Jones Soda Raises Growth Targets to 80%, Unveils Rap Snacks Collaboration, and Signals a Turn to Profitability
After a strong Q2, the craft soda maker leverages brand partnerships, expands Zeros, and tightens cost discipline to deliver first-ever adjusted EBITDA guidance.
JSDA.CN · Earnings Call · 2026-08-13
A defining quarter
Jones Soda's second-quarter results mark a clear inflection. Revenue surged 108% year-over-year to $10.2 million, driven by higher volume sales of Fallout-branded products through clubs, retailers, and direct-to-consumer channels. The company raised its full-year revenue growth expectation from 60% to approximately 80% and, for the first time, guided to positive adjusted EBITDA for fiscal 2026. “we're increasing our full year revenue growth expectations to approximately 80% and expect to deliver positive adjusted EBITDA for fiscal 2026” — Scott Harvey, CEO · 2026-08-13 The confidence stems from continued execution and a robust commercial pipeline, even as management acknowledges that some categories have underperformed.Brand collaborations as a growth engine
The most notable strategic move is the newly announced collaboration with Rap Snacks, a 30-year-old snack brand deeply embedded in hip-hop culture. Scott Harvey, CEO, highlighted the synergy: “When you look at Jones and Rap Snacks, there's a lot of similarities... Bringing those 2 together gives us an opportunity to create something pretty unique.” — Scott Harvey, CEO · 2026-08-13 This is not a one-off limited edition but a broader partnership that could open retail doors and introduce Jones to new consumers. The company plans to launch three custom craft sodas with artist collaborations and retail activations, with revenue expected to begin in fiscal 2027. This builds on a proven track record of branded collaboration—the Fallout line, which has sold out multiple times, and Crayola, which returns for back-to-school. The CEO emphasized that such partnerships are a core differentiator: “There are a lot of companies that can put 2 logos on a package. What I think Jones and what we do really well is create something that consumers actually want to be part of.” — Scott Harvey, CEO · 2026-08-13 The company's prior success with Fallout was already a sign of this capability, as noted in the November 2025 call: “We have a 3-year commitment with Bethesda... So we will continue to capitalize as much as we can with Fallout.” — Scott Harvey, Chief Executive Officer · 2025-11-17Zeros and the core business
Beyond partnerships, the company is doubling down on Zeros—its zero-sugar craft soda line. After a successful launch at Western Canadian club stores (Costco Canada), where the product saw strong sell-through and reorders, Jones is aggressively pursuing wider distribution. Scott noted: “Zeros also gives us an opportunity to reconnect with consumers... who grew up with Jones and who love the brand, but may have moved away just from the full sugar.” — Scott Harvey, CEO · 2026-08-13 The potential is significant; management believes Zeros can win back lapsed fans and attract health-conscious consumers without compromising on the brand's bold flavors—a key pillar of the company's identity. Core beverages remain the foundation, and the company continues to strengthen that base while selectively innovating.Margin pressure and cost discipline
Gross margin fell 580 basis points to 27.5% in Q2, primarily due to higher freight costs driven by elevated oil prices. The company's ops team responded swiftly with an RFP that reduced key freight lane costs by 10–36% starting in June. CFO Brian Meadows explained: “We do expect a higher gross profit margin in the back half of 2026 with the caveat of world oil prices remaining where they are today” — Brian Meadows, CFO · 2026-08-13 at approximately $80 per barrel. Meanwhile, operational efficiency is improving—revenue per employee is trending at $1.3 million for 2026, up 47% from 2025 and 87% from 2024, even as headcount grew from 25 to 34. Working capital metrics have also improved dramatically: DSO fell from 78.4 to 29.4 days, inventory turns rose from 2.8x to 6.8x, and DPO normalized to ~60 days.Capital and liquidity
The company's balance sheet is being shored up. Subsequent to the quarter, Jones completed two private placements raising ~$1.9 million, adding to its $10 million credit facility. This provides liquidity for growth initiatives and legacy obligations. Management also updated its S-1 filing and remains focused on uplisting to NASDAQ or NYSE, a long-term goal that would require raising $10–15 million. The CEO's closing remarks captured the company's trajectory:In summary, Jones Soda is undergoing a transformation—from a turnaround story to a growth story with improving profitability. The combination of a new flagship partnership, continued momentum in Zeros, and disciplined cost management positions it for a stronger back half and a promising 2027.We're growing the business at a rate we haven't seen in a long time. We're increasing our full year revenue expectation and our adjusted EBITDA for the full year as well.