This is a watchlist composed of the current stocks we are looking to trade none of these are alerts all alerts will be alerted upon entry just like the others on the weekly investment letter.
Company: Zevia PBC
Quote: $ZVIA
BT:
ST: $4 (no buy out), $8+ if we see M&A action
Sharks Opinion:
Zevia isn’t a name we first discovered through earnings screens or chart setups it started with a shopping cart. After a year of regularly buying their zero-sugar sodas at Costco, we finally decided the timing looked right to move from consumer to investor.
The catalyst came from a massive earnings beat that pushed ZVIA shares up 38.2%, now trading around $2.82. That strength caught our attention and re-framed Zevia not just as a brand, but as a speculative equity story worth leaning into.
For longtime Stock Sharks members, our ongoing focus on the beverage sector should come as no surprise. This space has a long history of high- profile M&A. Legacy players like Coca-Cola and PepsiCo frequently acquire rising challengers to cement dominance. Just earlier this year, PepsiCo spent billions to buy Poppi a clear reminder that once an upstart brand reaches critical mass, independence is usually short-lived.
Zevia’s trajectory fits the mold. It went public during the pandemic at $13 per share with a $1 billion valuation, only to lose more than 73% since. That decline has left the stock beaten down but also set up a high-risk, high-reward trade. While a full return to IPO levels through organic growth is unlikely, a takeout by a beverage giant could close that gap in a heartbeat.
This is where our conviction lies:
Speculative swing trade fueled by brand momentum and distribution growth
Compelling M&A candidate in a consolidating sector
Attractive risk/reward after a prolonged drawdown
To be clear, the risks are very real. The beverage industry is cutthroat competitive, and Zevia still needs flawless execution to sustain growth. But its fundamentals tell a stronger story than the chart suggests: consistent revenue growth, margin improvement, and a healthy liquidity position.
Our modeling shows a 90% probability range of $3.17–$4.35 over the next three months if current momentum continues. That near-term setup, paired with the longer-term takeout optionality, makes Zevia a speculative but asymmetric bet we’re willing to take
Description: Zevia PBC develops, markets, sells, and distributes zero sugar beverages in the United States and Canada. The company offers soda, energy drinks, and organic tea under the Zevia brand name. It serves grocery distributors; national, convenience, natural products, and warehouse club retailers; and retailers through a network of grocery, food, drug, warehouse club, mass, natural, convenience, and e-commerce channels, as well as natural product stores and specialty outlets. The company was founded in 2007 and is headquartered in Encino, California.
Zevia PBC is carving out a unique position in the consumer beverage market by building its entire lineup sodas, energy drinks, and teas around stevia, a natural zero-calorie sweetener. That decision is more than a branding play; it’s a moat in the making.
Unlike aspartame and other artificial sweeteners, which continue to face scrutiny from regulators and health bodies over possible links to cancer and cognitive issues, stevia carries a far cleaner profile. For consumers increasingly concerned with ingredients, this distinction matters. Zevia is the only major beverage brand with a 100% stevia-sweetened carbonated portfolio, giving it first-mover advantage in a category that could expand significantly as health-conscious preferences accelerate.
From a consumer perspective, the edge is noticeable. Speaking both as a Zevia drinker and someone familiar with traditional diet sodas, the taste profile is simply better roughly 20–30% cleaner, with no lingering artificial aftertaste.
That kind of sensory advantage, paired with the health narrative, builds a sticky customer base that is less likely to churn back to legacy diet sodas.
Distribution is already validating the thesis. Zevia products have a consistent presence at Costco, Walmart, and other major retailers, proving it’s not just a niche player. Continued expansion across grocery, club, and e-commerce channels reinforces the long-term growth trajectory and widens its reach with everyday consumers.
To put it simply: Zevia is still in the early innings of its public market journey, but the building blocks are in place. Its differentiated product strategy, alignment with long-term wellness trends, and expanding shelf presence give it a legitimate shot at becoming the next high-profile health beverage success story.
For investors, ZVIA is not just another beverage stock it’s a speculative pure- play on the future of clean-label beverages. With time, scale, and execution, the asymmetric upside comes from two fronts: organic growth or eventual M&A interest from beverage giants unwilling to miss the shift in consumer demand.
Zevia (ZVIA) just secured one of its biggest distribution wins to dateexpanding from 800 Walmart stores to full national coverage across 4,300+ locations.
That’s more than a 5x increase in shelf presence, effectively transforming its visibility overnight. The move comes as Walmart rolls out its new “Modern Soda” in-store set, aimed at capturing growth in the Better-for-You beverage category.
