Jones Soda Reports Wider Quarterly Loss Driven By Lower Sales Volume, Inventory Write-Off

Jones Soda Co. JSDA on Tuesday reported fourth-quarter 2024 earnings.

Revenue in the quarter was $2.8 million, compared with $3.5 million a year earlier, primarily attributable to reduced sales volumes driven by a transition to a new distributor in Canada and the loss of a discount retail customer in the U.S. during the previous quarter.

The company’s beverages segment, which includes craft soda, HD9, Pop Jones, and Fiesta Jones brands, generated approximately $2.6 million in revenue, down from approximately $3.1 million a year ago.

The company’s Cannabis (THC) segment, which includes Mary Jones branded cannabis products, generated approximately $0.2 million compared to approximately $0.4 million a year ago.

Gross loss for the fourth quarter of 2024 was $(1.3) million compared to a profit of $0.7 million in the year-ago period. This decline was primarily driven by a one-time $1.2 million inventory write-off and a revenue decrease. 

During the quarter, the company wrote off inventory after stopping selling some new products, including Jones Plus and Low mg HD9, due to poor market performance.

The net loss for the fourth quarter was $4.6 million, or 4 cents per share, compared with a net loss of $1.5 million, or 2 cents per share, a year earlier.

As of Dec. 31, cash and cash equivalents totaled $1.5 million. In February, the company entered into a new $5 million revolving credit facility with Two Shore Capital.

Last month, Jones Soda expanded its distribution network, including securing two new Direct Store Delivery partners servicing major retailers in Q1 2025 alone.

Shares of Jones Soda were down 2.94% to 20.32 cents at last check on Tuesday.

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Photo: Shutterstock/Colleen Michaels