[jonessoda.com ] Jones Soda Co. posted Q3 2026 net revenue of $13.7 million, a 204% year-over-year increase from $4.5 million in the prior-year period, marking the Seattle-based craft soda supplier's strongest quarterly top line on record. The company also reported net income from continuing operations of $471,000, swinging $1.9 million from a net loss of $1.4 million in Q3 2025 — a signal that volume gains are finally translating into operating leverage rather than just revenue scale.
The quarter's gross margin expanded to 34.4% from 28.9%, a 5.5-percentage-point improvement that reflects better absorption across the company's supply chain as shipment volumes grew. Selling and marketing expense as a percentage of revenue fell to 17.0% from 22.5%, demonstrating that the cost to push product through off-premise retail and direct-to-consumer channels is declining relative to throughput. Total operating expenses reached $4.3 million, up from $2.7 million, but the revenue surge overwhelmed the increase, delivering $400,000 in operating income versus a $1.4 million operating loss a year earlier.
Club Channel & Route-to-Market
The clearest distribution story in this quarter is club retail. Management cited additional club distribution points as a primary volume driver, alongside expansion of its Zero Sugar lineup into Western Canada club stores — a route-to-market push that extends the brand's footprint beyond its traditional independent and specialty off-premise accounts. Club formats carry significant velocity implications for a craft soda SKU: the channel's high-velocity, multi-pack planogram demands consistent supply-chain execution and inventory depth, both of which are reflected in Jones Soda's inventory position rising to $6.5 million at September 30, 2026, from $2.7 million at year-end 2025. That build signals confidence in forward shipments but also underscores the working-capital intensity management has flagged as a risk to converting EBITDA into positive operating cash flow.
For the nine months ended September 30, 2026, revenue reached $36.3 million — up 167% from $13.6 million in the comparable 2025 period — keeping the company on track to exceed its full-year guidance of $45 million in net revenue. Year-to-date adjusted EBITDA from continuing operations improved by $3.77 million to $1.12 million, compared with a loss of $2.65 million in the first nine months of 2025. Net cash used in continuing operating activities narrowed to $2.3 million from $4.0 million year over year, though the balance sheet still carries a going-concern disclosure in the company's Form 10-Q.
Collaborations & Innovation Pipeline
Beyond pure distribution expansion, Jones Soda is leaning into licensed IP and cultural fandom as a demand-creation mechanism. The quarter saw the launch of a Fallout-branded "Vault-dweller Variety" pack tied to Fallout Day 2026, as well as a limited-edition Crayola collaboration anchoring the brand's 30th anniversary "Dirty 30" campaign. These co-branded SKUs serve a dual function in the craft soda segment: they generate incremental off-premise velocity and create earned media that reduces above-the-line marketing spend per case equivalent. The strategy aligns with how smaller non-alc suppliers compete for shelf space against larger portfolio players who dominate traditional end-cap and planogram real estate.
Looking further out, management is evaluating a functional health extension under a Jones Labs banner, with gut-health innovation specifically identified. The functional non-alc segment has seen significant distributor interest as buyers seek premium NAB products that command higher shelf prices and margins than traditional carbonated soft drinks. CEO Scott Harvey framed the opportunity as broadening the company's addressable market rather than repositioning the core craft soda line. For distributors assessing the Jones Soda supplier relationship, the trajectory — record revenue, positive net income, expanding margin, and a club channel anchor — represents a materially different risk profile than 12 months ago, even as working capital and cash flow discipline remain the variables to watch heading into fiscal year-end.
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.
