Jones Soda Reports Revenue of $10.2 Million for Q2 2026, Up 108%

• Management raises expectation for FY2026 net revenue: Now it expects revenue to exceed $45 million, representing growth of more than 80% year-over-year
• Management adds full-year 2026 outlook to include positive Adjusted EBITDA

Management to Host Conference Call Thursday, August 13, 2026, at 8:30 a.m. ET

SEATTLE, Aug. 13, 2026 /CNW/ -- Jones Soda Co. (CSE: JSDA) (OTCQB: JSDA) ("Jones Soda" or the "Company"), today announced its financial results for the second quarter ended June 30, 2026.

"We're very pleased with the progress we're making through disciplined and improved execution across the business," said Scott Harvey, CEO of Jones Soda Co. "During the quarter, we expanded our branded collaboration platform and introduced our Zero Sugar craft soda lineup into new retail channels. While the timing of certain shipments shifted approximately $2 million of expected revenue from the second quarter into the third quarter, demand for our products remains strong and we continue to see meaningful opportunities for growth."

"Looking ahead, we expect those shipments to contribute to the third quarter being one of the strongest quarters in the Company's history. Based on our year-to-date performance and the opportunities we see ahead, we're raising our full year revenue growth expectation from approximately 60% to approximately 80% and expect to achieve positive Adjusted EBITDA for the full year. We're also building the next phase of growth, including our recently announced collaboration with Rap Snacks, which we expect to begin contributing revenue in fiscal 2027. We expect to announce additional initiatives during the second half of 2026."

Second Quarter 2026 Financial Summary vs. Second Quarter 2025

• Revenue increased 107.8% to $10.2 million compared to $4.9 million in the year ago period, despite the timing of certain shipments shifting a portion of expected revenue from the second quarter into the second half of the year.
• Gross profit margin was 27.5% compared to 33.3% in the year ago period. High oil prices was the primary driver for the lower margin. The Company has made progress reducing its freight expenses in the quarter and is seeing improved gross margins.
• Net loss from continuing operations of $650,000, or $(0.01) per share, compared to net income from continuing operations of $2.7 million, inclusive of a one-time gain on disposition of our Cannabis subsidiary of $3.7 million, or $0.02 per share, in the second quarter of 2025.
• Adjusted EBITDA¹ loss from continuing operations was $(312,000), compared to an Adjusted EBITDA loss from continuing operations of $(739,000) in the second quarter of 2025, an improvement of $427,000.

Year-to-date 2026 Financial Summary vs. Year-to-date 2025

• Revenue increased 147.7% to $22.6 million compared to $9.1 million in the year ago period.
• Gross profit margin was $6.7 million (30% of net revenue) compared to $3.0 million (33% of net revenue) in the year ago period. The decrease was primarily driven by higher world oil prices in the second quarter. 
• Net loss from continuing operations of $0.5 million, or $(0.00) per share, compared to net income from continuing operations of $1.6 million, inclusive of a one-time gain on disposition of our Cannabis subsidiary of $3.7 million, or $0.01 per share, in the year ago period.
• Adjusted EBITDA² from continuing operations was $0.2 million, compared to an Adjusted EBITDA loss from continuing operations of $1.7 million in the year ago period.

Recent Business Highlights

• Announced a new collaboration with Rap Snacks, the Official Snack Brand of Hip Hop, to launch a line of hip hop inspired craft sodas, with revenue contribution expected to begin in fiscal 2027.
• Launched a new Zero Sugar craft soda lineup at Western Canada club stores, broadening the Company's better-for-you beverage offerings and increasing retail presence in a key market.
• Launched a second limited edition sale of Fallout Nuka Cola Quantum Rocket Bottles following the rapid sellout of the initial release, demonstrating continued consumer demand for the Fallout partnership.
• Completed a brokered private placement, raising approximately $1.7 million in gross proceeds to support working capital and the Company's strategic growth initiatives.
• Completed the first tranche of non-brokered private placement, raising approximately $0.2 million in gross proceeds to support working capital needs.
• Completed an RFP for major freight lanes that resulted in significantly lower freight costs beginning late in the second quarter.
• Brought back the limited-edition Crayola x Jones Soda collection featuring a new Fruit Punch flavor for the 2026 back to school season.

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¹ Adjusted EBITDA is a Non-GAAP measure. Adjusted EBITDA is meant to reflect management's view of recurring business activities. It is reconciled to the GAAP measure "Net Income (Loss) from continuing operations" by removing interest expense, interest income, taxes, depreciation, amortization, stock-based compensation and one-time items.

