Jones Soda Co. Reports $19.2M Revenue with 14.9% Growth, Faces $9.9M Net Loss

Jones Soda Co. reported a net revenue of approximately $19.2 million for the fiscal year ending December 31, 2024, marking a 14.9% increase from $16.7 million in 2023. This growth was primarily driven by a 15% increase in beverage segment sales volume and a 9% rise in sales from the cannabis segment, which includes THC-infused products. However, the company also faced challenges, including a significant increase in trade spending and promotional allowances, which rose to approximately $4.1 million, up 156% from the previous year. This increase was largely attributed to promotional activities related to the Mary Jones product line and a transition to a new distributor in Canada.

Despite the revenue growth, Jones Soda experienced a net loss of approximately $9.9 million in 2024, compared to a loss of $4.9 million in 2023. The increase in losses was primarily due to one-time inventory impairment charges of $1.2 million and higher selling and marketing expenses, which rose by 39.5% to $6.1 million. General and administrative expenses also increased by 46.9% to $7.9 million, driven by legal and regulatory costs associated with the Mary Jones business and increased travel expenses. As a result, the gross profit margin decreased to 21.3% from 29.1% in the prior year.

Operationally, Jones Soda has focused on expanding its product offerings, particularly in the modern soda and cannabis beverage markets. The company launched new products under the Pop Jones and Fiesta Jones brands in 2024, aiming to capture a growing consumer demand for health-focused beverages. Additionally, the Mary Jones brand has begun to expand into new Canadian provinces, with plans to introduce THC-infused products in Alberta by June 2025. The company is also working to rationalize its product set and streamline production to improve margins.

As of December 31, 2024, Jones Soda had cash and cash equivalents of approximately $1.5 million, down from $3.9 million in 2023, and working capital of $2.0 million, a decrease from $7.2 million the previous year. The company has experienced negative cash flows from operations, totaling approximately $5.9 million in 2024. To address liquidity concerns, Jones Soda completed a private placement offering that generated net proceeds of $3.6 million and entered into a loan agreement allowing for borrowing up to $5 million. The company believes that its current cash position, projected sales, and funds from the loan agreement will be sufficient to support operations for at least the next 12 months.

Looking ahead, Jones Soda aims to enhance its sales growth through strategic initiatives, including expanding its glass bottle business and increasing its presence in the modern soda and cannabis markets. The company is also focused on managing its operating expenses and improving its financial performance to achieve profitability in the future. However, ongoing challenges such as inventory management, market competition, and regulatory compliance remain critical factors that could impact the company's operational success and financial stability.