million higher net sales largely the result of expanded distribution at one customer in the mass channel and one customer in the club channel, and lower allowance for incentives and discounts of $0.5 million, partially offset by pricing declines as a result of channel mix of $0.6 million. We define an equivalized case as a 288 fluid ounce case.
Previous wording
Cost of goods sold was $41.8 million for the six months ended June 30, 2025 as compared to $44.6 million for the six months ended June 30, 2024. The decrease of $2.7 million, or 6.2%, was largely due to favorable unit costs of $3.5 million driven by the Productivity Initiative, and lower write-downs related to excess and obsolete inventory of $2.4 million, which was partially offset by increased volumes which resulted in $3.1 million higher cost of goods sold.
Current wording
Cost of goods sold was $22.2 million for the three months ended September 30, 2025 as compared to $18.5 million for the three months ended September 30, 2024. The increase of $3.7 million, or 20.0%, was largely due to increased volumes which resulted in $2.4 million of higher costs of goods sold, as well as higher write-downs related to excess and obsolete inventory of $1.2 million mainly related to new packaging design and reduction in reserve estimate in prior year, partially offset by unfavorable unit costs of $0.1 million driven by tariffs, which was slightly offset by improvements in unit costs related to the Productivity Initiative.
Previous wording
Gross profit was $40.7 million for the six months ended June 30, 2025 as compared to $34.7 million for the six months ended June 30, 2024. The increase in gross profit of $6.1 million, or 17.5%, was primarily due to higher volumes, favorable unit costs, selling price increases and lower inventory write-downs, partially offset by increased spend on promotional activity and channel mix.
Current wording
Gross profit was $18.6 million for the three months ended September 30, 2025 as compared to $17.9 million for the three months ended September 30, 2024. The increase in gross profit of $0.8 million, or 4.3%, was primarily due to higher volumes and lower spend on promotional activity, partially offset by higher inventory write-downs, unfavorable unit costs, and channel mix.
Previous wording
Gross margin for the six months ended June 30, 2025 improved to 49.3% from 43.8% in the prior-year period. The increase was primarily due to lower inventory write-downs, favorable unit costs, and selling price increases, partially offset by increased spend on promotional activity and channel mix.
Current wording
Gross margin for the three months ended September 30, 2025 decreased to 45.6% from 49.1% in the prior-year period. The decrease was primarily due to higher inventory write-downs, unfavorable unit costs, and channel mix, partially offset by lower spend on promotional activity.
Previous wording
Selling and marketing expenses were $13.4 million for the three months ended June 30, 2025 as compared to $13.6 million for the three months ended June 30, 2024. Marketing expenses were $4.7 million for the three months ended June 30, 2025 as compared to $4.3 million for the three months ended June 30, 2024, an increase of $0.4 million, or 9.6%. Selling expenses were $8.7 million for the three months ended June 30, 2025 as compared to $9.3 million for the three months ended June 30, 2024, a decrease of $0.6 million, or 7.1%.
Current wording
Selling and marketing expenses were $12.7 million for the three months ended September 30, 2025 as compared to $12.0 million for the three months ended September 30, 2024. Marketing expenses were $5.0 million for the three months ended September 30, 2025 as compared to $3.5 million for the three months ended September 30, 2024, an increase of $1.5 million, or 40.8%. Selling expenses were $7.7 million for the three months ended September 30, 2025 as compared to $8.5 million for the three months ended September 30, 2024, a decrease of $0.7 million, or 8.9%.
Previous wording
The increase in marketing expense of $0.4 million was driven by investments made to drive brand awareness, which was funded by the savings in direct selling expenses as a result of the Productivity Initiative.
Current wording
The increase in marketing expense of $1.5 million was driven by investments made to drive brand awareness, which was partially funded by the savings in direct selling expenses as a result of the Productivity Initiative.
Previous wording
The decrease in selling expenses of $0.6 million was primarily due to decreases in freight transfer costs of $0.7 million and warehousing costs of $0.5 million largely driven by the Productivity Initiative, partially offset by an increase in distribution fees of $0.4 million and freight out costs of $0.2 million driven by increased volumes.