² Adjusted EBITDA is a Non-GAAP measure. Adjusted EBITDA is meant to reflect management's view of recurring business activities. It is reconciled to the GAAP measure "Net Income (Loss) from continuing operations" by removing interest expense, interest income, taxes, depreciation, amortization, stock-based compensation and one-time items.

Second Quarter 2026 Financial Results

Revenue increased 108% to $10.2 million compared to $4.9 million in the prior year. The increase in revenue was primarily attributable to increased sales of Fallout branded products sold through the Company's club channel, which was partially offset by a decline in sales of HD9 products.

For the three months ended June 30, 2026, gross profit increased by $1.2 million, or 72%, to $2.8 million compared to $1.6 million for the three months ended June 30, 2025 driven by the increase in net sales. For the quarter ended June 30, 2026, gross margin decreased to 27.5% from 33.3% in the quarter ended June 30, 2025. This 580 basis point decrease was primally driven by higher logistics costs due to higher world oil prices, which were partially offset by reductions in freight costs in the latter part of the quarter.

Total operating expenses were $3.3 million compared to $2.4 million in the prior year period. The increase was primarily attributable to an increase in sales and marketing expenses due to an increase in broker and royalty payments related to Fallout product sales. Selling and marketing expenses as a percentage of revenue decreased to 18.7% in the second quarter ended June 30, 2026, from 21.7% in the same quarter in 2025. General and administrative expenses as a percentage of revenue declined from 27.1% in the prior period to 13.9% for the second ended June 30, 2026.

Net loss for the second quarter of 2026 was $650,000, or $(0.01) per share, compared to net income of $2.6 million, or $0.02 per share, in the prior year. The prior-year net income included a $3.7 million gain on the disposition of subsidiaries and $41,000 of income from discontinued operations. The decrease in net income was primarily driven by the one-time gain on the disposition of the Company's THC operations in the prior period.

Adjusted EBITDA³ loss from continuing operations was $(312,000), compared to an Adjusted EBITDA loss from continuing operations of $(739,000) in the second quarter of 2025, an improvement of $427,000.

As of June 30, 2026, the Company had cash of $2.4 million compared to $3.6 million as of December 31, 2025. Subsequent the quarter, the Company completed a brokered private placement financing and a non-brokered private placement for aggregate gross proceeds of approximately $1.9 million, strengthening its liquidity position and providing incremental capital to support ongoing operations and growth initiatives.

___________________________

³ Adjusted EBITDA is a Non-GAAP measure. Adjusted EBITDA is meant to reflect management's view of recurring business activities. It is reconciled to the GAAP measure "Net Income (Loss) from continuing operations" by removing interest expense, interest income, taxes, depreciation, amortization, stock-based compensation and one-time items.

Second Quarter and 2026 Revenue Guidance

The following forward-looking statements reflect the Company's expectations as of August 13, 2026. They are subject to substantial uncertainty and may be materially affected by many factors, many of which are outside of the Company's control.

The Company is increasing its full-year fiscal 2026 net revenue growth expectation and now expects net revenue to increase approximately a minimum of 80% over fiscal 2025. In addition, the Company expects to generate positive Adjusted EBITDA for the full year.

Conference Call

Jones Soda will hold a conference call at 8:30 a.m. Eastern time on August 13, 2026, to discuss its results for the second quarter ended June 30, 2026.

Chief Executive Officer Scott Harvey and Chief Financial Officer Brian Meadows will host the conference call, followed by a question-and-answer period. During the question-and-answer period, management will address common themes and questions submitted through the webcast portal. Participants who wish to ask a question should join the call via the webcast.

Date: Thursday, August 13, 2026
Time: 8:30 a.m. Eastern time (5:30 a.m. Pacific time)
Webcast and Q&A: Link
Toll-free dial-in number: 1-877-407-0784
International dial-in number: 1-201-689-8560
Conference ID: 13762150

Please call the conference telephone number five minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting to the call, please contact Hayden IR at 1-646-755-7412.

