Shares of Jones Soda Co. JSDA have fallen 6.8% since releasing fourth-quarter 2024 results, underperforming the S&P 500 index’s 1.1% growth. Over the past month, the stock declined 19% compared with the S&P 500’s 3.1% slide.
Earnings & Revenue Performance
The company posted a significant year-over-year decline in fourth-quarter revenues to $2.8 million from $3.5 million as distribution transitions and the loss of a key discount retail customer took a toll. The net loss widened sharply to $4.6 million, or 4 cents per share, from $1.5 million, or 2 cents per share, in the prior year.
Adjusted EBITDA deteriorated year over year to negative $4.4 million from negative $1.4 million. For 2024, however, Jones Soda delivered a 15% revenue increase to $19.1 million from $16.7 million in 2023, led by strength in its core beverage segment and growth in Mary Jones branded products. Yet, the net loss deepened to $9.9 million, or 9 cents per share, from $4.9 million, or 5 cents per share, the previous year.
Jones Soda Co. Price, Consensus and EPS Surprise
Jones Soda Co. price-consensus-eps-surprise-chart | Jones Soda Co. Quote
Expansion in Core & Adjacent Categories
Jones Soda’s beverage division generated $17.8 million in 2024 revenues, growing 15.6% year over year. Notably, the hemp-derived HD9 products contributed $1.7 million in their first year on the market. The cannabis (THC) segment also expanded modestly, delivering $1.3 million in revenues versus $1.2 million in 2023, supported primarily by Canada sales.
However, the company’s gross margin compressed significantly to 21.3% from 29.1% the year prior due to a $1.2-million inventory write-off related to discontinued low-performing products. Operating expenses climbed to $14 million from $9.7 million in 2023, driven by stepped-up selling and marketing efforts, as well as higher legal costs totaling around $1 million. Management emphasized that these items were largely non-recurring, aiming to restore expense discipline in 2025.
Leadership Reset & Focused Strategy
New CEO Scott Harvey, appointed in February 2025, described the company’s performance as “tested by operational challenges and poor financial discipline” in the second half of the year. He stressed that immediate corrective actions have been taken, including tighter cost controls and a focus on cash flow optimization. Harvey, a seasoned executive with over four decades of experience in consumer goods and food service, reiterated the company’s growth pillars — core soda, modern soda and adult beverage.
CFO Brian Meadows, who joined the leadership team this year, pinpointed three main drivers behind the wider net loss — the inventory write-off, legal expenses, and elevated spending on product innovation and marketing. Meadows highlighted that the management team tightened spending controls and emphasized ROI-driven decision-making moving forward.
Financial Headwinds & Operational Adjustments
Revenue softness in the fourth quarter reflected both external and internal hurdles, notably the shift to a new distributor in Canada and the loss of a U.S. discount retail account. The year also saw heightened promotional spending, which management contends laid a foundation for future growth but strained near-term profitability. The fourth-quarter inventory impairment added pressure tied to the discontinuation of underperforming products.
Legal expenses emerged as another burden but have since been resolved. Meadows reported that management has overhauled contract approval processes, with only the CEO and CFO authorized to finalize agreements, aiming to prevent similar costs going forward.
Growth Initiatives
Management expressed optimism about improving gross margins and operational efficiency. Harvey pointed to consumer interest in modern soda and adult beverages as promising tailwinds, citing the early success of the Mary Jones HD9 line and the launch of Jones Zero Cola across more than 10,000 stores nationwide.
To support its growth ambitions, Jones Soda secured a $5-million revolving credit facility in February 2025, enhancing liquidity to fund inventory and sales expansion plans.
Other Developments
Alongside executive changes, Jones Soda expanded its retail footprint, increasing its distribution network from 75 to 81 partners across 37 states. Convenience store placements also grew to nearly 2,000 outlets, including multiple Circle K divisions and DK Convenience Stores.
The company broadened its product portfolio by introducing Fiesta Jones and Pop Jones lines, targeting the fast-growing functional beverage category. Jones Soda plans to roll out additional zero-calorie flavors under the Jones Zero banner later this year. In the cannabis space, the company extended its reach into Missouri, the fifth-largest legal cannabis market in the United States, and signed four distribution partners to enter two additional states.
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