Beverage company Reed's announced a 21% year-over-year decrease in second-quarter revenue to $7.5 million, falling short of analysts' expectations of $9.62 million. Adjusted loss per share was $0.36, exceeding the anticipated $0.17. However, investors focused more on the significant improvement in gross margin, which rose from 8% in the same period last year to 24%, primarily due to a substantial reduction in inventory write-downs to $100,000. Additionally, selling, general, and administrative expenses decreased by 6% to $4.7 million, narrowing the company's quarterly net loss by 29% year-over-year to $4.3 million. Operating cash outflow also decreased from $5 million to $2.2 million, indicating improved cost control.