Reed's, Inc. (REED) Earnings Call Transcripts

Reed's, Inc.'s Latest Earnings Call - Q1 FY2026

In the first quarter of 2026, Reed's, Inc. reported a significant decline in net sales to $7.1 million, down from $10.0 million in the prior year, primarily due to lower volumes and higher promotional allowances. The company also experienced a net loss of $6.5 million, compared to a loss of $2.0 million in Q1 2025. Management indicated that Q1 results are not indicative of future performance, as they have initiated corrective actions to stabilize operations and improve margins, suggesting potential for recovery in subsequent quarters.

Reported metrics

Guidance from management

Management indicated that they expect sequential improvement in net sales, gross margin, and net loss as they implement corrective actions throughout 2026.

What management said

Thanks, Doug. Obviously, Q1 was challenging and our results reflect that. But it was also a real important quarter, one in which we made deliberate investments in building a stronger foundation for the business. We believe that the work will serve us well as we move through the year. We look forward to showing you that progress in the quarters ahead. With that, operator, we're ready to open the call for some questi...

Yes, Aaron, just a couple of quick notes. Obviously, first quarter was a transition quarter as we get into and continue through second quarter, our expectation is that we'll get back on the path of sequential improvement quarter-to-quarter, and we expect to see that in net sales, gross margin and net loss.

What analysts pressed on

Analysts expressed concerns regarding the missed category review windows and how difficult it might be to regain lost shelf space. There were also questions about the timeline for seeing improvements from the corrective actions taken in Q1.

Main topics on the call

• Revenue Decline — Reed's reported net sales of $7.1 million, a decrease from $10.0 million in the prior year, driven by lower volumes and higher promotional allowances. Management acknowledged that 'Q1 was challenging and our results refl...
• Inventory Management — The company undertook significant inventory liquidation and write-offs, impacting gross margins. Management stated, 'We have since completed comprehensive physical inventory counts and implemented enhanced inventory cont...
• Cost Structure Adjustments — SG&A expenses increased to $5.8 million, up from $3.5 million, as the company invested in personnel and marketing. Management is focused on 'right-sizing the cost structure' to align with current priorities.
• Operational Challenges — Sales execution was hindered by several factors, including the discontinuation of heritage packaging and missed category review windows. Management noted, 'We missed category review windows that resulted in reduced shelf...

Read the full Reed's, Inc. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 29 Reed's, Inc. earnings call transcripts on record, spanning March 12, 2020 to May 13, 2026. Based on this history, Reed's, Inc. reports quarterly. The most recent call on file is dated May 13, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

REED

Exchange

NYSEAM

Country

US

Sector

Consumer Staples

Industry

Beverages

Calls on record

29

First call

March 12, 2020

Most recent

May 13, 2026

Reporting cadence

quarterly