Company Overview - Celsius Holdings Inc. (CELH) currently holds a Momentum Style Score of B, indicating a positive momentum outlook [3] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [4] Price Performance - CELH shares have increased by 10.3% over the past week, while the Zacks Food - Miscellaneous industry remained flat during the same period [6] - Over the past month, CELH's price has risen by 40.33%, significantly outperforming the industry's 0.19% [6] - In the last quarter, CELH shares have surged by 69.53%, and over the past year, they have gained 47.26%, compared to the S&P 500's increases of 8.58% and 17.39%, respectively [7] Trading Volume - The average 20-day trading volume for CELH is 7,425,680 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, 10 earnings estimates for CELH have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $0.81 to $1.09 [10] - For the next fiscal year, 12 estimates have also moved upwards without any downward revisions [10] Conclusion - Considering the positive price momentum, strong earnings outlook, and favorable trading volume, CELH is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a compelling investment option [12]

Core Insights - Celsius Holdings, Inc. (CELH) is focusing on product innovation as a key driver for long-term growth, aligning its offerings with consumer preferences for healthier, sugar-free, and functional beverages [1][10] - The "LIVE FIT" campaign emphasizes health and daily functionality, enhancing consumer engagement and solidifying CELH's position in the growing sugar-free beverage market [2][10] - CELH has strengthened its leadership in the sugar-free energy drink category through its Celsius and Alani brands, introducing diverse products like Celsius Essentials and seasonal offerings [3][5] Product Innovation - The company integrates innovation into its marketing strategy, launching new products such as Fizz-Free flavors, which leverage influencer collaborations and targeted social media campaigns to enhance brand engagement [4][5] - Alani Nu has shown strong performance with innovative flavors like Sherbet Swirl and Cotton Candy, contributing to incremental sales [5] - CELH's robust innovation pipeline and international expansion initiatives position it for continued success in the beverage market [5] Competitive Landscape - The health and wellness trend has intensified competition from major players like PepsiCo, Coca-Cola, and Monster Beverage, all of which are enhancing their sugar-free offerings [6] - PepsiCo is reshaping its product portfolio to focus on functionality and health, with successful products like Pepsi Zero Sugar and Gatorade Zero [7] - Coca-Cola is evolving into a total beverage company, increasing its sugar-free options and reformulating existing products to meet changing consumer tastes [8] - Monster Beverage continues to innovate with affordable energy brands and new flavors, driving growth through a strong product pipeline [9]

After three straight disappointing quarters, the energy beverage company finally showed investors what they wanted to see. On Aug. 7, energy beverage producer Celsius Holdings (CELH 1.11%) reported quarterly financial results, and the stock is officially on the move. As of this writing, shares are up more than 29% since its report and are hitting fresh 52-week highs above $55 per share. For perspective, it had been down to $21 per share earlier in 2025. Zooming out further, Celsius was once a stock market d ...

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The company's Alani Nu acquisition is paying off. In May, I predicted that a turnaround could be near for Celsius (CELH 3.93%), and the company delivered when it recently reported its second-quarter results. The stock shot higher and has now nearly doubled on the year, as of this writing. The question now, though, is: Can the stock keep its momentum going, or is it too late to buy the stock? Let's take a closer look at the company's recent results and prospects to find out. Alani Nu powers results The bigge ...

