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    SUJA
    Earnings call· Jun 2026(Q2 FY26)

    SUJA LIFE Q2 FY26 earnings call SUJA

    Aug 4, 2026 Source

    Executive summary

    Suja Life Q2 FY26 — Strong EBITDA Growth Despite Near-Term Grocery Softness

    Suja Life delivered strong Q2 FY26 adjusted EBITDA growth and market share gains, driven by volume and distribution expansion. However, the company is adjusting its full-year net sales guidance due to recent softness in the grocery channel and broader category moderation. Management is implementing aggressive commercial tactics and marketing shifts to navigate these headwinds while maintaining profitability through cost discipline and vertical integration.

    Highlights

    5

    • Net sales grew 11.6% to $83.9 million, driven by volume growth and new distribution.

    • Adjusted EBITDA increased 50% to $14.6 million, achieving a 17.5% margin (up from 13% YoY).

    • Outperformed the natural healthy beverage category, gaining 1.1 share points and widening performance gap in cold-pressed juice.

    • Suja Organic cold-pressed juice scanned dollars grew approximately 18% in Q2, with refreshers up >75% and boosted juice up >30%.

    • Total distribution points (TDPs) increased 16% year-over-year.

    Concerns

    4

    • Full-year net sales guidance widened to $360 million-$369 million from $367 million-$371 million due to near-term uncertainty.

    • Recent signs of softness in Q3, concentrated primarily in the grocery channel, impacting bookings.

    • Total beverage category growth slowed to 2% in Q2 (from 5% in Q1), with natural healthy beverage category growth moderating to 4%.

    • Q3 net sales estimated at approximately $71 million, reflecting a mid-single-digit decline compared to prior expectations.

    Guidance & targets

    9
    CategoryTargetConfidence
    Full-year Net Sales
    $360 million to $369 million
    high materiality
    Medium
    Full-year Adjusted EBITDA
    $70 million to $72 million
    high materiality
    High
    Full-year Net Sales YoY Growth
    10.2% to 13%
    high materiality
    Medium
    Full-year Adjusted EBITDA YoY Growth
    72.8% to 77.7%
    high materiality
    High
    Full-year Net Interest Expense
    $19 million
    medium materiality
    High
    Full-year Base Tax Rate
    26.1%
    medium materiality
    High
    Q3 Net Sales
    approximately $71 million
    high materiality
    Medium
    Q3 Gross Margin
    approximately 47.8%
    medium materiality
    Medium
    Q3 Adjusted EBITDA Margin
    approximately 15.2%
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Suja Core
    Reflects double-digit growth in branded wellness shots (Vive Organic and Suja Organic), better-than-expected growth in cold-pressed juice (refreshers and boosted juice), and outsized growth in multi-pack formats. Growth in Nielsen non-measured retailers was stronger than in measured channels.
    Adjusted EBITDA: $16 millionAdjusted EBITDA growth: 2.9%
    		$81.9 million9.8%—$16 million
    Emerging Brands
    Driven by volume growth as Slice expands distribution and drives trial in its second year. Adjusted EBITDA loss improved significantly year-over-year.
    Adjusted EBITDA: -$1.3 millionAdjusted EBITDA improvement: $4.4 million compared to Q2 2025
    		$3 million61.2%—-$1.3 million

    Operational metrics

    19
    Adjusted EBITDA Margin
    17.5%up from 13% a year ago
    Q2 FY26

    Reflecting strong flow-through on top line growth.

    Gross Profit
    $39.2 millionup 10% YoY
    Q2 FY26

    Compared to $35.6 million in prior year period.

    Gross Margin
    46.7%down from 47.4% YoY
    Q2 FY26

    Slight decline primarily due to absorption timing, but underlying margin improved due to vertical integration and efficiency.

    Selling, General and Administrative Expenses
    $59.7 million
    Q2 FY26

    Includes one-time IPO-related transaction costs.

    Other Selling, General and Administrative Expenses
    $34.6 millionvs $33.8 million in prior year
    Q2 FY26

    Excluding one-time IPO-related transaction costs.

