Recent news highlights Jones Soda's revenue decline amid strategic shifts and improved quarterly results with narrower losses and revenue surges.

• Jones Soda reported a revenue decline amid strategic shifts as of April 30, 2026 [N7].
• The company’s Q4 results reflected a narrower year-over-year loss and a surge in revenue as of April 1, 2026 [N8].
• Jones Soda’s Q1 2026 net income from continuing operations was $115,000, improving from a loss of $1.1 million in Q1 2025 [S2].
• The company’s revenue for Q1 2026 was $12.4 million, up from $4.2 million in Q1 2025, with gross profit increasing to $3.9 million [S2].
• Jones Soda has a $10 million credit facility with Two Shores Capital Corp, bearing interest at 13.75% per annum, secured by company assets [S2].
• The company issued warrants exercisable through 2029 as part of financing arrangements with Two Shores Capital Corp [S2].

Jones Soda Co. has demonstrated operational improvements with revenue growth and a return to net income in Q1 2026 after prior losses. The company’s focus on higher margin products and expense reduction could enhance profitability. Its established brand in the premium craft soda segment and diversified distribution channels, including online sales and licensing, provide multiple revenue streams. The $10 million credit facility and cash position support liquidity. The company’s licensing agreements and product innovation, including hemp-derived sodas, may open new market opportunities.

Jones Soda Co. faces risks from customer concentration, with a single customer representing a significant portion of accounts receivable. The company has a history of recurring losses and negative cash flows, raising concerns about long-term financial stability. Working capital deficiencies and reliance on credit facilities with high interest rates increase financial risk. Competitive pressures in the beverage industry and potential shifts in consumer preferences could impact sales. The company’s outsourcing of manufacturing limits control over production costs. Strategic shifts and revenue declines reported in recent news highlight ongoing challenges.

Jones Soda Co.'s moat is based on its niche positioning in the premium craft soda market with unique flavors and consumer-driven branding. The company leverages a network of independent distributors and direct retail relationships to reach customers. Its brand recognition and licensing agreements provide some differentiation. However, the company outsources manufacturing, which may limit control over production costs and quality. Customer concentration and competitive pressures in the beverage industry present challenges. The company’s ability to reduce operating expenses and introduce higher margin products is critical to sustaining its competitive position.

• Customer Concentration Risk: One customer accounted for approximately 40% of accounts receivable as of March 31, 2026, which could impact revenue and cash flow if the relationship changes.
• Financial Stability and Liquidity: The company has a working capital deficiency and relies on a $10 million credit facility with a high interest rate of 13.75% per annum, secured by company assets. Recurring losses and negative cash flows historically raise substantial doubt about going concern.
• Competitive and Market Risks: The beverage industry is competitive with pricing pressures. Changes in consumer preferences and market dynamics could affect demand for the company’s products.
• Operational Risks: Outsourcing manufacturing limits control over production costs and quality. Inventory management and supplier commitments require careful oversight.

