📊 REED Key Takeaways
Is REED a Good Investment? Thesis Analysis
Reed's is in acute financial distress with accelerating cash burn (-$17.3M FCF) against minimal cash runway (~7 months at current burn rate). The company is structurally unprofitable (negative 46.5% net margin), generating negative operating cash flow, and heavily leveraged (1.12x Debt/Equity) with declining revenue (-10.2% YoY), making near-term solvency a material risk.
Why Buy REED? Key Strengths
- Current ratio of 1.60x provides near-term liquidity cushion
- Thin absolute debt level ($10.2M) could be refinanced or restructured
- Strong brand heritage in natural beverage segment with potential repositioning value
REED Investment Risks to Consider
- Critical cash runway: $10.4M cash with $17M+ annual burn rate creates insolvency risk within 12 months
- Structural unprofitability: negative 44.5% operating margin indicates core business model is broken
- Negative free cash flow ($17.3M) prevents debt service and growth investment, forcing refinancing or dilutive capital raises
- Revenue contraction (-10.2% YoY) combined with weak 20.4% gross margins suggests lost competitive position
- High leverage (1.12x Debt/Equity) limits financial flexibility during distress
Key Metrics to Watch
- Operating cash flow burn rate and cash runway months remaining
- Quarterly revenue trend to confirm if decline stabilizes or accelerates
- Debt covenant compliance and refinancing timeline
- Gross margin trajectory to assess pricing power and cost structure viability
REED Financial Metrics
💡 AI Analyst Insight
REED'S, INC. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
REED Profitability Ratios
REED vs Default Sector
How REED'S, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is REED Overvalued or Undervalued?
Based on fundamental analysis, REED'S, INC. shows some fundamental concerns relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
REED Balance Sheet & Liquidity
REED 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: REED'S, INC.'s revenue has declined by 23% over the 5-year period, indicating business contraction. The most recent EPS of $-9.81 indicates the company is currently unprofitable.
REED Growth Metrics (YoY)
REED Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $6.8M | -$4.0M | $-0.48 |
| Q2 2025 | $9.5M | -$3.2M | $-0.13 |
| Q1 2025 | $9.6M | -$1.7M | $-0.04 |
| Q3 2024 | $6.8M | -$1.4M | $-0.34 |
| Q2 2024 | $10.0M | -$3.1M | $-0.77 |
| Q1 2024 | $9.6M | -$1.7M | $-0.40 |
| Q3 2023 | $11.9M | -$1.4M | $-0.34 |
| Q2 2023 | $10.0M | -$3.1M | $-0.99 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
REED Capital Allocation
REED SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for REED'S, INC. (CIK: 0001140215)
📋 Recent SEC Filings
❓ Frequently Asked Questions about REED
What is the AI rating for REED?
REED'S, INC. (REED) has an AI rating of STRONG SELL with 97% confidence, based on fundamental analysis of SEC EDGAR filings.
What are REED's key strengths?
Claude: Current ratio of 1.60x provides near-term liquidity cushion. Thin absolute debt level ($10.2M) could be refinanced or restructured.
What are the risks of investing in REED?
Claude: Critical cash runway: $10.4M cash with $17M+ annual burn rate creates insolvency risk within 12 months. Structural unprofitability: negative 44.5% operating margin indicates core business model is broken.
What is REED's revenue and growth?
REED'S, INC. reported revenue of $34.1M.
Does REED pay dividends?
REED'S, INC. does not currently pay dividends.
Where can I find REED SEC filings?
Official SEC filings for REED'S, INC. (CIK: 0001140215) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is REED's EPS?
REED'S, INC. has a diluted EPS of $-1.91.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is REED a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, REED'S, INC. has a STRONG SELL rating with 97% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is REED stock overvalued or undervalued?
Valuation metrics for REED: ROE of -173.1% (sector avg: 15%), net margin of -46.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy REED stock in 2026?
Our dual AI analysis gives REED'S, INC. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is REED's free cash flow?
REED'S, INC.'s operating cash flow is $-17.0M, with capital expenditures of $272.0K. FCF margin is -50.8%.
How does REED compare to other Default stocks?
Vs Default sector averages: Net margin -46.5% (avg: 12%), ROE -173.1% (avg: 15%), current ratio 1.60 (avg: 1.8).