Reeds Stock Earnings Reports

Reed's Q3 2025 showed modest top-line growth and continued operational restructuring to support longer-term profitability. Net sales rose 4% year-over-year to $7.0M, while gross profit stayed flat at $1.2M (17% margin) but would have been 19% excluding $0.1M in inventory write-offs tied to SKU rationalization. Delivery and handling costs improved (down 14% YoY), while SG&A rose to $4.2M due to investments in personnel and marketing. The company is executing a multi-quarter program: shifting distributor strategy and trade spend from short-term promotions to a planned 52-week approach, moving primary SKUs from glass to cans (expected to drive cost and margin benefits through 2026), restaging core and functional product lines with major relaunches in mid-2026, and expanding distribution (notable wins with Costco, Kroger, Walgreens tests and several regional retailers). Leadership was strengthened with new CMO and go-to-market hires and a board addition. Balance-sheet actions included a $650k debt repayment, refinancing of the credit facility, a 1-for-6 reverse split (effective Oct 31) and plans to uplist to a major exchange. Cash was $4.1M and net debt stood at roughly $9.2M as of Sept 30, 2025. Management emphasized operational discipline, inventory rationalization (including a $114k obsolete inventory write-down this quarter), and the goal of regaining lost distribution while preparing for accelerated organic growth in 2026.