Current wording
The decrease in selling expenses of $0.8 million was primarily due to decreases in repackaging costs of $0.6 million due to automation of certain processes, warehousing costs of $0.1 million and freight transfer costs of $0.1 million largely driven by the Productivity Initiative and lower inventory levels.
Previous wording
General and administrative expenses were $15.1 million for the six months ended June 30, 2025 as compared to $15.8 million for the six months ended June 30, 2024. The decrease of $0.7 million, or 4.7%, was primarily due to lower headcount as a result of the Company's Productivity Initiative to right-size the business and focus on growth driving initiatives of $1.2 million, and a decrease in other costs of $0.4 million as a result of our Productivity Initiative discussed above, partially offset by higher variable compensation.
Current wording
General and administrative expenses were $7.7 million for the three months ended September 30, 2025 as compared to $7.4 million for the three months ended September 30, 2024. The increase of $0.3 million, or 4.0%, was primarily driven by higher variable compensation, which was partially offset by decrease of $0.2 million related to lower headcount as a result of the Company's Productivity Initiative to right-size the business and focus on growth driving initiatives, and a decrease in other costs of $0.3 million as a result of our Productivity Initiative discussed above.
Previous wording
Equity-based compensation expenses were $1.0 million for the three months ended June 30, 2025 as compared to $1.4 million for the three months ended June 30, 2024, primarily related to outstanding equity-based awards being recognized over the remaining service periods of the awards. The decrease of $0.4 million was primarily driven by a $0.5 million decrease related to the accelerated method of expense recognition on certain equity awards issued in connection with the Company’s IPO in 2021 in which the service period was completed during the first quarter of 2025.
Current wording
Equity-based compensation expenses were $1.0 million for the three months ended September 30, 2025 as compared to $1.0 million for the three months ended September 30, 2024, primarily related to outstanding equity-based awards being recognized over the remaining service periods of the awards. The decrease of $0.1 million was primarily driven by a $0.3 million decrease related to the accelerated method of expense recognition on certain equity awards issued in connection with the Company’s IPO in 2021 in which the service period was completed during the first quarter of 2025, partially offset by expense related to newly issued equity awards.
Previous wording
Restructuring expenses were $31 thousand for the three months ended June 30, 2025, as compared to $0.9 million for the three months ended June 30, 2024. The restructuring expenses primarily includes employee related severance costs.
Current wording
Restructuring expenses were zero for the three months ended September 30, 2025, as compared to $0.1 million for the three months ended September 30, 2024. The restructuring expenses in the prior year primarily include costs to exit two third-party warehouse and distribution facilities.
Previous wording
Six months Ended June 30, 2025, Compared to Six months Ended June 30, 2024
Current wording
Nine months Ended September 30, 2025, Compared to Nine months Ended September 30, 2024
Previous wording
Net sales were $82.5 million for the six months ended June 30, 2025 as compared to $79.2 million for the six months ended June 30, 2024. Equivalized cases sold were 6.5 million during the six months ended June 30, 2025 as compared to 6.0 million during the six months ended June 30, 2024. The increase in net sales was primarily due to an increase in the number of equivalized cases sold, which resulted in $5.8 million higher net sales, which was largely the result of expanded distribution at one customer in the mass channel, and pricing increases of $2.0 million, partially offset by higher allowance for incentives and discounts of $4.5 million resulting from greater promotional levels at retailers. We define an equivalized case as a 288 fluid ounce case.
Current wording
Net sales were $123.4 million for the nine months ended September 30, 2025 as compared to $115.6 million for the nine months ended September 30, 2024. Equivalized cases sold were 9.7 million during the nine months ended September 30, 2025 as compared to 8.9 million during the nine months ended September 30, 2024. The increase in net sales was primarily due to an increase in the number of equivalized cases sold, which resulted in $10.5 million higher net sales, which was largely the result of expanded distribution at one customer in the mass channel, and pricing increases of $1.3 million, partially offset by higher allowance for incentives and discounts of $4.0 million resulting from greater promotional levels at retailers. We define an equivalized case as a 288 fluid ounce case.
Previous wording
Cost of goods sold was $22.8 million for the three months ended June 30, 2025 as compared to $23.5 million for the three months ended June 30, 2024. The decrease of $0.7 million, or 2.8%, was largely due to lower write-downs related to excess and obsolete inventory of $2.0 million, and favorable unit costs of $1.7 million driven by the Productivity Initiative, which was partially offset by increased volumes which resulted in $3.1 million higher cost of goods sold.