The numbers backing this deal are compelling. In Walmart’s existing footprint, Zevia already outperformed peers, with households consuming 4x more Zevia products than competing brands. That kind of consumption profile isn’t just a distribution story—it signals repeat purchasing behavior, strong brand loyalty, and the ability to capture incremental wallet share once consumers make the switch.
The category tailwind is just as important. The Better-for-You soda segmentrecently crossed $1 billion in sales, cementing its place as a durable consumer trend rather than a passing fad. Zevia is positioned at the center of this growth, offering the only nationally scaled soda brand sweetened exclusively with stevia.
Product innovation remains another leg of the thesis. From the Orange Creamsicle flavor dominating at Sprouts to variety packs becoming top sellers at Walmart, Zevia has shown it can consistently deliver products that resonate.
These innovation cycles not only boost sell-through but also create defensive moats by keeping consumer engagement high.
Lastly, Zevia’s Certified B Corporation status strengthens its ESG appeal, aligning with a broader consumer shift toward sustainability and health- conscious choices. That added credibility could prove valuable both in marketing to consumers and in building partnerships with retailers increasingly focused on socially responsible sourcing.
Taken together, this Walmart expansion isn’t just about more shelf space it’s about unlocking national scale at a pivotal moment for the category. For investors, ZVIA now has a clearer runway toward meaningful revenue acceleration, with asymmetric upside potential if execution continues to meet rising demand.
Zevia’s (ZVIA) expansion into 4,300+ Walmart stores nationally in November 2024 marked a defining shift in its growth strategy up from just 800 stores previously, a fivefold jump in visibility. For a brand positioning itself as the go-to zero-sugar, stevia-based soda alternative, that kind of scale matters.
It not only puts Zevia in front of millions of new households but also cements its role in Walmart’s push to modernize its beverage aisle with healthier soda choices.
The Walmart win is only part of a broader distribution surge. Zevia has secured placements across Albertsons and nearly 8,000 Walgreens locations, while also leaning into convenience stores through direct-store-delivery (DSD).
That last piece is particularly important single-serve offerings in c-stores create trial opportunities, which can convert into long-term repeat buyers once they discover the brand.
Financials are beginning to reflect this momentum. In Q2 2025, net sales climbed 10.1%, with Walmart and other retail expansions providing the primary lift. Despite ongoing tariff-related headwinds and some channel turnover, Zevia raised its outlook, now guiding $158M–$163M in 2025 net sales.
More importantly, management reiterated its pathway to profitability by 2026, supported by improved adjusted EBITDA trends.
Zevia’s second quarter of 2025 offered a mix of encouraging results and cautious forward guidance, underscoring a company in the middle of a strategic transition from survival mode to scalable growth.
Q2 Highlights:
Net Sales: $44.5M, up 10.1% YoY, fueled by expanded retail distribution, including Walmart’s nationwide rollout.
Gross Margin: 48.7%, up nearly 7 points YoY, reflecting strong cost discipline and operational efficiencies.
Net Loss: $0.7M (including $1M in non-cash stock comp), an improvement of $6.3M YoY.
EPS: Loss narrowed to just $0.01, a $0.09 improvement YoY.
Adjusted EBITDA: Positive $0.2M, swinging $4.6M YoY into the green.
What stands out is the margin recovery and EBITDA improvement. For a beverage upstart still in scaling mode, getting costs under control while growing sales is the hallmark of a company moving closer to sustainable profitability.
Outlook for 2025:
Net Sales Guidance: $158M–$163M, unchanged.
Adjusted EBITDA Loss: Narrowed to $7M–$9M, reflecting reinvestment in marketing and promo spend as Zevia leans into its brand momentum. Tariff costs remain a headwind, but management is confident in offsetting them with further cost efficiencies
Telsey Advisory Group Maintains Outperform on Zevia, Raises Price Target to $6
Morgan Stanley Maintains Equal-Weight on Zevia, Raises Price Target to $2.7
BMO Capital Maintains Outperform on Zevia, Raises Price Target to $6
Company: Electrovaya Inc.
Quote: $ELVA / $ELVA.TO
BT: $5 - $6
ST: $10- $12
Sharks Opinion:
Electrovaya is starting to attract attention again after a quieter period. The stock had previously traded without much momentum, but recent developments signal potential upside, especially amid the AI-driven robotics rotation we’re monitoring at Stock Sharks.
Recent Catalyst:
Electrovaya announced a strategic expansion into Japan to supply batteries for robotics companies, tapping into one of the fastest-growing industrial automation markets in the world.
