olivLaw · US equity research
Reed's, Inc. REED
Bottled & Canned Soft Drinks & Carbonated Waters · SIC 2086 · Vertical: Bottled & Canned Soft Drinks & Carbonated Waters (SIC 2086)
Reed's, Inc. is a branded beverage company selling natural, premium and functional drinks under the Reed's and Virgil's brands, sold in over 32,000 outlets across the United States. The company is in a corrective phase: net sales fell in fiscal 2025 and in the second quarter of 2026, although gross margin rose.
At the close of 04 Nov 2026, Reed's, Inc. (REED) stock was 1.01 USD (−0.98% on the day), with market capitalisation 12.0 m USD, beta 0.27, 52-week range 0.37–7.54 USD. Latest reported quarter (Q2 2026): revenue of 7.5 m USD (−21.4% YoY), net income of -4.3 m USD, diluted EPS -0.36 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 70.7
- overbought (≥ 70)
- Bollinger (20, 2)
- 0.27 – 0.98
- above the upper band · %B 1.04 · band width 114.1%
- SMA 50 / 200
- 0.72 / 1.89
- mixed trend
- MACD (12, 26, 9)
- 0.06 / -0.01
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +50.7% | −1.1% | +51.8 pp | — |
| 3 months | +18.8% | −0.5% | +19.3 pp | — |
| 6 months | −71.1% | +4.4% | −75.5 pp | — |
| Year to date | −51.9% | +12.3% | −64.2 pp | — |
| 1 year | −86.2% | +13.5% | −99.7 pp | +25.3% |
| 3 years | −94.1% | +76.4% | −170.5 pp | +37.5% |
| 5 years | −99.5% | +63.7% | −163.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 6.8 m | 9.7 m | 10.0 m | 9.5 m | 7.0 m | 7.5 m | 7.1 m | 7.5 m |
| Cost of revenue | 5.5 m | 6.8 m | 6.6 m | 8.7 m | 5.8 m | 6.0 m | 6.4 m | 5.7 m |
| Gross profit | 1.2 m | 2.9 m | 3.4 m | 807.0 k | 1.2 m | 1.5 m | 697.0 k | 1.8 m |
| Operating income | -3.1 m | -3.7 m | -1.7 m | -5.8 m | -4.1 m | -3.5 m | -6.2 m | -4.1 m |
| Depreciation & amortisation | 30.0 k ≈ | — | — | — | 29.0 k ≈ | — | — | — |
| Interest expense | 2.4 m | 903.0 k | 289.0 k | 301.0 k | 274.0 k | 244.0 k | 204.0 k | 204.0 k |
| Net income | -4.2 m | -4.1 m | -2.0 m | -6.0 m | -4.0 m | -3.8 m | -6.5 m | -4.3 m |
| Diluted EPS | -4.91 | -1.33 ≈ | -0.27 | -0.78 | -0.48 | -0.39 ≈ | -0.55 | -0.36 |
| Operating cash flow | 1.1 m ≈ | -3.9 m | -5.4 m | -5.0 m ≈ | -2.8 m ≈ | -3.8 m | -5.8 m | -2.2 m ≈ |
| Capex | 23.0 k ≈ | 101.0 k | 73.0 k | 22.0 k ≈ | 96.0 k ≈ | 81.0 k | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 38.1 m | 33.8 m | 41.6 m | 49.6 m | 53.0 m | 44.7 m | 38.0 m | 34.1 m |
| Revenue YoY | +1.0% | −11.2% | +23.0% | +19.2% | +6.9% | −15.7% | −15.1% | −10.2% |
| Net income | -10.3 m | -16.1 m | -10.2 m | -16.4 m | -20.1 m | -15.5 m | -13.2 m | -15.8 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | unavailable | unavailable | unavailable | -8.99 | -9.07 | -4.39 | -9.81 | -1.91 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | -27.1% | -47.6% | -24.5% | -33.1% | -37.8% | -34.7% | -34.7% | -46.5% |
| Free cash flow | -9.4 m | -18.5 m | -9.6 m | -17.9 m | unavailable | -4.4 m | -6.3 m | -17.3 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- unavailable USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 9.2 m USD
