Financial Data and Key Metrics Changes - The company reported record full-year revenue of $2.5 billion for fiscal year 2025, reflecting a disciplined approach to growth [5][23] - For the fourth quarter, consolidated revenue was approximately $722 million, with brand Celsius delivering $1.46 billion of net sales, growing 7.5% year-over-year [23][29] - Gross profit for the fourth quarter increased by $175.1 million to $341.8 million, with a gross profit margin of 47.4%, down from 50.2% in the prior year [24][25] - Adjusted EBITDA for the fourth quarter was $134.1 million, up from $62.9 million in the prior year period, with an Adjusted EBITDA Margin of approximately 18.6% [26][28] Business Line Data and Key Metrics Changes - Alani Nu achieved record net sales of $370 million in the fourth quarter, equating to a pro forma growth of 136% compared to the prior year [20][21] - Brand Celsius experienced a 7.7% decline in underlying GAAP sales for the fourth quarter due to inventory management during the transition to Pepsi distribution [22][23] - Rockstar Energy recorded $56 million in net sales for the full year, with an additional $13 million in other income due to integration accounting treatment [19][29] Market Data and Key Metrics Changes - The combined portfolio of Celsius, Alani Nu, and Rockstar Energy represents approximately 1/5 of the U.S. energy market in tracked channels for the full year [6][11] - The company is present in approximately 10 international markets, with significant growth opportunities as global consumer trends align with U.S. trends in fitness and wellness [12][14] Company Strategy and Development Direction - The company aims to strengthen its portfolio by focusing on innovation, operational discipline, and expanding distribution, particularly through partnerships with Pepsi and retail partners [5][10] - The strategy includes a focus on brand health and durability, with an emphasis on sugar-free and flavor innovation to align with evolving consumer preferences [11][16] - The company is prioritizing international expansion with a dedicated international sales and marketing organization to support growth [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's ability to resonate with consumers and stabilize growth, particularly for Rockstar Energy [19][29] - The company anticipates that gross margins will return to a more normalized profile in the low to mid-50% range as integration progresses and operational efficiencies are realized [25][52] - Management highlighted the importance of maintaining alignment between shipments and consumer takeaway to reduce volatility in reported results [31][32] Other Important Information - The company reduced debt by approximately $200 million and repurchased $40 million of shares during the quarter, with $260 million remaining under the share repurchase program [30][29] - The company is focused on free cash flow generation and working capital discipline, ending the year with $399 million in cash and approximately $670 million in total debt [29][30] Q&A Session Summary Question: Update on shelf space gains for Celsius and Alani - Management expects shelf space gains to materialize through the end of spring, particularly in convenience channels for Alani [36][37] Question: Clarification on the $25 million net benefit from Celsius versus Alani - Management indicated that the $25 million benefit was due to effective inventory management and alignment with distributor orders, with expectations for continued growth [46][47] Question: Impact of Midwest premium on gross margins - Management acknowledged that the Midwest premium could impact margins, but they are working to align costs and improve efficiencies [55][52] Question: SKU prioritization and velocity growth - Management emphasized the importance of maximizing SKU value and building velocity through innovation and marketing strategies [61][63]