Zevia PBC (ZVIA) Stock Forecast & Price Target

Zevia PBC reported a notable 12.3% increase in total sales, driven by a robust volume growth of 12.6% and improvements in household penetration and purchase frequency. The company anticipates continued sales momentum, supported by the introduction of new flavors, enhanced distribution efforts, and strategic marketing initiatives, despite the challenges posed by increased spending and tariffs. Furthermore, Zevia projects healthy sales growth and positive adjusted EBITDA for 2026, bolstered by successful expansions of product offerings and refreshed packaging efforts.

Zevia PBC is projected to experience significant adjusted EBITDA margin compression of 530 basis points, leading to an estimated adjusted EBITDA loss of $3.7 million, reflecting a decline in gross margins driven by inventory losses and tariffs. The company's gross margin is anticipated to decline by 350 basis points to 45.6%, indicating challenges in maintaining profitability amid rising operational costs. Additionally, the company faces multiple risks, including commodity cost volatility, shifts in consumer spending, and macroeconomic factors such as rising interest rates and weakened consumer confidence, which could further impact its financial performance.