    SG&A Leverage
    360 bpsYoY
    Q2 FY26

    As a percentage of net sales, SG&A leveraged year-over-year.

    Net Loss
    $27.8 millionvs $5.7 million in prior year
    Q2 FY26

    Includes one-time IPO-related transaction costs and loss on debt extinguishment.

    Adjusted EBITDA
    $14.6 millionup 50% YoY
    Q2 FY26

    Reflecting strong flow-through of top line growth.

    Cash Balance
    $20.6 million
    as of June 29, 2026

    Following debt paydown using IPO proceeds.

    Total Debt
    $163 million
    as of June 29, 2026

    Following debt paydown using IPO proceeds.

    Total Distribution Points (TDPs)
    16%YoY increase
    Q2 FY26

    Investment in brands and expanding distribution.

    Suja Organic Cold-Pressed Juice Scanned Dollars Growth
    18%YoY
    Q2 FY26

    Posted a 21-point delta in dollar volume performance versus nearest competitor.

    Suja Organic Refresher Line Growth
    >75%YoY
    Q2 FY26

    Part of cold-pressed juice growth, meeting demand for functional refreshment.

    Suja Organic Boosted Juice Growth
    >30%YoY
    Q2 FY26

    Part of cold-pressed juice growth, meeting demand for functional refreshment.

    Total Beverage Category Growth
    2%YoY, slowed from 5% in Q1
    Q2 FY26

    Growth slowed compared to Q1 FY26.

    Natural Healthy Beverage (NHB) Category Growth
    4%YoY
    Q2 FY26

    Outpacing total beverage, but at a more moderate pace than double-digit growth in recent years (13% in 2025).

    Marketing Investment as % of Net Sales
    10%
    Ongoing

    Company maintains 10% of net sales investment in marketing, but shifting focus.

    Grocery Channel Mix
    1/3
    Q2 FY26

    Compared to approximately 12% in mass channel over the same period.

    Slice Distribution Growth
    94%
    Q2 FY26

    For Slice brand, contributing to its growth.

    Industry KPIs

    5
    MetricValueDetails
    Gross margin46.7%%
    Brand platform growth18%%
    Retailer trade negotiation statusin progress
    Elasticity consumer response commentaryvalue-seeking
    Category growth benchmark channel shift data4%%

    Product announcements

    3
    ProductTypeDetails
    Watermelon Lovelaunch
    Suja Organic Detox Juicelaunch
    Slice Dirty Sodalaunch

    Capital programs

    1
    Oceanside Manufacturing Campus Expansionunderway

    Benefit: Additional space for cold storage, HPPs, and other requirements; reduced freight transfer costs and 3PL storage costs.

    Fortunate to be alerted of additional space on the Oceanside campus, which helps leverage labor and capitalize on needed space requirements. This expansion has built-in savings by reducing freight transfer and 3PL storage costs.

    Risks & headwinds

    4
    Softness in grocery channel bookingsQ3 FY26

    Q3 net sales estimated at approximately $71 million, implying mid-single-digit decline YoY.

    Mitigation: Aggressive promotional activity, shifting marketing to lower-funnel, leveraging distribution gains, targeting club/mass channels, and working with retailers on joint programs.

    Slowing growth in total beverage and natural healthy beverage categoriesQ2-Q3 FY26

    Total beverage category grew 2% in Q2 (down from 5% in Q1); NHB grew 4% in Q2 (down from double-digit growth in prior years).

    Mitigation: Outpacing category growth, gaining share, and focusing on innovation and strategic investments to drive incremental growth.

    Shoppers leaning into value and channel shiftingOngoing

    Grocery channel represents ~1/3 of mix, mass ~12%; competitors leaning into price/promotions.

    Mitigation: Going 'toe to toe' with competitors on promotional activity, leveraging low-cost producer position, accelerating programming with club and mass retail partners for value-seeking consumers (value pack formats, targeted promotions, expanded distribution).

    Inflationary pressures (e.g., fuel)Ongoing

    Not explicitly quantified for impact, but mentioned as a pressure.

    Mitigation: Leveraging vertical integration, optimizing transportation management system for outbound freight, volume discounts, deploying capital for production efficiency to drive greater throughput.

