Celsius(US:CELH)2025-11-07 14:21Revenue 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]