Reed's, Inc. (symbol: REED) operates as a manufacturer and distributor of premium, all-natural handcrafted beverages. These artisanal concoctions, part of the craft ...
Reed's, Inc. (symbol: REED) operates as a leading innovator in the craft beverage industry, specializing in naturally bold, better-for-you drinks. The company's product portfolio includes Reed's craft ginger beers, genuine ginger ales, and ready-to-drink beverages, alongside Virgil's artisanal sodas and ginger candies, all marketed under the Reed's, Virgil's, and Flying ...Reed's, Inc. (symbol: REED) operates as a leading innovator in the craft beverage industry, specializing in naturally bold, better-for-you drinks. The company's product portfolio includes Reed's craft ginger beers, genuine ginger ales, and ready-to-drink beverages, alongside Virgil's artisanal sodas and ginger candies, all marketed under the Reed's, Virgil's, and Flying Cauldron brand names. These products are positioned within the craft specialty foods sector and are known for using natural ingredients with nothing artificial. Founded in 1989 by Christopher J. Reed, the company was originally incorporated as Original Beverage Corporation and adopted the Reed's, Inc. name in 2001. Its headquarters are in Norwalk, Connecticut, with products distributed across the United States, Canada, Asia, Europe, Australia, and South America. The sales network includes natural and gourmet food stores, major grocery retailers, mass merchants, club stores, convenience and drug stores, liquor stores, institutional cafeterias, and on-premise dining venues. Distribution is facilitated through third-party distributors, independent partners, and direct-to-store channels, with significant international exports to markets such as France, the UK, South Africa, the Caribbean, Spain, the Philippines, and Israel. As of the latest data, the company has approximately 44 full-time employees and reported a market capitalization of around $10.46 million. Financial metrics show a challenging period: revenue per share of $2.46, but a net income per share of -$1.56, indicating profitability issues. The company's gross profit margin stands at 18%, while operating and net margins are around -60%, reflecting operational losses. Despite these challenges, Reed's maintains a strong brand presence and is recognized as America's #1 name in ginger and best-selling ginger beer brand. Leadership has seen recent changes, with Neal Cohane currently serving as CEO, and the company focuses on innovation and expanding its better-for-you beverage portfolio to meet consumer demand for natural and premium products.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$34.1M
-10.2%
+4.8%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-15.8M
-20.5%
+33.9%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+20.4%
-31.8%
+144.8%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-44.5%
-108.0%
+37.6%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-46.5%
-34.2%
+36.9%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-17.3M
-175.9%
+62.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-50.8%
-207.4%
+64.6%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
109.6%
-30.0%
-114.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.60x
+21.4%
-23.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good morning, and welcome to Reed's Second Quarter 2026 Earnings Conference Call for the three months ended June 30, 2026. My name is Mark, and I will be your conference call operator for today. Today's call will include prepared remarks from Neal Cohane, Reed's Interim Chief Executive Officer; and Douglas McCurdy, Reed's Chief Financial Officer. Following the remarks, we will open the call for questions. Before we begin, please take note of the company's cautionary statement. Today's call will include forward-looking statements, including statements about Reed's business strategy, growth initiatives, financial projections, operational improvements, the impact of corrective efforts, financing plans, and liquidity. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. Forward-looking statements inherently involve risks and uncertainties and only reflect management's view as of today, August 12, 2026. Reed's assumes no obligation and does not intend to update these forward-looking statements except as required by law. For more information, please refer to the Risk Factors section of the company's annual report filed with the Securities and Exchange Commission on March 25, 2026, and in other filings that the company makes from time to time with the SEC. When discussing results, the presenters may refer to non-GAAP measures which exclude certain items from reported results. Please refer to Reed's second quarter 2026 earnings release on Reed's investor website at investor.reedsinc.com, and the company's quarterly report on Form 10-Q for the quarter ended June 30, 2026, expected to be available on the website soon, for definitions and reconciliations of non-GAAP measures and additional information regarding results, including a discussion of factors that could cause actual results to materially differ from forward-looking statements. While we believe the non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. I will now turn the call over to Mr. Cohane. Please, go ahead.
Neal Cohane: Thanks, Mark, and good morning, everyone. We're now halfway through 2026, and I want to speak very plainly about where we stand. The second quarter results reflect early progress from corrective actions initiated earlier this year. Net sales increased 5% compared to the first quarter. Gross margin expanded as well, and we expect continued expansion in the mid-30% area over time. Selling, general, and administrative costs decreased 18% compared to the first quarter, and we will continue to better balance these expenses. Net loss decreased, and we are focused on achieving profitable growth. While these results represent improvement from the first quarter, the work is not …
