Jones Soda Q2 Cannabis Revenue Doubles YoY, Here Is What You Need To Know

Jones Soda Co. JSDA JSDA released its financial results for the second quarter ended June 30, 2023, revealing revenue of $4.8 million compared to $6.0 million in Q2 2022. The decrease in the current quarter was primarily attributable to the prior year period having approximately $1 million in revenues from core bottle soda sales from a one-time inventory stocking event with one of the company’s largest retailers in 2022 that was not repeated in 2023. In addition, the company’s cannabis segment generated approximately $400,000 in revenue in the second quarter of 2023 compared to $200,000 in revenue in the first quarter of 2023 and no revenue in the second quarter of 2022.

Q2 2023 Financial Highlights vs. Year-Ago Quarter

• Gross profit was $1.6 million, a decrease of 7.6% compared to $.1.7 million.

• Gross margin was 32.4% compared to 28.0%.

• Net loss improved to $1.0 million, or $(0.01) per share, compared to a net loss of $1.4 million, or $(0.02) per share.

• Adjusted EBITDA improved to negative $729,000 compared to negative $1.1 million.

• At June 30, 2023, cash and cash equivalents totaled $5.1 million compared to $8.0 million at December 31, 2022.

“I’m proud to report Jones Soda sustained its momentum in the second quarter with strong gross margin expansion and further improvements to our bottom line,” stated David Knight, the new president, and CEO of Jones Soda. “While the company’s strong performance in the first half of 2022 continued to present a difficult year-over-year revenue comparison, our Q2 sales revenue numbers were in-line with expectations, and I believe our team made significant progress setting us up for success in the back-half of the year. While I’ve only been at the helm of Jones Soda for approximately six weeks, the operational rigor and determination throughout the organization has me excited about the company’s potential future growth trajectory.

“Turning to Mary Jones, our revenues from cannabis products doubled to approximately $400,000 in Q2 2023 from $200,000 in Q1 2022. During the second quarter of 2023, we continued to grow our product portfolio with the addition of two new flavors in two new formats. We’re also pleased to report that we remain on track with our footprint expansion as we expect to be fully operational in three new states by the end of the year. We believe we have only begun to scratch the surface within the cannabis industry, and we are highly confident in our ability to unlock the significant upside we see in this business to further bolster our consolidated financial performance.

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