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 and $438.1 million from the Celsius brand [6][20] - Adjusted EBITDA reached a record of over $200 million, reflecting strong growth and operational efficiency [7][26] - Net income for Q2 was $99.6 million, compared to $79.8 million in the prior year, with adjusted diluted EPS increasing to $0.47 from $0.28 [25][26] Business Line Data and Key Metrics Changes - The ALAANI New brand experienced a 129% increase in dollar sales, making it the largest share gainer in the RTD energy category [12][13] - The Celsius brand saw a 9% year-over-year revenue increase, supported by improved velocity and expanded distribution [20] - Total points of distribution and items per store rose approximately 23%, with velocity increasing by 20% quarter-over-quarter [12] 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 [11] - International revenue grew 27% year-over-year, with strong contributions from Australia, the UK, and France [16] - The Celsius portfolio achieved a 43% household penetration, with the Celsius brand at 34% and ALAANI New at 22% [11][92] Company Strategy and Development Direction - The company focuses on delivering excellent customer service, supporting robust distribution growth, and driving innovation [7][9] - Celsius Holdings aims to achieve $50 million in run-rate cost synergies over two years post-acquisition of ALAANI New, contributing to strong pro forma profitability [7] - The company is investing in brand awareness and expanding its marketing efforts, including a national TV commercial during NFL broadcasts [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong growth trajectory, driven by intentional consumer choices towards functional, zero-sugar products [10] - The company anticipates margin pressure in the second half of the year due to higher input costs, particularly from tariffs on raw materials [7][21] - Management remains focused on profitable growth and operational discipline, with plans to continue leveraging synergies from the ALAANI New acquisition [28] Other Important Information - The Celsius brand was the number one trademark in RTD energy on Amazon during the summer Prime Day event, achieving an 18.4% share [15] - The company is building capabilities in systems, supply chain, and analytics to support growth [17] - Celsius Holdings achieved a significant retail milestone, surpassing $4 billion in retail sales over the past 52 weeks [13] Q&A Session Summary Question: Can you provide insights on gross margin performance and future expectations? - Management highlighted strong gross margins driven by higher-margin products and operational efficiencies, with expectations for continued margin strength despite potential tariff impacts [30][32][39] Question: What are the expectations for ALAANI shipments versus takeaway? - Management indicated that shipments and sell-through are closely aligned, with robust growth expected for the ALAANI brand, particularly with upcoming limited-time offers [44][46] Question: Can you discuss international expansion plans? - Management expressed excitement about international opportunities, with a focus on building teams and executing strategies in markets like the UK, Ireland, and Australia [56][58] Question: What is the revenue contribution from the Costco channel? - Management confirmed that the Costco channel is significant, with promotional activities contributing to revenue growth, and adjustments made for the timing of promotions [63][65] Question: How is the Celsius brand performing and what are the drivers of its growth? - Management noted a return to growth for the Celsius brand, driven by new marketing campaigns and product innovations, with expectations for continued momentum [69][72][92]

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]

Celsius (CELH 0.07%), the energy drink company known for its focus on fitness and health-oriented beverages, released its second-quarter 2025 results on August 7, 2025. The most significant takeaway from the release is the substantial GAAP revenue and non-GAAP earnings beat, driven by both organic growth and the first full- quarter contribution from the newly acquired Alani Nu brand. GAAP revenue was $739.3 million, far exceeding the analyst expectation of $655.7 million in GAAP revenue, while adjusted dilu ...

[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]

Core Insights - Celsius Holdings, Inc. is expected to report a significant increase in its second-quarter 2025 revenues, with a Zacks Consensus Estimate of $645.5 million, reflecting a 60.6% growth year-over-year [1] - The earnings consensus for Celsius has remained stable at 23 cents per share, indicating a decline of 17.9% compared to the previous year's figure [1] Revenue Growth Factors - The company is leveraging the growing health and wellness trends through its "LIVE FIT" campaign, which aims to attract consumers beyond traditional fitness enthusiasts [3][10] - Celsius has diversified its product offerings, including Celsius Essentials and Hydration sticks, which have enhanced consumer engagement and brand relevance [4][10] - The international revenue estimate for Celsius is projected at $27.3 million, representing over 20% growth from the previous quarter [5][10] Cost and Profitability Concerns - Rising costs, particularly in selling, general, and administrative expenses, are anticipated to impact the company's profitability in the upcoming quarter [6] - Increased investments in global sales, marketing, and organizational infrastructure, along with a challenging macroeconomic environment, are potential concerns for the company [6] Earnings Prediction - The company's earnings model suggests a likelihood of an earnings beat, supported by a positive Earnings ESP of +0.10% and a Zacks Rank of 2 (Buy) [7]

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]

Continued innovation has been a cornerstone of its long-term growth across markets. By introducing products like Celsius Essentials, CELSIUS Hydration sticks and limited-time or seasonal offerings, the company has diversified beyond traditional-canned beverages, thus enhancing consumer engagement and reinforcing brand relevance. CELH has been investing heavily in understanding the DNA of its brand—exploring how to better resonate with consumers, expand category participation and strengthen its leadership in ...

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]