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Seattle-based Jones Soda continued its seeming resurgence in Q4 when co reported 450% bounce to $11.7 mil in revenue, closing out year up 42% to $25.3 mil. Cycling bleak year-earlier period, many of gains were scored via licensed Fallout and Crayola items in club channel and on DTC platform as new crew revs up marketing and innovation, tho challenges remain for other product lines. JSDA leaders believe Q1 will bring another 260% topline pop to over $12 mil and full-year revenues should jump over 60% from what they're deeming to have been "transformational year." Still, reflecting investors' continuing skepticism about co, its market cap is just $33 mil. Co recently recruited Hayden IR firm to better engaged investors and pursue uplisting to NY Stock Exchange or Nasdaq. That could open door to future equity raise but in meantime co is funding ops via expanded non-dilutive line of credit. Of course, impetus to innovate has never been a problem at Jones: indeed, prior CEO was ousted because he offered too much of it to manage within co's limited financial and staff means. But new team led by CEO Scott Harvey seems to have shown a better knack for hitting bull's-eye with culturally relevant offerings, including Bethesda Games' Fallout franchise, which has brought new users to brand. "We believe our early success with new products reinforces our ability to anticipate trends and deliver offerings that resonate with consumers," as he put it in earnings announcement. That success has bred interest from other retailers and potential licensors to explore collabs, he indicated.Still, on investor call yesterday afternoon, Harvey made it clear there was plenty left to work on. Spiked Jones alcohol entry was a bust and has been withdrawn after Jones team concluded its alcohol was too elevated and its flavors needed work. But co remains committed to category and will return with line in 4-5% ABV range and retooled flavors and graphics. They'd launched at 8.4% ABV in 12-oz cans and 6.9% ABV in 19.2-oz cans, touting their elevated alc as a key differentiator at time of launch in 2024.A rethink also is under way with co's forays into modern soda (via Pop Jones) and Latino-inflected bevs (via Fiesta Jones), collectively in 1,700 retail doors currently. The problem here wasn't so much product propositions but lack of marketing support. "We sort of thought people would just stumble on us in store and that's not enough," Harvey confessed. So co has set up tests in 2 markets to do better to communicate brands' presence there and why shoppers should care. That said, some tinkering is afoot on Pop Jones, which will get flavor additions more in synch with those of core Jones CSDs, including popular Cream Soda and Root Beer flavors. It currently goes out in fruity flavors like Watermelon Cucumber and Pineapple Ginger. As for co's foray into Delta-9 bevs, that's been undermined by change in federal regs that will see segment essentially outlawed by coming fall. An inventory writedown of $1.2 mil in Q4 was comprised in part of revalued D9 inventories. Like others in space, Harvey said he'll try to stay agile and alert to navigate uncertain environment.On investor call, Harvey also made it clear that co's ecomm biz needs lotta remedial work, including establishing rewards system that might coax shoppers into subscriptions, with the consistent revenue stream those bring. He only took questions that had been vetted by co rather than allowing for free discussion on call.Among key metrics in Q4, margin widened to 32% from paltry 10% a year earlier. Net loss from continuing ops narrowed to $1.8 mil from $4.1 mil a year earlier. For full year, net loss from continuing ops narrowed to $1.2 mil from $9.9 mil.

Pop Jones: Jones Soda Enjoys Q4 Topline Pop as Licensed Entries Click; Anticipates 60% Rev Boost in 2026

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