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Reed's (REED) Q1 2025 earnings results (first quarter 2025)

10-Q filed May 14, 2025

Reed's (REED) reported revenue of $10.0M for the first quarter 2025 (Q1 2025), +5% from a year earlier and +3% from the quarter before. Operating margin was -17.4%, net loss $2.0M (20.3% of revenue).

Revenue$10.0M
Year over year+5%
Quarter over quarter+3%
Operating margin-17.4%
Net earnings−$2.0M

Reed's, Q1 2025: revenue $10.0M (+4% year over year), operating margin -17.4%, net loss $2.0M, operating cash flow −$5.4M. The chart follows the revenue to costs, profit and cash.

Q1 2025AmountQ/QY/Y
Revenue$10.0M+3%+5%
Operating profit−$1.7M——
Net earnings−$2.0M——
Operating cash flow−$5.4M——

What changed

Revenue was $10.0M in Q1 2025, up 5% year over year and up 3% from the previous quarter.

Gross margin was 33.9%, down 1.6 points from a year earlier. Operating costs exceeded revenue by $1.7M, an operating margin of -17.4%. Operating expenses grew 27% against revenue growth of 5%. The fastest-growing cost line was Sales & marketing (+37%). The quarter ended with a net loss of $2.0M, narrower than the previous quarter's $4.1M loss.

Operating cash flow was −$5.4M. Non-cash charges added back $41K of depreciation and $47K of share-based compensation. Working capital and other items used $3.4M. Capital expenditures of $73K exceeded it, leaving free cash flow of −$5.4M.

Questions

What was Reed's revenue in the first quarter 2025?

Reed's (REED) reported revenue of $10.0M for the first quarter 2025 (Q1 2025), +5% from a year earlier and +3% from the quarter before.

Was Reed's profitable in the first quarter 2025?

Operating loss was $1.7M (-17.4% of revenue) and net loss $2.0M.

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Source: Reed's 10-Q on SEC EDGAR.