Zevia Stock: Navigating Between Operational Progress and Technical Peril

Zevia PBC finds itself at a critical market juncture, where encouraging fundamental improvements clash with concerning technical indicators. The zero-calorie beverage company’s recent performance reveals a complex story of internal progress against a backdrop of significant investor uncertainty.

Fundamental Performance Shows Marked Improvement

Beneath the surface volatility lies a notable operational turnaround. For the second quarter of 2025, Zevia achieved a significant milestone by recording its first positive adjusted EBITDA of $0.2 million. This represents a substantial $4.6 million improvement compared to the same period last year. The company’s net loss narrowed dramatically from $7.0 million to just $0.7 million, while revenue climbed 10.1% to reach $44.5 million.

Driving this improved performance, gross margins expanded by 6.8 percentage points to 48.7%, attributed to reduced product costs and enhanced inventory management practices. These figures suggest the company is making meaningful progress toward sustainable operations despite challenging market conditions.

Technical Indicators Flash Warning Signals

While fundamentals show strength, technical analysis presents a more cautious picture. The stock experienced considerable volatility recently, with a Friday trading session that saw an initial 3.6% gain in after-hours trading evaporate into a 0.65% loss during regular trading hours. This price action reflects the underlying uncertainty among investors, with the 30-day volatility reading standing at nearly 49%.

Should investors sell immediately? Or is it worth buying Zevia Pbc?

The technical configuration reveals a divided outlook: while the short-term trend appears bullish with the 5-day moving average positioned above the 20-day, the longer-term perspective shows concerning weakness with the 200-day average sitting below the 50-day. Most alarmingly, the Stochastic Oscillator reading above 80% indicates severely overbought conditions that typically precede a price correction.

Cautious Guidance Amid Market Sensitivities

Despite these stronger quarterly results, management has maintained a conservative full-year outlook. The company continues to project revenue between $158-163 million with an adjusted EBITDA loss of $7-9 million. This cautious stance reflects the challenging operating environment that includes potential interest rate changes and trade tariff impacts.

Zevia maintains financial buffers to navigate these headwinds, holding $26.3 million in cash reserves and having access to an untapped $20 million credit facility. These resources provide some protection against macroeconomic uncertainties, though investors remain divided on whether they will prove sufficient to sustain the company’s operational momentum.

The central question for market participants remains whether Zevia’s fundamental improvements can overcome the technical warning signs and deliver the sustained recovery that has thus far remained elusive.