Current wording
Cost of goods sold was $64.0 million for the nine months ended September 30, 2025 as compared to $63.1 million for the nine months ended September 30, 2024. The increase of $1.0 million, or 1.5%, was largely due to increased volumes which resulted in $5.5 million higher cost of goods sold, partially offset by favorable unit costs of $3.4 million driven by the Productivity Initiative, and lower write-downs related to excess and obsolete inventory of $1.1 million.
Previous wording
Gross profit was $21.7 million for the three months ended June 30, 2025 as compared to $16.9 million for the three months ended June 30, 2024. The increase in gross profit of $4.7 million, or 6.8%, was primarily due to higher volumes, favorable unit costs, selling price increases and lower inventory write-downs, partially offset by increased spend on promotional activity and channel mix.
Current wording
Gross profit was $59.3 million for the nine months ended September 30, 2025 as compared to $52.5 million for the nine months ended September 30, 2024. The increase in gross profit of $6.8 million, or 13.0%, was primarily due to higher volumes, selling price increases, favorable unit costs, and lower inventory write-downs, partially offset by increased spend on promotional activity and channel mix.
Previous wording
Gross margin for the three months ended June 30, 2025 improved to 48.7% from 41.9% in the prior-year period. The increase was primarily due to lower inventory write-downs, favorable unit costs, and selling price increases, partially offset by increased spend on promotional activity and channel mix.
Current wording
Gross margin for the nine months ended September 30, 2025 improved to 48.1% from 45.4% in the prior-year period. The increase was primarily due to lower inventory write-downs, favorable unit costs, and selling price increases, partially offset by increased spend on promotional activity and channel mix.
Previous wording
Selling and marketing expenses were $28.7 million for the six months ended June 30, 2025 as compared to $28.7 million for the six months ended June 30, 2024. Marketing expenses were $10.9 million for the six months ended June 30, 2025 as compared to $7.1 million for the six months ended June 30, 2024, an increase of $3.8 million, or 54.5%. Selling expenses were $17.8 million for the six months ended June 30, 2025 as compared to $21.6 million for the six months ended June 30, 2024, a decrease of $3.8 million, or 17.7%.
Current wording
Selling and marketing expenses were $41.4 million for the nine months ended September 30, 2025 as compared to $40.7 million for the nine months ended September 30, 2024. Marketing expenses were $15.9 million for the nine months ended September 30, 2025 as compared to $10.6 million for the nine months ended September 30, 2024, an increase of $5.3 million, or 49.9%. Selling expenses were $25.5 million for the nine months ended September 30, 2025 as compared to $30.1 million for the nine months ended September 30, 2024, a decrease of $4.6 million, or 15.2%.
Previous wording
The increase in marketing expense of $3.8 million was driven by investments made to drive brand awareness, which was funded by the savings in direct selling expenses as a result of the Productivity Initiative.
Current wording
The increase in marketing expense of $5.3 million was driven by investments made to drive brand awareness, which was partially funded by the savings in direct selling expenses as a result of the Productivity Initiative.
Previous wording
The decrease in selling expenses of $3.8 million was primarily due to decreases in freight transfer costs of $2.0 million, warehousing costs of $2.2 million, all largely driven by the Productivity Initiative, partially offset by higher freight out costs of $0.2 million driven by increased volumes and an increase in distribution fees of $0.2 million.
Current wording
The decrease in selling expenses of $4.6 million was primarily due to decreases in warehousing costs of $2.0 million, repackaging costs of $0.9 million, and freight transfer costs of $2.1 million, all largely driven by the Productivity Initiative and lower inventory levels, partially offset by higher freight out costs of $0.2 million driven by increased volumes and an increase in distribution fees of $0.4 million.
Previous wording
Equity-based compensation expenses were $1.7 million for the six months ended June 30, 2025 as compared to $2.9 million for the six months ended June 30, 2024, primarily related to outstanding equity-based awards being recognized over the remaining service periods of the awards. The decrease of $1.2 million was primarily due to a $1.2 million decrease related to the accelerated method of expense recognition on certain equity awards issued in connection with the Company’s IPO in 2021.
