Zevia PBC (ZVIA) Stock Forecast & Price Target

Zevia PBC has demonstrated solid financial growth, with total sales increasing by 12.3% to $40.8 million, supported by a notable volume growth of 12.6% and increased household penetration to 5.2%. The company is strategically positioned for continued expansion through new product offerings, enhanced distribution channels, and efficient marketing initiatives, despite some challenges related to marketing expenses and tariffs. Looking ahead, Zevia is poised for sustained sales growth and anticipates achieving positive adjusted EBITDA by 2026, bolstered by effective management and increased visibility at retail partners.

Zevia PBC is anticipated to experience significant profitability challenges, with a projected adjusted EBITDA margin compression of 530 basis points, leading to an estimated margin of (9.4%). The company's gross margin is expected to decline by 350 basis points to 45.6%, largely attributable to increased inventory losses from packaging refresh efforts and tariffs. Additionally, various external risks, including commodity cost volatility and macroeconomic factors such as rising interest rates and weakened consumer confidence, further contribute to an unfavorable outlook for the company's financial performance.