They recorded their next album just after they graduated from college.

Sponge Cola released their second album entitled Transit in September with a launch party in Metrowalk, Ortigas, under Universal Records. The album turned gold after less than three months of its release due to the success of the lead single "Bitiw", which enjoyed massive radio and TV airplay. The song also became the theme song of ABS-CBN's show Pedro Penduko. Sponge Cola have contributed on two tribute albums. They covered the 90's hit song by the Eraserheads, "Pare Ko", on Ultraelectromagneticjam. The group released their cover of APO Hiking Society's classic "Nakapagtataka" on the tribute album, "Kami nAPO muna", as the next single. The band won 4 awards in the 2007 MYX Music Awards besting other OPM acts in both Favorite Artist and Favorite Group categories. "Bitiw" was voted as both Favorite Song and Favorite Rock Video. The song was released as the first single off their second album "Transit". "Tuliro", was the second single and released in the first quarter of 2007.