Core Viewpoint - Celsius Holdings Inc's stock has reached a new 52-week high following strong second-quarter financial results, prompting analysts to raise their price targets and express increased confidence in the company's growth potential [1][4]. Financial Performance - The company reported second-quarter adjusted earnings of 47 cents per share, significantly exceeding the analyst consensus estimate of 23 cents [2]. - Quarterly revenue increased by 84% year-over-year to $739.26 million, surpassing market expectations [2]. - Revenue from the newly acquired Alani Nu brand contributed $301.2 million, while the core Celsius brand achieved a 9% year-over-year revenue growth [3]. - Adjusted EBITDA more than doubled from the previous year to $210.3 million [3]. Analyst Sentiment - Following the earnings report, several firms, including Truist Securities, Maxim Group, Citigroup, and UBS, raised their price targets while maintaining Buy ratings [4]. - Truist increased its target from $55 to $65, and Morgan Stanley raised its target from $42 to $56 [4]. Stock Performance Metrics - Celsius Holdings has a Momentum score of 94.56, a Growth score of 86.64, and a Quality score of 86.88, indicating strong price momentum, robust business growth, and sound financial health [5]. - However, the Value score is low at 12.18, suggesting the stock is trading at a premium valuation compared to peers [6]. - As of the latest data, Celsius shares closed at $54, with a 52-week high of $54.49 and a low of $21.10 [6].

Core Viewpoint - The performance of Celsius Holdings Inc. in international markets is crucial for assessing its financial resilience and growth prospects, especially given its significant global presence [1][2][3]. Group 1: Financial Performance - The total revenue for Celsius in the quarter ended June 2025 was $739.26 million, reflecting an increase of 83.9% compared to the same quarter last year [4]. - Revenue from Europe accounted for 2.5% of total revenue, amounting to $18.3 million, which was a decrease of 13.96% from the expected $21.27 million [5]. - Asia-Pacific contributed $4.38 million, or 0.6% of total revenue, exceeding the consensus estimate by 182.65% [6]. - Other International markets generated $2.12 million, representing 0.3% of total revenue, which was below the expected $2.61 million by 18.7% [7]. Group 2: Revenue Projections - Analysts project that Celsius will achieve revenues of $641.63 million for the ongoing fiscal quarter, an increase of 141.4% from the previous year, with contributions from Europe, Asia-Pacific, and Other International expected to be $20.71 million, $1.59 million, and $2.23 million, respectively [8]. - For the full year, total revenue is anticipated to reach $2.21 billion, up 62.8% from the previous year, with Europe, Asia-Pacific, and Other International expected to contribute $79.29 million, $8.83 million, and $9.34 million, respectively [9]. Group 3: Market Dynamics - The reliance on international markets presents both opportunities and challenges for Celsius, necessitating close monitoring of international revenue trends to forecast future performance [10]. - The interconnectedness of global economies and the complexities of international operations, including currency fluctuations and geopolitical risks, are critical factors influencing the company's financial outcomes [3][10]. Group 4: Stock Performance - Over the past month, Celsius' stock price increased by 15.2%, outperforming the Zacks S&P 500 composite, which rose by 2.7% [13]. - In the last three months, the stock price surged by 31.9%, while the S&P 500 index increased by 13.2% [13].

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The acquisition of Alani Nu on April 1, 2025, significantly expanded the company's total assets to **$3.8 billion**, fueled by new debt and stock, driving an **83.9% revenue increase** to **$739.3 million** in Q2 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3.795B** | **$1.767B** | | Cash and cash equivalents | $615.2M | $890.2M | | Goodwill | $802.2M | $71.6M | | Brands-net | $1.104B | $907 | | **Total Liabilities** | **$1.704B** | **$542.5M** | | Long-term debt | $862.9M | $0 | | **Total Stockholders' Equity** | **$1.267B** | **$399.9M** | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $739.3M | $402.0M | $1,068.5M | $757.7M | | Gross Profit | $380.9M | $209.1M | $553.2M | $391.3M | | Income from operations | $143.0M | $94.2M | $195.0M | $177.4M | | Net income | $99.9M | $79.8M | $144.3M | $157.6M | | Diluted EPS | $0.33 | $0.28 | $0.48 | $0.55 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $147.1M | $174.3M | | Net cash used in investing activities | $-1.277B | $-13.7M | | Net cash provided by (used in) financing activities | $852.3M | $-12.6M | | **Net (decrease) increase in cash** | **$-275.0M** | **$147.2M** | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes reveal the **$2.05 billion Alani Nu acquisition**, funded by a **$900 million term loan** and stock, significantly increased goodwill and intangibles, while highlighting North American revenue dominance and a **$56.9 million legal liability** - On April 1, 2025, the Company completed the acquisition of Alani Nutrition LLC ("Alani Nu") for a total consideration of **$1.275 billion** in cash, **22.45 million shares** of common stock, and up to **$25 million** in contingent cash consideration[32](index=32&type=chunk) - To fund the Alani Nu acquisition, the company entered into a credit agreement for a **$900 million term loan facility**, which was fully drawn on the closing date, and a **$100 million revolving credit facility**[33](index=33&type=chunk)[105](index=105&type=chunk) - The company has a long-term distribution agreement with PepsiCo Inc. ("Pepsi"), making Pepsi the primary distributor for Celsius products in the U.S. and Canada; Pepsi is also a significant related party, holding Series A Convertible Preferred Stock[34](index=34&type=chunk)[35](index=35&type=chunk)[77](index=77&type=chunk) Revenue by Geography (in thousands) | Region | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | North America | $714.5M | $382.4M | $1,021.0M | $721.9M | | Europe | $18.3M | $16.7M | $37.0M | $30.8M | | Asia-Pacific | $4.4M | $860 | $6.6M | $1.5M | | Other | $2.1M | $2.1M | $4.0M | $3.5M | | **Total Revenue** | **$739.3M** | **$402.0M** | **$1,068.5M** | **$757.7M** | - The Alani Nu acquisition resulted in the recognition of **$728.9 million** in goodwill and **$1.215 billion** in intangible assets, primarily consisting of the Alani Nu brand (**$1.104 billion**, indefinite life) and customer relationships (**$111 million**, 5-year life)[90](index=90&type=chunk)[95](index=95&type=chunk) - For the period from April 1, 2025, to June 30, 2025, Alani Nu's operations generated approximately **$301.2 million** of revenue and **$93.6 million** of net income before tax[96](index=96&type=chunk) - Regarding the Strong Arm Productions (Flo Rida) lawsuit, the company has accrued a liability of **$56.9 million**, representing the low end of a possible loss range of **$56.9 million** to **$99.3 million**, following a court decision to retrial on the damages amount[178](index=178&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 2025's **83.9% revenue growth** to the Alani Nu acquisition, which also impacted gross margin and significantly increased SG&A, while liquidity remains strong despite acquisition-related cash usage and new debt [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Q2 2025 revenue surged **83.9%** to **$739.3 million**, primarily from North America and Alani Nu, though gross margin slightly declined and SG&A expenses more than doubled due to acquisition costs and marketing Q2 2025 vs Q2 2024 Performance Summary | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $739.3M | $402.0M | +83.9% | | Gross Profit | $380.9M | $209.1M | +82.1% | | Gross Margin | 51.5% | 52.0% | -0.5 p.p. | | SG&A Expenses | $237.9M | $114.9M | +107.1% | | Net Income (to Common Stockholders) | $85.7M | $66.7M | +28.5% | - The increase in North American revenue for Q2 2025 was primarily driven by the acquisition of Alani Nu, which contributed approximately **$301.2 million** of revenue[198](index=198&type=chunk) - The increase in SG&A expenses for Q2 2025 was driven by the inclusion of Alani Nu's operations, **$16.0 million** in acquisition-related costs, a **$13.8 million** remeasurement of contingent consideration, and increased marketing for the 'Live. Fit. Go.' campaign[203](index=203&type=chunk) - For the six months ended June 30, 2025, net income attributable to common stockholders decreased to **$119.9 million** from **$131.5 million** in the prior year, primarily due to higher SG&A, acquisition costs, interest expense, and other charges related to the Alani Nu acquisition, which offset revenue growth[218](index=218&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company maintained **$615.2 million** in cash, with the **$1.26 billion Alani Nu acquisition** primarily funded by a new **$900 million term loan**, ensuring sufficient liquidity for future operations - As of June 30, 2025, the company had cash and cash equivalents of approximately **$615.2 million** and net working capital of **$731.4 million**[219](index=219&type=chunk) - Cash used in investing activities increased by **$1.26 