A telephonic replay of the conference call will be available after 5:30 p.m. Eastern time on the same day through August 27, 2026.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13762150

Presentation of Non-GAAP Information

This press release contains disclosure of the Company's Adjusted EBITDA and Adjusted Gross Profit Margin which are not a United States Generally Accepted Accounting Principle ("GAAP") financial measures. The difference between Adjusted EBITDA (a non-GAAP measure) and Net Loss (the most comparable GAAP financial measure) It is reconciled to the GAAP measure "Net Income (Loss) from continuing operations" by removing interest expense, interest income, taxes, depreciation, amortization, stock-based compensation and one-time items. Adjusted Gross Profit margin is defined as GAAP Gross Profit plus one time inventory write-offs related to HD9 business and inventories written off related to a legal dispute with a Co-manufacturer divided by GAAP Revenue. We have included reconciliations of Adjusted EBITDA to Net Loss and Adjusted Gross Profit Margin to GAAP Gross Profit Margin under "Jones Soda Co. Non-GAAP Reconciliation" at the end of this press release. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP. Adjusted EBITDA and Adjusted Gross Profit Margin have certain limitations in that it does not take into account the impact of certain expenses to our consolidated statements of operations. In addition, because Adjusted EBITDA may not be calculated identically by all companies, the presentation here may not be comparable to other similarly titled measures of other companies. We believe that Adjusted EBITDA provides useful information to investors about the Company's results attributable to operations, in particular by eliminating the impact of non-cash charges related to stock-based compensation, amortization, depreciation and one-time non-recurring items that is consistent with the manner in which management evaluates the Company's performance. These adjustments to the Company's GAAP results are made with the intent of providing a more complete understanding of the Company's underlying operational results and provide supplemental information regarding the Company's current ability to generate cash flow. Adjusted EBITDA is not intended to be considered in isolation or as a replacement for, or superior to Net Loss as an indicator of the Company's operating performance, or cash flow, as a measure of its liquidity. Adjusted EBITDA should be reviewed in conjunction with Net Loss as calculated in accordance with GAAP. Adjusted Gross Profit Margin should be reviewed in conjunction with GAAP Gross Profit Margin.

About Jones Soda Co.

Jones Soda Co.^® (CSE: JSDA, OTCQB: JSDA) is a leading craft soda manufacturer. The Company markets and distributes premium craft sodas under the Jones^® Soda brand. Jones' mainstream soda line is sold across North America in glass bottles, cans and on fountain through traditional beverage outlets, restaurants and alternative accounts. The Company is headquartered in Seattle, Washington. For more information, visit www.jonessoda.com.

Forward-Looking Statements Disclosure

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all passages containing words such as "will," "aims," "anticipates," "becoming," "believes," "continue," "estimates," "expects," "future," "intends," "plans," "predicts," "projects," "targets," or "upcoming." Forward-looking statements also include any other passages that are primarily relevant to expected future events or that can only be evaluated by events that will occur in the future. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Factors that could affect the Company's actual results, including its financial condition and results of operations, include, among others: its ability to successfully execute on its growth strategies and operating plans for the future; the Company's ability to continue to develop and market hemp-infused beverages and edibles, and to comply with the new federal and state laws and regulations governing hemp and related products, including but not limited to recent federal legislation that prohibits the unregulated sale of intoxicating hemp-based or hemp-derived products (including HD9 products); the Company's ability to manage operating expenses and generate sufficient cash flow from operations; the Company's ability to create and maintain brand name recognition and acceptance of its products; the Company's ability to adapt and execute its marketing strategies; the Company's ability to compete successfully against much larger, well-funded, established companies currently operating in the beverage industry generally and in the craft beverage segment specifically; the Company's ability to respond to changes in the consumer beverage marketplace, including potential reduced consumer demand due to health concerns (including obesity) and legislative initiatives against sweetened beverages (including the imposition of taxes); its ability to develop and launch new products and to maintain brand image and product quality; the Company's ability to maintain and expand distribution arrangements with distributors, independent accounts, retailers or national retail accounts; its ability to manage inventory levels and maintain relationships with manufacturers of its products; its ability to maintain a consistent and cost-effective supply of raw materials and flavors and to manage factors affecting its supply chain; its ability to attract, retain and motivate key personnel; its ability to protect its intellectual property; the impact of future litigation and the Company's ability to comply with applicable regulations; its ability to maintain an effective information technology infrastructure, fluctuations in freight and fuel costs; the impact of currency rate fluctuations; its ability to access the capital markets for any future equity financing; the Company's ability to maintain disclosure controls and procedures and internal control over financial reporting; dilutive and other adverse effects from future potential securities issuances; and any actual or perceived limitations by being traded on the OTCQB Marketplace. More information about factors that potentially could affect the Company's operations or financial results is included in its most recent annual report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission ("SEC") on March 31, 2026 and in the other reports filed with the SEC since that that date. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Except as required by law, the Company undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.

