Celsius(CELH) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter 2025 revenue reached $725.1 million, a 173% increase from $265.7 million in the same period last year[2]. - North America revenue was $702.0 million, reflecting a 184% growth year-over-year, while international revenue increased by 24% to $23.1 million[2][8]. - Year-to-date revenue for 2025 reached approximately $1,793.6 million, a 75% increase from $1,023.4 million in the prior year[16]. - Revenue for Q3 2025 reached $725.1 million, a significant increase of 172% compared to $265.7 million in Q3 2024[30]. - Gross profit for Q3 2025 was $372.3 million, representing a gross margin of 51.3%, up from $122.2 million in Q3 2024[30]. - Net loss for Q3 2025 was $61.0 million, compared to a net income of $6.4 million in Q3 2024[30]. - Adjusted EBITDA surged to $205.6 million, a 4573% increase compared to $4.4 million in the same quarter last year[2]. - Non-GAAP Adjusted EBITDA for Q3 2025 was $205.6 million, with an Adjusted EBITDA Margin of 28.4%[35]. Gross Margin and Expenses - Gross margin improved to 51.3%, up from 46.0% in the prior year, driven by lower promotional spend and favorable channel mix[2][9]. - Selling, general and administrative expenses for the three months ended September 30, 2025, were $205.57 million, representing 28.4% of revenue, while non-GAAP adjusted SG&A was $190.25 million, or 26.2% of revenue[39]. Assets and Liabilities - Total current assets increased to $1.9 billion as of September 30, 2025, up from $1.3 billion at the end of 2024[26]. - Total liabilities rose to $2.3 billion as of September 30, 2025, compared to $542.5 million at the end of 2024[26]. - Cash and cash equivalents decreased to $806.0 million as of September 30, 2025, from $890.2 million at the end of 2024[26]. - Inventories increased to $282.5 million as of September 30, 2025, compared to $131.2 million at the end of 2024[26]. Brand Performance - Retail sales for the Celsius Holdings portfolio increased by 31% year-over-year, with CELSIUS brand sales growing 44%[12][6]. - Alani Nu brand achieved record sales of $332.0 million in Q3 2025, marking a 114% increase year-over-year[5]. Strategic Developments - The company strengthened its partnership with PepsiCo, integrating Alani Nu and Rockstar Energy into its distribution system[4][11]. - New leadership appointments include Rishi Daing as Chief Marketing Officer and Garrett Quigley as President - Celsius International, aimed at enhancing operational excellence[14]. Earnings Per Share - For the three months ended September 30, 2025, the GAAP diluted earnings per share was $(0.27), compared to $(0.00) for the same period in 2024, while the non-GAAP adjusted diluted earnings per share was $0.42[37]. - For the nine months ended September 30, 2025, the GAAP diluted earnings per share was $0.22, compared to $0.55 for the same period in 2024, while the non-GAAP adjusted diluted earnings per share was $1.10[37]. Tax and Adjustments - The total tax effect of adjusted items for the quarter ended September 30, 2025, was $(0.69) per diluted share, and for the nine months ended September 30, 2025, it was $(0.88) per diluted share[37]. - Acquisition and integration costs added back to non-GAAP adjusted diluted earnings per share were $0.04 for the three months and $0.15 for the nine months ended September 30, 2025[37]. - Distributor termination expenses contributed $0.65 to non-GAAP adjusted diluted earnings per share for the three months and $0.67 for the nine months ended September 30, 2025[37]. - Non-cash inventory valuation step-up from acquisitions was recognized as an adjustment to the cost of revenue, impacting the financial results for the quarters ended June 30, 2025, and September 30, 2025[37]. Non-GAAP Measures - The company believes that non-GAAP measures provide a more accurate comparison of operating results and are useful for investors to understand the impact of stock-based compensation on operating results[41]. - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, further adjusted for specific costs, providing insight into operational performance[42]. - Celsius emphasizes that non-GAAP financial measures should not be considered substitutes for GAAP measures and encourages investors to review financial statements in their entirety[44].