Core Insights - Celsius Holdings, Inc. reported strong second-quarter 2025 results, with both revenue and earnings exceeding expectations and showing year-over-year growth [1][10] Financial Performance - Adjusted earnings per share (EPS) reached 47 cents, surpassing the Zacks Consensus Estimate of 23 cents and increasing from 28 cents in the prior year [1][10] - Revenue surged 84% year-over-year to $739.3 million, exceeding the consensus estimate of $645 million, driven by significant growth in North America and international markets [3][10] - North American revenues increased 87% year-over-year to $714.5 million, while international revenues rose 27% to $24.8 million [3] Profitability Metrics - Gross profit rose 82.2% year-over-year to $380.9 million, although gross margin slightly decreased by 50 basis points to 51.5% [4] - Selling, general, and administrative expenses climbed 107% year-over-year to $237.9 million, primarily due to the addition of the Alani Nu brand and associated acquisition costs [4] Brand Performance - Retail sales for the CELH portfolio in the U.S. increased 29% year-over-year, reflecting strong consumer demand for sugar-free, functional beverages [5] - Celsius held a 17.3% dollar share in the U.S. ready-to-drink (RTD) energy category, marking a 1.8-point increase year-over-year [6] - The CELSIUS brand's retail sales rose 3% year-over-year, while Alani Nu brand retail sales surged 129% year-over-year, indicating strong market resonance [7][8] Market Position - Celsius' past 52-week RTD energy retail sales exceeded $4 billion, surpassing the combined sales of the next eight RTD energy drink brands [6] - The company ended the quarter with cash and cash equivalents of $615.2 million, long-term debt of $862.9 million, and shareholders' equity of $1.3 billion [11]

Core Insights - Celsius Holdings (CELH) is positioning itself as a leader in the modern energy category by expanding its product portfolio beyond traditional energy drinks, including the acquisition of Alani Nu and the launch of CELSIUS HYDRATION [1][8] - The company is experiencing strong international growth of 41% and holds a 16.2% dollar share in the U.S. energy drink category [3][8] - CELH's stock has surged 75% year to date, significantly outperforming the industry average [7] Product Expansion - The acquisition of Alani Nu, which appeals to female consumers, complements CELH's core offerings and broadens its consumer base [1] - CELH has entered the hydration market with CELSIUS HYDRATION, targeting the $1.4 billion hydration powder market [1] - New flavors and multipack expansions have contributed to over 50% of sales in certain channels [2] Market Position and Competitors - CELH's competitors include PepsiCo (PEP) and The Coca-Cola Company (KO), both of which are transforming their portfolios to meet consumer demands for health and functionality [4][5][6] - PepsiCo is focusing on zero-sugar variants and wellness-driven products, while Coca-Cola is prioritizing bold product launches and integrating advanced digital marketing [5][6] Financial Performance - Despite a 7% revenue decline in Q1 2025, CELH remains optimistic about future growth due to a strong prior-year comparison and ongoing product innovation [3][8] - The company has a forward price-to-earnings ratio of 46.19X, significantly higher than the industry average of 15.91X [9] - The Zacks Consensus Estimate indicates year-over-year EPS growth of 17.1% for 2025 and 41.6% for 2026, with stable estimates over the past week [10]