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Celsius Holdings, Inc. (CELH)·Q2 2025 Earnings Summary

Executive Summary

  • Record Q2 revenue of $739.3M (+84% YoY) with Alani Nu contributing $301.2M; adjusted EBITDA more than doubled to $210.3M (+109% YoY). Gross margin held at 51.5% despite Alani’s lower-margin mix and purchase accounting step-up .
  • Results materially beat S&P Global consensus: adjusted EPS $0.47 vs $0.24*, revenue $739.3M vs $654.3M*, EBITDA $210.3M vs $121.0M*; beat magnitude was significant across all three metrics .*
  • Management flagged expected H2 margin pressure from higher input costs, while core business gross margin remains anchored around ~50% (reiterated from Q1); allowances headwind in H1 expected to turn into tailwind in H2 .
  • Strategic narrative: modern energy leadership strengthened via portfolio breadth (CELSIUS + Alani), shelf-space gains, and retail momentum; “We remain focused on disciplined execution, organizational excellence and long-term growth” .

What Went Well and What Went Wrong

  • What Went Well

    • Portfolio scale and share: U.S. RTD energy portfolio share reached 17.3% (+180 bps YoY); CELSIUS retail sales +3% YoY and Alani retail sales +129% YoY in L13W ended 6/29/25 .
    • Profitability resilience: Gross margin 51.5% (-50 bps YoY) held despite Alani mix and $21.7M inventory step-up; adjusted EBITDA margin expanded to 28.4% .
    • Management confidence and execution: “Our brands continue to lead - driving household penetration, expanding shelf space and outperforming expectations” (CEO) ; transcript emphasized integration pace and synergy targets .

  • What Went Wrong

    • SG&A intensity: SG&A rose 107% to $237.9M (32.2% of revenue) with Alani-related costs and earn-out recognition; investment in “Live. Fit. Go.” campaign to increase in H2 .
    • Mix and purchase accounting: Alani’s structurally lower margin and non-cash inventory step-up reduced consolidated gross margin by ~50 bps YoY .
    • H2 cost outlook: Management expects margin pressure from higher input costs (tariffs/aluminum) in back half; allowances headwind persisted in H1 .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$332.2 $329.3 $739.3
Gross Margin %50.2% 52.3% 51.5%
Net Income ($USD Millions)$(18.9) $44.4 $99.9
Diluted EPS ($USD)$(0.11) $0.15 $0.33
Adjusted Diluted EPS ($USD)$0.14 $0.18 $0.47
Adjusted EBITDA ($USD Millions)$62.9 $69.7 $210.3

Segment revenue

SegmentQ4 2024Q1 2025Q2 2025
North America ($USD Millions)$311.9 $306.5 $714.5
International ($USD Millions)$20.3 $22.8 $24.8

KPIs (tracked U.S. channels unless noted)

KPIQ4 2024Q1 2025Q2 2025
Portfolio retail sales YoY growth (%)+2% +2% +29%
CELSIUS brand retail sales YoY growth (%)N/A−3% +3%
Portfolio U.S. dollar share (%)N/A16.2% 17.3%
CELSIUS brand U.S. dollar share (%)10.9% 10.9% 11.0%

Comparison to S&P Global consensus (Q2 2025)

MetricConsensusActualBeat/Miss
Primary EPS ($)0.243*0.47*Bold beat
Revenue ($USD)654.3M*739.3M Bold beat
EBITDA ($USD)121.0M*210.3M Bold beat

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Core gross margin outlookFY 2025~50% base business (Q1 commentary) Expect H2 margin pressure from higher input costs; core ~50% unchanged Maintained margin target; added caution
Allowances/promotions impactFY 2025 phasingHeadwind “couple of points” in Q1–Q2; tailwind “couple of points” in Q3–Q4 Reiterated phasing; Q2 reflects headwinds Maintained
Formal revenue/EPS guidanceFY 2025Not providedNot providedN/A
Capex/OpEx directionalFY 2025Elevated marketing and organizational investment SG&A 32.2% in Q2; Live. Fit. Go. spend rising in H2 Increased spend trajectory
OI&EFY 2025No debt at Q1 end Interest expense $18.1M in Q2 post Alani financing New expense item

