Group 1 - Celsius Holdings Inc. reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, and showing an increase from $0.28 per share a year ago, resulting in an earnings surprise of +104.35% [1] - The company achieved revenues of $739.26 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 14.53%, and up from $401.98 million year-over-year [2] - Celsius shares have increased approximately 62.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.9% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $641.63 million, while for the current fiscal year, the estimate is $0.83 on revenues of $2.21 billion [7] - The Zacks Industry Rank for Food - Miscellaneous is currently in the bottom 23% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8] Group 3 - The estimate revisions trend for Celsius was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6]

Financial Performance - Q2 2025 revenue reached $739 million, an 84% year-over-year increase, driven by Alani Nu's $301.2 million revenue contribution[31] - Gross profit for Q2 2025 was $381 million, an 82% year-over-year increase, with a gross margin of 51.5%[31, 32] - Adjusted EBITDA for Q2 2025 increased by 109% to $210 million, resulting in an adjusted EBITDA margin of 28.4%[31, 32] - Net income for Q2 2025 rose by 25% to $99.9 million[31, 32] - Adjusted diluted EPS for Q2 2025 increased by 68% year-over-year to $0.47[31, 32] - For the first half of 2025, revenue was $1.07 billion, a 41% increase compared to the first half of 2024[15, 32] Market Position and Growth - Celsius Holdings' portfolio surpassed $4 billion in past-52-week tracked retail sales as of July 20, 2025[31] - The Alani Nu brand delivered +129% year-over-year retail growth and added +3.1 points of share in Q2 2025[31] - Celsius Holdings contributed 13% of all energy drink category growth in 1H 2025 and holds 99.3% ACV[15] - Celsius Holdings is the 3 energy drink portfolio in the U S with a total U S share of 16 8% in tracked channels in 1H 2025[15]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) The company achieved significant Q2 and H1 2025 financial growth, driven by the Alani Nu acquisition and expanded U.S. market share [Second Quarter 2025 Financial and Market Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20and%20Market%20Highlights) Q2 2025 saw record revenue of **$739.3 million** (up **84%**) driven by the Alani Nu acquisition, with Adjusted EBITDA more than doubling to **$210.3 million** Q2 2025 Financial Summary | Summary Financials | 2Q 2025 | 2Q 2024 | Change | | :--- | :--- | :--- | :--- | | **(Millions except for percentages and EPS)** | | | | | Revenue | $739.3 | $402.0 | 84% | | N. America | $714.5 | $382.4 | 87% | | International | $24.8 | $19.6 | 27% | | Gross Margin | 51.5% | 52.0% | -50 BPS | | Net Income | $99.9 | $79.8 | 25% | | Diluted EPS | $0.33 | $0.28 | 18% | | Adjusted Diluted EPS* | $0.47 | $0.28 | 68% | | Adjusted EBITDA* | $210.3 | $100.4 | 109% | - Revenue growth was primarily driven by **$301.2 million** from the newly acquired Alani Nu brand, while the legacy CELSIUS brand revenue grew **9%** in the quarter[5](index=5&type=chunk) - Gross margin decreased slightly from **52.0%** to **51.5%**, as improvements from lower material costs and favorable mix were offset by the impact of Alani Nu's margin profile, which included a **$21.7 million** inventory step-up adjustment[7](index=7&type=chunk) - Selling, general and administrative (SG&A) expenses increased **107%** to **$237.9 million**, mainly due to the addition of Alani Nu, acquisition-related costs, and increased marketing investment[8](index=8&type=chunk) - International revenue grew **27%** to **$24.8 million**, driven by momentum in expansion markets like the UK, Ireland, France, Australia, New Zealand, and the Netherlands[6](index=6&type=chunk) [First Half 2025 Financial and Market Highlights](index=2&type=section&id=First%20Half%202025%20Financial%20and%20Market%20Highlights) H1 2025 revenue grew **41%** to **$1.07 billion**, primarily from the Alani Nu acquisition, with gross margin improving to **51.8%** and Adjusted Diluted EPS rising **18%** 1H 2025 Financial Summary | Summary Financials | 1H 2025 | 1H 2024 | Change | | :--- | :--- | :--- | :--- | | **(Millions except for percentages and EPS)** | | | | | Revenue | $1,068.5 | $757.7 | 41% | | N. America | $1,021.0 | $721.9 | 41% | | International | $47.5 | $35.8 | 33% | | Gross Margin | 51.8% | 51.6% | +20 BPS | | Net Income | $144.3 | $157.6 | (8)% | | Diluted EPS | $0.48 | $0.55 | (13)% | | Adjusted Diluted EPS* | $0.65 | $0.55 | 18% | | Adjusted EBITDA* | $280.0 | $188.4 | 49% | - The **41%** revenue increase for the first half was primarily driven by the **$301.2 million** contribution from the Alani Nu brand in the second quarter[12](index=12&type=chunk) - Gross margin for the six-month period increased by **20 basis points** to **51.8%**, driven by lower material costs and favorable mix, partially offset by the Alani Nu inventory step-up adjustment[15](index=15&type=chunk) - International revenue for the first half