JONES SODA CO.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)

		June 30, 2026 (unaudited)				December 31, 2025
ASSETS
Current assets:
Cash		$	2,351			$	3,599
Accounts receivable, net of allowance of $75 and $50, respectively			3,280				3,603
Note receivable			-				1,400
Current licensing fees receivable			225				150
Inventories, net			4,689				2,657
Prefunded insurance premiums from financing			71				214
Prepaid expenses and other current assets			996				1,224
Deferred financing costs			415				415
Total current assets			12,027				13,262
Long-term licensing fees receivable			1,521				1,647
Fixed assets, net of accumulated depreciation of $754 and $583, respectively			183				321
Total assets		$	13,731			$	15,230
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	5,340			$	6,378
Accrued expenses			3,376				3,960
Revolving credit facility and loans			3,721				3,022
Insurance premium financing			71				214
Promissory notes			-				190
Total current liabilities			12,508				13,764
Total liabilities			12,508				13,764
Commitments and contingencies (Note 14)
Shareholders' equity:
Common stock, no par value:
Authorized -- 800,000,000. Issued and outstanding shares -- 118,780,917 shares and 118,227,478 shares, respectively			96,254				95,895
Accumulated other comprehensive income			232				299
Accumulated deficit			(95,263)				(94,728)
Total shareholders' equity			1,223				1,466
Total liabilities and shareholders' equity		$	13,731			$	15,230

JONES SODA CO.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)

		Three Months Ended June 30,								Six Months Ended June 30,
		2026				2025				2026				2025
Net Revenue		$	10,168			$	4,894			$	22,600			$	9,124
Cost of goods sold			(7,376)				(3,266)				(15,910)				(6,101)
Gross profit			2,792				1,628				6,690				3,023
Operating expenses:
Selling and marketing			1,900				1,060				3,936				2,173
General and administrative			1,417				1,328				2,926				2,531
Total operating expenses			(3,317)				(2,388)				(6,862)				(4,704)
Loss from operations			(525)				(760)				(172)				(1,681)
Other income (expenses):
Interest income			5				5				19				6
Interest expense			(126)				(70)				(366)				(148)
Other (expense) income, net			(1)				(179)				(11)				(273)
Gain on disposition of subsidiaries			-				3,663				-				3,663
Total other income (expense)			(122)				3,419				(358)				3,248
Income (loss) before income taxes			(647)				2,659				(530)				1,567
Income tax expense, net			(3)				(7)				(5)				(7)
Net income (loss) from continuing operations			(650)				2,652				(535)				1,560
Loss (income) from discontinued operations			-				(41)				-				199
Net income (loss)		$	(650)			$	2,611			$	(535)			$	1,759
Earning (loss) per share – basic and diluted
Income (loss) from continuing operations		$	(0.01)			$	0.02			$	(0.00)			$	0.01
Income from discontinued operations		$	-			$	0.00			$	-			$	0.01
Total		$	(0.01)			$	0.02			$	(0.00)			$	0.02
Weighted average common shares outstanding - basic and diluted			118,780,917				116,180,383				118,698,360				116,023,676

See accompanying notes to condensed consolidated financial statements.

Jones Soda Co.
Reconciliation of GAAP Net Income from Continuing Operations to Non-GAAP Adjusted EBITDA (unaudited)
(In thousands, except per share data)

	For the three months ended			For the six months ended
	June 30,	June 30,		June 30,	June 30,
	2026	2025		2026	2025
	$	$		$	$
Net income (loss) from continuing operations	(650)	2,652		(535)	1,560
Add: Interest expense	126	70		366	148
Add: Income tax expenses	3	7		5	7
	(521)	2,729		(164)	1,715
Add: Depreciation	96	17		171	30
Add: Amortization	-	-		-	-
	(425)	2,746		7	1,745
Add: Loss on disposal	-	-		-	-
Less: Gain on disposition of subsidiaries	-	(3,663)		-	(3,663)
Add: Stock-based compensation	99	196		235	287
Add: Impairment of receivable	23	-		25	(46)
Add: Impairment of note receivable	-	-		-	-
Add: Impairment of inventory	-	(13)		-	(38)
Less: Finance income	(9)	(5)		(19)	(6)
	(312)	(739)		248	(1,721)

SOURCE Jones Soda Co.

Investor Contact: HAYDEN IR, James Carbonara, (646)-755-7412, [email protected]; Brett Maas, [phone], [email protected]