Core Viewpoint - Celsius stock experienced a significant decline of 30% over two days, prompting mixed reactions from analysts, with one suggesting that the market's response was exaggerated and recommending that investors consider purchasing shares [1] Company Summary - The stock price drop of Celsius is noted as a substantial 30% decrease within a short timeframe, indicating heightened volatility and investor concern [1] - An analyst's perspective highlights a potential buying opportunity, suggesting that the recent sell-off may not accurately reflect the company's fundamentals [1]

Core Viewpoint - Celsius experienced a significant stock selloff, with shares dropping nearly 8% after a 25% decline the previous day, despite reporting strong third-quarter results. Analysts suggest that the selloff may be overdone, given the company's positive long-term growth outlook [2][6][8]. Financial Performance - For the third quarter, Celsius reported a total revenue increase of 173% year-over-year, with Alani Nu sales growing by 114% and Celsius brand retail sales up by 13% [5][6]. - The company's market share rose to 21%, up from 10% two years ago, indicating substantial growth in its retail presence [5]. Strategic Moves - Celsius has expanded its portfolio by acquiring Alani Nu in April and Rockstar Energy in August, enhancing its market position [4]. - The transition of Alani Nu's distribution to PepsiCo is set to begin in December, which may introduce short-term volatility in inventory and logistics costs [7][9]. Analyst Perspectives - Analysts from TD Cowen, Morgan Stanley, and Roth Capital view the current stock selloff as a temporary issue, with price targets set at $55, $64, and $70 respectively, indicating confidence in the company's long-term growth potential [9][10][12]. - Deutsche Bank's analyst noted that while there may be short-term distortions in inventory and shipment timing, consumption trends remain strong, suggesting a positive outlook for the brand [11].

Core Insights - Celsius Holdings Inc. reported a revenue of $725.11 million for the quarter ended September 2025, marking a significant increase of 172.9% year-over-year [1] - The company's earnings per share (EPS) reached $0.42, a notable improvement from $0 in the same quarter last year, with an EPS surprise of +50% compared to the consensus estimate of $0.28 [1] - The reported revenue slightly exceeded the Zacks Consensus Estimate of $720.68 million, resulting in a surprise of +0.61% [1] Financial Performance Metrics - Celsius's stock has experienced a return of -29.9% over the past month, contrasting with the Zacks S&P 500 composite's -0.2% change, indicating underperformance relative to the broader market [3] - The company currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3] Geographic Revenue Breakdown - International revenue was reported at $23.12 million, slightly below the average estimate of $25.33 million, reflecting a year-over-year increase of +24.3% [4] - North America generated $701.99 million, surpassing the average estimate of $642.15 million, with a year-over-year growth of +184.1% [4] - Asia-Pacific revenue reached $3.52 million, significantly exceeding the estimated $1.59 million, representing a remarkable year-over-year increase of +492.3% [4] - Other geographic revenues totaled $1.91 million, below the estimated $2.23 million, with a year-over-year change of +6.8% [4] - European revenue was reported at $17.69 million, also below the average estimate of $20.71 million, showing a year-over-year increase of +8.9% [4]