increased **33%** to **$47.5 million**, reflecting continued momentum in expansion markets and growth in Nordic markets[14](index=14&type=chunk) [Retail Performance](index=2&type=section&id=Retail%20Performance) Celsius Holdings increased its U.S. RTD energy dollar share to **17.3%**, driven by a **129%** surge in Alani Nu retail sales, while the CELSIUS brand grew **3%** - Celsius Holdings' total portfolio retail sales in U.S. tracked channels increased **29%** year-over-year, capturing a **17.3%** dollar share of the RTD energy category[11](index=11&type=chunk) - The Alani Nu brand was a key growth driver, with retail sales increasing **129%** year-over-year and **39%** sequentially, and its dollar share grew by **3.1 points** to **6.3%**[11](index=11&type=chunk) - The CELSIUS brand's retail sales grew **3%** year-over-year and **17.6%** sequentially, with its dollar share at **11%**, a **1.3 point** decline from the prior year but a slight sequential increase[11](index=11&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The balance sheet significantly expanded in Q2 2025 due to the Alani Nu acquisition, while the statement of operations reflects increased revenue but a first-half GAAP net income decline [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets significantly increased to **$3.8 billion** by June 30, 2025, primarily due to the Alani Nu acquisition adding over **$1 billion** in brands and **$730 million** in goodwill, partly financed by **$863 million** in new long-term debt Condensed Consolidated Balance Sheets (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $ 1,391,212 | $ 1,324,580 | | Brands-net | $ 1,104,389 | $ 907 | | Goodwill | $ 802,234 | $ 71,582 | | **Total Assets** | **$ 3,795,143** | **$ 1,766,881** | | **Total current liabilities** | $ 659,775 | $ 365,535 | | Long-term debt | $ 862,917 | $ — | | **Total Liabilities** | **$ 1,703,829** | **$ 542,464** | | **Total Stockholders' Equity** | **$ 1,266,826** | **$ 399,929** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 revenue reached **$739.3 million** with net income of **$99.9 million**, while H1 2025 revenue was **$1.07 billion**, though net income decreased to **$144.3 million** due to increased interest and operating costs Consolidated Statements of Operations (in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | Revenue | $ 739,259 | $ 401,977 | $ 1,068,535 | $ 757,685 | | Gross profit | $ 380,851 | $ 209,098 | $ 553,224 | $ 391,305 | | Income from operations | $ 142,965 | $ 94,248 | $ 194,996 | $ 177,438 | | Net income | $ 99,855 | $ 79,783 | $ 144,274 | $ 157,594 | | Diluted EPS | $ 0.33 | $ 0.28 | $ 0.48 | $ 0.55 | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) The company reconciles GAAP to non-GAAP measures like Adjusted EBITDA and Adjusted Diluted EPS, used by management for operational assessment, with noted limitations [Reconciliation of Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Q2 2025 GAAP Net Income of **$99.9 million** was reconciled to non-GAAP Adjusted EBITDA of **$210.3 million**, with adjustments for acquisition costs and inventory step-up, similarly adjusting Diluted EPS from **$0.33** to **$0.47** Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA (in thousands) | | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | Net income (GAAP measure) | $ 99,855 | $ 79,783 | | Adjustments: | | | | Net interest (expense) income | $ 14,042 | $ (10,647) | | Provision for income taxes | $ 29,610 | $ 24,848 | | Depreciation and amortization | $ 9,119 | $ 1,418 | | Acquisition Costs | $ 29,855 | $ — | | Inventory step-up adjustment | $ 21,692 | $ — | | Other adjustments | $ 6,076 | $ 5,010 | | **Non-GAAP Adjusted EBITDA** | **$ 210,289** | **$ 100,412** | Reconciliation of GAAP Diluted EPS to Non-GAAP Adjusted Diluted EPS | | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | Diluted earnings per share (GAAP) | $ 0.33 | $ 0.28 | | Acquisition Costs | $ 0.08 | $ — | | Inventory step-up adjustment | $ 0.06 | $ — | | **Non-GAAP diluted earnings per share** | **$ 0.47** | **$ 0.28** | [Use and Definition of Non-GAAP Measures](index=8&type=section&id=Use%20and%20Definition%20of%20Non-GAAP%20Measures) Management uses non-GAAP measures like Adjusted EBITDA and Adjusted Diluted EPS for internal decision-making, believing they offer a clearer view of operating performance, while acknowledging their limitations and non-comparability - Adjusted EBITDA is defined as net income excluding net interest, taxes, depreciation, amortization, and further adjusted for items like stock-based compensation, acquisition costs, and inventory step-up[34](index=34&type=chunk) - Management uses these non-GAAP measures for internal decision-making, budgeting, and assessing operating performance, believing they provide useful information to investors[35](index=35&type=chunk) - The company cautions that non-GAAP measures have limitations, should not be considered in isolation, and may not be comparable to similarly titled measures from other companies[36](index=36&type=chunk)[37](index=37&type=chunk)

