Celsius Holdings, Inc. (CELH)

Celsius Holdings reported second-quarter 2026 revenue of $817.9 million on 6 August, up 10.6 percent from $739.3 million a year earlier 1.

Alani Nu, the wellness-focused brand acquired in April 2025, sold about $364.4 million, helped by larger orders from the company's largest customer as the brand moved into PepsiCo's distribution system 1.

The namesake CELSIUS brand moved the other way, down about 11.7 percent, which the company tied to heavier trade spending, shipment timing, weak club sales and a planned slowdown in new products 1.

Net income fell to $55.3 million from $99.9 million, and gross margin slipped to 48.1 percent from 51.5 percent, mainly on promotional spending and channel mix 1.

On the earnings call, chief executive John Fieldly said the CELSIUS brand should look like the second quarter again in the third quarter before returning to growth as the year closes, GuruFocus reported 7.

On 10 August the company said President and Chief Operating Officer Eric Hanson had left, and named Tyler Bohannon chief commercial officer 45.

The company's motion to dismiss the securities class action's latest complaint was fully briefed on 21 July 2026, and the quarterly report records no ruling on it 2.

Celsius was incorporated in Nevada on 26 April 2005 and introduced its first CELSIUS functional energy drink in 2005 3.

The turning point was August 2022 3. Pepsi bought about 1.5 million non-voting Series A preferred shares for $550.0 million, and the two companies signed a US distribution agreement under which Pepsi became the brand's main distributor 3.

In November 2023 the company split its common stock three for one 3.

Revenue was $1,318.0 million in 2023 and $1,355.6 million in 2024, a year of little growth, as filed 3.

Then the company changed shape 3. On 1 November 2024 it bought its long-time co-packer, Big Beverages in Huntersville, North Carolina, for cash of $75.3 million net of $1.5 million of acquired cash, which gave it in-house production 3.

On 1 April 2025 it bought the Alani Nu wellness and energy brand for $1,275.0 million in cash, 22,451,224 shares of common stock and up to $25.0 million more 3.

A $900.0 million term loan from UBS AG funded part of the cash price, so the company went from no debt to a large loan in one step 3.

On 28 August 2025 it bought the Rockstar brand in the US and Canada from Pepsi and issued 390,000 Series B preferred shares to Pepsi 3. Pepsi also became main distributor of Alani Nu and Rockstar 3.

To move Alani Nu distribution to Pepsi, the company ended contracts with former Alani Nu distributors, and Pepsi agreed to reimburse termination fees of up to $275.0 million 3.

The 2025 results show the effect 3. Revenue was $2,515.3 million, up 85.5 percent from $1,355.6 million, with about $1,001.9 million from Alani Nu and $55.6 million from Rockstar 3.

Distributor termination fees of $327.5 million cut profit, and net income attributed to common stockholders fell to $63.8 million from $107.5 million 3.

On 2 October 2025 the company cut its loan interest rates by 75 basis points, repaying the $900.0 million term loan with a new $700.0 million loan and about $197.8 million of cash 3.

Gross margin edged up to 50.4 percent in 2025 from 50.2 percent, as lower-margin Alani Nu and Rockstar sales were offset by mix and cost gains 3.

In the first half of 2026 revenue was $1,600.5 million, up 49.8 percent, as Rockstar and the Alani Nu expansion into Pepsi's network added a full six months of sales 1. CELSIUS brand revenue itself fell about 4 percent in that half 1.

CELSIUS

CELSIUS is the core functional energy brand, sold as ready-to-drink cans, on-the-go powder sticks and hydration products 2.

Brand revenue fell about 11.7 percent in the second quarter, while retail sales in tracked channels fell 2 percent and the brand kept about 9.5 percent of dollar sales in the US ready-to-drink energy category 1.

The company cut the number of products on shelves, and average points of distribution fell about 7 percent, while dollars per point of distribution rose about 16 percent from the first quarter 1.

Chief executive John Fieldly said the cut went too deep and that Fizz Free is becoming a core sub-line, GuruFocus reported 7.

Outside North America the brand's revenue was $27.2 million in the second quarter, up 10 percent, led by the Nordic countries and newer markets such as Iberia, the UK, Australia and Benelux 1.

Alani Nu

Alani Nu is a wellness-focused energy and nutrition brand with energy drinks, pre-workout formulas, protein beverages and supplements, popular with Gen Z and female consumers 2.

Revenue was about $364.4 million in the second quarter and $732.4 million in the first half 1. Retail sales in tracked channels rose 55.7 percent, for about 8.7 percent of US ready-to-drink energy dollar sales 1.

Rockstar Energy

Rockstar is an established energy brand that adds full-sugar and zero-sugar drinks to the portfolio 2.

It contributed about $66.5 million of revenue in the second quarter, while its retail sales fell 13 percent and it held about 1.9 percent of dollar sales in US ready-to-drink energy 1.

