Zevia PBC (ZVIA) Stock Forecast & Price Target

Zevia PBC has demonstrated solid financial performance, with total sales increasing by 12.3% to $40.8 million, driven by strong volume growth of 12.6% and a higher household penetration rate of 5.2%. The company anticipates continued sales growth fueled by the introduction of new flavors, expanded distribution channels, and effective marketing initiatives, despite facing increased marketing spending and tariff costs. Looking ahead, Zevia projects healthy sales growth and positive adjusted EBITDA for 2026, highlighting its commitment to innovation and market expansion through efforts such as packaging refreshes and increased product variety.

Zevia PBC is projected to experience significant adjusted EBITDA margin compression of 530 basis points, resulting in an adjusted EBITDA loss of $3.7 million attributed to a decline in gross margin and increased inventory losses from packaging changes and tariffs. The company's gross margin is expected to drop by 350 basis points to 45.6%, reflecting ongoing challenges related to input costs and operational inefficiencies. Additionally, external economic factors such as commodity price volatility, rising interest rates, and declining consumer confidence pose further risks to Zevia's financial stability and growth prospects.