Core Insights - CELSIUS energy drinks are leveraging a recent labeling error that led to a recall of High Noon Vodka Seltzer cans mistakenly labeled as CELSIUS® ASTRO VIBE™ Energy Drink, creating a viral marketing opportunity [1][2][5] Group 1: Company Response - CELSIUS has recognized the viral nature of the mix-up and is engaging with consumers through social media, resulting in a positive reaction [5] - The Chief Marketing Officer of CELSIUS stated that the company acted swiftly and strategically to connect with their community while providing accurate information regarding the recall [5] Group 2: Social Media Engagement - The incident has sparked significant online dialogue, with users making humorous comments and suggestions, such as creating a non-alcoholic version of their product [4][5] - CELSIUS has actively participated in this dialogue, posting engaging content on their social media platforms to maintain brand visibility [2][5]

Key Takeaways CELH is leveraging its LIVE FIT platform to attract consumers beyond core fitness enthusiasts.Product innovations like Celsius Essentials and Hydration sticks boost brand engagement and relevance.Q2 International revenues for CELH are estimated at $27.3M, reflecting 20%+ growth from the prior quarter.Celsius Holdings, Inc. ((CELH) is likely to register an increase in its top line when it reports second-quarter 2025 earnings on Aug. 7. The Zacks Consensus Estimate for Celsius’ quarterly revenue ...

Company Overview - High Noon is one of the fastest-growing ready-to-drink alcohol brands in the U.S., owned by E. & J. Gallo Winery [4] - The brand is best known for its fruit-flavored vodka seltzers sold in variety packs [4] Recall Details - High Noon has issued a nationwide recall of its vodka seltzer drinks due to the potential presence of Celsius energy drink cans filled with the alcoholic beverage [1] - The affected cans are labeled as Celsius Astro Vibe Sparkling Blue Razz Edition and were found in certain shipments of High Noon's Beach Variety 12-packs [1] Health and Safety Concerns - The error could lead to unintentional alcohol consumption, posing health and safety risks, particularly for children or individuals who avoid alcohol for medical or religious reasons [2] - No illnesses or injuries have been reported in connection with this recall [2] Distribution and Customer Action - The affected products were shipped to retailers and distributors in late July, reaching multiple states including Florida, Michigan, New York, Ohio, Oklahoma, South Carolina, Virginia, and Wisconsin [3] - High Noon is advising customers to dispose of any affected Celsius cans and to contact the company for a refund [3]

