Celsius Holdings — Third Quarter 2026 Earnings Summary

Financial Performance

• Third quarter 2026 revenue reached a record $847.2 million, a 17% increase year-over-year from $725.1 million; year-to-date revenue totaled $2,447.8 million, up 36% from $1,793.6 million.
• North America revenue was $806.2 million (up 15% YoY), while International revenue was $41.0 million (up 78% YoY).
• Gross margin decreased to 46.8% in Q3 2026 from 51.3% in the prior-year period, a 450 basis point decline, driven by commodity inflation (aluminum, fuel) and a higher mix of DSD sales.
• Net income for Q3 2026 was $127.0 million compared to a loss of $(61.0) million in the prior year; year-to-date net income was $292.3 million versus $83.3 million.
• Diluted EPS was $0.39 for Q3 2026 compared to $(0.27) in the prior year; year-to-date diluted EPS was $0.86 versus $0.22.
• Adjusted Diluted EPS was $0.41 for Q3 2026 (down 2% YoY) and $1.19 year-to-date (up 8% YoY).
• Adjusted EBITDA was $198.6 million for Q3 2026 (down 3% YoY) and $578.3 million year-to-date (up 19% YoY).
• Selling, general and administrative (SG&A) expenses were $220.7 million in Q3 2026 (26.1% of revenue), compared to $205.6 million (28.4% of revenue) in the prior year.
• Cash and cash equivalents were $700.6 million as of September 30, 2026, compared to $398.9 million as of December 31, 2025.
• Long-term debt was $667.8 million as of September 30, 2026, compared to $669.9 million as of December 31, 2025.
• Deferred revenue increased to $490.0 million (current and non-current combined) as of September 30, 2026, from $428.1 million as of December 31, 2025.

Guidance and Future Outlook

• Management expects to increasingly benefit from margin expansion initiatives as they mature, including freight optimization, raw material alignment, revenue growth management, and price-pack architecture improvements.
• The company anticipates long-term margin expansion driven by the successful integration of acquired businesses into its supply chain, though near-term benefits are partially offset by commodity price inflation.
• Future growth is supported by the portfolio scale, distinct brand roles, and international momentum, with a focus on realizing benefits of the integrated platform.

Business Segments and Product Lines

• CELSIUS brand revenue decreased approximately 6% to $356.8 million in Q3 2026 due to SKU optimization, shipment timing for inventory rebalancing, and softness in the club channel.
• Alani Nu revenue increased approximately 24% to $410.1 million in Q3 2026, driven by expanded distribution in the PepsiCo DSD system, successful limited-time offerings (LTOs), and strong consumer demand.
• Rockstar Energy contributed $80.3 million in Q3 2026 revenue, driven by strong performance in Canada and order timing across the second and third quarters.
• CELSIUS brand international revenue increased 78% to $41.0 million in Q3 2026, with momentum in Nordic markets and expansion markets including Iberia, the UK, Ireland, France, Australia, New Zealand, and Benelux.
• Retail sales of the Celsius Holdings portfolio in U.S. tracked channels increased 14.7% for the 13-week period ended September 27, 2026.
• Alani Nu retail sales increased 57.9% year-over-year for the 13-week period ended September 27, 2026.
• Rockstar Energy retail sales decreased 13.2% year-over-year for the 13-week period ended September 27, 2026, due to planned portfolio SKU optimization.
• The Celsius Holdings portfolio held an approximate 20.7% dollar share in the U.S. RTD energy category for the 13-week period ended September 27, 2026.
• CELSIUS brand held a 9.1% dollar share, while Alani Nu held a 9.8% dollar share, and Rockstar Energy held a 1.8% dollar share in the U.S. RTD energy category for the same period.

Market and Competitive Landscape

• The Celsius Holdings portfolio contributed approximately 28% of the zero-sugar U.S. energy category's $773 million growth in the third quarter of 2026.
• The company operates a scalable, multi-brand Modern Energy platform comprising CELSIUS, Alani Nu, and Rockstar Energy.
• The company acquired the Rockstar Energy brand in the U.S. and Canada on August 28, 2025.

Risks and Challenges

• Gross margin pressure is attributed to continued inflation in commodity costs, specifically aluminum and fuel, and a higher mix of DSD sales resulting in higher trade investments and billbacks.
• CELSIUS brand performance faces headwinds from SKU optimization initiatives, inventory rebalancing shipment timing, and softness in the club channel.
• Forward-looking statements note risks including the effectiveness of the new brand-led organizational structure, commercial agreements with PepsiCo, integration of acquired businesses, and ongoing litigation matters.

Management Commentary and Tone

• John Fieldly, Chairman and CEO, stated the company delivered record quarterly revenue reflecting the strength of its scaled, multi-brand platform and execution of its total energy portfolio strategy.
• Management highlighted progress in improving CELSIUS brand performance and advancing operational execution across the portfolio.
• New leadership appointments include Alex Zigliara as President of CELSIUS and Rishi Daing as President of Rockstar Energy & Emerging Growth to strengthen execution.
• Management expressed confidence in the business and a focus on long-term shareholder value creation, citing share repurchases and margin improvement initiatives.

Other Key Points

• The Company repurchased approximately $44.5 million of shares during the third quarter of 2026 under its $300 million share repurchase authorization.
• Year-to-date share repurchases totaled approximately $168.8 million under the same authorization.
• The Company announced a new brand-led organizational structure and leadership appointments via a separate press release.
• A webcast to discuss the third quarter 2026 financial results was hosted on November 5, 2026.
• The company reported a $390.3 million receivable from a related party as of September 30, 2026.
• Accrued promotional allowance increased to $479.2 million as of September 30, 2026, from $307.9 million as of December 31, 2025.