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Reed's
(NYSE MKT:REED)
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Rating:43Neutral
Price Target:
$1.00
Action:Reiterated
Date:08/26/26
REED scores low primarily due to severely weak financial performance (shrinking revenue, large ongoing losses, negative equity, and heavy cash burn). Technicals remain unfavorable on a longer-term basis with only neutral near-term momentum, and valuation support is limited given a negative P/E and no dividend yield data. The earnings call adds a modest offset due to clear margin/cost and cash-use improvements, but liquidity and revenue recovery risks remain prominent.
Positive Factors
Gross margin and cost improvement
The sharp margin improvement, lower write-offs, reduced SG&A and improved delivery costs show concrete operating leverage. If maintained, these changes can improve unit economics and reduce the structural gap between sales and operating expenses.
Negative Factors
Structural revenue contraction
Sustained revenue contraction indicates weaker volumes and retail account performance rather than a temporary fluctuation. Lower scale makes fixed costs harder to absorb, limits investment capacity and increases the difficulty of achieving durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margin and cost improvement
The sharp margin improvement, lower write-offs, reduced SG&A and improved delivery costs show concrete operating leverage. If maintained, these changes can improve unit economics and reduce the structural gap between sales and operating expenses.
Read all positive factors
Reed's Key Performance Indicators (KPIs)
Any
Cases Breakdown
Shows how case shipments are distributed across product lines, pack sizes, flavors and sales channels (retail, e‑commerce, foodservice). Reveals which SKUs and channels drive volume and margins, highlights shifts in consumer preference or promo dependence, and flags inventory or distribution issues that can pressure revenue and profitability.
Shows how case shipments are distributed across product lines, pack sizes, flavors and sales channels (retail, e‑commerce, foodservice). Reveals which SKUs and channels drive volume and margins, highlights shifts in consumer preference or promo dependence, and flags inventory or distribution issues that can pressure revenue and profitability.
Data provided by:
The Fly
The FlyReed's (REED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.56M
Dividend YieldN/A
Average Volume (3M)61.64K
Price to Earnings (P/E)―
Beta (1Y)-0.10
Revenue Growth-19.13%
EPS Growth76.07%
CountryUS
Employees44
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)-1.83
Shares Outstanding11,857,086
10 Day Avg. Volume115,434
30 Day Avg. Volume61,642
Financial Highlights & Ratios
PEG Ratio-0.07
Price to Book (P/B)1.91
Price to Sales (P/S)0.51
P/FCF Ratio-1.01
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-1.52
Revenue Forecast (FY)$32.18M
Reed's Business Overview & Revenue Model
Company Description
Reed's, Inc. (symbol: REED) operates as a manufacturer and distributor of premium, all-natural handcrafted beverages. These artisanal concoctions, part of the craft specialty foods sector, are available across a wide geographical footprint, spanni...
How the Company Makes Money
Reed's primarily makes money by selling branded beverages to wholesale customers (e.g., distributors and retailers) who then sell the products to end consumers. Revenue is generated from product sales across its beverage portfolio—most notably gin...
Reed's Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call conveyed measurable operational and margin progress — including gross margin expansion, lower write-offs, reduced SG&A, and improved cash flow from operations — while also disclosing material headwinds: year-over-year revenue decline (~21%), a significant decrease in cash balances, ongoing net losses, and the need for financing. Management outlined concrete corrective actions (inventory rationalization, manufacturing consolidation, new planning tools, broker network, and product initiatives) that have begun to show results, but recovery of core retail volumes and liquidity remain key risks. Overall the update reflects meaningful early progress tempered by continued revenue and cash challenges.Positive Updates
Gross Profit and Margin Expansion
Gross profit increased to $1.8M from $0.8M year-over-year and gross margin improved to 24% from 8% (up 16 percentage points), driven largely by a reduction in inventory write-offs to $0.1M from $1.6M.
Negative Updates
Year-over-Year Revenue Decline
Net sales declined to $7.5M from $9.5M year‑over‑year, a drop of about 21%, primarily driven by lower volumes with recurring national customers.
Read all updates
Q2-2026 Updates
Positive
Negative
Gross Profit and Margin Expansion
Gross profit increased to $1.8M from $0.8M year-over-year and gross margin improved to 24% from 8% (up 16 percentage points), driven largely by a reduction in inventory write-offs to $0.1M from $1.6M.