billion** year-over-year, primarily due to the cash paid for the Alani Nu acquisition[225](index=225&type=chunk) - Cash provided by financing activities was **$852.3 million** for the first six months of 2025, mainly from the proceeds of the **$900 million term loan** used to fund the Alani Nu acquisition[223](index=223&type=chunk)[226](index=226&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces commodity price risk for raw materials and significant interest rate risk from its new **$900 million variable-rate term loan**, with a **1% rate increase** impacting annual debt service by approximately **$9.1 million** - The company faces commodity price risk from fluctuations in the costs of raw materials, including aluminum cans and sweeteners[232](index=232&type=chunk) - The company is subject to interest rate risk from its new **$900.0 million variable-rate term loan**; a hypothetical **1% increase** in the interest rate would increase annual debt service costs by approximately **$9.1 million**[233](index=233&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls as of June 30, 2025, with the recently acquired Alani Nu excluded from internal control over financial reporting assessment per SEC guidance - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025[236](index=236&type=chunk) - Following SEC guidance for recent acquisitions, management has excluded Alani Nu from its assessment of internal control over financial reporting for the period; Alani Nu represented approximately **15%** of consolidated total assets and **28%** of consolidated revenue for the six months ended June 30, 2025[237](index=237&type=chunk)[238](index=238&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings, detailed in Note 15, include ongoing securities class actions, derivative actions, and a **$56.9 million accrued liability** for the Strong Arm Productions lawsuit - Information regarding legal proceedings is detailed in Note 15, "Commitments and Contingencies," within the financial statements[241](index=241&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors from those set forth in the 2024 Annual Report - There have been no material changes to the company's risk factors from those set forth in the 2024 Annual Report[242](index=242&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased **24,894 common shares** at an average price of approximately **$35.88 per share** to satisfy employee tax withholding obligations, not as part of a public plan Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 4,391 | $37.24 | | May 2025 | 20,503 | $35.65 | | June 2025 | 0 | N/A | | **Total** | **24,894** | **~ $35.88** | [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) During the quarter ended June 30, 2025, no officers or directors adopted or terminated any Rule 10b5-1 trading arrangements - During the quarter ended June 30, 2025, no officers or directors adopted or terminated any Rule 10b5-1 trading arrangements[246](index=246&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q, including the Credit Agreement related to the Alani Nu acquisition and the 2025 Omnibus Incentive Compensation Plan - Lists exhibits filed with the report, including the Credit Agreement dated April 1, 2025, and the 2025 Omnibus Incentive Compensation Plan[248](index=248&type=chunk)

Core Insights - Celsius Holdings, Inc. reported strong second-quarter 2025 results, with both revenue and earnings exceeding expectations and showing year-over-year growth [1][10] Financial Performance - Adjusted earnings per share (EPS) reached 47 cents, surpassing the Zacks Consensus Estimate of 23 cents and increasing from 28 cents in the prior year [1][10] - Revenue surged 84% year-over-year to $739.3 million, exceeding the consensus estimate of $645 million, driven by significant growth in North America and international markets [3][10] - North American revenues increased 87% year-over-year to $714.5 million, while international revenues rose 27% to $24.8 million [3] Profitability Metrics - Gross profit rose 82.2% year-over-year to $380.9 million, although gross margin slightly decreased by 50 basis points to 51.5% [4] - Selling, general, and administrative expenses climbed 107% year-over-year to $237.9 million, primarily due to the addition of the Alani Nu brand and associated acquisition costs [4] Brand Performance - Retail sales for the CELH portfolio in the U.S. increased 29% year-over-year, reflecting strong consumer demand for sugar-free, functional beverages [5] - Celsius held a 17.3% dollar share in the U.S. ready-to-drink (RTD) energy category, marking a 1.8-point increase year-over-year [6] - The CELSIUS brand's retail sales rose 3% year-over-year, while Alani Nu brand retail sales surged 129% year-over-year, indicating strong market resonance [7][8] Market Position - Celsius' past 52-week RTD energy retail sales exceeded $4 billion, surpassing the combined sales of the next eight RTD energy drink brands [6] - The company ended the quarter with cash and cash equivalents of $615.2 million, long-term debt of $862.9 million, and shareholders' equity of $1.3 billion [11]

