Celsius(CELH) - 2025 Q2 - Quarterly Results

Financial Performance Overview 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 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] - 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] - 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] - 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] First Half 2025 Financial and Market Highlights 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] - 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] - International revenue for the first half increased 33% to $47.5 million, reflecting continued momentum in expansion markets and growth in Nordic markets[14] Retail Performance 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] - 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] - 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] Consolidated Financial Statements 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 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 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 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 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 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] - Management uses these non-GAAP measures for internal decision-making, budgeting, and assessing operating performance, believing they provide useful information to investors[35] - 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][37]