Monster Beverage Corporation — 2026 Second Quarter Earnings Summary

Financial Performance

• Net sales for the second quarter of 2026 increased 20.2% year-over-year to $2.54 billion ($2,537.5 million), compared to $2.11 billion in the same period in 2025.
• Net sales on a foreign currency adjusted basis (non-GAAP) increased 17.9% for the second quarter.
• Net income for the second quarter increased 19.6% to $584.5 million, compared to $488.8 million in 2025.
• Adjusted net income (non-GAAP) increased 15.7% to $590.5 million, compared to $510.4 million in 2025.
• Net income per diluted share increased 19.0% to $0.59, compared to $0.50 in 2025.
• Adjusted net income per diluted share (non-GAAP) increased 15.2% to $0.60, compared to $0.52 in 2025.
• Gross profit as a percentage of net sales was 55.9% in the second quarter of 2026, compared to 55.7% in 2025.
• Adjusted gross profit (non-GAAP), excluding the Alcohol Brands segment, as a percentage of net sales was 56.3% in the second quarter of 2026, compared to 56.2% in 2025.
• Operating income increased 17.2% to $740.4 million in the second quarter of 2026, compared to $631.6 million in 2025.
• Adjusted operating income (non-GAAP) increased 13.3% to $748.1 million in the second quarter of 2026, compared to $660.1 million in 2025.
• The effective tax rate was 23.9% for the second quarter of 2026, compared to 24.4% in 2025.
• For the six months ended June 30, 2026, net sales increased 23.3% to $4.89 billion, compared to $3.97 billion in the prior year period.
• Net income for the six months ended June 30, 2026, increased 23.9% to $1.15 billion, compared to $931.8 million in the prior year period.
• Net income per diluted share for the six-month period was $1.17, compared to $0.95 in the prior year period.
• Cash and cash equivalents were $2.19 billion as of June 30, 2026, compared to $2.09 billion as of December 31, 2025.
• Total assets were $11.38 billion as of June 30, 2026, compared to $9.99 billion as of December 31, 2025.
• Deferred revenue was $151.3 million as of June 30, 2026, compared to $159.9 million as of December 31, 2025.

Business Segments and Product Lines

• The Monster Energy® Drinks segment net sales increased 21.6% to $2.36 billion for the second quarter of 2026, compared to $1.94 billion in 2025.
• Net sales on a foreign currency adjusted basis for the Monster Energy® Drinks segment increased 19.3% in the second quarter of 2026.
• The Strategic Brands segment net sales increased 10.6% to $143.7 million for the second quarter of 2026, compared to $129.9 million in 2025.
• Net sales on a foreign currency adjusted basis for the Strategic Brands segment increased 8.1% in the second quarter of 2026.
• The Alcohol Brands segment net sales decreased 15.2% to $32.2 million for the second quarter of 2026, compared to $38.0 million in 2025.
• The Other segment net sales decreased 15.3% to $5.4 million for the second quarter of 2026, compared to $6.4 million in 2025.
• Net sales to customers outside the United States increased 34.6% to $1.16 billion for the second quarter of 2026, representing 46% of total net sales, compared to 41% in 2025.
• Net sales to customers outside the United States on a foreign currency adjusted basis increased 29.0% in the second quarter of 2026.
• Energy drink case sales (in 192-ounce case equivalents) were 304.9 million for the second quarter of 2026, compared to 249.3 million in 2025.
• Average net sales per case were $8.20 for the second quarter of 2026, compared to $8.29 in 2025.

Management Commentary and Tone

• CEO Hilton H. Schlosberg described the second quarter as "strong," citing a 20.2% increase in net sales and a 19.0% increase in net income per diluted share.
• Management highlighted that international operations continued to contribute meaningfully to revenue growth.
• Management noted the energy drink category is attracting new consumers, expanding usage occasions, and increasing household penetration.
• The 2026 marketing strategy includes increased investments in social, digital, and media platforms to support existing products and new launches.
• Management emphasized a continued focus on the growth of core offerings and the introduction of product innovations as central to the long-term growth strategy.

Other Key Points

• No shares of common stock were repurchased during the second quarter of 2026.
• As of August 5, 2026, approximately $900.0 million remained available for repurchase under previously authorized programs.
• The Board of Directors approved a two-for-one stock split of common stock to be effected as a 100% stock dividend.
• The stock dividend was distributed after the close of trading on August 10, 2026, with split-adjusted trading beginning on August 11, 2026.
• An investor conference call was hosted on August 6, 2026, at 2:00 p.m. Pacific Time.
• Distribution expenses for the second quarter were $118.8 million (4.7% of net sales), compared to $82.0 million (3.9% of net sales) in 2025.
• Selling expenses for the second quarter were $269.2 million (10.6% of net sales), compared to $196.9 million (9.3% of net sales) in 2025, driven by increased marketing expenses.
• General and administrative expenses for the second quarter were $291.2 million (11.5% of net sales), compared to $265.9 million (12.6% of net sales) in 2025.
• Stock-based compensation was $35.7 million for the second quarter of 2026, compared to $33.2 million in 2025.
• Operating expenses for the second quarter were $679.2 million, compared to $544.8 million in 2025.
• Adjusted operating expenses (non-GAAP) for the second quarter were $662.7 million, compared to $505.6 million in 2025.
• Net changes in foreign currency exchange rates had a favorable impact of $48.5 million on net sales for the second quarter of 2026.