Reed's, Inc. (REED) AI Stock Analysis

Reed's, Inc. engages in the manufacture and distribution of natural beverages across the United States and the Asia-Pacific region. Its product portfolio includes reed's craft ginger beer, reed's real ginger ales, reed's ready to drink, reed's functional soda, flying cauldron soda, and virgil's handcrafted sodas. The company sells its products to natural food and gourmet retailers, grocery store chains, mass merchants, club stores, convenience and drug stores, liquor stores, industrial cafeterias, and on-premise bars and restaurants. It also distributes directly to consumers through its website, Amazon, and third-party e-commerce retailers under the Reed's and Virgil's brand names.

Over the 5-year period from FY2020 to FY2025, revenue posted a CAGR of -3.9%. Annual revenue declined from $49.6M in FY2021 and $53.0M in FY2022 to $44.7M in FY2023, $38.0M in FY2024, and $34.1M in FY2025. Gross margin contracted to 20.4% in FY2025 from 30.0% in FY2024, while operating margin fell to -44.5% compared to -21.4% in the prior year. Net income was -$15.8M in FY2025 compared to -$13.2M in FY2024. For the trailing twelve months ending June 30, 2026, revenue stood at $29.1M with a profit margin of -63.5%, reflecting a quarterly revenue contraction of 21.4% year-over-year.

As of June 30, 2026, Reed's held $2.4M in cash and short-term investments and total debt of $822,000, leaving net cash of $1.6M. Total assets stood at $15.4M against negative shareholders' equity of -$1.5M, with a current ratio of 0.85. In FY2025, operating cash flow was -$17.0M and free cash flow was -$17.3M. Capital expenditures totaled $278,000 in FY2025, and the company's share count decreased 87.4% over 5 years.

At a last close of $0.39 on October 16, 2026, Reed's carries a market capitalization of $4.6M and an enterprise value of $15.2M. The stock trades at a forward P/E of 20.7x, above the median of 14.3x for its US-listed Consumer Defensive peers. Its price-to-sales ratio is 0.2x, below the peer group median of 0.7x. Over the past year, REED shares delivered a return of -94.6%, lagging the 16.8% return of the S&P 500 (SPY). Over five years, the stock returned -99.8% compared to an 83.0% gain for the benchmark.

One analyst covers Reed's, issuing 1 Buy rating and 0 Strong Buy, Hold, Sell, or Strong Sell ratings. The mean price target is $4.75, representing an implied premium of 1117.9% over the last close of $0.39. For the fiscal year ending December 31, 2026, consensus estimates anticipate revenue of $31.9M and an EPS of -$1.33. For the following fiscal year, estimates project revenue of $40.6M and an EPS of -$0.44. The company has beaten EPS expectations in 1 of the last 4 quarters, and its next earnings date is November 10, 2026.

This page is an AI-written research summary of Reed's, Inc. (REED). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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