Read all positive updates
Company Guidance
Management guided to continued disciplined commercial execution and margin improvement, targeting gross margins in the mid-30% range over time, further national inventory reductions in Q3 to free working capital, and evaluation of financing alternatives to support growth. In Q2 2026 the company reported net sales of $7.5M (down from $9.5M YoY but up 5% sequentially), gross profit $1.8M (vs $0.8M), gross margin 24% (vs 8% YoY), inventory reduced to $7.0M with write-offs down to $0.1M from $1.6M, delivery & handling $1.1M (down 30%) or 15% of sales at $2.54/case (vs 17%/$2.95), SG&A $4.7M (down 6% YoY and 18% vs Q1), net loss $4.3M (‑$0.36/share, down 29%), EBITDA loss $4.0M (down 30%), cash used in ops $2.2M (vs $5.0M), cash $2.4M and total debt $9.2M. Management also highlighted operational levers supporting the guidance: a broker partner with more than 75 sales professionals, consolidation of two co‑manufacturers, new operations software and proprietary AI planning tools focused on the top 25 customers (which drive ~85–90% of business), reduced minimum order quantities (vs prior 20–30k case runs), and forthcoming product rollouts (4‑pack 7.5‑oz mini cans, glass bottle returns, and new ginger beer SKUs).Reed's Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
28
Negative
Cash Flow
8
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.14M | 34.06M | 37.95M | 44.71M | 53.04M | 49.60M |
| Gross Profit | 5.24M | 6.96M | 11.38M | 9.71M | 12.11M | 13.60M |
| EBITDA | -17.42M | -14.57M | -7.38M | -9.28M | -14.61M | -14.96M |
| Net Income | -18.50M | -15.85M | -13.15M | -15.52M | -20.06M | -16.40M |
Balance Sheet | ||||||
| Total Assets | 15.45M | 23.34M | 25.14M | 18.88M | 25.49M | 26.32M |
| Cash, Cash Equivalents and Short-Term Investments | 2.41M | 10.42M | 10.39M | 603.00K | 533.00K | 49.00K |
| Total Debt | 822.00K | 10.03M | 10.41M | 27.58M | 21.89M | 10.78M |
| Total Liabilities | 16.93M | 14.19M | 18.49M | 38.06M | 33.96M | 22.12M |
| Stockholders Equity | -1.49M | 9.15M | 6.65M | -19.18M | -8.47M | 4.20M |
Cash Flow | ||||||
| Free Cash Flow | -14.82M | -17.32M | -6.28M | -4.35M | -15.44M | -17.92M |
| Operating Cash Flow | -14.64M | -17.04M | -6.12M | -4.27M | -15.43M | -17.59M |
| Investing Cash Flow | -152.00K | -253.00K | -167.00K | -20.00K | -2.00K | -335.00K |
| Financing Cash Flow | 14.53M | 17.32M | 16.08M | 4.36M | 15.92M | 17.38M |
Reed's Technical Analysis
―
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REED, the sentiment is undefined. The current price of undefined is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for REED.
Reed's Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
Performance Comparison
Reed's Corporate Events
Delistings and Listing ChangesFinancial DisclosuresRegulatory Filings and Compliance
Reed’s Receives NYSE American Deficiency Notice on Equity
Negative
Aug 14, 2026
Reed’s, Inc., the natural ginger beverage and craft soda maker listed on NYSE American under the symbol REED, disclosed that on August 12, 2026 it received a deficiency notice from the exchange for failing to meet the stockholders’ equ...
Business Operations and StrategyShareholder Meetings
Reed’s Stockholders Approve 2026 Equity Incentive Plan
Positive
Jun 11, 2026
On June 10, 2026, Reed’s, Inc. held its 2026 annual meeting of stockholders, where shareholders approved the Reed’s, Inc. 2026 Equity Incentive Plan that had been adopted by the board on March 31, 2026. The plan took effect immediately...
Delistings and Listing ChangesRegulatory Filings and Compliance
Reed’s Faces NYSE American Noncompliance and Delisting Risk
Negative
Jun 3, 2026
Reed’s, Inc., a U.S. craft beverage producer specializing in natural ginger-based and premium sodas under the Reed’s, Virgil’s and Flying Cauldron brands, distributes its products in over 32,000 stores nationwide. The company pos...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.