Reed's Posts 20 Percent Sales Drop in Q2
Reed's (OTC:REED), a company known for its natural, handcrafted ginger beer and specialty sodas, published its second quarter 2025 results on August 12, 2025. The most notable news: revenue (GAAP) dropped to $9.5 million, missing analyst expectations of $10.29 million (GAAP), while earnings per share (GAAP) came in at $(0.13), wider than the expected $(0.04) (GAAP). Compared to the prior year, the company delivered lower GAAP net sales, thinner margins, and higher losses—highlighting both ongoing operational challenges and the costs of restructuring. Management cited a major inventory write-off of $1.6 million and rising expenses. The quarter underscored the company’s struggle to turn around falling sales and build sustainable profitability.
Source: Analyst estimates for the quarter provided by FactSet.
Reed’s produces and markets premium natural beverages, including ginger beers, root beers, and fruit sodas under the Reed’s and Virgil’s brands. The company is positioned in the healthier segment of the carbonated soft drink market, targeting consumers who prefer craft, clean-label, and lower sugar options. Its distribution network places products in more than 32,000 outlets across the United States, with additional reach in select international markets.
Source Fool.com
