Reed’s Q4 Sales Drop 22.7% to $7.5M; Neal Cohane Named Interim CEO
Reed’s Q4 net sales fell 22.7% to $7.5 million with gross margin down to 20% from 30%, yet net loss narrowed to $3.8 million and delivery costs fell 18%. The company appointed Neal Cohane as interim CEO and initiated a search for a permanent leader following its NYSE American uplisting.
1. Q4 Financial Results
During Q4 2025, the company reported net sales of $7.5 million, a 22.7% decline from $9.7 million, with gross profit falling to $1.5 million and margin contracting to 20% from 30%. Delivery and handling costs improved to $2.46 per case and SG&A expenses declined 19%, while net loss narrowed to $3.8 million and EBITDA was negative $3.6 million.
2. Full Year Financial Results
For the full year, net sales dropped to $34.1 million from $38.0 million, gross profit decreased to $7.0 million with margin at 20%, and delivery costs held at $2.75 per case. Selling, general and administrative expenses rose to $16.6 million, driving net loss to $15.8 million and EBITDA to negative $14.6 million.
3. Leadership Transition
Neal Cohane was appointed interim CEO and board member, replacing Cyril Wallace who stepped down; the board has launched a search for a permanent chief executive. Chief marketing officer Tina Reejsinghani also departed, with board member Rudolf J.M. Bakker assuming fractional CMO responsibilities.
4. Strategic Outlook
The company highlighted sequential quarterly improvement and strengthened operational discipline following its uplisting to the NYSE American exchange. Management plans to leverage in-house sales teams, national brokers, direct store distribution, and brand marketing to drive profitable growth and expand into Asian markets.