10-Q · June 9, 2026
Suja Life, Inc. reported strong Q1 2026 results with revenues of $107.1 million, a 22.5% increase year-over-year, and EPS of $0.20, exceeding estimates. The company's Emerging Brands segment demonstrated significant…
Earnings analysis · 10-Q
SUJA earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Suja delivered Q2 net sales of $83.855 million, up 11.6% year over year, with adjusted EBITDA up 50.0% to $14.648 million, led by 61.2% growth and substantial margin improvement in Emerging Brands. GAAP results…
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Suja delivered Q2 net sales of $83.855 million, up 11.6% year over year, with adjusted EBITDA up 50.0% to $14.648 million, led by 61.2% growth and substantial margin improvement in Emerging Brands. GAAP results deteriorated sharply to a $(27.798) million net loss, primarily due to $25.077 million of IPO transaction costs and a $2.273 million debt-extinguishment loss; gross margin also declined 70 basis points to 46.7%. The IPO reduced Credit Agreement debt by $142.6 million to $164.9 million, but management expects Q2 velocity weakness and competitive pricing/promotions to remain headwinds in Q3.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $-0.14
What stood out
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Revenue grew 11.6% year over year
Q2 net sales rose $8.691 million, or 11.6% year over year, to $83.855 million; however, revenue was down $107.058 million sequentially from the implied Q1 level of $107.058 million (six-month sales of $190.913 million less Q2 sales of $83.855 million).
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Emerging Brands sharply improved
Emerging Brands sales grew 61.2% to $3.028 million and gross margin expanded to 44.1% from 16.3%, aided by a 41% reduction in average cost of sales per selling unit.
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Underlying EBITDA and margin expanded
Adjusted EBITDA increased $4.884 million, or 50.0%, to $14.648 million, and adjusted EBITDA margin expanded to 17.5% from 13.0%.
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IPO materially reduced debt
IPO proceeds funded repayment of $101.3 million of term-loan principal and $40.0 million of revolver borrowings; total Credit Agreement debt fell to $164.9 million at June 29, 2026 from $307.5 million at December 29, 2025.
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Lower debt reduced interest expense
Interest expense declined $2.068 million, or 27.6%, to $5.423 million following IPO-funded debt repayment.
What to watch
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IPO charges drove a steep GAAP loss
GAAP net loss widened to $(27.798) million from $(5.658) million, producing a $(20.543) million operating loss versus $1.866 million of operating income. The decline included $25.077 million of IPO transaction costs and a $2.273 million loss on debt extinguishment.
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Core gross margin compressed
Gross margin contracted 70 basis points year over year to 46.7% from 47.4%; Suja Core margin fell to 47.5% from 49.1% because of unfavorable absorption timing plus higher input and logistics costs.
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Management flags Q3 demand pressure
Management said Q2 velocity declined for Nielsen-tracked customers representing less than half of sales and expects the headwind to persist in Q3 2026. It also expects competitor price reductions and promotion to affect Q3 results.
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Cash conversion and investment needs worsened
Six-month operating cash flow was negative $(5.150) million versus negative $(3.041) million a year earlier, while investing cash use rose to $(13.921) million from $(6.409) million, primarily for property and equipment purchases.
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TRA could constrain future cash flow
The company estimates aggregate tax-receivable-agreement payments over 35 years could reach approximately $147.2 million plus approximately $25.4 million related to pre-IPO tax attributes; annual aggregate payments could range from $0.0 million to $11.9 million.
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No updated risk factors; rate exposure remains
No risk-factor amendments were provided in Item 1A; the filing instead incorporates by reference the Prospectus risk factors. Remaining debt was $164.9 million and a 100-basis-point rate change would affect interest expense by approximately $1.6 million over 12 months.
Management's outlook
The 10-Q contains no quantitative revenue or EPS outlook. Management said velocity declined in Q2 for Nielsen-tracked customers representing less than half of net sales and expects this headwind to persist in Q3 2026; it also expects competitor price cuts and promotional activity to affect Q3 results. The revenue and adjusted-EBITDA guidance changes disclosed in the contemporaneous earnings release are not quantified in this 10-Q.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.