Management outlines corrective actions to lift gross margins into the mid-30% range by next year’s second quarter.
Reed’s Inc. (REED) aims to expand gross margins to the mid-30% area by Q2 2026, citing ongoing corrective measures. The target reflects efforts to improve profitability amid operational adjustments and cost controls.
Prior guidance had not specified a margin expansion timeline, though the company previously highlighted margin pressure in recent quarters. Comparable periods saw gross margins fluctuate below the 30% threshold, with management attributing past shortfalls to supply chain and production inefficiencies.
No immediate market reaction was detailed in the earnings call summary.