    What to watch in Q3 FY26

    5

    Q3 Net Sales Performance

    Next quarter (Q3 FY26 results)
    CurrentQ3 estimate: ~$71 million
    TargetActual Q3 net sales vs. ~$71 million estimate

    Why it matters

    Verifies the impact of grocery channel softness and the effectiveness of immediate action plans on top-line performance.

    Reflecting that, our latest estimate for Q3 net sales is approximately $71 million, gross margin of approximately 47.8% and adjusted EBITDA margin of approximately 15.2%, each, respectively, at the midpoint of our full year range.

    Q&A highlights

    5

    Can you elaborate on the timing and nature of the grocery channel softness? What new strategies are you most excited about, and how are you maintaining EBITDA margins despite slower top-line growth?

    The softness began in early July, primarily in grocery, driven by consumer compression and value-seeking behavior. Management is excited about aggressive promotional activity, shifting marketing to lower-funnel, leveraging distribution gains, and targeting club/mass channels. EBITDA margins are protected by disciplined cost management across all departments and vertical integration benefits offsetting inflation.

    “It's much more the channel shifting, the consumer choices that seek value seeking, I think chasing promotion certainly. I think that's the largest portion of what we're seeing in grocery today.”

    asked by Bonnie Herzog · answered by Maria Stipp

    2 min read6 chapters

    Detailed Narrative

    01

    Q2 Performance Highlights

    Suja Life reported strong Q2 FY26 results with net sales growing 11.6% to $83.9 million and adjusted EBITDA increasing 50% to $14.6 million, representing a 17.5% margin. The company outperformed the natural healthy beverage category, gaining 1.1 share points and widening its performance gap in cold-pressed juice against its primary competitor. This growth was driven by volume and new product distribution, with TDPs up 16% YoY.

    02

    Near-Term Headwinds and Guidance Adjustment

    Despite strong Q2, Suja Life observed softness in early July, primarily in the grocery channel, impacting Q3 bookings. The total beverage category growth slowed to 2% in Q2 (from 5% in Q1), and the natural healthy beverage category moderated to 4% growth. Shoppers are increasingly value-seeking, leading to channel shifting. Consequently, the full-year net sales guidance was widened to $360 million-$369 million from $367 million-$371 million, while adjusted EBITDA guidance of $70 million-$72 million was reiterated, reflecting confidence in cost discipline.

    03

    Strategic Response to Market Dynamics

    Management is taking proactive steps to address the softness, including sharpening marketing investment towards lower-funnel activities for immediate returns and velocity. They plan to accelerate distribution with back-half shelf resets and expand shelf presence for key products, leveraging strong retailer partnerships. The company will also engage in aggressive promotional activity to compete on price, utilizing its position as a low-cost producer and its vertical integration to protect margins.

    04

    Innovation and Brand Momentum

    Suja Organic's cold-pressed juice business demonstrated strong momentum, with scanned dollars growing approximately 18% in Q2. The refresher line was up over 75%, and boosted juice was up over 30%. New products like Watermelon Love (a 2026 Food Award winner) and Slice Dirty Soda have quickly climbed SKU rankings. The company is building an urgent innovation pipeline for 2027 to reinforce category leadership and competitive positioning.

    05

    Operational Efficiency and Cost Management

    The company's vertical integration and cost discipline are key to maintaining profitability. Operational efficiency gains, including optimizing transportation management and deploying capital for production floor efficiency, have more than offset inflationary pressures like fuel costs. This allows Suja Life to strategically invest in growth initiatives without degrading its margin structure, supporting the reiterated adjusted EBITDA guidance.

    06

    Balance Sheet and Refinancing Efforts

    As of June 29, 2026, Suja Life had $20.6 million in cash and $163 million in total debt. The company is actively pursuing a refinancing of its debt facilities with commercial banks, expecting a substantial reduction in borrowing spread and a corresponding benefit to free cash flow. This is a cost of capital transaction, not an increase in leverage, and is anticipated to close in the current quarter, though its benefits are not yet reflected in current guidance.

    AI-generated summary of the company’s earnings call. Not investment advice.