Reed's, Inc.REED
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Gross margin improved to 24% from 8%, net loss narrowed, and management targets mid-30% margins with strategic price increases and cost cuts.
Impact on stocks 1
Consumer Staples
Reed's, Inc.Reed's, Inc. reported second quarter 2026 net sales of $7.5 million, down from $9.5 million a year earlier, while gross margin improved to 24% from 8%. The company said corrective actions are taking hold, with net sales up 5% sequentially and selling, general and administrative expenses down 6% to $4.7 million. Net loss narrowed 29% to $4.3 million, or negative $0.36 per share, helped by lower inventory write-offs of $0.1 million versus $1.6 million in the prior year period. Interim CEO Neal Cohane said Reed's expects continued gross margin expansion into the mid-30% area over time, supported by strategic price increases, SKU rationalization, and a leaner inventory position of $7 million. As of June 30, 2026, the company had $2.4 million of cash and $9.2 million of total debt, and management said it is evaluating financing alternatives to support growth.
Reed's, Inc.Gross margin improved to 24% from 8%, net loss narrowed, and management targets mid-30% margins with strategic price increases and cost cuts.