Reed's Q1 revenue falls 29%, net loss widens

Reed'S

12/05/2026 21:20

Overview

U.S. craft beverage maker's Q1 revenue fell 29% yr/yr on lower volumes

Gross profit and margin declined sharply due to product liquidation and inventory write-offs

Company posted wider net loss as higher SG&A and weaker sales weighed on results

Outlook

Company expects corrective actions to improve execution, margins, and topline momentum in 2026

Result Drivers

LOWER SALES VOLUMES - Co said revenue decline was primarily driven by lower volumes with recurring national customers and higher promotional and other allowances

INVENTORY RATIONALIZATION - Gross margin decline was mainly due to liquidation of slow-moving product and inventory write-offs related to product portfolio optimization

HIGHER SG&A EXPENSES - SG&A rose due to investments in personnel, marketing and related services to support Asia growth initiative

Company press release: ID:nGNXc5QZGJ

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
$7.10 mln
$7.52 mln (1 Analyst)
Q1 Net Income
-$6.50 mln
Q1 Gross Profit
$700,000


Analyst Coverage

The one available analyst rating on the shares is "buy"

Wall Street's median 12-month price target for Reed's Inc is $4.75, about 69% above its May 11 closing price of $2.81

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)