Reaffirms Fiscal 2026 Revenue Outlook of More Than $45 Million and Positive Adjusted EBITDA
- Q3 Gross margin expanded to 34% from 29%
- Q3 Net income from continuing operations of $471,000, an improvement of $1.9 million
- Q3 Adjusted EBITDA of $869,000, an improvement of $1.77 million year over year
- Management sees potential for positive operating cash flow as revenue scales, subject to working capital requirements
- Growth platform includes new products, additional club distribution points, major brands and fandoms and functional-health opportunities that broaden the addressable market
- Expanding into functional health with planned gut-health innovation under Jones Labs
- Management to host a conference call Tuesday, November 10, 2026, at 9 a.m. ET
SEATTLE, Nov. 10, 2026 /PRNewswire/ -- Jones Soda Co. (CSE: JSDA) (OTCQB: JSDA) ("Jones Soda" or the "Company") today announced its financial results for the third quarter and nine months ended September 30, 2026.
"The third quarter marked an important step forward for Jones Soda," said Scott Harvey, Chief Executive Officer. "Revenue grew 204% year over year to a record $13.7 million, gross margin expanded to 34.4%, and we generated $400,000 of operating income compared with a $1.4 million operating loss a year earlier. These results reflect the progress we are making in expanding distribution, strengthening our product portfolio and improving operating leverage."
"Our growth initiatives include additional club distribution, our Zero Sugar product lineup in Western Canada, and collaborations that connect the Jones brand with new audiences, including Fallout and Crayola. We are also evaluating opportunities to expand into functional health and nutrition. We remain focused on converting revenue growth into sustainable profitability and improved operating cash flow, while maintaining disciplined management of expenses and working capital."
Third Quarter 2026 Financial Summary vs. Third Quarter 2025
- Revenue increased 204% to $13.7 million compared to $4.5 million in the year ago period.
- Gross margin expanded to 34% compared to 29% in the third quarter of 2025.
- Operating income was $400,000, an improvement of $1.8 million compared to an operating loss of $(1.4) million in the prior year period.
- Net income from continuing operations increased by $1.9 million to $471,000, or $0.00 per share, compared to a net loss from continuing operations of $(1.4) million, or $(0.01) per share, in the third quarter of 2025.
- Adjusted EBITDA from continuing operations was $869,000, compared with an Adjusted EBITDA loss of $897,000 in the third quarter of 2025, an improvement of $1.77 million.
Year-to-Date 2026 Financial Summary vs. Year-to-Date 2025
- For the nine months ended September 30, 2026, revenue increased to $36.3 million, up 167% compared to $13.6 million in the prior year period.
- Gross profit was $11.4 million, or 31% of revenue, compared to $4.3 million, or 32% of revenue, in the prior year period.
- Operating income improved by $3.3 million to $228,000 compared to an operating loss of $(3.1) million for the nine months ended September 30, 2025.
- Net loss from continuing operations was $(64,000), or $(0.00) per share, compared to net income from continuing operations of $132,000, or $0.00 per share, in the prior year period, which included a one-time $3.7 million gain on the disposition of the Company's cannabis subsidiary.
- Adjusted EBITDA from continuing operations was $1.12 million, compared with an Adjusted EBITDA loss of $2.65 million in the first nine months of 2025, an improvement of $3.77 million.
Recent Business Highlights
- Brought Iconic Fallout Nuka-Cola Flavors into Reality with Exclusive "Vault-dweller Variety" Pack Ahead of Fallout Day 2026
- Announced Closing of US$765,000 Private Placement
- Expanded Craft Soda Portfolio with Zero Sugar Lineup at Western Canada Club Stores
- Announced Limited-Edition Crayola Collaboration as Part of 30th Anniversary "Dirty 30" Celebration
Third Quarter 2026 Financial Results
Revenue for the third quarter ended September 30, 2026 increased 204% to $13.7 million from $4.5 million in the prior-year period. The Company continued to expand its club retail and direct-to-consumer activities.
For the three months ended September 30, 2026, gross profit increased $3.4 million, or 263%, to $4.7 million from $1.3 million for the corresponding 2025 period. Gross margin improved to 34.4% from 28.9%, an increase of approximately 5.5 percentage points.
Total operating expenses for the third quarter of 2026 were $4.3 million, an increase of $1.6 million compared with $2.7 million in the prior-year period. Selling and marketing expense increased to $2.3 million from $1.0 million, while general and administrative expense increased to $2.0 million from $1.7 million.
Selling and marketing expenses as a percentage of revenue decreased to 17.0% in the third quarter of 2026 from 22.5% in the same quarter of 2025.
