Adjusted EBITDA was $29 million or 17% of net sales, down from $32 million or 22% last year, mainly due to higher SG&A expenses.
Gross profit increased by $3 million to $61 million, but gross margins declined by approximately 450 basis points to 36% due to inflationary cost factors and tariffs.
Net income attributable to shareholders was $23 million or $0.38 per diluted share, up from $19 million or $0.32 per diluted share last year.
Net sales for Q2 2025 increased 17% year-over-year to $169 million, driven by a 25% growth in Vita Coco Coconut Water and a 102% growth in other products, primarily Vita Coco Treats.
Private label sales declined 25% overall, with a 37% decrease in the Americas and a 29% increase internationally.
SG&A expenses rose by $7 million to $36 million, driven by marketing, people-related costs, bad debt reserves, and double rent from office moves.
The balance sheet remains strong with $167 million cash on hand and no debt under the revolving credit facility.
Columbia brand net sales increased 8%, SOREL net sales decreased 10%, prAna net sales decreased 6%, Mountain Hardwear net sales decreased 7%.
Gross margin expanded 120 basis points to 49.1%, and SG&A expenses increased 8%.
International markets showed strong growth: LAAP net sales up 12%, China high teens percent growth, Japan mid-single-digit percent growth, Korea low single-digit percent growth, EMEA net sales up 24%, Canada net sales up 5%.
Inventory dollars increased about 13% in the quarter, largely due to earlier production and tariff costs.
Loss per share was $0.19 compared to a loss per share of $0.20 in the prior year.
Net sales increased 6% year-over-year to $605 million, slightly ahead of outlook, driven by earlier fall wholesale shipments.
U.S. net sales decreased 2%, with U.S. wholesale up low single-digit percent and U.S. DTC down mid-single-digit percent.
Wholesale net sales increased 14%, while direct-to-consumer (DTC) was down 1%.
Adjusted EBITDA was $20.1 million, down significantly from $54.7 million last year, impacted by losses from the ended McDonald's USA partnership and divestiture effects.
Bank leverage ratio was 4.5x, below the 5x covenant limit, while net leverage ratio was 7.5x, impacted by cyber incidents and partnership losses.
International equity markets saw 5.9% organic revenue growth driven by expansion in Canada, Mexico, and Japan, with adjusted EBITDA margin at 13.7%.
Market Development segment revenue declined 14.2%, with adjusted EBITDA margin stable at 52.9%.
Net revenue for Q2 2025 was $379.8 million, slightly above the midpoint of guidance but reflecting a 0.8% organic decline and a $64.2 million reduction from the divestiture of Insomnia Cookies.
Noncash impairment charges totaled $407 million, including goodwill and asset impairments related partly to the McDonald's USA partnership termination.
U.S. segment adjusted EBITDA declined to $9.9 million from $32.7 million last year, affected by retail transaction declines and partnership losses.
Adjusted diluted EPS declined to $1.17 from $1.71 in the prior year quarter.
Adjusted EBITDA decreased to $56.2 million from $67 million year-over-year.
Adjusted free cash flow for the first six months of 2025 was $48.7 million, down from $52.9 million in the same period last year.
Applebee's reported a 4.9% increase in comp sales with positive traffic growth, the first positive traffic since Q1 2023.
Company-owned portfolio showed solid progress with comp sales improving over Q1 and performing near system average.
Consolidated total revenues increased 11.9% to $230.8 million in Q2 2025 compared to $206.3 million in Q2 2024, driven primarily by increased company restaurant sales.
IHOP posted a negative 2.3% comp sales but showed sequential improvement from Q1 and achieved second consecutive quarter of traffic outperformance relative to Black Box.
Dafinchi
