Nasdaq:FIZZ
NATIONAL BEVERAGE CORP
A premium seltzer leader in the US market generating robust operating cash flows from its diverse portfolio of carbonated soft drinks and non-alcoholic teas.
Key Metrics
Investment Thesis
Bull Case
Investors may find FIZZ attractive due to its leadership position in the high-margin seltzer market which continues to outperform traditional soda categories. The company's strong balance sheet with $193.8M in cash provides flexibility for strategic acquisitions or share buybacks to support earnings per share growth. Consistent revenue growth over the last three years suggests a resilient business model capable of adapting to evolving consumer health trends.
Bear Case
Potential downside risks include the cyclical nature of the beverage industry where economic downturns could lead consumers to trade down to cheaper private label options. The heavy reliance on seltzer sales makes the company vulnerable if the novelty wears off or if competitors successfully innovate in this space. High dividend payments coupled with significant cash outflows from financing activities could limit capital available for organic growth investments.
About NATIONAL BEVERAGE CORP
National Beverage Corp (FIZZ) specializes in crafting carbonated soft drinks, including its flagship seltzer brands like LaCroix and Bubly, alongside non-alcoholic beverages such as Honest Tea. The company operates primarily across the United States with a global supply chain, leveraging a portfolio of premium, low-calorie options that dominate the health-conscious market. With strong cash flow generation and a growing brand ecosystem, FIZZ aims to capture increasing consumer demand for functional and natural beverages.
Analysis
Management Discussion
Management delivered solid financial performance with revenue reaching $1.20B in 2025, up from $1.17B in 2023, reflecting steady growth in volume and price realization across its core brands. Operating cash flow of $206.7M demonstrates strong liquidity management, though the company utilized significant financing cash flows of -$303.6M likely related to share repurchases or dividend payments totaling $304.1M. The improvement in net income from $142.2M in 2023 to $186.8M in 2025 indicates effective cost control and margin expansion despite inflationary pressures.
Industry Overview
The global carbonated soft drink industry is shifting towards healthier alternatives as consumers prioritize low-sugar, natural ingredients, and functional benefits. This transition has created a lucrative niche for premium seltzer brands that successfully position themselves as lifestyle choices rather than mere refreshments. Market consolidation remains common as smaller players struggle against the scale advantages of major conglomerates holding significant distribution power.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $1.17B | $1.19B | $1.20B |
| Cost of Revenue | $776.1M | $763.2M | $757.4M |
| Gross Profit | $396.8M | $428.5M | $443.9M |
| Operating Expenses | $210.1M | $209.9M | $208.5M |
| Operating Income | $186.7M | $218.5M | $235.5M |
| G&A | $210.1M | $209.9M | $208.5M |
| Stock-Based Comp | $677.0K | $881.0K | $606.0K |
| D&A | $20.0M | $20.2M | $20.8M |
| Depreciation | $17.7M | $18.9M | $20.3M |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $-242.0K | $11.3M | $9.1M |
| Pre-Tax Income | $186.4M | $229.8M | $244.6M |
| Income Tax | $44.3M | $53.1M | $57.7M |
| Continuing Ops | $142.2M | $176.7M | $186.8M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $142.2M | $176.7M | $186.8M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $142.2M | $176.7M | $186.8M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $366.4M | $536.9M | $406.9M |
| Cash & Equivalents | $158.1M | $327.0M | $193.8M |
| Accounts Receivable | $104.9M | $102.8M | $104.2M |
| Inventory | $93.6M | $84.6M | $85.1M |
| Prepaid Expenses | $9.8M | $22.4M | $23.8M |
| Other Current Assets | $0 | $0 | $0 |
| Long-Term Assets | $207.9M | $233.3M | $265.9M |
| PP&E (Net) | $148.4M | $159.7M | $175.6M |
| Intangibles | $1.6M | $1.6M | $1.6M |
| Goodwill | $13.1M | $13.1M | $13.1M |
| Operating Leases | $39.5M | $53.5M | $70.3M |
| Other LT Assets | $5.2M | $5.3M | $5.3M |
| Total Assets | $574.3M | $770.2M | $672.9M |
| Current Liabilities | $144.3M | $137.9M | $140.5M |
| Accounts Payable | $85.1M | $78.3M | $82.4M |
| Current Leases | $11.7M | $13.1M | $14.5M |
| Taxes Payable | $152.0K | $0 | — |
| Other Current Liab | $0 | $0 | $0 |
| Long-Term Liabilities | $57.5M | $72.7M | $88.4M |
| Long-Term Debt | $0 | — | — |
| LT Operating Leases | $29.8M | $41.7M | $57.6M |
| Other LT Liab | $27.8M | $31.0M | $30.8M |
| Total Liabilities | $201.9M | $210.6M | $228.9M |
| Shareholders' Equity | $372.5M | $559.5M | $444.0M |
| Paid-In Capital | $40.4M | $42.6M | $43.7M |
| Retained Earnings | $358.3M | $535.1M | $417.8M |
| AOCI | $-3.2M | $4.9M | $5.6M |
| Total L&E | $574.3M | $770.2M | $672.9M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $142.2M | $176.7M | $186.8M |
| Non-Cash Adjustments | $37.6M | $41.8M | $31.7M |
| Working Capital Changes | $-18.1M | $-20.6M | $-11.8M |
| Cash from Operations | $161.7M | $197.9M | $206.7M |
| Capital Expenditures | $22.0M | $30.3M | $36.3M |
| Cash from Investing | $-22.0M | $-30.2M | $-36.3M |
| Debt Issuances | $0 | $0 | — |
| Dividends Paid | $0 | $0 | $304.1M |
| Cash from Financing | $-29.7M | $1.3M | $-303.6M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $110.0M | $169.0M | $-133.2M |
| Beginning Cash | $48.0M | $158.1M | $327.0M |
| Ending Cash | $158.1M | $327.0M | $193.8M |
Frequently Asked Questions
How does NATIONAL BEVERAGE CORP make money?
The company's revenue is driven by three primary segments: its Seltzer segment which includes LaCroix, Bubly, and Smartwater; its Non-Alcoholic Beverages segment featuring Honest Tea, Vitamin Water, and BodyArmor; and its Coffee/Tea segment encompassing Frangelico and other ready-to-drink beverages.
What are the main risks for FIZZ?
The beverage industry faces intense competition from large incumbents like Coca-Cola and PepsiCo who may launch aggressive pricing or new product initiatives to capture market share. Consumer taste preferences can shift rapidly towards new trends like kombucha or energy drinks, posing a risk to the longevity of current seltzer dominance. Regulatory changes regarding sugar taxes or ingredient labeling requirements in key markets could impact margins and distribution access.
What is FIZZ's competitive advantage?
FIZZ holds a dominant market position in the seltzer category with high brand recognition for LaCroix, which is often sold at a significant premium over private-label competitors. The company benefits from a vertically integrated supply chain that allows for cost efficiencies in sourcing ingredients like cane sugar and fruit juices. Additionally, its extensive distribution network ensures wide availability across grocery, convenience, and mass merchandiser channels.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.