Zevia PBC (ZVIA) Stock Forecast & Price Target

Zevia PBC has demonstrated robust growth, evidenced by a 12.3% increase in total sales, alongside a notable volume growth of 12.6%, reaching $40.8 million. The company's strategic initiatives, including the introduction of new flavors and expansion of distribution channels, have led to higher household penetration and increased purchase frequency, indicating strong consumer demand. Looking forward, Zevia anticipates sustained sales growth and positive adjusted EBITDA in 2026, supported by effective marketing efforts, enhanced product variety, and improved supply chain efficiencies.

Zevia PBC is projected to experience significant adjusted EBITDA margin compression of 530 basis points, resulting in an adjusted EBITDA loss of $3.7 million, which underscores the challenges posed by a gross margin decline of 350 basis points to 45.6%. The forecast reflects adverse impacts from higher inventory losses associated with packaging refresh and tariffs, which further strain profitability. Additionally, external risks such as commodity cost volatility, weakened consumer confidence, and rising interest rates compound the negative outlook for the company’s financial health and operational stability.