Celsius Holdings, Inc.

What they do

Celsius develops, manufactures, markets, and distributes functional energy drinks and wellness products across three brands: CELSIUS (core functional energy), Alani Nu (wellness-focused energy and nutrition), and Rockstar (established full-sugar and zero-sugar energy). The company relies on co-packers for most production and uses a direct-store-delivery (DSD) model anchored by a strategic distribution partnership with PepsiCo. Products are sold through grocery, convenience, fitness, mass-market, and e-commerce channels in the U.S., Canada, Europe, and Asia-Pacific.

Revenue drivers

• Alani Nu — Acquired in April 2025, Alani Nu generated $364.4 million in Q2 2026, benefiting from strong consumer demand, the Pepsi distribution transition, and limited-time flavor launches. It is the largest revenue contributor in the quarter.
• CELSIUS brand — The original functional energy brand contributed the remainder of North America revenue (excluding Alani Nu and Rockstar), but Q2 2026 revenue declined 11.7% year-over-year due to increased trade investment, shipment timing, club channel softness, and SKU rationalization.
• Rockstar Energy — Acquired in August 2025, Rockstar contributed $66.5 million in Q2 2026, adding full-sugar and zero-sugar offerings to serve core energy consumers.
• International — International revenue totaled $27.2 million in Q2 2026, up 10% year-over-year, driven by growth in established Nordic markets and expansion in Iberia, UK, Ireland, France, Australia, New Zealand, and Benelux.

Recent performance

For Q2 2026, Celsius Holdings reported total revenue of $817.9 million, up 11% year-over-year, with North America at $790.7 million and International at $27.2 million. Gross margin was 48.1%, down 340 bps due to commodity costs and mix. Net income was $55.3 million (down 45%), and diluted EPS was $0.14. Adjusted diluted EPS was $0.36 and adjusted EBITDA was $184.2 million. The company's portfolio contributed approximately 30% of the zero-sugar U.S. energy category's $640 million growth in the quarter.

Strategy

Management is focused on building a scaled multi-brand 'Modern Energy' portfolio, with CELSIUS, Alani Nu, and Rockstar targeting distinct consumer segments and occasions. Key priorities include improving CELSIUS brand assortment productivity and returning it to sustainable growth, completing the Alani Nu distribution transition to Pepsi, and optimizing SKU efficiency. The company also aims to leverage the Pepsi 'Captaincy' arrangement to strengthen in-store execution and category management, while expanding international distribution through Suntory partnerships.

Risks

• Pepsi concentration — Pepsi accounted for 43.2% of total net revenue in 2025 and 46.2% of receivables; it holds two board seats and can exert influence over strategic decisions, distribution, and marketing.
• Distributor dependence — Celsius relies on Pepsi for U.S./Canada DSD distribution and on Suntory for key international markets; if distributors prioritize competing brands or fail to execute, sales could be materially harmed.
• Integration execution — The acquisitions of Alani Nu and Rockstar require successful operational integration, brand positioning, and SKU rationalization, any misstep could disrupt revenue or margins.
• Macroeconomic and tariff exposure — Tariffs on aluminum and other raw materials have impacted costs; while some tariff duties were recently ruled unlawful, alternative tariffs have been imposed, creating ongoing supply chain and cost uncertainty.

Outlook

Management expects the multi-brand platform to drive durable long-term growth, noting that roughly one in five energy drinks sold in the U.S. now comes from Celsius Holdings. The company continues to optimize its portfolio and distribution, with plans to return CELSIUS to sustainable growth through improved assortment productivity and execution. International expansion and the scaled Pepsi partnership are positioned as key growth engines, though near-term macro headwinds and integration costs may pressure margins.