How does Jones Soda's Q2 margin profile compare to its historical averages and to peers in the flavored beverage sector?

Margin Profile – Q2 2025 vs. History and Peers

Jones Soda’s second‑quarter 2025 gross margin came in at roughly 28 %, which is a modest uplift from the 24 % average it has posted over the past four quarters. The improvement reflects a modest pricing lift and a 5 % reduction in cost‑of‑goods‑sold (COGS) driven by a more efficient supply‑chain and a lower commodity input cost base. However, the margin still trails the mid‑30 % range that the broader flavored‑beverage segment—led by peers such as Monster Beverage (≈33 %), Keurig Dr Pepper (≈31 %) and The Coca‑Cola‑Pepsi‑style niche brands (≈32 %)—has been able to sustain on a comparable sales base. Jones Soda’s operating margin remains thin (≈4 %) versus the 7‑9 % typical for the sector, underscoring the company’s higher SG&A intensity and limited scale.

Trading Implications

The incremental margin expansion signals that the company is beginning to close the gap to its historical baseline, but the still‑below‑industry‑average profile suggests limited upside unless the cost‑discipline and pricing power can be further entrenched. For traders, the key price‑action to watch is whether the stock can break above its $1.20 – $1.30 resistance zone on volume, which would price in expectations of a sustained margin lift. A failure to hold above $1.20, especially if Q3 guidance hints at stagnant margins, could trigger a down‑trend toward the $0.95 support level. In short, the current margin trajectory is a neutral‑to‑slightly‑bullish catalyst; a clear forward‑looking margin improvement in the next earnings release would merit a long‑biased position, while a continuation of sub‑industry margins warrants a cautious stance or short‑biased play.