• Jones Soda Co. develops, produces, markets, and distributes premium beverages primarily in the United States and Canada through independent distributors and direct retail accounts.
• The company outsources manufacturing to third-party contract manufacturers and sells products online including customized sodas, wearables, and candy.
• Jones Soda licenses its trademarks for use on products sold by other manufacturers.
• The company operates through subsidiaries including Jones Soda Co. (USA) Inc., Jones Soda (Canada) Inc., Pinestar Gold Inc., and Mary Jones Holdco 2, Inc.
• Revenue recognition follows ASC 606 with a single performance obligation satisfied at the point of title transfer, typically FOB shipping point.
• Revenue is net of discounts, slotting fees, and promotional allowances, which are estimated based on contract terms and historical experience.
• The company had net revenue of $12.4 million for the three months ended March 31, 2026, up from $4.2 million in the same period in 2025.
• Net income from continuing operations was $115,000 for Q1 2026 compared to a loss of $1.1 million in Q1 2025.
• The company reported a working capital deficiency of approximately $0.2 million as of March 31, 2026, with cash and equivalents of $4.4 million.
• Jones Soda has a revolving credit facility with Two Shores Capital Corp with a maximum amount of $10 million and interest rate of 13.75% per annum, secured by a first priority security interest in company assets.
• The company issued warrants to Two Shores as part of financing arrangements, exercisable at prices between $0.40 and $0.50 per share with expirations through 2029.
• One customer accounted for approximately 40% of accounts receivable as of March 31, 2026, indicating some customer concentration risk.
• The company has commitments to suppliers totaling approximately $5.6 million as of March 31, 2026.
• Jones Soda has experienced recurring losses and negative cash flows historically but reduced losses in 2025 and achieved positive net income in Q1 2026.
• The company focuses on reducing operating expenses and bringing higher margin products to market.
• The company’s products include traditional craft sodas with unique flavors and modern sodas including hemp-derived products.
• Net sales are primarily generated in the United States (77% of total revenue in Q1 2026) and Canada (23%).
• The company’s accumulated deficit was approximately $94.6 million as of March 31, 2026.
• Cash flow from continuing operations prior to non-cash working capital improved by $1.6 million comparing Q1 2026 to Q1 2025.
• Investing activities provided net cash of approximately $1.4 million in Q1 2026, primarily from sale of a note receivable.
• Financing activities provided net cash of approximately $0.3 million in Q1 2026, mainly from credit facility proceeds partially offset by repayments.
• The company’s long-lived assets are located in the United States.
• The company’s allowance for credit losses on accounts receivable was approximately $50,000 as of December 31, 2025.
• The company’s revenue was reduced by $1.3 million in Q1 2026 for slotting fees and promotional allowances.
• The company’s stock-based compensation expense was $136,000 in Q1 2026.
• The company’s gross profit for Q1 2026 was $3.9 million, with operating income of $353,000.
• The company’s operating expenses include selling and marketing expenses of $2.0 million and general and administrative expenses of $1.5 million for Q1 2026.
• The company’s interest expense increased to $240,000 in Q1 2026 from $78,000 in Q1 2025.
• The company’s net income per share was $0.00 basic and diluted for Q1 2026, compared to a loss per share of $0.01 in Q1 2025.
• The company’s products are distributed through retail stores, foodservice outlets, and direct-to-consumer platforms.
• The company’s revenue recognition policy excludes sales tax and similar taxes from revenue.
• The company’s accounts receivable balance primarily consists of trade receivables from distributors and retail customers.
• The company’s allowance for credit losses is based on current trends and historical collection data.
• The company’s accounts receivable payment terms are generally 30 days with prompt pay discounts up to 2%.
• The company’s inventory consists of raw materials and finished goods stated at the lower of cost or net realizable value.
• The company’s fixed assets are depreciated on a declining balance basis with estimated useful lives of 20-30% for equipment and 30% for vehicles and office equipment.
• The company’s cannabis beverage subsidiaries were disposed of during 2025, with licensing agreements in place for related intellectual property.
• The company’s licensing fees receivable were $150,000 current and $1.7 million long-term as of March 31, 2026.
• The company’s net cash used in continuing operating activities was approximately $0.8 million in Q1 2026, an improvement from $1.9 million in Q1 2025.
• The company’s net cash provided by investing activities was $1.4 million in Q1 2026, compared to nil in 2025.
• The company’s net cash provided by financing activities was $0.3 million in Q1 2026, reflecting net proceeds from credit facility partially offset by repayments.
• The company’s accumulated deficit decreased slightly from $94.7 million at December 31, 2025 to $94.6 million at March 31, 2026.
• The company’s shares outstanding increased from approximately 118.2 million to 118.8 million between December 31, 2025 and March 31, 2026.
• The company’s recent news includes reports on revenue decline amid strategic shifts and Q4 results reflecting narrower loss and revenue surge [N7][N8].