Across the three brands the company said it held about 20.1 percent of dollar sales in US ready-to-drink energy 1.

Pepsi and how the drinks reach shelves

Pepsi is both the main distributor and the biggest customer: in 2025 its purchases were 43.2 percent of revenue and 46.2 percent of receivables 3.

The US distribution agreement runs about 17 years, and either side may end it on 12 months' notice in 2041 and in later set years 3.

On 21 May 2026 an amendment moved more former Alani Nu distributor territories to Pepsi, and Pepsi reimbursed $81.1 million of related termination fees 2.

Plants and people

The company relies mainly on co-packers, contract bottlers that fill its cans for a fee per case, plus its own plant in Huntersville, North Carolina 3.

It owns no real estate in the US and leases its offices, plants and warehouses, with a global center of excellence in Dublin, Ireland 3.

At the end of 2025 it employed 1,497 people worldwide 3.

John Fieldly has been chief executive since April 2018 and chairman since August 2021, and Jarrod Langhans is chief financial officer 96.

After the 10 August changes, Tyler Bohannon leads field sales and key retailer accounts as chief commercial officer, and Tony Guilfoyle, in a new role from 1 July 2026, leads enterprise-wide transformation work 4.

Rivals

The company names Monster Beverage, Red Bull, Coca-Cola, Pepsi, Keurig Dr Pepper, Nestle, BlueTriton, Starbucks, Congo Brands and Molson Coors as direct rivals in functional energy drinks 3.

Current problems

Two shareholder class actions over statements about the Pepsi agreement were consolidated, and the court dismissed the amended complaint on 31 March 2026 with leave to amend 2.

The plaintiff filed a Second Amended Complaint on 20 April 2026, and derivative suits in federal and Nevada state courts name the company as a nominal defendant 2.

Aluminum and fuel costs are a second problem: the company said commodity inflation, mainly aluminum, offset gross margin gains in the second quarter 1.

The umbrella, in words

The company owns three brands: CELSIUS, Alani Nu and Rockstar 2.

Its subsidiaries in Exhibit 21 include Celsius, Inc., Big Beverages Contract Manufacturing in North Carolina, Alani Nutrition LLC in Kentucky and Rockstar Energy LLC in Nevada 8.

Foreign units sit in Canada, Ireland, Finland, Sweden, the UK, France, Spain, Belgium, the Netherlands, Australia, New Zealand, Hong Kong and China 8.

Ties to Pepsi: Pepsi owns all of the convertible Series A and Series B preferred stock, has two board seats, and is the company's main distributor under a contract 32.

The proxy statement lists Chau Hoi Shuen Solina Holly at 8.97 percent, Alani Holdings, LLC at 8.74 percent and Deborah DeSantis at 7.62 percent 9.

It also lists Dean DeSantis at 7.58 percent, AllianceBernstein at 6.27 percent and William Milmoe at 6.00 percent 9.

BlackRock is listed at 5.64 percent, CD Financial at 5.40 percent, and all officers and directors together at 2.33 percent 9.

The proxy lists Alani Holdings, LLC with 22,451,224 shares, the same number the company issued to the sellers of Alani Nu 39. Trey Steiger and Max Clemons are its sole members with shared voting power 9.

The company owns 100 percent of Big Beverages, its North Carolina production plant 3.

The company expects the CELSIUS brand's third-quarter performance to look like the second quarter's, with a return to growth only as the year ends, GuruFocus reported from the call 7.

Chief financial officer Jarrod Langhans said third-quarter gross margin should stay consistent with the second quarter, in the high 40s, as aluminum costs offset gains 7.

He named three paths to a better margin: integration of Alani Nu and Rockstar, a second manufacturing line in North Carolina with vertical integration, and revenue growth management through price and pack changes 7.

Management said the fourth quarter faces a tougher comparison for Alani Nu because of last year's stocking, offset by a lighter comparison for the CELSIUS brand 7.

The CEO said 2027 holds new products, including an offer for the weak 16-ounce line, and that Alani Nu will launch in select international markets in 2027 7.

Mr. Fieldly set a target of more than 15 percent of revenue from outside the US within the next five years 7.

On shelf space, the CFO said a large retailer's space was picked up in July as planned, with chances for better swaps in September and the fourth quarter 7.

For capital, the Board approved a share repurchase program of up to $300.0 million in November 2025, and $135.9 million remained at 30 June 2026 2.

On 15 July 2026 the company repaid its term loan with a new $694.75 million loan at an interest rate 0.25 percent lower 6. A further 0.25 percent cut is possible if it earns certain public credit ratings 6.

In court, the motion to dismiss the Second Amended Complaint in the securities case was fully briefed on 21 July 2026, and the quarterly report records no ruling 2.