Unusual volume activity suggests that momentum could continue as investors react to the expansion and broader AI/robotics interest.
Bull Case Highlights:
Reindustrialization & Automation: U.S. initiatives to bolster domestic manufacturing could drive significant capital investment in robotics and automation, increasing demand for Electrovaya batteries.
Easing Rates & Regulation: Potential policy shifts could lower financing costs, encouraging industrial players to accelerate adoption of battery- powered machinery.
Domestic Materials Sourcing: Future U.S. policies favoring local sourcing may enhance supply chain reliability and create incremental demand at Electrovaya’s Jamestown facilities.
Market Timing: As AI-driven robotics continues to gain traction, companies like Electrovaya are well- positioned to supply critical components, potentially capturing a growing share of the robotics battery market.
Bear Case Considerations:
Policy Risk: Shifts in domestic electrification policy could delay adoption for heavy machinery, slowing demand for batteries.
Cost Pressures: Sourcing materials domestically or navigating tariffs could increase costs, impacting margins.
Competitive Landscape: The battery market is highly competitive, particularly from Chinese manufacturers that may produce similar products at lower costs.
Capacity Risk: Rapid expansion risks overbuilding if market adoption doesn’t match projections.
Takeaway:
Electrovaya offers a play on physical AI and robotics infrastructure, leveraging battery technology as a critical enabler for industrial automation. While policy and competition remain risks, the Japan expansion and rising AI/robotics activity suggest that the stock could be poised for a continuation of its recent rally.
Description: Electrovaya Inc. engages in the design, development, manufacture, and sale of lithium-ion batteries, battery management systems, and battery-related products for energy storage, clean electric transportation, and other specialized applications in North America. The company operates infinity battery cells technology comprising of low and high voltage systems. It also operates solid state battery technology. The company was formerly known as Electrofuel Inc. and changed its name to Electrovaya Inc. in March 2002. Electrovaya Inc. was incorporated in 1996 and is headquartered in Mississauga, Canada.
Electrovaya is a Canadian battery manufacturer specializing in lithium-ion solutions for electric vehicles, energy storage, and industrial applications. The company focuses on producing safe, long-lasting batteries designed to reduce carbon emissions, while also pursuing next-generation solid-state battery technology. Its operations span Canada and New York, giving it North American manufacturing reach.
Company Evolution:
Founded in 1996 as an R&D shop, Electrovaya initially received funding from Microsoft and NASA to research specialty projects. The company later supplied frontier electric vehicle fleets for OEMs like Ford, GM, and Chrysler, long before Tesla entered the market with its Roadster. Early programs were limited by the dominance of ICE vehicles but laid the foundation for advanced battery expertise.
Electrovaya pivoted to produce industrial-grade batteries with a focus on quality, durability, and safety, incorporating ceramic separator technology.
These ceramic separators resist shrinkage under heat, preventing thermal runaway, a critical safety advantage over polyethylene or polypropylene separators.
Market Expansion & Opportunity:
Electrovaya is broadening its focus beyond forklifts to electrification markets driven by convenience, carbon reduction, or feasibility, including:
eCommerce logistics and material handling
Robotics, particularly collaborative and industrial automation
Defense applications requiring reliable energy solutions
Heavy machinery and Class-8 trucks
Robotics Opportunity:
The robotics segment is particularly compelling, especially amid the U.S. reindustrialization push, which could channel over $1 trillion in foreign investment into domestic industry. Batteries are critical to this transformation, and Electrovaya’s technology positions it to capitalize on growing demand for electrified industrial equipment.
Electrovaya’s lithium-ion batteries primarily serve large corporate clients that rely on durable, long-lasting energy solutions for material handling and industrial equipment. The company’s customer base spans major retailers, logistics operators, and global manufacturers, providing both revenue stability and validation of its technology.
Major Corporate Customers:
Fortune 100 E-Commerce Company (U.S., Canada, Australia):
Operates over 50 distribution centers using Electrovaya-powered vehicles.
Fiscal 2025 orders from this single client exceeded $20 million, highlighting the scale of adoption.
Walmart Canada:
An early adopter of Electrovaya’s battery technology for warehouse and logistics operations.
Japanese Construction Equipment OEM:
In September 2025, Electrovaya shipped custom battery modules to this global OEM, expanding its presence in industrial applications overseas.
