TLDR
- Celsius Holdings reported Q3 adjusted earnings of $0.42 per share, beating analyst expectations of $0.28, with revenue of $725.1 million surpassing estimates of $715.7 million
- The stock dropped 11.5% premarket despite the earnings beat, as the core CELSIUS brand showed only 13% retail sales growth and lost 0.5 points of market share
- Recently acquired Alani Nu brand drove much of the growth with 114% retail sales increase, while Rockstar Energy declined 9%
- The company recorded $246.7 million in distributor termination costs for transferring Alani Nu distribution to PepsiCo, though PepsiCo will fund these fees
- Gross margin improved to 51.3% from 46.0% year-over-year, driven by lower promotional spending and scale benefits
Celsius Holdings reported third-quarter earnings that topped Wall Street expectations, but investors weren’t impressed. The stock fell 11.5% in premarket trading on November 6, 2025.
The company posted adjusted earnings of $0.42 per share. Analysts had expected $0.28.
Revenue came in at $725.1 million, beating the $715.7 million estimate. That’s a 173% jump from the $265.7 million reported in the same quarter last year.
Celsius Holdings, Inc., CELH
But here’s the catch. Most of that growth came from recent acquisitions, not the core CELSIUS brand.
The CELSIUS brand itself only grew retail sales by 13% year-over-year. Its market share in the U.S. ready-to-drink energy category actually fell 0.5 percentage points to 11.2%.
That’s not the kind of performance investors were hoping for from the company’s flagship product.
Acquisitions Carrying the Load
Alani Nu, which Celsius acquired in April, was the real star. The brand’s retail sales jumped 114% year-over-year.
Rockstar Energy, picked up in August, went the other direction. Sales dropped 9%.
The total portfolio grew retail sales by 31% year-over-year. But without Alani Nu’s performance, the numbers would look much different.
Chairman and CEO John Fieldly tried to put a positive spin on things. “The third quarter marked another important step in Celsius Holdings’ transformation in a year full of growth catalysts,” he said.
The company did strengthen its partnership with PepsiCo during the quarter. All three brands now operate under one total energy portfolio.
Financial Bright Spots
Not everything was bad news. Gross margin improved to 51.3% from 46.0% in the year-ago quarter.
The company spent less on promotions. Product mix shifted favorably, and scale benefits kicked in.
International revenue grew 24% to $23.1 million. That’s a market where Celsius still has room to expand.
The company recorded $246.7 million in distributor termination costs. These came from moving Alani Nu’s distribution to the PepsiCo system.
PepsiCo agreed to fund these fees. The net cash position remains neutral.
Celsius also brought in new leadership. Rishi Daing joined as Chief Marketing Officer, along with several other executives focused on operational excellence.
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