Reed's Appoints Damian Warshall as COO
Reed's announced the appointment of Damian Warshall as Chief Operating Officer, effective April 27, 2026. Most recently, Warshall served as Chief Operating Officer at Pittston Co-Packers, where he led the revitalization of a large-scale beverage manufacturing facility and secured a multi-million-dollar revenue pipeline. "Damian's operational leadership and proven ability to build efficient, scalable manufacturing and supply chain systems position him well to enhance execution across our business operations," said Neal Cohane, Interim Chief Executive Officer of Reed's. "He brings a strong track record of driving operational discipline, improving cost structures and supporting profitable growth, which we believe will be critical as we continue to optimize our business. We believe his experience will be instrumental in strengthening our operational foundation, improving margins and creating long-term value for our shareholders."
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- Compliance Notice: Reed's (REED) received a notice from NYSE American indicating non-compliance with certain continued listing standards, highlighting significant challenges in the company's compliance efforts.
- Shareholder Equity Status: As of March 31, 2026, Reed's reported shareholder equity of $2.7 million, reflecting the company's financial fragility, which could undermine investor confidence.
- Ongoing Losses: Reed's has recorded net losses in each of its last five fiscal years, indicating persistent challenges in profitability that may diminish its competitive position in the market.
- Compliance Plan Requirement: The company must submit a compliance plan to NYSE American by June 28, 2026, and restore compliance with listing standards by November 29, 2027, making this timeline critical for the company's future prospects.
- Index Component Changes: FTSE Russell has unveiled the preliminary adjustments for the Russell 3000 Index, adding eight consumer staples companies including Nu Skin Enterprises and USANA Health Sciences, indicating a market focus on the consumer goods sector.
- Market Impact: These changes will take effect after the close of U.S. equity markets on June 26, potentially triggering trading volume fluctuations for the affected stocks, prompting investors to monitor their market performance closely.
- Stocks Removed: Three companies, Skinhealth Systems, Natural Health Trends, and Willamette Valley Vineyards, will be removed from the index, reflecting a decline in market confidence towards these firms, which may adversely affect their stock prices.
- Reed's Performance Outlook: Reed's anticipates sequential improvements in net sales, gross margin, and net loss, despite reporting a Q1 2026 GAAP EPS of -$0.55, which missed expectations, highlighting the company's efforts to reverse key packaging discontinuations.
- Declining Financial Performance: In Q1 2026, net sales dropped to $7.1 million from $10.0 million in the prior year, representing a 29% decline, while gross margin fell from 34% to 10%, indicating significant challenges in sales and cost management.
- Inventory Management Improvements: The company has completed comprehensive physical inventory counts and implemented enhanced inventory controls designed to minimize future inventory write-off losses, aiming to improve operational efficiency and reduce financial risks.
- Sales Channel Expansion: Partnering with one of the nation's largest commission-based sales agencies has immediately expanded retail coverage with over 80 sales professionals, aimed at enhancing market presence and improving sales performance, despite multiple negative impacts on Q1 sales.
- Strategic Adjustments and Outlook: Management expects sequential improvement in net sales, gross margin, and net loss in Q2, viewing Q1 as a transitional period while emphasizing the company's commitment and actions to restore market competitiveness.
- Disappointing Earnings: Reed's reported a Q1 GAAP EPS of -$0.55, missing expectations by $0.38, indicating a significant decline in profitability that could undermine investor confidence.
- Revenue Decline: The company generated $7.1M in revenue for Q1, a 29.2% year-over-year decrease that fell short by $2.52M, reflecting weak market demand and inadequate sales strategies, potentially leading to future cash flow pressures.
- Widening EBITDA Loss: Reed's EBITDA for Q1 was -$6.2M, a substantial increase from -$1.7M in the prior year, highlighting challenges in cost control and operational efficiency that may impact long-term profitability.
- Increased Cash Usage: Cash used in operations for Q1 was $5.8M, slightly up from $5.4M year-over-year, indicating heightened financial pressure on the company’s operations, which could affect future investment and expansion plans.
- Executive Appointment: Reed's has announced the appointment of Damian Warshall as Chief Operating Officer, effective April 27, 2026; Warshall previously served as COO at Pittston Co-Packers, where he revitalized a large-scale beverage manufacturing facility and secured a multi-million-dollar revenue pipeline.
- Rich Operational Experience: Warshall brings extensive experience in the consumer packaged goods sector, having served as Vice President of Operations at Munk Pack, where he led nationwide retail product launches, demonstrating his capability in driving profitable growth and enhancing supply chain efficiency.
- Clear Strategic Goals: Reed's Interim CEO Neal Cohane stated that Warshall's leadership will enhance operational execution, improve cost structures, and support profitable growth, which is expected to significantly impact the company's long-term value creation.
- Future Outlook: Warshall expressed his focus on driving efficiencies across the manufacturing and logistics network, increasing throughput, and enhancing execution with partners, ensuring more consistent and scalable performance in 2026 and beyond.
- Executive Appointment: Reed's has named Damian Warshall as Chief Operating Officer effective April 27, 2026, bringing experience from his previous role as COO at Pittston Co-Packers, which may enhance operational management.
- Background Context: Warshall previously served as Vice President of Operations at Reed's, indicating the company's confidence in his familiarity with its operational environment and processes, aiming to improve overall operational efficiency.
- Financial Performance: Reed's reported a GAAP EPS of -$0.44 for Q4 2025, missing estimates by $0.26, with revenue of $7.48 million falling short of expectations by $1.35 million, highlighting challenges in profitability and revenue growth.
- Future Outlook: The company plans to launch new products and optimize its supply chain in 2026 to target margin expansion, and Warshall's appointment may accelerate the achievement of these strategic goals.