Core Insights - Celsius Holdings, Inc. (CELH) and PepsiCo, Inc. (PEP) are significant players in the beverage industry, with CELH focusing on functional, sugar-free energy drinks and PEP being a diversified multinational with a broad portfolio [1][2] Group 1: Celsius Holdings (CELH) - Celsius Holdings is strengthening its position in the energy beverage market, with the acquisition of Alani Nu contributing to approximately 20% of the total dollar growth in the energy drink category in Q1 2025 [3][4] - The company's strategy emphasizes sugar-free, better-for-you products, with sugar-free energy drinks accounting for 86% of the total growth in the energy category during the same period [4] - Innovation is key for CELH, as it launched new Vibe and ESSENTIALS flavors and CELSIUS HYDRATION, targeting the $1.4 billion hydration powder market [5] - Retail expansion is a growth driver, with distribution increased through over 1,800 Home Depot locations and 18,000 Subway restaurants [6] - Despite strong brand momentum, CELH faces operational and financial pressures, including rising costs and competition [7] Group 2: PepsiCo (PEP) - PepsiCo generated net revenues of $22.7 billion in Q2 2025, maintaining a strong market share in carbonated soft drinks, hydration, and sports beverages [8][9] - The company is integrating its North American businesses to enhance operational efficiency through investments in AI and unified data platforms [9][10] - PepsiCo is repositioning key brands to elevate real-food credentials, with growth in the $2 billion permissible snack segment and innovations in no-sugar colas and functional hydration platforms [11][12] - The company is targeting a return to the low end of its long-term top-line growth algorithm, supported by strong international momentum [12] Group 3: Financial Performance and Valuation - The Zacks Consensus Estimate for CELH's 2025 earnings per share (EPS) remains at 82 cents, while PEP's EPS estimate has increased by 13 cents to $8.00 [13][14] - Over the past month, CELH shares fell 0.7%, underperforming the S&P 500 Index, while PEP's stock surged 13.8% [16] - CELH trades at a forward price-to-earnings (P/E) ratio of 44.59X, compared to PEP's more modest forward P/E of 17.95X [17]

Core Insights - Investors in the Food - Miscellaneous sector may consider Bunzl PLC (BZLFY) and Celsius Holdings Inc. (CELH) for potential value opportunities [1] Valuation Metrics - Bunzl PLC has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Celsius Holdings Inc. has a Zacks Rank of 3 (Hold) [3] - BZLFY has a forward P/E ratio of 12.96, significantly lower than CELH's forward P/E of 53.97, suggesting BZLFY may be undervalued [5] - The PEG ratio for BZLFY is 1.20, compared to CELH's PEG ratio of 1.57, indicating BZLFY's earnings growth is more favorably priced [5] - BZLFY's P/B ratio is 2.87, while CELH's P/B ratio is 25.79, further supporting BZLFY's valuation as more attractive [6] - These metrics contribute to BZLFY's Value grade of A and CELH's Value grade of D, highlighting BZLFY as the superior value option [6][7]

Core Viewpoint - Celsius Holdings Inc (NASDAQ:CELH) has received a "buy" rating from Citigroup with a price target of $55, highlighting the strength in the U.S. energy drink market and international growth opportunities [1] Group 1: Analyst Sentiment - A majority of analysts are bullish on CELH, with 15 out of 18 analysts giving a "buy" or better rating [2] - The 12-month consensus target price for CELH is $48.08, representing a 7% premium over current trading levels [2] - There is potential for a short squeeze, as 24.89 million shares are sold short, accounting for 15.1% of the available float [2] Group 2: Stock Performance - CELH shares have increased by 70.5% in 2025, supported by the ascending 40-day moving average since June [3] - The stock is close to its July peak of $47.69, just below a 52-week high [3] - A reduction in pessimism in the options market could provide additional support, with CELH's 50-day put/call volume ratio being higher than 93% of readings from the past year [3]

Core Insights - Evolving consumer lifestyles are driving demand for energy drinks, positioning Celsius Holdings, Inc. (CELH) to capitalize on market trends through strategic acquisitions, product innovations, digital marketing, and global expansion [1][9] Company Developments - The acquisition of Alani Nu, completed in April, is expected to enhance Celsius's position in the modern energy category, contributing to approximately 20% of the overall energy drink category dollar growth in Q1 2025 [2] - Celsius is diversifying its product offerings beyond traditional canned drinks with innovations such as Celsius Essentials and CELSIUS Hydration powder sticks, which help maintain consumer engagement [3][9] - The "LIVE FIT" campaign aims to tap into lifestyle-driven trends, promoting energy drinks that support a balanced lifestyle and targeting the female consumer segment to drive future growth [4] Competitive Landscape - Celsius faces competition from PepsiCo and Monster Beverage, both of which are adapting their product portfolios to meet evolving consumer preferences [5][6][7] - PepsiCo is focusing on zero-sugar offerings and functional hydration products, while Monster Beverage continues to see growth in the energy drink market, with a 2.2% increase in sales in Q1 2025 [6][7] Financial Performance - Celsius shares have increased by 65% year-to-date, contrasting with a 3.3% decline in the industry [8] - The company trades at a forward price-to-earnings ratio of 43.99X, significantly higher than the industry average of 16.13X [10] - Zacks Consensus Estimate indicates year-over-year earnings per share (EPS) growth of 17.1% for 2025 and 41.5% for 2026, with recent upward revisions in EPS estimates [11]