Celsius Holdings, Inc. Q4 2025 Earnings Call Summary

Achieved record full-year revenue of $2.5 billion by transitioning from a single-brand focus to a diversified modern energy platform including CELSIUS, Alani Nu, and Rockstar Energy.
The portfolio now commands approximately 1/5 of the U.S. energy market in tracked channels, validated by the presence of two billion-dollar brands.
Performance attribution for the CELSIUS brand was driven by a 7.5% year-over-year revenue increase, supported by a disciplined focus on SKU productivity and revenue growth management.
Alani Nu’s integration into the PepsiCo DSD system reached a major milestone with the U.S. transition substantially complete by year-end 2025.
Strategic positioning is increasingly focused on the female consumer and expanding usage occasions, such as social ‘mocktail’ moments, to offset headwinds in the alcohol category.
The creation of an in-house ‘brand studio’ aims to centralize creative execution, ensuring speed and consistency across all consumer touchpoints for the multi-brand portfolio.

Management expects to complete the Alani Nu integration by the end of Q1 2026 and the Rockstar Energy integration in the first half of 2026.
Anticipate significant shelf space gains in 2026, including a 17% increase for CELSIUS and triple-digit space gains for Alani Nu as spring resets finalize.
International expansion will follow a ‘focused market selection’ strategy led by a new President of International, prioritizing profitable entry over rapid market volume.
Gross margins are expected to expand throughout 2026 and reach a normalized low-50% range in the second half of the year as one-time integration costs subside and supply chain efficiencies take hold.
The 2026 innovation roadmap emphasizes ‘Fizz-Free’ national availability and a disciplined cadence of Limited Time Offers (LTOs) to drive incremental trial.

Rockstar Energy accounting treatment required $6 million of Q4 revenue to be recorded in ‘other income’ due to ongoing integration; the U.S. portion is expected to transition to the finished goods model in Q1 2026, while the Canadian portion is expected to resolve in the first half of 2026.
A net benefit of approximately $25 million was realized in Q4 results from the combined effect of Alani Nu load-ins and CELSIUS inventory movements within the Pepsi network.
Q4 gross margin of 47.4% was diluted by one-time transition costs, higher aluminum costs, and tariffs, though partially offset by improved outbound freight.
The company reduced debt by approximately $200 million in Q4 while maintaining $260 million in remaining share repurchase authorization.