REED REED'S, INC.

Overview and Growth

REED'S, INC. generated $34.06M of revenue in fiscal 2025, with net loss of $15.84M and an operating cash outflow of $17.04M. At $34.06M, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 10.2% below fiscal 2024 revenue of $37.95M, marking a top-line contraction. The company reported diluted EPS of -$1.91, adding a shareholder-level measure to the absolute income figures considered below. Diluted shares averaged 8.30M; this is the reported share base over which the company’s diluted per-share earnings were spread. The diluted share count was 519.4% higher than fiscal 2024, when diluted shares averaged 1.34M, adding context to the EPS comparison. At period end, total assets were $23.34M, framing the scale of the company’s operating and financing commitments. Revenue equaled 1.46x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

After reported cost of revenue, the company retained $6.96M as gross profit before recognizing operating expenses and other items. Gross profit represented 20.4% of revenue, showing how much of the top line remained after direct costs. The company recorded an operating loss of $15.15M after the reported operating expense base. An operating margin of -44.5% reflected costs exceeding revenue-level gross profit by 44.5% of sales. The company ended the period with a net loss of $15.84M, extending the operating result through all remaining items. Measured against revenue, the bottom-line deficit represented 46.5% after all recognized items. EBITDA was negative $14.99M, showing a deficit before interest, taxes, depreciation, and amortization. Relative to period-end equity, the net loss represented 173.1%. Relative to total assets, the net loss represented 67.9%. The bottom-line deficit increased from $13.15M in fiscal 2024 to $15.84M.

Liquidity and Capital Structure

Total assets were $23.34M, supported by $14.19M of liabilities and $9.15M of shareholder equity. The near-term balance sheet paired $21.46M of current assets with $13.39M of current liabilities at the reporting date. At 1.6x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Equity equaled 39.2% of assets, showing the shareholder-capital layer within the company’s balance sheet. The liabilities-to-assets relationship was 60.8%, placing reported obligations against the full positive asset balance. Total assets were 7.2% lower than fiscal 2024 assets of $25.14M, measuring the company’s own balance-sheet change. Book equity was 37.7% higher than fiscal 2024 equity of $6.65M, showing how shareholder capital changed year over year.

Cash Flow and Earnings Quality

Cash flow from operations was an outflow of $17.04M, showing that operations absorbed cash during the period. The company spent $272.00K on capital expenditures while operations also absorbed cash, so both ongoing activity and investment drew on liquidity during the period. Operating cash flow and capital spending combined to leave a $17.31M cash deficit after capital spending. Relative to revenue, the post-investment cash deficit represented 50.8%. Relative to total assets, the post-investment cash deficit measured 74.2%. The operating cash outflow widened to $17.04M from $6.12M in fiscal 2024.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.