Reed’s, Inc. Reports Q4 and Full Year 2025 Results, Announces Major Leadership Changes

Summary of Key Points

• Appointment of Neal Cohane as Interim CEO, replacing Cyril Wallace.
• Sequential quarterly improvement in key financial metrics, despite ongoing losses.
• Significant leadership transition: COO to CEO, CMO departure, and board member stepping in as fractional CMO.
• Uplisting to NYSE American exchange.
• Continued focus on profitable growth, operational efficiency, and expansion strategies.
• Detailed financial results for Q4 and FY2025, including net sales, profit, margins, and cash position.

Leadership Transition

Reed’s, Inc. announced on March 24, 2026, that Neal Cohane has been appointed Interim Chief Executive Officer and board member, effective immediately. Cohane succeeds Cyril Wallace, who has stepped down. The board has started a search for a permanent CEO. Cohane, a seasoned retail and beverage industry executive, was most recently the company’s Chief Operating Officer (appointed January 2026), and previously served as Reed’s Chief Sales Officer for over 15 years. His past roles include senior positions at Eastroc Beverage, Rootstock Brands, PepsiCo, SoBe, and The Coca-Cola Company.

Additionally, Chief Marketing Officer Tina Reejsinghani has departed. Board member Rudolf (Ruud) J.M. Bakker, with 25 years of global beverage industry experience, is stepping in as outsourced fractional CMO. These changes signal a significant leadership overhaul aimed at guiding Reed’s through its next phase of growth.

Financial Performance Overview

Fourth Quarter 2025 Highlights (vs. Q4 2024):

• Net sales: \$7.5 million (down from \$9.7 million)
• Gross profit: \$1.5 million (down from \$2.9 million); gross margin declined from 30% to 20%
• Delivery and handling costs per case: \$2.46 (down from \$3.00)
• Selling, general and administrative expenses: \$4.0 million (down from \$4.9 million)
• Net loss: Improved to \$3.8 million (from \$4.1 million)
• EBITDA: \$(3.6) million (vs. \$(3.1) million)

FY2025 Financial Highlights (vs. FY2024):

• Net sales: \$34.1 million (down from \$38.0 million)
• Gross profit: \$7.0 million (down from \$11.4 million); gross margin declined from 30% to 20%
• Delivery and handling costs: Flat at \$2.75 per case
• Selling, general and administrative expenses: \$16.6 million (up from \$13.5 million)
• Net loss: \$15.8 million (worsened from \$13.2 million)
• EBITDA: \$(14.6) million (vs. \$(7.3) million)

Operational and Strategic Developments

• Sequential quarterly improvements in net sales, gross margin, and net loss in Q4 2025, attributed to increased retail velocity and seasonal products.
• Delivery and handling costs reduced by 35% YoY in Q4, reflecting increased operating efficiency.
• Selling, general, and administrative expenses were cut by 19% YoY in Q4, largely due to lower contract proceedings and asset impairments.
• Cash used in operations for Q4 2025 was \$3.8 million, nearly flat YoY.
• As of December 31, 2025, cash stood at \$10.4 million with total debt at \$9.3 million, nearly unchanged from the prior year.
• Company recently uplisted to the NYSE American, which may enhance market presence and broaden the investor base.
• Strategic focus moving forward includes leveraging in-house sales and national brokers, expanding direct store distribution, investing in marketing and innovation, optimizing operations, and expanding in Asia.
• Company to hold a conference call on March 25, 2026, to discuss these results with investors and analysts.

Shareholder-Relevant and Potentially Price-Sensitive Information

• Leadership changes at the CEO and CMO level can be significant catalysts for share price movement, reflecting a new strategic direction and potential management risk or opportunity.
• Uplisting to NYSE American could increase trading liquidity and institutional investor interest, often seen as a positive for share value.
• Continued net losses and declining sales and margins may weigh on the stock in the near term, though operational improvements and cost reductions show management is taking action.
• Cash position remains stable despite ongoing losses, mitigating some liquidity risk in the near term.
• Board’s explicit focus on returning to profitability and expanding internationally could be seen as a long-term positive if execution improves.

Detailed Financial Tables

Consolidated Statements of Operations (in thousands):

Balance Sheet Highlights (as of December 31):

• Cash: \$10.4 million (flat YoY)
• Total assets: \$23.3 million (down from \$25.1 million)
• Total liabilities: \$14.2 million (down from \$18.5 million)
• Stockholders’ equity: \$9.2 million (up from \$6.6 million)
• Senior secured loan (net): \$9.2 million (down from \$9.6 million)
• Accounts payable: \$3.5 million (down from \$7.0 million)

Outlook and Forward-Looking Statements

The company continues to focus on profitable growth, operating efficiency, and innovation, while expanding both domestically and in Asia. However, Reed’s warns of significant risks, including inventory management, inflation, fluctuating customer demand, supply chain dependencies, competition, and macroeconomic conditions. Shareholders should monitor management’s execution, especially given the leadership transition, and the company’s ability to return to profitability and grow its top line.

Conference Call Details

• Date: Wednesday, March 25, 2026
• Time: 8:30 a.m. Eastern time
• Toll-free dial-in: (800) 717-1738; International: (646) 307-1865
• Conference ID: 59633
• Webcast: Available on the investor relations section of Reed’s website

Disclaimer

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions. Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from those projected. Past performance is not indicative of future results.

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