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Seattle-based Jones Soda offered more indications that a revival may be happening under latest mgmt team as it reported $12.4 mil Q1, a 194% pop from stunted year-earlier period. Much of the boost stemmed from popularity in club channel of Fallout-themed offerings. Next big boost should come from launch of Jones Zero subline, which should "repatriate" some consumers who'd drifted away from brand, teased CEO Scott Harvey. In period, gross margin narrowed 1.6 pts to 31.3% from 32.9% because of lower sales of higher-margin D9 THC bevs. CFO Brian Meadows said co is using its greater scale to wrest better pricing from key suppliers, tho freight costs are moving in wrong direction thanks to higher oil prices stemming from Iran war. JSDA eked out a $353K operating profit, reversing $921K loss. Harvey, in CEO role since Feb 2025, termed qtr "a meaningful inflection point" thanks to net income profitability. "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." Of course Jones has been in a state of becoming for quite a few years now but Harvey is first leader in a while to spur meaningful topline growth without burning lotsa scarce capital to do so.The Fallout-related sales boost was partly offset by declines in co's Delta-9 THC bevs in face of regulatory challenges, tho co is staying the course. It concluded Q1 with $4.4 mil in cash on the books, up from $3.6 mil on Dec 31. That's being augmented by $2.5 mil private placement that should conclude later this mo. For full year co is anticipating 60% revenue boost. In trading today shares eased off tho they've roughly doubled since Harvey came aboard.Harvey's playbook as CEO has included range of licensing deals that have attached Jones brand not just to Fallout but Crayola and Folds of Honor. Crayola entries will migrate from ecomm-only to retail this spring with details still TBD. Harvey believes these deals can offer more than just a novelty boost. "We believe the performance we are seeing validates that this is not a one-time promotional event, but rather a repeatable commercialization platform capable of driving future retailer programs, consumer engagement and incremental growth opportunities," he told investors yesterday. Not a word said, tho, on Pop Jones and Fiesta Jones, co's twin entries into modern soda segment pioneered by Olipop and Poppi.Among blocking & tackling moves Harvey's team has been making is pushing 4-pks as good value-oriented but trial-generating on-ramp for shoppers. In current qtr, Jones intro'd 4-pks in 650 higher-volume Walmart outlets across US featuring Root Beer, Cream Soda and Berry Lemonade flaves. Beginning this mo, those 4-pks feature graphics highlighting Folds of Honor ahead of America's 250th celebration, with individual bottles sporting images of military service members and first responders, in keeping with brand's long tradition of featuring real people on labels. Other retail wins included addition of 700 Circle K c-stores in Canada, bringing total to 1,750 locations.Count Jones among D9 players that's hunkering down in hopes that breakthru will head off Nov termination of category. True, sales were off in Q1, but "while we expect the category to remain challenged near-term, we have adjusted our expectations accordingly and continue to manage the business prudently while supporting key distribution relationships." (We got an assist from Investing.com transcript of investor call.)

Jones Soda Rides Fallout Tie to $12M Q1; High Hopes for Zero; Toughing It Out with Soft D9s

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