_{^{Cedar Grove Capital Management (“CGCM”) is proud to offer its advisory management services through its separately managed account structure. CGCM specializes in a multi-strategy investment approach with an emphasis on small-cap and below companies, as well as managing an opportunistic short book and other special situations. If you’re interested in learning more, please visit www.cedargrovecm.com or view our public research at www.cedargroveresearch.com.}}

_{^{All information provided herein by Cedar Grove Capital Management, LLC (“CGCM”) is for informational purposes only and does not constitute investment advice or an offer or solicitation to buy or sell an interest in a private fund or any other security. CGCM may change its views about or its investment positions in any of the securities mentioned in this document at any time, for any reason or no reason. CGCM may buy, sell, or otherwise change the form or substance of any of its investments. CGCM disclaims any obligation to notify the market of any such changes.}}

For those of you who are new or do not remember, we first highlighted Suja Life (SUJA) more in-depth a few weeks after it IPO’d and opted to wait and see what management had to say after it reported its first earnings as a public company. You can read it here and would recommend doing so to get brought up to speed on the company.

Mind you, this was after the stock went public at $21/share and we published that note when it was trading at $15.43/share (~27% decline). Our waiting to see what transpired after Q1’26 earnings appeared to be the right call, as the stock quickly sank to just under $9/share before coming back up from its previous lows.

However, last week, the company reported Q2’26 earnings (which beat on revenue and EPS) but took FY’26 revenue guidance down 1.2% at the midpoint, and left adjusted EBITDA the same. That revision led to a sell-off of ~46%, which completely blew our minds. If you didn’t know any better, and we told you a company just dropped 46% on earnings, you probably would have thought it was some SaaS-related company, a shitco, or they just announced something that would arguably lead them to bankruptcy.

But, no. It’s literally a wellness juice company that is actually one, if not the market leader in immunity juice shots, along with the other wellness juices it sells.

Below, we’re going to quickly go over the earnings and why we think the market was wrong to sell off the stock that much, and why it was enough for us to increase our position, which we started accumulating after the Q1’26 drop.

If you remember from our IPO note, we highlighted that an interested investor in the company would effectively be underwriting a mature, wellness juice company that just used most of its IPO proceeds to pay down its debt (PE owned). The real “call option” here was in their Slice soda brand scaling and eventually becoming a meaningful contributor to the company’s topline growth as the legacy business allowed it to self-fund this endeavor.

Well, while Slice’s numbers are still small, the company grew net sales by >60% y/y and expanded gross margins by ~27 p.p., primarily driven by a ~94% increase in distribution growth.

Overall, though, the company posted a mere 11.6% y/y growth, which still outperformed the natural healthy beverage (NHB) category and consensus estimates. More specifically, Suja Organic cold-pressed juice grew ~18% in Q2; refresher line +75%, boosted juice +30%.

Gross margin did take a slight hit (-70bps y/y) due to unfavorable absorption timing, but was offset by operational efficiencies due to vertical integration.