Jones Soda Reports Revenue of $12.4 Million for Q1 2026, Up 194% and Positive Net Income from Continuing Operations

• Expects FY2026 revenue to exceed $40 million, representing growth of more than 60% year-over-year

Management to Host Conference Call Thursday, May 14, 2026, at 8:30 a.m. ET

SEATTLE, May 14, 2026 /CNW/ - Jones Soda Co. (CSE: JSDA) (OTCQB: JSDA) ("Jones Soda" or the "Company"), today announced its financial results for the first quarter ended March 31, 2026.

First Quarter 2026 Financial Summary vs. First Quarter 2025

• Revenue increased 193.9% to $12.4 million compared to $4.2 million in the year ago period.
• Gross profit margin was 31.3%, a modest decline of 160 basis points from 32.9% in the year ago period.
• Total operating expenses were $3.5 million compared to $2.3 million in the year ago period.
• Net income improved by $1.2 million from continuing operations to $115,000, or $0.00 per share, compared to a net loss from continuing operations of $1.1 million, or $(0.01) per share in the first quarter of 2025
• Adjusted EBITDA¹ from continuing operations was $0.6 million, compared to an Adjusted EBITDA loss from continuing operations of $1.1 million in the first quarter of 2025, an improvement of $1.6 million.

Recent Business Highlights

• Expanded its retail program with the introduction of new multi-packs in 650 top-volume Walmart locations across the United States
• Expanded its Canadian distribution through 700 Circle K stores across Eastern Canada.
• Announced a $2.5 million private placement on April 30, 2026 which will provide additional capital to support expansion and strategic growth initiatives.
• Announced expanded club channel distribution of its Fallout licensed products across Canada and the United States in the first quarter of 2026.

"With first quarter revenue of $12.4 million, we delivered on our guidance and reached a meaningful inflection point for the business by achieving net income profitability on a GAAP basis," said Scott Harvey, CEO of Jones Soda. "This performance reflects the continued strengthening of our business and the growing success of our partnership and branded collaboration platform, particularly within the club channel where consumer demand for our Fallout-related offerings exceeded expectations. The progress we are seeing across retail distribution, branded collaborations and operational execution reinforces our confidence in the scalability of the Jones platform and our ability to drive sustainable growth throughout 2026."

First Quarter 2026 Financial Results

Revenue increased 193.9% to $12.4 million compared to $4.2 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 March 31, 2026, gross profit increased by $2.5 million, or 179.4%, to $3.9 million compared to $1.3 million for the three months ended March 31, 2025 driven by the increase in net sales.

Total operating expenses were $3.5 million compared to $2.3 million in the prior year period. The increase was primarily attributable to an increase in selling and marketing expenses due to an increase in broker and royalty payments related to Fallout product sales and an increase in general and administrative expenses related to increases in salary and benefits. General and administrative expenses as a percentage of revenue decreased to 12.1% in the first quarter ended March 31, 2026 from 28.4% in the same quarter in 2025.

Net income improved by $1.0 million to $115,000, or $0.00 per share, from a net loss of $852,000, inclusive of $240,000 of income from discontinued operations, or $(0.01) per share in the prior year. The improvement was primarily driven by an increase in gross profit of $2.5 million, which was partially offset by a $1.2 million increase in SG&A, a decrease in income from discontinued operations of $240,000 and an increase in other expense of $65,000.

Adjusted EBITDA² from continuing operations was $0.6 million, compared to an Adjusted EBITDA loss from continuing operations of $1.1 million in the first quarter of 2025, an improvement of $1.6 million.

As of March 31, 2026, the Company had cash and cash equivalents of $4.4 million compared to $3.6 million as of December 31, 2025. Subsequent to quarter end, the Company completed a private placement financing for aggregate gross proceeds of approximately $2.5 million, further strengthening its liquidity position and providing additional capital to support ongoing operations and growth initiatives.

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 and 2026 Revenue Guidance

The following forward-looking statements reflect the Company's expectations as of May 14, 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 maintains its net revenue guidance and expects that its growth rate on 2025 full year revenues to exceed 60% in fiscal 2026. 

Conference Call

Jones Soda will hold a conference call 8:30 a.m. Eastern time on Thursday, May 14, 2026 to discuss its results for the first quarter ended March 31, 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, May 15, 2026
Time: 4:30 p.m. Eastern time (1:30 p.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: 13760360

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 May 28, 2026.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13760360

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, www.myjones.com, or https://gomaryjones.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)
		March 31, 2026 (unaudited)				December 31, 2025
ASSETS
Current assets:
Cash		$	4,439			$	3,599
Accounts receivable, net of allowance of $46 and $50, respectively			5,258				3,603
Note receivable			-				1,400
Current licensing fees receivable			150				150
Inventories, net			4,153				2,657
Prefunded insurance premiums from financing			144				214
Prepaid expenses and other current assets			568				1,224
Deferred financing costs			415				415
Total current assets			15,127				13,262
Long-term licensing fees receivable			1,696				1,647
Fixed assets, net of accumulated depreciation of $658 and $583, respectively			269				321
Total assets		$	17,092			$	15,230
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	7,146			$	6,378
Accrued expenses			4,269				3,960
Revolving credit facility and loans			3,721				3,022
Insurance premium financing			144				214
Promissory notes			-				190
Total current liabilities			15,280				13,764
Total liabilities			15,280				13,764
Commitments and contingencies (Note 13)
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			96,155				95,895
Accumulated other comprehensive income			270				299
Accumulated deficit			(94,613)				(94,728)
Total shareholders' equity			1,812				1,466
Total liabilities and shareholders' equity		$	17,092			$	15,230

JONES SODA CO. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data)
		Three Months ended March 31,
		2026				2025
Net Revenue		$	12,432			$	4,230
Cost of goods sold			(8,534)				(2,835)
Gross profit			3,898				1,395
Operating expenses:
Selling and marketing			2,036				1,113
General and administrative			1,509				1,203
Total operating expenses			(3,545)				(2,316)
Income (loss) from operations			353				(921)
Other income (expenses):
Interest income			14				1
Interest expense			(240)				(78)
Other income (expense), net			(10)				(94)
Total other income (expense)			(236)				(171)
Income (loss) before income taxes			117				(1,092)
Income tax provision			(2)				-
Income (loss) from continuing operations			115				(1,092)
Income from discontinued operations			-				240
Net income (loss)		$	115			$	(852)
Earning (loss) per share – basic
Income (loss) from continuing operations		$	0.00			$	(0.01)
Income from discontinued operations		$	-			$	0.00
Total		$	0.00			$	(0.01)
Weighted average common shares outstanding			118,614,885				115,865,227
Earning (loss) per share – Diluted
Income (loss) from continuing operations		$	0.00			$	(0.01)
Income from discontinued operations		$	-			$	0.00
Total		$	0.00			$	(0.01)
Weighted average common shares outstanding			121,386,039				115,865,227

Jones Soda
Q126 EBITDA
	For the three months ended
	March 31,	March 31,
	2026	2025
	$	$
Net income (loss) from continuing operations	115	(1,092)
Add: Interest expense	240	-
Add: Income tax expenses	2	-
	357	(1,092)
Add: Depreciation	75	13
	432	(1,079)
Add: Stock-based compensation	136	91
Add: Impairment of note receivable	2	(46)
Add: Impairment of inventory	-	(25)
Less: Finance income	(10)	-
	560	(1,059)

SOURCE Jones Soda Co.

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