Zevia PBC (ZVIA) Stock Forecast & Price Target

Zevia PBC has demonstrated a solid performance with total sales increasing by 4.4% to $39.5 million and unit volume rising by 11.6%, indicating strong consumer demand for its zero-calorie, naturally sweetened beverages. The company also achieved significant gross margin expansion of approximately 850 basis points, reaching 49.2%, reflecting improved operational efficiencies and successful marketing strategies. Furthermore, Zevia is poised for future growth through strategic product innovation and distribution expansion, particularly with new offerings and increased presence in Walmart, which could facilitate positive adjusted EBITDA by 2026.

Zevia PBC's first quarter 2025 guidance reported a sales decline of 2.0% to 7.0%, with projected revenues between $36 million and $38 million, missing analyst expectations. The company's adjusted EBITDA loss for the year is anticipated to widen to $10.5 million, marking a downgrade from earlier estimates, while total sales growth is now forecasted at only 3.2% to $160 million, down from a previous estimate of $164 million. Additionally, the potential volatility in commodity costs, rising interest rates, and declining consumer confidence further contribute to a challenging financial outlook for the company.