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Gross margin & supply chainGM improved in Q4 (50.2%); orbit model efficiencies; Q1 GM 52.3% with sourcing wins GM 51.5%; expect H2 input-cost pressure (tariffs/aluminum) Cautious into H2
Tariffs/macroQ1: cautious stance on consumer/promo, watch tariffs Q2: tariffs not significant due to FIFO; caution for H2 Watchful
Product performanceQ1: CELSIUS fizz-free launches; hydration sticks; Alani momentum Q2: CELSIUS fizz-free “Pink Lemonade” & “Dragon Fruit Lime”; Alani core SKUs velocity strong Improving
Retail shelf space & executionQ1: expected spring shelf gains, checkout cooler wins Q2: CELSIUS TDPs +17%; Amazon Prime Day RTD energy $ share leadership Positive
Regulatory/legalQ4: high legal expenses impacted SG&A No new issues disclosed in Q2 PR/8-K Stabilizing
International expansionQ4 +39%; Q1 +41% YoY; broadened markets Q2 +27% YoY; continued momentum in UK/IE/FR/AU/NZ/NL Growing steadily
Pricing/promotionsQ1: cautious pricing posture; promo optimization Q2: allowances headwind evident; optimization ongoing Balanced/cautious

Management Commentary

  • CEO perspective: “Our brands continue to lead - driving household penetration, expanding shelf space and outperforming expectations… We remain focused on disciplined execution, organizational excellence and long-term growth.”
  • Margin outlook and integration: Management expects “margin pressure associated with higher input costs” in H2 while highlighting strong Alani integration and record adjusted EBITDA .
  • Portfolio penetration: Celsius Holdings portfolio household penetration cited at 43%, with CELSIUS 34% and Alani 22% in the transcript, underscoring runway for growth .

Q&A Highlights

  • Allowances/promotions phasing: “First half of the year, you’ll see a little bit of pressure… flipping to positive couple of points in Q3 and Q4” .
  • Pricing stance: Cautious approach given consumer behavior shifting to multipacks/promos; prior price increases allow flexibility .
  • Shelf expansion and in-store presence: Gains in checkout coolers and secondary placements targeted to drive velocity .
  • Gross margin sustainability: Near-term margins in “great shape”; base business ~50% for the year; uncertainty from tariffs/inflation in H2 .
  • Cannibalization minimal: ~15% crossover between CELSIUS and Alani; portfolio expands category reach, especially among female consumers .

Estimates Context

  • Q2 2025 beats vs consensus:

    • Primary/Normalized EPS: 0.47 vs 0.24* — bold beat.
    • Revenue: $739.3M vs $654.3M* — bold beat.
    • EBITDA: $210.3M vs $121.0M* — bold beat. Values retrieved from S&P Global.*

  • Implications: Consensus likely moves higher on FY profitability given synergy execution and sustained >50% GM despite mix dilution. Watch for H2 estimate revisions reflecting input-cost pressures and SG&A investments .

Key Takeaways for Investors

  • Portfolio scale and synergy: The Alani Nu acquisition materially increased scale and profitability; integration is progressing with targeted cost synergies and strong brand velocity .
  • Profitability durability: Gross margin held above 51% with significant adjusted EBITDA expansion; monitor H2 input-cost pressures and SG&A marketing ramp .
  • Retail execution: Shelf gains (TDPs +17%) and strong tracked-channel sales support momentum through summer; secondary placements (checkout coolers) should aid velocity .
  • Estimate reset: Large beats across EPS/revenue/EBITDA vs S&P Global consensus suggest upward revisions; focus on allowance/tariff commentary for H2 modeling .*
  • Segment trajectory: North America accelerated sharply with Alani; International continues steady growth as new markets ramp .
  • Capital structure change: Q2 introduced interest expense post-deal financing; watch leverage and cash generation given SG&A spend and integration costs .
  • Trading setup: Narrative centers on durable category share gains and synergy realization vs near-term margin headwinds; catalysts include continued retail share advances and clarity on H2 input costs .

Notes:

  • Primary sources: Q2 2025 8-K and press release ; Q1 2025 press release and call ; Q4 2024 press release/8-K/call .
  • Where estimates are used, values are from S&P Global and marked with an asterisk.*