- Total assets
- 23.3 m USD
- Debt / equity
- unavailable
- Current ratio
- 1.60x
- ROE
- -200.5%
- ROA
- -65.4%
- FCF margin
- -50.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 41.6 m | 49.6 m | 53.0 m | 44.7 m | 38.0 m | 34.1 m | SEC (XBRL)· 25 Mar 2026verified |
| Cost of revenue | 28.8 m | 36.0 m | 40.9 m | 31.9 m | 26.6 m | 27.1 m | SEC (XBRL)· 25 Mar 2026verified |
| Gross profit | 12.8 m | 13.6 m | 12.1 m | 9.7 m | 11.4 m | 7.0 m | SEC (XBRL)· 25 Mar 2026verified |
| Operating income | -8.6 m | -16.0 m | -14.8 m | -9.4 m | -8.1 m | -15.1 m | SEC (XBRL)· 25 Mar 2026verified |
| Depreciation & amortisation | 88.0 k | 143.0 k | 108.0 k | — | — | — | SEC (XBRL)· 15 May 2023verified |
| EBITDA | -8.5 m ≈ | -15.8 m ≈ | -14.7 m ≈ | — | — | — | SEC (XBRL)· 15 May 2023derived |
| Interest expense | 1.3 m | 1.2 m | 5.2 m | 6.1 m | 5.5 m | 1.1 m | SEC (XBRL)· 25 Mar 2026verified |
| Net income | -10.2 m | -16.4 m | -20.1 m | -15.5 m | -13.2 m | -15.8 m | SEC (XBRL)· 25 Mar 2026verified |
| Diluted EPS | — | -8.99 | -9.07 | -4.39 | -9.81 | -1.91 | SEC (XBRL)· 25 Mar 2026verified |
| Weighted average diluted shares | — | — | 2.2 m | 3.5 m | 1.3 m | 8.3 m | SEC (XBRL)· 25 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Receivables | 4.7 m | 5.2 m | 5.7 m | 3.6 m | 4.0 m | 2.3 m | SEC (XBRL)· 25 Mar 2026verified |
| Inventories | 11.1 m | 17.0 m | 16.2 m | 11.3 m | 8.1 m | 8.0 m | SEC (XBRL)· 25 Mar 2026verified |
| Current assets | 18.5 m | 24.7 m | 24.1 m | 17.8 m | 23.3 m | 21.5 m | SEC (XBRL)· 25 Mar 2026verified |
| Property, plant & equipment, net | 920.0 k | 992.0 k | 766.0 k | 493.0 k | 1.2 m | 1.2 m | SEC (XBRL)· 25 Mar 2026verified |
| Intangibles (excl. goodwill) | 615.0 k | 624.0 k | 626.0 k | 629.0 k | 644.0 k | 650.0 k | SEC (XBRL)· 25 Mar 2026verified |
| Total assets | 20.1 m | 26.3 m | 25.5 m | 18.9 m | 25.1 m | 23.3 m | SEC (XBRL)· 25 Mar 2026verified |
| Accounts payable | 6.7 m | 10.4 m | 9.8 m | 9.1 m | 7.0 m | 3.5 m | SEC (XBRL)· 25 Mar 2026verified |
| Current liabilities | 8.9 m | 21.7 m | 25.7 m | 27.2 m | 17.7 m | 13.4 m | SEC (XBRL)· 25 Mar 2026verified |
| Total liabilities | 9.7 m | 22.1 m | 34.0 m | 38.1 m | 18.5 m | 14.2 m | SEC (XBRL)· 25 Mar 2026verified |
| Equity | 10.4 m † | 4.2 m † | -8.5 m † | -19.2 m † | 6.6 m † | 9.2 m † | SEC (XBRL)· 25 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -9.5 m | -17.6 m | -15.5 m | -4.3 m | -6.1 m | -17.0 m | SEC (XBRL)· 25 Mar 2026verified |
| Capex | 122.0 k | 326.0 k | — | 85.0 k | 152.0 k | 272.0 k | SEC (XBRL)· 25 Mar 2026verified |
| Free cash flow | -9.6 m ≈ | -17.9 m ≈ | — | -4.4 m ≈ | -6.3 m ≈ | -17.3 m ≈ | SEC (XBRL)· 25 Mar 2026derived |
| Investing cash flow | -161.0 k | -335.0 k | -2.0 k | -20.0 k | -167.0 k | -253.0 k | SEC (XBRL)· 25 Mar 2026verified |
| Financing cash flow | 9.3 m | 17.4 m | 16.0 m | 4.4 m | 16.1 m | 17.3 m | SEC (XBRL)· 25 Mar 2026verified |
| Share repurchases | — | 15.0 k | 2.0 k | 1.0 k | — | — | SEC (XBRL)· 01 Apr 2024verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 33.3% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 12.0 m USD