Net income from continuing operations was $471,000, or $0.00 per share, an improvement of $1.9 million compared to a net loss from continuing operations of $(1.4) million, or $(0.01) per share, in the third quarter of 2025.
Adjusted EBITDA from continuing operations was $869,000, compared with a loss of $897,000 in the prior-year quarter, an improvement of $1.77 million.
As of September 30, 2026, the Company had cash of $4.4 million and positive working capital of approximately $2.1 million, compared with cash of $3.6 million and a working capital deficit of approximately $0.5 million at December 31, 2025. Net cash used in continuing operating activities was $2.3 million during the first nine months of 2026, compared with $4.0 million in the year-earlier period.
Outlook
The following forward-looking fiscal 2026 outlook reflects management's expectations as of November 10, 2026 and is subject to substantial risks and uncertainties. In particular, revenue growth and operating income do not necessarily imply positive cash flow because working capital and other cash requirements may vary.
The Company reaffirms its fiscal 2026 outlook for net revenue in excess of $45 million, representing growth of more than 80% over fiscal 2025, and positive Adjusted EBITDA.
Conference Call
Jones Soda will hold a conference call at 9 a.m. Eastern time on November 10, 2026, to discuss its results for the third quarter ended September 30, 2026.
Chief Executive Officer Scott Harvey and Chief Financial Officer Brian Meadows will host the conference call, followed by a question-and-answer period. During the question-and-answer period, management will address common themes and questions submitted through the webcast portal. Participants who wish to ask a question should join the call via the webcast.
Date: Tuesday, November 10, 2026
Time: 9 a.m. Eastern time (6 a.m. Pacific time)
Webcast and Q&A: https://viavid.webcasts.com/starthere.jsp?ei=1781378&tp_key=bf157e0d66
Toll-free dial-in number: 1-877-407-0784
International dial-in number: 1-201-689-8560
Conference ID: 13763628
Please call the conference telephone number five minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting to the call, please contact Hayden IR at 1-646-755-7412.
A telephonic replay of the conference call will be available approximately three hours after the conclusion of the call through Tuesday, November 24, 2026, at 11:59 p.m. Eastern time. To access the replay, dial 1-844-512-2921 (toll-free) or 1-412-317-6671 (international) and enter access ID 13763628.
Presentation of Non-GAAP Information
This release includes Adjusted EBITDA, a non-GAAP financial measure, which management uses as a supplemental measure of operating performance. Adjusted EBITDA is reconciled below to net income (loss) from continuing operations, the most directly comparable U.S. GAAP measure, through adjustments for interest expense, income taxes, depreciation, amortization, stock-based compensation, finance income and specified other items as shown in the reconciliation. Adjusted EBITDA should not be considered a substitute for GAAP results and may not be comparable with similarly titled measures used by other companies.
About Jones Soda Co.
Jones Soda Co.® (CSE: JSDA, OTCQB: JSDA) is a leading craft soda manufacturer. The Company markets and distributes premium craft sodas under the Jones® Soda brand. Jones' mainstream soda line is sold across North America in glass bottles, cans and on fountain through traditional beverage outlets, restaurants and alternative accounts. The Company is headquartered in Seattle, Washington. For more information, visit www.jonessoda.com.
Forward-Looking Statements Disclosure
Certain statements in this press release are forward-looking statements within the meaning of applicable U.S. and Canadian securities laws. These include statements about fiscal 2026 revenue and Adjusted EBITDA expectations, anticipated product introductions and distribution opportunities, strategic collaborations, functional-health initiatives, and management's plans to improve profitability and cash flow. Forward-looking statements are based on estimates and assumptions and involve known and unknown risks and uncertainties. Actual outcomes may differ materially because of, among other factors, changes in customer demand and product mix; performance of distributors and retail accounts; the timing of shipments; promotional and royalty costs; raw-material, production and freight costs; working-capital needs; the ability to secure financing; competition; product development and launch risk; regulatory changes, including rules governing hemp-derived products; and other risks discussed in the Company's Form 10-K for the year ended December 31, 2025 and subsequent SEC reports. The Company has historically experienced operating losses and negative operating cash flows, and its September 30, 2026 Form 10-Q includes a substantial-doubt going-concern disclosure. Forward-looking statements speak only as of the date made. Except as required by law, the Company undertakes no obligation to update them.