Other Notable Customers & Partners:
Automotive: BMW, Raymond/Toyota
Retail & Consumer Goods: Home Depot, Lowe’s, Unilever, Mars, Mondelez,
Maple Leaf
Industrial & Manufacturing: Michelin, Pafco
Electrovaya’s diversified customer base spans multiple high-volume industries, reinforcing the reliability and scalability of its battery technology. This mix of large-scale recurring orders and global partnerships positions the company well for growth, particularly in e-commerce, robotics, and industrial electrification markets.
Electrovaya delivered a strong Q3 2025, reinforcing its position in industrial, robotics, and electrification markets:
Financial Highlights:
Revenue: $17 million for Q3’25, up 67% YoY, marking the second consecutive profitable quarter.
Adjusted EBITDA: $2.0 million, up ~33% YoY, reflecting strong operating leverage.
Orders: $21 million in Q3, contributing to a YTD total of $65 million and a backlog of $80 million.
Guidance: Reaffirmed 2025 revenue target of $60 million.
Operational & Strategic Updates:
Tariff Mitigation: Electrovaya has largely avoided U.S.-China tariff impacts by diversifying its supply chain away from China.
Manufacturing Expansion:
Added a second shift at Mississauga facility to meet growing demand.
Jamestown, New York facility set to commence volume production by mid- 2026, benefiting from 100% bonus depreciation under the OBBBA for new and used machinery.
Growth Drivers & Market Opportunities:
Materials Handling & Robotics: $21 million in new orders, including partnerships with Japanese OEMs and scaling robotics shipments in the 2–5 kWh range. Potential applications include defense, surveillance, and industrial automation.
Airport Ground Support Equipment: Shipments expected to begin soon, adding a new market stream.
Recurring Revenue Streams: Launching software and energy services, including:
AI-driven electricity orchestration platform to optimize power flows.
Battery storage-as-a-service offerings to generate ongoing recurring revenue.
Large-Cap Customers: Orders primarily from Fortune 500 & 100 companies, providing visibility and long-term growth potential.
Electrovaya is executing on multiple growth levers: revenue from expanding industrial and robotics applications, increased production capacity, strategic partnerships with Japanese OEMs, and new software and energy service offerings. With robust backlog and recurring revenue initiatives, the company is positioned to continue scaling profitably into 2026 and beyond.
Electrovaya’s operating leverage has positioned the company for sustainable profitability. The break-even point sits around $50 million in annual revenue, and over the last twelve months, Electrovaya achieved roughly $55 million in net revenue, exceeding that threshold.
Production & Growth Potential:
Jamestown Facility (eFY26): Set to come online with partially autonomous operations, the facility is expected to scale revenue significantly, with capacity estimates of $150–200 million in net revenue, up sharply from the eFY25 target of $60 million.
Operating Leverage: As production ramps, Electrovaya is poised to benefit from substantial leverage, improving margins and profitability.
Balance Sheet:
Cash & Equivalents (Q3’25): $1.3 million
Total Debt: $18.8 million, resulting in a net leverag
e ratio of 2.52x net debt/aEBITDA
Leverage Outlook: Assuming no new debt, leverage should decline as the Jamestown facility scales in eFY26–eFY27, strengthening the company’s financial flexibility.
Electrovaya is positioned not just for revenue growth, but for profitability expansion as its production capacity and operational efficiency improve.
Roth MKM Reiterates Buy on Electrovaya, Raises Price Target to $5
HC Wainwright & Co. Reiterates Buy on Electrovaya, Maintains $10 Price Target
Raymond James Initiates Coverage On Electrovaya with Strong Buy Rating, Announces Price Target of $4.5
Alliance Global Partners Initiates Coverage On Electrovaya with Buy Rating, Announces Price Target of $5
Company: Kraken Robotics Inc.
Quote: $PNG.V / $KRKNF
BT: $1.50 - $2.00
ST: $6-$8
Sharks Opinon:
Kraken Robotics is a Canadian-based marine technology company that has quietly become a leader in advanced sonar and subsea power systems for unmanned underwater vehicles (UUVs). Its applications span defense, offshore energy, and industrial subsea operations, making it a strategically important player in a niche but growing market.