Key indicators
Coverage and freshness
Score by group
33% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | -63.5% | 0 (vs peers) | 19% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | -13.7% | 0 (on a fixed band) | 25% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | -19.3x | 0 (on a fixed band) | 19% |
| Current ratio · Balance sheet | 0.8x | 4 (on a fixed band) | 13% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -124.5% | 0 (on a fixed band) | 25% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet2/100 · 2/3 factors with a value
- Growth· partial0/100 · 1/2 factors with a value
- Quality· partial0/100 · 1/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partial0/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
REED'S, INC. (REED). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 34.1 m USD in 2025; YoY growth -10.2%; net margin -63.5%; ROE -14,800.0%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
What contradicts it
- Net margin: -63.5%
- Revenue CAGR 3Y: -13.7%
- Interest coverage: -19.3x
- Current ratio: 0.8x
- FCF yield: -124.5%
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Bottled & Canned Soft Drinks & Carbonated Waters (SIC 2086) · same industry (4-digit SIC) · compared with 9 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MNSTMonster Beverage Corp | 47.8 bn | 22.4 | 25.7% | 23.1% | +10.7% | +30% / +77% |
| CELHCelsius Holdings, Inc. | 7.8 bn | 104.3 | 10.5% | 4.2% | +85.5% | −25% / −38% |
| FIZZNational Beverage Corp. | 3.5 bn | 20.2 | 40.1% | 14.8% | −1.7% | +11% / −21% |
| COKECoca-Cola Consolidated, Inc. | 1.5 bn | 2.5 | 90.0% | 7.5% | +4.8% | +25% / +178% |
| REEDReed's, Inc. | 12.0 m | — | -14,800.0% | -63.5% | −10.2% | −86% / −94% |
| AKO-AAndina Bottling Co Inc | — | — | 25.2% | 8.0% | +3.7% | +18% / +105% |
| FMXMexican Economic Development, Inc. | — | — | 12.0% | 5.1% | −9.9% | +36% / +3% |
| ZVIAZevia PBC | — | — | -18.0% | -4.8% | +4.0% | −55% / −44% |
| KOFCoca Cola Femsa Sab De Cv | — | 82.6 | — | — | +18.2% | +33% / +38% |
| CCEPCOCA-COLA EUROPACIFIC PARTNERS plc | — | — | 23.8% | 9.3% | +2.3% | +26% / +91% |
1- and 3-year price returns: for REED from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Reed's, Inc. is a branded beverage company selling natural, premium and functional drinks under the Reed's and Virgil's brands, sold in over 32,000 outlets across the United States 1. The company is in a corrective phase: net sales fell in fiscal 2025 and in the second quarter of 2026, although gross margin rose 23.
SWOT
Strengths
- Natural ginger brand portfolio with pressed ginger processing and an asset-light model that allows scaling without large capital investment 1.
- Broad presence in U.S. retail outlets and relationships with national chains 1.
- Corrective actions in 2026 lifted gross margin and reduced delivery cost per case 3.
Weaknesses
Opportunities
Risks
- Continuing losseshigh
The company reported net losses in fiscal 2025 and 2024 and it is unclear when it could return to profitability 1.