Current wording
Equity-based compensation expenses were $2.7 million for the nine months ended September 30, 2025 as compared to $4.0 million for the nine months ended September 30, 2024, primarily related to outstanding equity-based awards being recognized over the remaining service periods of the awards. The decrease of $1.3 million was primarily due to a $1.5 million decrease related to the accelerated method of expense recognition on certain equity awards issued in connection with the Company’s IPO in 2021, partially offset by expense related to newly issued equity awards.
Previous wording
Restructuring expenses were $2.2 million for the six months ended June 30, 2025 which primarily includes employee related severance costs as well as costs to exit two of our third-party warehouse and distribution facilities.
Current wording
Restructuring expenses were $2.2 million for the nine months ended September 30, 2025 as compared to $1.0 million for the nine months ended September 30, 2024, which primarily includes employee related severance costs as well as costs to exit two of our third-party warehouse and distribution facilities.
Previous wording
As of June 30, 2025, we had $26.3 million in cash and cash equivalents. We believe that our cash and cash equivalents as of June 30, 2025, together with our operating activities and available borrowings under the Secured Revolving Line of Credit (as defined below), will provide adequate liquidity for ongoing operations, planned capital expenditures and other investments beyond the next 12 months.
Current wording
As of September 30, 2025, we had $26.0 million in cash and cash equivalents. We believe that our cash and cash equivalents as of September 30, 2025, together with our operating activities and available borrowings under the Secured Revolving Line of Credit (as defined below), will provide adequate liquidity for ongoing operations, planned capital expenditures and other investments beyond the next 12 months.
Previous wording
Future capital requirements will depend on many factors, including our rate of revenue growth, gross margin and the level of expenditures in all areas of the Company. In future years, we may experience an increase in operating and capital expenditures from time to time, as needed, as we expand business activities. To the extent that existing capital resources and sales growth are not sufficient to fund future activities, we may seek alternative financing through additional equity or debt financing transactions. Additional funds may not be available on terms favorable to us or at all. Also, we will continue to assess our liquidity needs in light of current and future global health emergencies, inflationary pressures, tariffs as well as changes in tariff or U.S. foreign trade policies, relatively high interest rates, volatility in the financial markets, recession fears, current and future global hostilities, and political tensions between the U.S. and China that may continue to disrupt and impact the global and national economies and global financial markets. If any disruption continues into the future, we may not be able to access the financial markets and could experience an inability to access additional capital, which could negatively affect our operations in the future. Failure to raise additional capital, if and when needed, could have a material adverse effect on our financial position, results of operations, and cash flows.
Current wording
Future capital requirements will depend on many factors, including our rate of revenue growth, gross margin and the level of expenditures in all areas of the Company. In future years, we may experience an increase in operating and capital expenditures from time to time, as needed, as we expand business activities. To the extent that existing capital resources and sales growth are not sufficient to fund future activities, we may seek alternative financing through additional equity or debt financing transactions. Additional funds may not be available on terms favorable to us or at all. Also, we will continue to assess our liquidity needs in light of current and future global health emergencies, inflationary pressures, tariffs as well as changes in tariff or U.S. foreign trade policies, relatively high interest rates, volatility in the financial markets, recession fears, shutdown of the U.S. government, current and future global hostilities, and political tensions between the U.S. and China that may continue to disrupt and impact the global and national economies and global financial markets. If any disruption continues into the future, we may not be able to access the financial markets and could experience an inability to access additional capital, which could negatively affect our operations in the future. Failure to raise additional capital, if and when needed, could have a material adverse effect on our financial position, results of operations, and cash flows.
Previous wording
Net cash used in operating activities of $4.3 million for the six months ended June 30, 2025 was primarily driven by a net loss of $7.0 million, partially offset by non-cash expenses of $2.5 million primarily related to equity-based compensation and depreciation and amortization expense, and a net increase in cash related to changes in operating assets and liabilities of $0.2 million. Changes in cash flows related to operating assets and liabilities were primarily due to a decrease in inventories of $2.9 million due to decreased production of inventory as inventory levels are managed partially offset by an increase in accounts receivable of $2.3 million largely due to the increase in net sales, a net decrease in accounts payable, accrued expenses and other current liabilities of $0.2 million due to timing of purchases and decreased production of inventory.