Company Overview & Market Position:
Global presence in U.S., UK, Germany, Brazil, and Denmark
Positioned at the intersection of underwater autonomy, energy resilience, and geopolitical tensions in contested waters
Specialized tech, such as SeaPower batteries, driving strong demand from major partners, including Anduril, which is building a plant potentially representing $600 million in annual demand
Financial Snapshot:
Gross margins: >60%
EBITDA margins: >20%
Capitalized for scaling operations to meet rising UUV demand
Investment Thesis:
Kraken trades around US$1.50 / CAD$2.25, offering an attractive entry for speculative investors
High-risk, high-reward setup: Thinly traded, volatile, but with significant upside if UUV adoption accelerates
Analogous to Coda Octopus from the pandemic era, but with potentially larger growth if execution continues
Key Considerations:
Supply-demand imbalance favors Kraken
Potential to capture substantial revenue from autonomous systems and battery sales
Investors should be comfortable with volatility and speculative positioning
Kraken Robotics represents a niche tech play with strategic and financial tailwinds, ideal for those looking to bet on the growth of underwater defense and autonomous systems.
Description: Kraken Robotics Inc., a marine technology company, engages in the design, manufacture, and sale of sonar and optical sensors, batteries, and underwater robotic equipment for unmanned underwater vehicles used in military and commercial applications in Canada, the Asia Pacific, Europe, the Middle East, Africa, North America, and internationally. It operates in two segments, Products, and Services. The company offers AquaPix miniature interferometric synthetic aperture sonar (MINSAS), a configurable MINSAS; and SeaPower, a pressure tolerant deep sea batteries.
Kraken Robotics has evolved into a multi-segment business with a growing competitive moat, now operating across four key verticals:
Robotic hardware – Autonomous systems for underwater operations
Component hardware – High-performance sonar systems and sensors
Batteries – SeaPower pressure-tolerant batteries with unmatched depth and energy density
Services – Recurring revenue streams like Robotics-as-a-Service (RaaS) and Data-as-a-Service (DAaaS)
This diversification reduces reliance on a single product and creates layered revenue streams that compound over time, giving Kraken a more resilient business model.
Market Growth & Macro Tailwinds:
The global underwater robotics market is projected to grow at a 14.59% CAGR from 2024–2032, reaching $13.6 billion Kraken’s tight integration with Anduril, a leading defense tech firm, positions it to capture a disproportionate share of this growth
Revenue Opportunities:
Anduril’s AUV production plant could represent $600 million in annual revenue for Kraken, with each standard unit containing
~$3 million in Kraken hardware
~$2.5M in SeaPower batteries
~$500K in sensors and software
Larger Ghost Shark AUVs could house $8M of Kraken gear per unit Kraken has already secured a $34M contract for SeaPower batteries, highlighting real, near-term cash flow
Product Moat:
SeaPower batteries: unmatched operational depth of 6,000 meters and high energy density
Katfish sonar system: high-resolution seabed imaging
AquaPix: miniaturized synthetic aperture sonar
SeaVision: advanced 3D laser imaging
ALARS: autonomous launch and recovery system
Additional systems like Sub-Bottom Imager (SBI) and Acoustic Corer (AC) enhance geophysical profiling capabilities
Services & Recurring Revenue:
RaaS allows recurring cash flow through survey services, inspections, rentals, and system integrations
This shift positions Kraken as more than a hardware company, creating sticky, scalable revenue
Kraken Robotics enters 2025 with a healthy and flexible balance sheet, signaling both stability and growth readiness:
Cash: $58.5 million
Receivables: $18.7 million
Inventory: $19+ million
Short-term assets: $21.5 million
Short-term liabilities: $23.4 million
This gives Kraken ample breathing room to scale operations while pursuing growth opportunities.
Capital Raise & Debt Position:
Kraken executed a $51.7 million capital raise in late October, timed perfectly to support growth ahead of anticipated demand from Anduril and other defense clients
Total debt stands at $15.8 million, primarily from a revolving credit facility, with $15 million drawn at prime + 1–1.75%—a manageable position in the current rate environment
Cash Flow & Investments:
2024 operational cash flow showed $11.6 million burn, versus $8.4 million positive OCF in 2023, reflecting strategic investments in inventory, infrastructure, and capability to meet rising demand
Kraken chose to invest aggressively now rather than risk falling behind competitors, bolstered by a war chest for upcoming growth initiatives
Income Statement Highlights:
Revenue: $91.3 million (+31% YoY)
Gross margin: 49% (+15 bps)
Expenses: rose just 6%, demonstrating effective operating leverage
Operating income: surged nearly $9 million (+282% YoY)
Cost control was aided by government partnerships and tax incentives, including doubling of investment tax credits and avoiding a $2.8 million impairment from 2023. Even adjusting for these benefits, core expenses grew only 18% vs. 31% top-line growth.
Net Income:
$20.1 million, up from $5.5 million in 2023, supported by a $9.7 million tax recovery
Demonstrates that Kraken is not just growing revenue—it’s converting growth into meaningful, sustainable profitability
