Zevia PBC (ZVIA) Stock Forecast & Price Target

Zevia PBC has demonstrated robust sales growth, with total sales increasing by 12.3% to $40.8 million, driven by a significant volume increase of 12.6%, higher household penetration, and increased purchase frequency. The company's positive outlook is supported by anticipated gains from new product introductions, enhanced distribution efforts, and effective marketing strategies, which are expected to drive sales growth and maintain profitability amid increased costs. Looking ahead, Zevia's expectation of healthy sales growth and positive adjusted EBITDA in 2026, coupled with the expansion of product offerings such as variety packs, bodes well for its continued performance in the beverage market.

Zevia PBC is expected to experience adjusted EBITDA margin compression of 530 basis points, leading to a forecasted adjusted EBITDA loss of $3.7 million, which reflects ongoing challenges in gross margins due to heightened inventory losses and tariffs, with gross margins declining by 350 basis points to 45.6%. Additionally, the company faces significant risks stemming from volatility in commodity costs, which could further impair financial stability, coupled with macroeconomic challenges such as rising interest rates and weakened consumer confidence. Overall, these factors contribute to a complex landscape that raises concerns about Zevia's ability to maintain a profitable trajectory in the near term.