Zevia PBC (ZVIA) Stock Forecast & Price Target

Zevia PBC has demonstrated solid financial growth, with total sales increasing by 12.3% to $40.8 million, driven by a 12.6% rise in volume and an increase in household penetration to 5.2%. The company's outlook is supported by ongoing product innovations, expanded distribution networks, and enhanced marketing efforts, which are anticipated to contribute to sustained sales growth and a positive adjusted EBITDA forecast for 2026. Additionally, Zevia is strategically expanding its product variety and refreshing packaging to attract consumers, further reinforcing its growth potential in the competitive beverage industry.

Zevia PBC is facing significant challenges reflected in a projected adjusted EBITDA margin compression of 530 basis points, resulting in an expected loss of $3.7 million. This decline in profitability is primarily attributed to a gross margin decrease of 350 basis points, driven by higher inventory losses related to packaging refresh and tariffs. Additionally, the company is exposed to macroeconomic risks, including volatility in commodity costs, consumer spending fluctuations, and rising interest rates, which further complicate its financial outlook.