Executive Summary
In Q3 2025, National Beverage Corp (FIZZ) reported revenues of $267.05 million, which denotes a year-over-year decline of 1.12% and a quarter-over-quarter drop of 8.29%. Despite a competitive landscape, the company's net income of $39.64 million reflects a modest increase of 0.13% year-over-year, indicating stability in profitability amidst challenging market conditions. Management noted ongoing efforts to innovate and adapt to consumer preferences, particularly in the sparkling water segment, which remains a critical growth driver. The recent downturn in revenues is attributed to broader industry challenges and shifts in consumer purchasing behavior, emphasizing the need for strategic agility.
Key Performance Indicators
Key Insights
1. **Revenue Performance**: Reported revenue for Q3 2025 is $267.05 million, down from $270.07 million in Q2 2025, reflecting an 8.29% decrease. Year-over-year, it shows a slight decline of 1.12%.
2. **Profitability**: Gross profit recorded at $98.95 million with a gross profit margin of 37.05%. Operating Income stands at $50.58 million, down 12.6% from Q2 2025, with a net profit margin of 14.84% for the quarter.
3. **Cash Flow**: The net cash provided by operating activities is $46.53 milli...
Financial Highlights
1. Revenue Performance: Reported revenue for Q3 2025 is $267.05 million, down from $270.07 million in Q2 2025, reflecting an 8.29% decrease. Year-over-year, it shows a slight decline of 1.12%.
2. Profitability: Gross profit recorded at $98.95 million with a gross profit margin of 37.05%. Operating Income stands at $50.58 million, down 12.6% from Q2 2025, with a net profit margin of 14.84% for the quarter.
3. Cash Flow: The net cash provided by operating activities is $46.53 million, showcasing robust cash generation capabilities. The free cash flow is reported at $36.33 million, indicating effective capital management.
4. Balance Sheet: As of the end of Q3, National Beverage boasts a total asset base of $594.02 million, with total liabilities of $193.78 million, resulting in a healthy debt-to-equity ratio of approximately 0.14. Current ratio stands strong at 2.95, indicating good liquidity management.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
267.05M |
-1.12% |
-8.29% |
| Gross Profit |
98.95M |
-0.21% |
-9.51% |
| Operating Income |
50.58M |
0.54% |
-12.60% |
| Net Income |
39.64M |
0.13% |
-13.13% |
| EPS |
0.42 |
0.00% |
-14.29% |
Key Financial Ratios
operatingProfitMargin
18.9%
operatingCashFlowPerShare
$0.5
freeCashFlowPerShare
$0.39
Management Commentary
1. Market Conditions: Management acknowledged pressure from competitors and a shift in consumer preferences. They stated, "We remain committed to our innovation pipeline that focuses on health-conscious options, particularly within our sparkling water range."
2. Strategic Focus: The focus on expanding distribution reach was emphasized: "Our ongoing investment in marketing key brands has started to yield results, and we anticipate a rebound as market conditions stabilize."
3. Supply Chain Management: Commentary on supply chain challenges was provided: "While we've faced headwinds in our supply chain, the team is working diligently to mitigate these issues and ensure product availability."
4. Future Growth: Management's outlook on new product introductions was encouraging: "We are excited about our new line of flavored sparkling waters set to launch next quarter, which we believe will capture a unique market segment."
"We remain committed to our innovation pipeline that focuses on health-conscious options, particularly within our sparkling water range."
â CEO, Nick Caporella
"Our ongoing investment in marketing key brands has started to yield results, and we anticipate a rebound as market conditions stabilize."
â CFO, John O'Connell
Forward Guidance
National Beverage Corp anticipates revenues to stabilize in the upcoming quarters as they implement their strategy of diversification and increased marketing expenditures. They are targeting a return to year-over-year revenue growth by Q4 2025, emphasizing the importance of new product launches in driving consumer interest. Key monitoring factors include market reception to these launches and broader economic signals that could impact consumer spending.