Zevia PBC (ZVIA) Stock Forecast & Price Target

Zevia PBC reported a robust 12.3% increase in total sales, driven by a 12.6% volume growth and improved household penetration reaching 5.2%. The company anticipates continued growth fueled by new product offerings, enhanced distribution strategies, and effective marketing initiatives, despite facing increases in promotional and tariff costs. Looking ahead, Zevia projects healthy sales growth and positive adjusted EBITDA in 2026, indicating a strong outlook for the company's financial performance.

The financial outlook for Zevia PBC presents significant concerns, particularly with an anticipated adjusted EBITDA margin compression of 530 basis points, resulting in a projected adjusted EBITDA loss of $3.7 million. This decline is primarily driven by a gross margin reduction of 350 basis points due to heightened inventory losses linked to packaging refresh and tariff-related costs. Additionally, the company faces considerable risks from factors such as volatile commodity costs, fluctuating consumer spending, rising interest rates, and weaker consumer confidence, which could further hinder its financial performance.