Revenue and Profitability - For the three months ended September 30, 2025, revenue was approximately $725.1 million, an increase of $459.4 million, or 172.9%, from $265.7 million for the same period in 2024[226] - North America revenue increased by $454.9 million, or 184.1%, primarily due to the Alani Nu Acquisition, contributing approximately $332.0 million[227] - Gross profit for the three months ended September 30, 2025, increased by $250.1 million to $372.3 million, a 204.6% increase from $122.2 million in the same period in 2024[229] - Gross profit margin improved to 51.3% for the three months ended September 30, 2025, compared to 46.0% for the same period in 2024[229] - For the nine months ended September 30, 2025, revenue was approximately $1,793.6 million, an increase of $770.2 million, or 75.3%, from $1,023.4 million for the same period in 2024[239] - North America revenue increased by $754.0 million, or 77.8%, primarily driven by the Alani Nu Acquisition, contributing approximately $633.2 million[240] - Gross profit for the nine months ended September 30, 2025, increased by $412.0 million to $925.5 million, an increase of 80.2%, with a gross profit margin of 51.6%[243] Expenses and Losses - Selling, general and administrative expenses for the three months ended September 30, 2025, were $205.6 million, an increase of $80.2 million, or 64.0%, from $125.4 million in 2024[230] - Selling, general and administrative expenses for the nine months ended September 30, 2025, were $563.8 million, an increase of $224.5 million, or 66.2%, from $339.3 million for the same period in 2024[244] - Net loss attributed to common stockholders for the three months ended September 30, 2025, was $70.7 million, representing a basic loss per share of $(0.27)[238] Cash Flow and Financing - Cash flows provided by operating activities totaled $478.9 million for the nine months ended September 30, 2025, compared to $187.2 million for the same period in 2024, reflecting a $291.7 million increase[257] - Cash flows used in investing activities totaled $1,278.7 million for the nine months ended September 30, 2025, primarily due to the Alani Nu Acquisition[258] - Cash flows provided by financing activities totaled $839.9 million for the nine months ended September 30, 2025, driven by debt incurred for the Alani Nu Acquisition[259] - The company had unrestricted cash and cash equivalents of approximately $806.0 million as of September 30, 2025[250] Tax and Interest Rates - The effective tax rate for the nine months ended September 30, 2025, was 18.7%, compared to 20.1% for the same period in 2024[247] - The interest rate on the company's $897.8 million term loan related to the Alani Nu Acquisition was 7.29%[267] - If the applicable interest rate increased by 1%, the company's annual debt service would increase by approximately $8.8 million[267] Strategic Partnerships and Market Presence - The strategic partnership with Pepsi was expanded, designating Pepsi as the primary distributor of Alani Nu and Rockstar products in the U.S. and Canada[222] - Celsius continues to expand its global presence, with international markets contributing approximately $5.4 million in revenue for the three months ended September 30, 2025[228] - The company introduced CELSIUS Hydration in 2025, a line of non-caffeinated, zero-sugar hydration powders[215] Acquisitions and Valuation - Termination fees of $246.7 million were incurred for the three months ended September 30, 2025, due to the termination of certain former Alani Nu distributors[232] - Total other expense for the three months ended September 30, 2025, was $8.0 million, reflecting an unfavorable change of $19.4 million compared to other income of $11.4 million in 2024[233] - The company engages third-party valuation specialists for fair value analyses of acquisitions and preferred stock[265] - Key assumptions for preferred stock valuation include equity volatility and the probability of meeting triggering conditions[265] - The company accounts for acquisitions using the acquisition method, recognizing identifiable assets and liabilities at fair value[262] - Any excess of purchase consideration over fair values of identifiable net assets is recorded as goodwill[263] Market Risk - The company does not currently use hedging agreements or financial instruments to manage commodity price risks[266] - The company is exposed to fluctuations in commodity prices, including aluminum cans and sweeteners, which may affect raw material costs[266] - There have been no material changes to market risk information since the last annual report[269]

Celsius (CELH) shares crashed on Nov. 6 after the energy drink specialist reported market-beating financials for its third quarter. Investors responded primarily to a $247 million one-time charge from its transition into PepsiCo’s (PEP) distribution infrastructure. More News from Barchart Beneath strong headline numbers, there were major red flags in the company’s financial release that warrant caution in buying Celsius stock on the post-earnings dip, even though it’s now down over 30% versus its Octobe ...

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. This article is intended to provide informational content and should not be viewed as an exhaustive an ...

Celsius Holdings Inc (NASDAQ: CELH) tanked well over 25% this morning even after the fitness and energy drinks specialist reported market-beating financials for its third quarter (Q3). What spooked in... ...

Core Insights - Celsius reported a year-over-year revenue growth of 173% to $725.1 million, slightly exceeding estimates, while adjusted earnings per share were $0.42, surpassing consensus forecasts [1] - The company experienced a negative operating margin of 11%, a significant decline from the negative 1.2% margin in the same quarter last year, raising concerns about cost controls amid rapid expansion [1] - The stock price fell 23.8% in the morning session following the earnings report, indicating investor concern over deteriorating profitability despite strong revenue growth [1] Financial Performance - Revenue increased by 173% year-over-year to $725.1 million, which was slightly above market expectations [1] - Adjusted earnings per share reached $0.42, comfortably beating consensus forecasts [1] - The operating margin turned negative at 11%, compared to a negative 1.2% margin in the same quarter last year, indicating rising operating expenses [1] Market Reaction - Celsius shares are highly volatile, with 30 moves greater than 5% over the past year, suggesting that the recent news significantly affected market perception [3] - The stock has seen a substantial price drop, which may present buying opportunities for investors looking for high-quality stocks [2] - Despite the recent decline, Celsius shares are up 70.4% since the beginning of the year, although they are still trading 28.5% below their 52-week high of $64.86 [5]

Jack Taylor / Getty Images News via Getty Images Quick Read Celsius Holdings (CELH) posted adjusted EPS of $0.42 versus $0.28 expected and revenue of $725.1M, driven by Alani Nu’s $332M in sales. Celsius expanded gross margin 530 basis points to 51.3% and generated $70.3M in free cash flow despite GAAP net loss of $61M. Celsius trades at a forward P/E of 157.68, significantly above Monster Beverage’s 42.16 multiple, pricing in sustained growth without proven profitability at scale. Some investors ...

Celsius Holdings, Inc. (NASDAQ:CELH) shares plunged on Thursday as a $246.7 million distributor termination overshadowed a top-line beat in the third quarter.CELH is among today's weakest performers. Check the analyst take hereInvestors also balk at a sharp rise in long-term debt and warnings that inventory shifts tied to the PepsiCo, Inc. (NASDAQ:PEP) transition could distort near-term results."We strengthened our long-term partnership with PepsiCo and united CELSIUS, Alani Nu, and Rockstar Energy under on ...