Monster Beverage Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales increased 16.7% year-over-year to $2.56 billion for the quarter, with a 20.9% increase to $7.45 billion for the nine-month period.
• Net income rose 8.4% to $568.4 million for the quarter and 18.3% to $1.72 billion for the nine months.
• Net income per diluted share increased 7.8% to $0.29 for the quarter and 17.6% to $0.87 for the nine months.
• Non-GAAP adjusted net income per diluted share increased 8.5% to $0.30 for the quarter and 15.3% to $0.89 for the nine months.
• Gross profit margin decreased to 54.7% from 55.7% in the prior year quarter, primarily due to increased aluminum can costs, freight-in costs, and sales mix, partially offset by pricing actions.
• Operating income increased 6.4% to $718.7 million for the quarter and 16.6% to $2.19 billion for the nine months.
• Operating expenses increased 24.2% to $682.0 million for the quarter, driven by higher distribution, selling, and general administrative costs.
• Distribution expenses rose to $116.3 million (4.5% of net sales) from $82.6 million (3.8%) due to increased freight and fuel expenses.
• Selling expenses increased to $260.1 million (10.1% of net sales) from $214.6 million (9.8%) due to higher social, digital, media, and sponsorship costs.
• General and administrative expenses increased to $305.7 million (11.9% of net sales) from $251.9 million (11.5%), including a $19.9 million property impairment charge and $14.7 million in digital transformation expenses.
• The effective tax rate was 24.6% for the quarter compared to 23.9% in the prior year period.
• Foreign currency exchange rates had a favorable impact of $8.1 million on net sales for the quarter.

Guidance and Future Outlook:

• No specific forward-looking financial guidance or revenue targets for future periods were provided in the press release.
• Management highlighted continued commitment to innovation and new product launches to support growth alongside core offerings.

Business Segments and Product Lines:

• Monster Energy® Drinks segment net sales increased 17.1% to $2.37 billion for the quarter.
• Strategic Brands segment net sales increased 19.8% to $156.4 million for the quarter.
• Alcohol Brands segment net sales decreased 13.6% to $28.5 million for the quarter.
• Other segment net sales decreased 29.5% to $4.8 million for the quarter.
• Net sales to customers outside the United States increased 28.1% to $1.20 billion, representing 47% of total net sales.
• LATAM net sales increased 48.8% in dollars, primarily driven by operations in Brazil.
• New product launches included additions to Monster Energy®, Java Monster®, Mother®, and FLRT™ product lines.
• Energy drink case sales (in 192-ounce case equivalents) reached 304,902 thousand for the quarter.

Market and Competitive Landscape:

• International markets represented a growing portion of sales, with non-US sales accounting for 47% of total net sales compared to 43% in the prior year.
• The company continues to invest in marketing across social, digital, and media platforms to reach a broader consumer base and increase household penetration.

Risks and Challenges:

• Gross margin pressure from increased aluminum can costs, freight, and fuel expenses.
• Risks related to consumer preferences, competitive pricing, and the ability to adapt to the changing retail landscape and e-commerce growth.
• Potential regulatory impacts regarding sugar-sweetened beverages, specific ingredients, and labeling restrictions.
• Dependence on the relationship with The Coca-Cola Company and bottler/distributor decisions.
• Supply chain disruptions, raw material availability, and geopolitical conflicts affecting costs and demand.

Management Commentary and Tone:

• CEO Hilton H. Schlosberg described the quarter as delivering "strong top-line performance" with record net sales.
• Management expressed confidence in the company's ability to sustain growth in domestic and international markets.
• The tone emphasized ongoing innovation through new product launches and strategic marketing investments.

Other Key Points:

• The Company purchased approximately 2.3 million shares of common stock for approximately $100.0 million during the quarter at an average price of $43.87 per share.
• Approximately $800.0 million remained available for share repurchases as of November 4, 2026.
• A two-for-one stock split (100% stock dividend) was effected on August 10, 2026, with split-adjusted trading beginning August 11, 2026.
• A $19.9 million property and equipment impairment charge was recognized related to land and real property in Kona, Hawaii, which was reclassified as held-for-sale.
• The Company hosted an investor conference call on November 5, 2026, to discuss results.