Current wording
Net cash used in operating activities of $4.2 million for the nine months ended September 30, 2025 was primarily driven by a net loss of $9.9 million, partially offset by non-cash expenses of $3.8 million primarily related to equity-based compensation and depreciation and amortization expense, and a net increase in cash related to changes in operating assets and liabilities of $1.8 million. Changes in cash flows related to operating assets and liabilities were primarily due to a decrease in inventories of $4.5 million due to decreased production of inventory as inventory levels are managed, partially offset by an increase in accounts receivable of $1.8 million largely due to the increase in net sales, a net decrease in accounts payable, accrued expenses and other current liabilities of $0.4 million due to timing of purchases and decreased production of inventory, and lower lease liability of $0.5 million.
Previous wording
Net cash used in operating activities of $2.9 million for the six months ended June 30, 2024 was primarily driven by a net loss of $14.2 million, partially offset by non-cash expenses of $4.0 million primarily related to equity-based compensation and depreciation and amortization expense and a net increase in cash related to changes in operating assets and liabilities of $7.3 million. Changes in cash flows related to operating assets and liabilities were primarily due to a decrease in inventories of $12.3 million due to decreased production of inventory as inventory levels are managed as well as higher inventory reserves, decreased prepaid expenses and other assets of $2.1 million largely due to a decrease in prepaid deposits related to the sale of raw materials, partially offset by a decrease in accounts payable, accrued expenses and other current liabilities of $6.6 million due to timing of purchases and decreased production of inventory, and an increase in accounts receivable of $0.2 million due to timing of payments.
Current wording
Net cash used in operating activities of $1.0 million for the nine months ended September 30, 2024 was primarily driven by a net increase in cash related to changes in operating assets and liabilities of $12.4 million. Changes in cash flows related to operating assets and liabilities were primarily due to a decrease in inventories of $13.9 million due to decreased production of inventory as inventory levels are managed, decreased prepaid expenses and other assets of $2.4 million largely due to a decrease in prepaid deposits related to the sale of raw materials, and a decrease in accounts receivable of $1.1 million due to timing of payments, partially offset by a net decrease in accounts payable, accrued expenses and other current liabilities of $4.6 million due to timing of purchases and decreased production of inventory. These increases were partially offset by a decrease in cash due to a net loss of $17.0 million, partially offset by non-cash expenses of $5.6 million primarily related to equity-based compensation and depreciation and amortization expense.
Previous wording
Net cash used in investing activities of less than $45 thousand for the six months ended June 30, 2025 was primarily due to purchases of computer equipment and quality control equipment used in ongoing operations.
Current wording
Net cash used in investing activities of $0.2 million for the nine months ended September 30, 2025 was primarily due to purchases of software used in ongoing operations.
Previous wording
Net cash used in investing activities of $0.1 million for the six months ended June 30, 2024 was primarily due to purchases of property, equipment, and software of $0.1 million for computer equipment, marketing fixtures, and software used in ongoing operations.
Current wording
Net cash used in investing activities of $0.2 million for the nine months ended September 30, 2024 was primarily due to purchases of computer equipment, marketing fixtures, and software used in ongoing operations.
Previous wording
Net cash provided by financing activities of $5 thousand for the six months ended June 30, 2025 was primarily due to proceeds from the exercise of stock options offset by financing costs paid.
Current wording
Net cash used in financing activities of $0.2 million for the nine months ended September 30, 2025 was primarily due to financing costs paid partially offset by proceeds from the exercise of stock options.
Previous wording
Net cash provided by financing activities of less than $0.1 million for the six months ended June 30, 2024 was due to proceeds from the Secured Revolving Line of Credit of $8 million which was repaid in the same period.
Current wording
Net cash used in financing activities of less than $0.1 million for the nine months ended September 30, 2024 was due to proceeds from the Secured Revolving Line of Credit of $8 million which was repaid in the same period.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
General and administrative expenses were $8.1 million for the three months ended June 30, 2025 as compared to $7.7 million for the three months ended June 30, 2024. The increase of $0.4 million, or 5.0%, was primarily driven by higher variable compensation as well as higher use of outside services, which was partially offset by lower headcount as a result of the Company's Productivity Initiative to right-size the business and focus on growth driving initiatives.