--Tables Follow--
JONES SODA CO. - CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
September 30, 2026 | December 31, 2025 | |
ASSETS | ||
Current assets: | ||
Cash | $ 4,363 | $ 3,599 |
Accounts receivable, net of allowance of $75 and $50, respectively | 5,578 | 3,603 |
Note receivable | - | 1,400 |
Current licensing fees receivable | 225 | 150 |
Inventories, net | 6,537 | 2,657 |
Prefunded insurance premiums from financing | - | 214 |
Prepaid expenses and other current assets | 683 | 1,224 |
Deferred financing costs | 458 | 415 |
Total current assets | 17,844 | 13,262 |
Long-term licensing fees receivable | 1,791 | 1,647 |
Fixed assets, net of accumulated depreciation of $851 and $583, respectively | 107 | 321 |
Total assets | $ 19,742 | $ 15,230 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Current liabilities: | ||
Accounts payable | $ 6,836 | $ 6,378 |
Accrued expenses | 5,468 | 3,960 |
Revolving credit facility and loans | 3,456 | 3,022 |
Insurance premium financing | - | 214 |
Promissory notes | - | 190 |
Total current liabilities | 15,760 | 13,764 |
Total liabilities | 15,760 | 13,764 |
Commitments and contingencies (Note 14) | ||
Shareholders' equity: | ||
Common stock, no par value: Authorized - 800,000,000; issued and | 98,541 | 95,895 |
Accumulated other comprehensive income | 233 | 299 |
Accumulated deficit | (94,792) | (94,728) |
Total shareholders' equity | 3,982 | 1,466 |
Total liabilities and shareholders' equity | $ 19,742 | $ 15,230 |
JONES SODA CO. - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited - In thousands, except share and per share data)
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |
Net Revenue | $ 13,705 | $ 4,500 | $ 36,305 | $ 13,624 |
Cost of goods sold | (8,985) | (3,201) | (24,895) | (9,302) |
Gross profit | 4,720 | 1,299 | 11,410 | 4,322 |
Operating expenses: | ||||
Selling and marketing | 2,327 | 1,013 | 6,263 | 3,186 |
General and administrative | 1,993 | 1,688 | 4,919 | 4,219 |
Total operating expenses | (4,320) | (2,701) | (11,182) | (7,405) |
Income (loss) from operations | 400 | (1,402) | 228 | (3,083) |
Other income (expenses): | ||||
Interest income | 116 | 54 | 19 | 60 |
Interest expense | - | (87) | (250) | (235) |
Other (expense) income, net | (45) | 9 | (56) | (264) |
Gain on disposition of subsidiaries | - | - | - | 3,663 |
Total other (expenses) income | 71 | (24) | (287) | 3,224 |
Income (loss) before income taxes | 471 | (1,426) | (59) | 141 |
Income tax expense, net | - | (2) | (5) | (9) |
Income (loss) from continuing operations | 471 | (1,428) | (64) | 132 |
Income from discontinued operations | - | - | - | 199 |
Net income (loss) | $ 471 | $ (1,428) | $ (64) | $ 331 |
Earning (loss) per share - basic and diluted: | ||||
Income (loss) from continuing operations | $ 0.00 | $ (0.01) | $ (0.00) | $ 0.00 |
Income from discontinued operations | $ - | $ - | $ - | $ 0.00 |
Total earning (loss) per share | $ 0.00 | $ (0.01) | $ (0.00) | $ 0.00 |
Weighted average common shares outstanding - | 124,965,046 | 117,313,096 | 120,810,210 | 116,459,818 |
JONES SODA CO. - RECONCILIATION OF GAAP NET INCOME (LOSS) FROM CONTINUING OPERATIONS TO NON-GAAP ADJUSTED EBITDA
(Unaudited - In thousands of dollars)
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |
Net income (loss) from continuing operations | $ 471 | $ (1,428) | $ (64) | $ 132 |
Add: Interest expense | 108 | 61 | 474 | 178 |
Add: Income tax expenses | - | - | 5 | - |
EBIT | 579 | (1,367) | 415 | 310 |
Add: Depreciation | 97 | 15 | 268 | 45 |
Add: Amortization | - | - | - | - |
EBITDA | 676 | (1,352) | 683 | 355 |
Add: Loss on disposal | - | 10 | - | 10 |
Less: Gain on disposition of subsidiaries | - | - | - | (3,663) |
Add: Stock-based compensation | 406 | 455 | 641 | 742 |
Add: Impairment of receivable | - | (2) | 25 | (48) |
Add: Impairment of note receivable | - | - | - | - |
Add: Impairment of inventory | - | - | - | (38) |
Less: Finance income | (213) | (8) | (228) | (8) |
ADJUSTED EBITDA | $ 869 | $ (897) | $ 1,121 | $ (2,650) |
SOURCE Jones Soda Co.
