Arcadia’s Zola Revenue Jumps 24% to Record Quarterly High in Third Quarter
Key Facts
Arcadia Biosciences said on November 12 that revenue from its Zola coconut water brand rose 24% in the third quarter of 2026 from the same period a year earlier, reaching the brand’s highest quarterly sales on record. The company said total revenue was $1.619 million in the three months ended September 30, compared with $1.302 million a year earlier. The year-over-year increase was $317,000. Arcadia attributed revenue growth to strong sales volumes from summer programs. The announcement was included in the company’s results disclosure accompanying its filing with the U.S. Securities and Exchange Commission.
Chief Executive T.J. Schaefer said summer programs drove significant growth in Zola revenue and led to new distribution opportunities in 2027 in areas not previously covered, including Texas. Schaefer said: "Our summer programs drove significant revenue growth and led to new distribution opportunities in 2027 in new areas like Texas." The company thus linked performance during the current season to potential distribution expansion next year. The disclosures did not specify the sales those opportunities could generate. The company cited the distribution opportunities in explaining the brand’s growth and its plans ahead.
Arcadia is set to begin shipping its Zola Espresso formulation in November 2026, in a resealable one-liter carton containing slightly more than 100 milligrams of caffeine. The company said several major customers made purchase commitments ahead of the launch. The new product is among the expansion steps the company announced alongside the brand’s revenue growth. It also plans to launch Zola Original, Original with Pulp and Espresso in 10.5-ounce slim cans in the first half of 2027. The launch schedule therefore runs from Espresso shipments in November to the canned lineup in the first half of next year.
At the company level, revenue for the first nine months of 2026 rose 5% to $4.162 million, compared with $3.957 million in the corresponding period of 2025. Arcadia said the $205,000 increase came after strong sales volumes in the third quarter offset slower growth in the first half caused by inventory delays. This context shows that the third-quarter improvement lifted revenue for the year to date, while the impact of inventory delays remained in the nine-month comparison. The company describes beverage sales, including coconut water, as seasonal. It said sales volumes in the category are generally highest in the second and third fiscal quarters, when the weather is warmer.
Arcadia reported net income attributable to common shareholders of $1.755 million, or $0.29 per share, in the third quarter of 2026, compared with net income of $856,000 and earnings of $0.63 per share a year earlier. The company attributed the improvement mainly to a $2.6 million gain from changes in the fair value of warrant and option liabilities. Meanwhile, cash and cash equivalents totaled $2.8 million on September 30. The company said in its quarterly report that available cash would not be sufficient to meet its projected cash needs for at least the next twelve months, raising substantial doubt about its ability to continue as a going concern. It also reported net cash used in operating activities of $2.7 million in the first nine months of 2026 and said it needs additional funding to support its business and market its products, with no assurance that financing will be available in the amount or on the terms required.
In its listing filing, Arcadia said Nasdaq had given it until December 31, 2026, to regain compliance with the stockholders’ equity requirement, warning that its shares could be delisted if it failed to demonstrate compliance when it submits its next scheduled periodic report. Nasdaq’s standard requires stockholders’ equity of at least $2.5 million, while the company’s second-quarter report showed stockholders’ equity of $633,000 on June 30, 2026. RKDA shares closed at $0.222 on November 12, according to EL7 data. The deadline and liquidity issue provide a broader financial context for the expansion plans the company announced. The next steps include shipping the Espresso formulation in November, followed by the canned products in the first half of 2027, alongside the new distribution opportunities cited by the company.