Zevia PBC

Greetings and welcome to the Xevia PBC Q3 2025 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Anne McGuinness, Investor Relations. Thank you. You may begin.

Thank you, and welcome to ZVIA's third quarter 2025 earnings conference call. On today's call are Amy Taylor, President and Chief Executive Officer, and Girish Satya, Chief Financial Officer and Principal Accounting Officer. By now, everyone should have access to the company's third quarter 2025 earnings press release and investor presentation made available this afternoon. This information is available on the Investor Relations section of ZVIA's website at investors.zvia.com. Before we begin, please note that all financial information presented on today's call is unaudited. Certain comments made on this call include forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and beliefs concerning future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Please refer to today's press release and other filings with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. During the call, we will use some non-GAAP financial measures as we describe business performance. The SEC filings, as well as the earnings press release presentation slides that accompany today's comments and reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are also available on our website at investors.gbs.com. And now, I'd like to turn the call over to Amy Taylor.

Good afternoon, everyone, and thank you for joining our third quarter 2025 earnings conference call. Our third quarter results reflect strong progress and provide clear signs that our strategy is taking effect. Our initiatives are positioning us for durable growth and profitability over time. Our third quarter results exceeded our expectations with net sales growth of 12% to $40.8 million and adjusted EBITDA loss of $1.7 million. Based on our better than expected performance, and the continued progress across our strategic growth pillars, we are raising our full-year net sales and adjusted EBITDA guidance, which Girish will speak to shortly. I'll share the progress we've made across our three strategic growth pillars of high-impact brand marketing, accelerated product innovation, and expanded distribution. Beginning with marketing, our brand-building initiatives are resonating with consumers and gaining traction against our key priority of expanding our user base. Strong third quarter results reflect in part the success of our summer campaign, the launch of Strawberry Lemon Burst, and the playful Summer Break Sweepstakes, which were activated on social and received favorable editorial media coverage, extending reach and driving engagement. Media has a great story to tell as a consumer moves away from the artificial and seeks better-for-you products from brands that they trust. We are Soda Made Better, and our new brand messaging, design, and tone of voice are resonating across media channels and in-store. Based on proprietary survey data while early, brand consideration and purchase intent have made double-digit gains this year, and social media engagement rates continue to build to levels well above channel benchmarks. As the broad cultural conversation continues to focus on health and ingredients, major food and beverage companies scramble to remove artificial ingredients and colors. Zevia has and will continue to be ahead of this movement with a clean label, clear soda, with natural flavors and sweeteners, and is telling its story through cross-channel brand campaigns and high-reach influencer activations. Our humorous, engaging campaign supporting Amazon-exclusive Peaches and Cream is a great example, giving the flavor a hot start and the brand a strong halo via virality on Instagram and TikTok. In addition, Xevious competitions featuring UGC or user-generated content have been fruitful in driving awareness and trial, especially when activated with a focus on specific customers ranging from Albertsons, Kroger, and Walmart to Costco. On the ground, we continue in-market activations at events like Gaming's 100 Thieves Block Party in July, Diplo's Run Club across August, September, and October, and periodic joint efforts with well-aligned partners such as Lifetime Fitness at running, cycling, and mountain biking events. These events are equal parts brand building and sampling opportunities focused on winning new users, which remains our top priority. Turning to innovation, the performance of our recent product launches offer strong proof points that our portfolio evolution is driving brand momentum. New flavor profiles and a more sugar-like taste experience, along with delicious-looking new packaging and dynamic marketing, continue to support velocity and drive trial. Our portfolio evolution this year is working. Exciting new flavors launched nationwide received strong consumer acceptance, and retailer-exclusive or limited-time offer flavors brought brand heat. The debut of Strawberry Lemon Burst nationwide, Orange Creamsicle in the Natural Channel, and Fruity Variety Pack initially at Walmart demonstrate that we are on point in flavor trends. Each are showing promising results and have been drivers of increased Zvia space at retail and of accelerating velocities. Peaches and Cream and Salted Caramel provided new news this quarter as exclusives or limited time offers respectively, and Strawberries and Cream is doing the same in selected retailers here in Q4. Each is off to a good start and will inform the portfolio evolution for 2026 and beyond. Peaches and Cream has been the fastest selling new Zevia item ever on Amazon, while Strawberries and Cream was immediately a top three velocity driver at Kroger. Our fruity variety pack has quickly become the number one Zevia SKU at Walmart. We remain the only Better For You brand, offering multi-packs and variety packs at accessible price points. And finally, we're very pleased with the positive response to our refreshed packaging. Featuring Soda Made Better, our strong brand block will highlight zero sugar, no artificial colors, and no artificial sweeteners. Our proprietary research indicates a meaningful increase in purchase intent versus the prior design and versus competition. We are on track to roll new packaging out to legacy flavors as well in early 2026, in parallel with the introduction of a new, more sugar-like taste experience across legacy and new flavors alike. Moving on to distribution, a key component of our strategic growth plan. We both regained and opened new points of distribution over the past nine months. We attribute this expansion to strong product innovation, as well as brand momentum delivered by marketing. Our national Walmart distribution continues to drive new to brand consumers. We're also pleased to share that following a successful pilot at the start of this year, we'll be expanding into more than half of Walmart's Canadian stores going forward. Distribution gains at grocery were also a key driver of our growth year to date. with innovation in flavor and in packs supporting increased space gains. In the club channel, increasing sales velocity drove additional regional rotations, reflecting in part the impact of our new packaging. The positive reception has exceeded our expectations. And then in convenience, we're seeing some encouraging early indicators, even as the rollout in the channel for brand and for category remains in the early stages of development. Performance is tracking in line with broader natural soda category trends, providing a good selling story as we continue to thoughtfully expand our regional footprint in 2026. In closing, with our strategy firmly in place and with strong execution, we are reshaping the business and paving the way to capitalize on a changing consumer landscape and category tailwinds. We see evidence that we are growing market relevance and are on track to thoughtfully scale the business quarter by quarter and year over year. And so with that, I'll turn the call over to Girish.