CELH Strengthens Its Portfolio With Alani Nu: Will 2026 Keep the Pace?

Core Insights - Celsius Holdings, Inc. has significantly accelerated its growth trajectory through the acquisition and expansion of Alani Nu, which reported record revenues of $332 million in Q3 2025, driven by successful limited-time flavors and sustained organic growth [1][8] Group 1: Alani Nu Performance - Alani Nu's retail sales increased by 114% year over year and 15% sequentially, capturing a 7.2% share of the U.S. energy category, up 3.3 points from the previous year [2][8] - Seasonal flavors like Witches Brew have performed exceptionally well, enhancing the brand's cultural impact and consumer influence [2][3] - Retailers are increasingly embracing Alani Nu for its appeal among female consumers, with seasonal innovations boosting core SKU velocity [3] Group 2: Distribution and Transition - A significant transition of Alani Nu's U.S. DSD network to PepsiCo's distribution system is set to begin on December 1, 2025, which is expected to enhance ACV and create unified execution across Celsius, Alani Nu, and Rockstar [4][5] - PepsiCo is funding approximately $247 million in distributor termination fees, ensuring the transition remains cash-neutral [4] Group 3: Financial Performance and Projections - Despite anticipated challenges in Q4 2025 due to inventory returns and warehousing shifts, management remains confident in Alani Nu's ability to maintain momentum and support Celsius Holdings' growth into 2026 [5] - Celsius Holdings' stock has surged 48% year to date, contrasting with a 13.5% decline in the industry [8] - The Zacks Consensus Estimate for Celsius Holdings' earnings indicates a year-over-year rise of 80% for 2025 and 20.7% for 2026, with recent upward revisions in earnings estimates [13][14] Group 4: Valuation Metrics - Celsius Holdings trades at a forward price-to-earnings ratio of 26.15, significantly higher than the industry average of 14.70, and carries a Value Score of A [10]