Zevia PBC (ZVIA) Stock Forecast & Price Target

Zevia PBC has demonstrated a strong sales performance, with total sales increasing by 12.3% to $40.8 million and notable volume growth of 12.6%, supported by an uptick in household penetration and purchase frequency. The company anticipates continued positive momentum driven by new product offerings, expanded distribution, and effective marketing strategies, despite some headwinds from higher marketing expenses and tariffs. Furthermore, Zevia is projected to achieve healthy sales growth and positive adjusted EBITDA in 2026, along with successful expansion of variety packs and refreshed packaging that appeal to consumers.

The financial analysis indicates a significant forecasted contraction in Zevia's adjusted EBITDA margin, projected to decline by 530 basis points to -9.4%, which is reflective of a gross margin reduction of 350 basis points to 45.6% due to rising inventory losses linked to packaging refreshes and tariff impacts. The anticipated adjusted EBITDA loss of $3.7 million further illustrates the company's ongoing profitability challenges compared to previous assessments. Additionally, the company faces multiple external pressures, including volatility in commodity costs, shifts in consumer spending, and broader economic factors such as rising interest rates and fluctuating consumer confidence, all of which may hinder financial performance.