Jones Soda Co

Good afternoon, everyone. Thank you for participating in today's conference call to discuss Jones Soda's financial results for the first quarter ended March 31st, 2026. Before we begin, let me remind everyone of the company's safe harbor disclaimer. Certain portions of our comments today will concern future expectations, plans, and prospects of the company that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements containing verbs such as aims, anticipates, estimates, expects, believes, intends, plans, predicts, will, may, continue, projects or targets, and negatives of these words and similar words or expressions. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Factors that could affect our actual results include, among others, those that are discussed under the heading Risk Factors in our most recently filed reports with the SEC, including our annual report on Form 10-K, our quarterly reports on Form 10-Q, and our current reports on Form 8-K. In addition, this call includes discussions of certain non-GAAP financial measures, including adjusted EBITDA. The most directly comparable GAAP measures and reconciliations for non-GAAP measures are available in the earnings release and other documents posted on the company's website under Investor Relations. A telephone replay will be available after the call through May 14, 2026, and a webcast replay of today's webinar will also be available for one year via the link provided in today's press release, as well as on the company's website. Now I would like to turn the call over to Jones Soda CEO, Scott Harvey.

Thank you, David. Good afternoon and thank you for joining our first quarter 2026 earnings call. The momentum we established exiting 2025 continued into the first quarter as we delivered first quarter revenue of $12.4 million up 194% and exceeding our guidance and achieved a net income profitability on a gap basis. This marks a meaningful inflection point for Jones Soda and reflects the strength of the operational and strategic foundation that we have built over the past year. Our first quarter's performance was primarily driven by the continued success of our partnership and branded collaboration platform, along with strong execution within the club channel. Consumer demand for the fallout branded offerings significantly exceeded expectations and reinforced the power of combining culturally relevant partnerships with broad retail distribution. Since launching the Vault-Tec packs into club stores across North America, we've seen a strong sell-through and continued retail interest in future branded collaborations and expanded programs. Beyond Fallout, our broader partnership and branded collaboration platform continues to create meaningful awareness and engagements for the Jones brand. Through collaborations including Fallout, Crayola, Folds of Honor, we're able to connect with consumers across multiple demographics, occasions, and retail channels while generating incremental sales opportunities and strengthening retailer relationships. Importantly, we believe the performance we are seeing validates that this is not a one-time promotional event, but rather a repeatable commercialization platform capable of driving future retailer programs consumer engagement, and incremental growth opportunities. The continued expansion with key retail partners reflects increasing confidence in Jones platform and our ability to execute at a larger scale. Operationally, the improvements we implemented throughout 2025 continue to benefit the business during the quarter. Our centralized logistics model, enhanced forecasting capabilities, and disciplined inventory management enable us to support significantly higher sales value while maintaining operational efficiencies. At the same time, we continue to leverage our existing infrastructure more effectively, which contributed to improved operating leverage and profitability. Within our core SOTA business, we continue to expand distribution and deepen relationships with key retail partners. Subsequent to the quarter end, we significantly expanded our retail program with the introduction of new Jones Soda four packs in 650 top volume Walmart locations across the United States. Building our existing presence with the retailer, these convenience multi-packs feature three established Jones Soda flavors, root beer, cream soda, and berry lemonade, and substantially increase the accessibility and visibility of the Jones brand with mainstream consumers. In conjunction with this rollout, we also expanded our partnerships with Folds of Honor as part of the nationwide America 250 celebration. Beginning this month, the Walmart four packs began featuring special Folds of Honor packaging, while individual bottles inside the pack showcase photographs of military service members and first responders, continuing the Jones longstanding tradition of highlighting real people on our labels. As part of this initiative, Jones Soda will fund educational scholarships for Fold of Honor recipients. We believe programs like this not only strengthen our relationship with key retail partners, but also reinforce the authenticity of the community-driven identity that has always been differentiated the Jones brand. Within our modern soda category, Pop Jones continues to expand consumer awareness and retail presence and demand for functional, better-for-you beverages remain strong. While the category remains highly competitive, we are continuing to optimize our retail activation strategy with increased focus on improving velocities, refining retail placement, and driving stronger account productivity. We remain encouraged by consumer response and believe category continues to represent a meaningful long-term opportunity for the company. Within adult beverage, HC9 sales declined during the quarter as we continue to navigate regulatory uncertainty. surrounding the hemp-derived products. While we expect the category to remain challenged near-term, we have adjusted our expectations accordingly and continue to manage the business prudently while supporting key distribution relationships. At the same time, we continue to evaluate longer-term adult beverage opportunities that align with evolving consumer preferences and regulatory frameworks while leveraging relationships, infrastructure, and category expertise we have already established within the space. Looking ahead, we remain highly encouraged by the momentum in the business and continue to expect strong revenue growth for the full year 2026, even though quarterly performance may fluctuate based on timing of customer orders and promotional activities. Our focus remains on scaling the areas of the business where we see the greatest opportunity to generate sustainable profit growth. With that as a background, I'll turn the call over to Brian, our CFO, to review our first quarter financial results in more detail.

Brian? One moment. Brian has disconnected. Stand by. Ladies and gentlemen, please stand by as we reconnect our speaker.