Financial Data and Key Metrics Changes - Celsius Holdings reported revenue of $739.3 million for Q2 2025, an 84% year-over-year increase, primarily driven by $301.2 million from the ALAANI New brand [7][21][22] - Adjusted EBITDA reached a record of over $200 million in 2025, with adjusted diluted EPS increasing to $0.47 per share compared to $0.28 in the prior year [9][27] - Gross margin for the quarter was 51.5%, down 50 basis points year-over-year, influenced by ALAANI New's lower margin profile [8][22] Business Line Data and Key Metrics Changes - The Celsius brand contributed $438.1 million in revenue, reflecting a 9% year-over-year increase supported by improved velocity and expanded distribution [22] - ALAANI New brand saw dollar sales rise by 129% year-over-year, achieving a 6.3% market share in the RTD energy category [14][27] - The Celsius portfolio achieved a 43% household penetration, with the Celsius brand at 34% and ALAANI New at 22% [12][94] Market Data and Key Metrics Changes - The RTD energy category grew 15.2% year-over-year in Q2, with Celsius Holdings outpacing the category with a 28.9% increase in dollar sales [12][14] - International revenue grew 27% year-over-year, with strong contributions from Australia, the UK, and France [18][60] - The Celsius brand was the number one trademark in RTD energy on Amazon during the summer Prime Day event, achieving an 18.4% share [17] Company Strategy and Development Direction - The company is focused on delivering excellent customer service, supporting robust distribution growth, and innovation, with a goal of achieving $50 million in run-rate cost synergies over two years post-acquisition of ALAANI New [9][10] - The marketing strategy includes the launch of the "Live Fit Go" campaign, aimed at connecting with consumers and increasing brand loyalty [20][76] - The company plans to expand internationally while focusing on existing markets, with a strong emphasis on health and wellness trends [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong growth trajectory of both brands, driven by consumer trends towards functional, zero-sugar beverages [11][60] - There are expectations of margin pressure in the second half of the year due to higher input costs, particularly from tariffs on raw materials [9][40] - The management team remains committed to operational discipline and profitable growth, with a focus on leveraging synergies from the ALAANI New acquisition [30][42] Other Important Information - The company achieved a significant retail milestone, surpassing $4 billion in retail sales over the past 52 weeks [14] - The Celsius brand's foodservice volume grew 9.8% year-over-year, representing approximately 12% of North America Celsius brand sales to PepsiCo [18] - The company ended the quarter with $615 million in cash, providing flexibility for innovation and international expansion [29] Q&A Session Summary Question: Can you provide insights on gross margin performance and future expectations? - Management highlighted strong performance in Q2, with gross margins benefiting from higher-margin products and operational efficiencies, but cautioned about potential impacts from rising raw material costs in the future [32][34][40] Question: What are the expectations for ALAANI shipments versus takeaway? - Management indicated that shipments and sell-through are closely aligned, with ongoing monitoring of inventory levels and consumer demand [45][47] Question: Can you discuss international expansion plans for the second half of the year? - Management expressed excitement about international opportunities, particularly in markets like the UK and Australia, and emphasized the importance of building local teams for execution [57][60] Question: What was the revenue contribution from the Costco channel? - Management confirmed that the club channel, including Costco, is a significant part of the business, with promotional activities contributing to revenue growth [65][68] Question: What are the drivers behind the acceleration of the Celsius brand? - Management noted that improved marketing strategies, innovative product launches, and a focus on consumer engagement have contributed to the brand's return to growth [72][76]