- Indebtedness and financinghigh
The revolving credit facility secured by substantially all assets carries restrictions, and additional financing could be unavailable or costly 13.
- Customer concentrationhigh
The largest customers account for a significant share of net sales, and losing them could seriously affect results 1.
- Reliance on co-packersmedium
Production depends on independent co-packers, and replacing a partner could take time and delay deliveries 1.
- Logistics and raw material costsmedium
Rising costs for transport, materials and labour could reduce margins if they cannot be passed on 2.
Investment thesis
What would need to be true (bull case)
- If shelf space recovery and door growth continue, sales could return to a sequential growth trend.
- Rising gross margin and falling delivery costs could show the asset-light model is improving.
- Expansion in Asia-Pacific and demand for ginger as a functional ingredient could open new revenue sources.
What would break the thesis
- If sales keep falling, achieved margins could prove insufficient to cover operating expenses.
- Dependence on a few large customers could leave revenue exposed to a single decision to cut orders.
- Limited liquidity and existing debt could force the company to accept unfavourable financing terms.
What to watch
- Quarterly net sales and gross margin versus management's expectation of gross margin expanding to the mid-30% areaQ3 2026
- Trend in number of retail doors and relationships with national distributorsQ3 2026
- Outcome of the financing alternatives management said it is evaluating2026
- Progress of Asia-Pacific subsidiaries and their contribution to salesnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Reed's is a branded beverage company offering a portfolio of natural, premium and functional beverages under the Reed's and Virgil's brands 1. Its products are sold in over 32,000 outlets across the United States and in select international markets 1. The business model is asset-light: production is done by independent co-packers and distribution by independent distributors 1. The company has 50 products and launched a new multi-functional soda line in 2025 1.
Segments
Reed's ginger beverages
The Reed's line includes ginger beers and ginger ales made with pressed organic ginger, in full sugar, natural sweetener and zero sugar versions, plus RTD alcoholic Mule and Hard Ginger Ale products 1.
Virgil's soda and functional line
Virgil's is a handcrafted soda line made with natural ingredients, while the functional soda line launched in 2025 combines ginger, adaptogen mushroom extracts and prebiotic fiber with low sugar 1.
Market context
The cited source estimates the U.S. carbonated soft drink market grew about 2% to 46 billion dollars in 2025, and the U.S. ginger ale market grew about 6% to 2.9 billion dollars 1. Functional and modern soda products are expanding at double-digit rates, driven by demand for premium beverages with natural ingredients and less sugar 1.
Trends
- Ginger as a functional wellness ingredienttailwind
Growing recognition of ginger as a wellness ingredient could support Reed's portfolio if this trend strengthens 1.
- Reduced sugar consumptionmixed
Consumers cutting sugar may favour Reed's lines with natural or no-sugar sweeteners, but they may also choose other low-sugar drinks 1.
- Freight and logistics costsheadwind
The company reports rising freight costs and a volatile pricing environment, including due to the armed conflict in Iran, which could weigh on margins if pressure persists 2.
- Premiumization and bold non-alcohol flavourstailwind
Consumer trading up to premium craft beverages and non-alcohol alternatives with bold flavours favours the company's portfolio 1.
Competitive position
The company competes in a highly competitive non-alcoholic beverage segment with many manufacturers, from small emerging firms to large established companies 1. Competition centres on brand recognition, taste, price, distribution and innovation 1. In ready-to-drink and Mule segments, competitors include High Noon, Cutwater Spirits and Copper Can 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report03 Nov 2026Material agreement · Item 3.02 · Financial statements and exhibits
- Current report30 Sept 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report14 Aug 2026Delisting notice · Other events · Financial statements and exhibits
- Quarterly report12 Aug 2026
- Current report11 Aug 2026Results of operations · Financial statements and exhibits
- Current report11 Jun 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Current report03 Jun 2026Delisting notice · Other events · Financial statements and exhibits
- Quarterly report13 May 2026
- Current report12 May 2026Results of operations · Financial statements and exhibits
- Proxy statement29 Apr 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Reed's, Inc. · 25 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Reed's, Inc. · 12 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Reed's, Inc. · 11 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.