The Numbers
Jones Soda Co. posted Q2 2026 net revenue of $10.2 million, a 107.8% increase over the $4.9 million recorded in the same period a year ago, the Seattle-based craft soda supplier announced August 13. Year-to-date revenue through June 30 reached $22.6 million, up 147.7% from $9.1 million in the first half of 2025. The primary driver in both periods was elevated shipments of Fallout-branded products into the club channel — a route-to-market that has delivered outsized volume velocity for the company's licensed collaboration platform.
Gross profit for the quarter climbed 72% to $2.8 million, though gross margin compressed 580 basis points to 27.5% from 33.3% in Q2 2025. Management attributed the contraction to higher logistics costs tied to elevated world oil prices, a persistent cold-chain and freight headwind that has pressured input costs across the broader non-alcoholic beverage segment. The company completed an RFP for major freight lanes late in the quarter and said reduced freight costs began flowing through toward the end of Q2, pointing to sequential margin recovery in the second half.
Supply-Chain & Channel Context
Total operating expenses rose to $3.3 million from $2.4 million in the prior-year period, with the increase largely attributable to higher broker fees and royalty payments tied to Fallout product sales — an expected cost structure for a licensed co-branded SKU moving in meaningful volume through wholesale and club-store planograms. Selling and marketing expense as a percentage of revenue nevertheless fell to 18.7% from 21.7%, and G&A as a percent of revenue dropped sharply from 27.1% to 13.9%, reflecting operating leverage as shipment volumes scaled. Adjusted EBITDA loss from continuing operations narrowed to $(312,000) from $(739,000) in Q2 2025, a $427,000 improvement. On a year-to-date basis, Adjusted EBITDA from continuing operations turned positive at $248,000, compared with a loss of $1.7 million in the first half of 2025.
A roughly $2 million shipment timing shift pushed expected Q2 revenue into the second half — a common dynamic in club-channel distribution where warehouse-slot scheduling and promotional calendar alignment can move depletions across quarters. CEO Scott Harvey noted that the deferred shipments are expected to make Q3 2026 one of the strongest quarters in the company's history. Post-quarter, Jones Soda completed both a brokered and a non-brokered private placement for aggregate gross proceeds of approximately $1.9 million, strengthening working capital to support inventory build and distribution expansion ahead of that volume. As of June 30, cash stood at $2.4 million.
Growth Outlook
Management raised its full-year 2026 net revenue growth expectation from approximately 60% to a minimum of 80% over fiscal 2025, implying full-year revenue exceeding $45 million. The company also added positive Adjusted EBITDA to its full-year outlook — a meaningful signal for distributors and retail buyers evaluating the supplier's long-term route-to-market stability. On the non-alc innovation front, Jones Soda launched a Zero Sugar craft soda lineup into Western Canada club stores during the quarter, broadening its better-for-you off-premise footprint. A second limited-edition run of Fallout Nuka Cola Quantum Rocket Bottles sold out rapidly, sustaining consumer pull-through that supports depletion velocity in existing retail accounts. Looking further out, a newly announced collaboration with Rap Snacks is expected to begin contributing revenue in fiscal 2027, extending the company's licensed beverage collaboration model into hip-hop culture. Additional initiatives are expected to be disclosed in the second half of 2026.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
